Sunday, September 13, 2020

Economic Recovery-Are My Projections Still on Track?

The economy is showing some signs of improvement through the jobs report and economic activities. I'm reading the Reuters article U.S. economy is improving, weeks before the election. Will Trump benefit? by Ann Saphire and I thinking about whether I'm going to be close in my original projects. It is great that our economy is growing and that can have a big impact on people's lives. Projections are a little like looking in to a "crystal ball" but there are indicators that sometimes give us insight. It is interesting to watch the market and see what makes it tic and hum along. 

Projections can be hard. I'm curious if my belief that the economic recovery will happen in Q3 and be back to normal by Q4 at which time 2021 will see improvements above pre-covid levels. While its not directly tied to the theory I'm working on, it is the principles of the research that I'm using to predict an upswing. In part, its based on improvements in GDP through enhanced network capacities and influx of investments that lead to innovative adaptation and hopefully higher economic growth. 

Retrieved from Reuters

Because I'm curious about how it will work out I will talk about some of the economic news and how it might relate in part to the the theory (You can read more HERE). If my predictions are right that is awesome and if they are not right that is awesome! The outcome isn't really tied to the theory. The theory is about economic developing in a Digital GDP world and how that will change our economic assumptions to fit more with a network cluster development type theory; or the Theory of Transactional Clusters.

I'm just sort of playing around with different aspects of the theory to see if they can be useful for economic activities in an economy that relies increasingly on a virtual world/economy. I wrote in April the article GDP Contracts 1st Q of 2020-Is It a Short Lived Shock and Digital GDP Recovery? that relates in more detail what a digital recovery might look like.



Saphire, A. (September 11th, 2020). U.S. economy is improving, weeks before the election. Will Trump benefit? Reuters. Retrieved September 12th, 2020 at https://www.reuters.com/article/us-usa-election-economy/us-economy-is-improving-weeks-before-the-election-will-trump-benefit-idUSKBN2622TG


Friday, September 11, 2020

Who is Going to Win Executive Orders in the Supreme Court of Michigan?-Conflict Leads to Definition

Emergency powers has been enacted in a number of states to squelch the spread of COVID. Since that time the political and medical landscape had changed and the essential question of how long can a Governor have emergency management powers. I'm not a big conflict supporter but do sometimes see the benefit of conflict that leads to greater defining of an essential issue of who and when we can and can't use emergency powers and when do those terms end. This article isn't about picking a side or talking about who is right or who is wrong. In a pandemic it is very hard to make perfect choices with imperfect emerging information and thus conflict helps us define essential issues that could be used in the future. 

Let me say I'm taking a bird's eye view of this from an objective viewpoint and not really discussing my personal opinion on when emergency powers are expired. My interest is in the political mode of conflict and how groups disagree but that these disagreements can sometimes be more beneficial than harmful if the parties come to a resolution of important topics. (Trust me...I'm not in favor of most conflicts 😑.)

One wants a 28 day limit and the other one doesn't. Let us just use two denotations to create more objective clarity R FOR 28 day limit and G for NOT 28 days (I couldn't think of a better one😬). R and G are our two logical terms that will be used to denote the opposing sides. I suspect we could build an equation out of this if we really put some effort into it. That is not in the scope of this post either. 

R and G are upset over a contract interpretation and they have a conflict. One says Its OK and the other says its not OK. They try and settle their differences and they can't and still fell upset after talking so they want a third party to help. So we have to introduce factor C (πŸ™ˆπŸ™‰πŸ™Š) They have been to court 2X  so we have C1 and C2 and they want to go again so we can introduce C3. C1 and C2 have ruled in favor of G thus far but no one knows what C3 will do. 

How will C3 decide?

Well...I have no idea! πŸ˜‚ What I can say is that there is a lot of ambiguous information and there are ways in which we might break down and analyze the outcomes. There are some models out there and I will refresh my memory and share a little latter. However, I do know that this is a point in time so I want to use a trajectory so as to look at the very next likely step. 

I'm going to say again that I'm not a legal expert and am only slight familiar with how all the appeals processes work and under what circumstances. What I can say with my labor relations experience is that there are methods to dealing with this ambiguity to help decide what the likely options are. Thus, we need to look at some data so we can create some trends that help us predict the future. 

We might look at C1 and C2 and sort of predict that C3 will be the same just using probability. We might always want to review what courts have typically decisions in order to better understand how appeals courts ruled. We can thus look at prior court cases for trends in information on such things as reverse rates, total amount lost, lawsuits per year, political background, income, education, etc.. etc... etc... Whatever information is available gives us a hint. 

