Thursday, February 5, 2009

Harmonious Modeling

Now we begin.

To build the new analytical framework needed to allow the Obama Administration to deliver on its promise of change, the following steps will be needed:

1. Empower the analytical team.

2. Develop team strategy.

3. Assemble the team.

4. Review existing models.

5. Survey new models.

6. Integrate models.

The goal is an efficient transition from the existing structure to one appropriate to the twenty first century. Any new structure will start with the existing economic/financial/public policy structure and integrate the needed actuarial, complexity and data structures.

Examples of output from the new model include:

Year
Scenario
Factor

Population
Resources
Infrastructure
Demographics
Health
Welfare
Defense
Medicare
Social Security
Debt Service
Transportation
Housing
Energy
Manufacturing
Financial
Education

GNP
NEW*

*Net Economic Welfare

It should be pretty obvious how such a model would transcend and improve upon existing ones. This model could test a wide variety of complex options, and even after an option is chosen it could monitor results and make adjustments as needed. It could test the actuarial soundness of results as well.

It could also test sustainability of results in terms of available resources and population levels.

It's time to get serious.

Yes we can.

Lee

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