As a side note that is what is scary about cyber crime in that when multiple databases are hit they create lots of information and sometimes this triangulation of hits leads to new knowledge. Other times there may be enough information to create historical trends because past behavior predicts future behavior. The point being, a lot of information creates insight when it is put together well and interpreted by skillful people. πŸ™ˆ

This isn't a novel idea. The intelligence community and high powered attorneys use these skills from time-to-time. For example a study of past behavior modeling of courts and the supreme court found, "Casting predictions over nearly two centuries, our model achieves 70.2% accuracy at the case outcome level and 71.9% at the justice vote level." (Katz, Bommarito & Blackman, 2017).

In this case you would have to model at the Michigan and Supreme Court level. While 70% is accurate and narrows down the ambiguity it still leaves a lot of room for error. You will want to use other decision matrix to help determine other potential choices. Because we are dealing with real actors and living people with animal spirits we must assume some rationality in decision making. Courts are typically places of higher levels of rational thought (Depends on who you ask and assuming the courts are using both critical thinking and morality in the process πŸ˜•.)

To balance this out I could use other tools to help me make decisions and Game Theory and probably another one. I like Game Theory because it interactive with moving players in a fluid situation. that doesn't mean it doesn't have its downfalls. Its just that it allows for presence of the utility of agents that can change and adjust at each of the stages to create possibilities and potentials that can be quantified. So that 30% looks something like perhaps 15%. 

A gap of 15-30% is a still a big open unknown space for people and that can be risk. Because we are dealing with novel situations that will require additional cognitive effort by the judges to fall back and rely more heavily on their strengths and personalities. This is where one would get into deep psychology and how personality impacts choices. It could go into such detail that people might be able to use neuroscience to understand human choice at a granular level.

Its not that simple though as these random "acts of God" that happen that mess it all up. We have no idea where they come from but even the best plans are subject to derailment. New information, environmental changes, political shifts, etc... all impact the context of choices. In all prediction games there is an element of randomness where even if you think your really really sure it will turn out, it doesn't, and you missed something in your calculation such an unknown or random event. Thus you must control for the unknown and randomness in some way (Way beyond the scope of this article). 

So R, G, C1, C2 C3? are all part of the same problem. If we analyzed the situation well we might have narrowed it down to being 87% sure of who will win. There is still enough large variability that one cannot discount the opposite occurring. In business we would try and hedge some risk but ultimately people will put their resources where they are likely to have a win. In business we might analyze cases to understand what new industry and legal landscape changes are occurring. 

If you want to know more about predictive analytics and some of the different models you can look at a pretty good piece entitled What is predictive analytics? Transforming data into future insights that states, " Predictive analytics is a category of data analytics aimed at making predictions about future outcomes based on historical data and analytics techniques such as statistical modeling and machine learning"(Edwards, 2019, para 1).  

While we narrowed down the most likely choices we must still use common sense. We can make predictive modeling of the possibility of reversal, adjustment and confirmation of previous legal decisions. We may find the case won't be heard and we have a vaccine as an act of a changed playing field and thus decisions that might have ended one way ended up another way; while the fundamentals of the case didn't actually change but their context did. So at the upper levels Supreme Court Justices must make decisions that impact a whole different set of expectations. If we knew what those are we can create better decision matrix by reintegrating that knowledge into our existing method. More information continues to adjust and make increasingly accurate the predictions. 

I have a good idea of which side I think will win but that is just my personal opinion. Remember that this case defines certain powers between the executive and legislative branch during an emergency so it is best we just define it and keep moving forward. 


Katz DM, Bommarito MJ II, Blackman J (2017) A general approach for predicting the behavior of the Supreme Court of the United States. PLoS ONE 12(4): e0174698. https://doi.org/10.1371/journal.pone.0174698

https://www.detroitnews.com/story/news/politics/2020/08/21/whitmers-emergency-actions-upheld-court-appeals/3402687001/

President Trump Holds a News Conference 09/10/20

 President Trump discusses lives saved, improved job market, Afghan peace discussions, and much more. We are going through tough times as a nation but we must continue to worry about the other things going on in the world. They just don't disappear because we are focused on COVID. True...they may go on pause and everything settle down because people are using their energy and resources to fight the pandemic. Sometimes problems aren't so important after major events and other times the become even more important. Watch the video to understand what is currently going on in the country.

Thursday, September 10, 2020

Governor Whitmer September 10 2020 Press Conference

Governor Whitmer provides news update on Michigan. The state has lower COVID cases when compared to other states. This means people were able to social distance and tracking/monitoring made a big difference. Yes... there are so many other factors to consider but on the surface its an impressive number. Frontliners program are helping to finance front line workers for free college. Furthermore, there was discussion on helping people update their skills through education grants. You will need to watch it yourself to get the details. It does look as though we are on the back end of this thing 😷! Hopefully!

Wednesday, September 9, 2020

President Trump Delivers Remarks on Judicial Appointments

 President Trump discussion Judiciary Nominees. The Supreme Court is the top court in the land and having nominees often means that people will be selected based on their backgrounds, ideologies, and personality. The court influences our laws and cultures. When they make a decision it is pretty much final. Having people you trust on the panel influences the ideological viewpoints through rulings.

How The Economic Machine Works

It is helpful to understand on at least a rudimentary level how the economy works. Each of us must find our place within the economic system. That place should be defined by our natural skills and abilities. Sometimes we have other factors that skew that development from racism/bigotry all the way over to family structure. Developing capitalism rests in many ways on how we use labor and in turn the development of full human potential. Thus, there is a larger economic cycle and system at play where factors such as labor development, investment, resources, etc... connect and interact with each other to develop a perpetual moving system that allocates and uses resources during its change cycle.Understanding the system allows us to create greater fiscal policies. 


Tuesday, September 8, 2020

In Search of Delta County's Queen City Shipwreck-Some Functional Characteristics

A few divers and I have formed an ad hoc team of people who are seeking to search out and find Queen City shipwreck in Delta County. The team consists of two deep/seasoned divers, a archaeologist, and me. It is kind of cool to be invited to ship wreck. I suppose I have some diving experience over the last couple years, boating, research and other organizing skills (ummm gift for gab) to go and look for this boat. Its a great project and it will be fun to really go a National Geographic type hunt. 

Delta County Michigan has a lot of shipwrecks still not found. Visit Escanaba has some resources on local shipwrecks that may be of interest. A little more information at the Delta County Historical Museum. The amount of wrecks in Delta County is substantial but the number eludes me. I think it was around 40-50 but many are undiscovered so there is room to explore.

Queen City is a ship that hasn't been found despite being suspect in semi-shallow water. We have its general location and a navigation map where other researchers have previously explored. We are going to continue off of that map and we are going to canvas the likely areas looking for structural changes on the bottom of the water. If we can find something of interest we will stop and dive off to see what it is. There will be other strategies I'm sure but this one gets us out there in a few days. 

Its not my first shipwreck dive but it is my fist shipwreck hunt. The principles of research will be relatively the same as other studies but they will be adapted to shipwreck study. Where we need specific knowledge we can talk with the archaeologist and/or divers as the case is needed. Furthermore, it is possible to hedge volunteer researchers/historians. 

The one beautiful thing about the U.P. of Michigan is there are lots of historical society and people who love to study this stuff. When I review the literature about the ships we can find the authors. Most of those are historians themselves and can be contacted. I guess that is why we should include references and contacts with our work. I have used that option a lot over the years. 

Much of the basic work has been completed by the time I got asked. There is an amateur historian-diver connected to the group and they have reviewed the documents and have a pretty good idea (with the map) to start looking. However, I think it would be beneficial to contact the ports and historical societies in the ports where it did the most commerce to see what information they have. 

My suspicion (and I'm not an expert in nautical history) is that there may be more paper logs out there that talk about the ship, give hints to its cargo, and how much commerce it contributed to local commerce. I also think no one went back to contact the owning company and/or its chain of ownership just to see if they have any knowledge of the ship. They might love to be a little involved! Just for the marketing purposes alone! Its an idea I might bring up when we meet again. πŸ‘€

At present it looks like we have a knowledgeable team, a methodology, including research approach and a wide network of specialized divers (including ice and deep) that can be called upon to help us for free if we need it. I have dived with many of them and I can say the are really nice people and truly enjoy helping out on dives and an excuse to do it with people they like. Each of us has some experience with the others and we have our own individual skills.

 We are at present just paying for it ourselves and are taking a semi-serious recreational approach to it and we think it would be helpful to the understanding of local history. Perhaps it can help bring awareness of Delta County tourism offerings as well the economic aspects of the area. With luck we can find some artifacts and can film them and see what the next steps are with local historical societies and state/local permits. While we plan on giving any findings to the local museums and on having lots of fun trying. Maybe there are grants for these things to augment some of the costs? I might have to look and see if there is anyone interested in sponsoring the costs (which we are willing to flip ourselves for tanks and gas and stuff).