Artificial Intelligence. Neural Networks. Deep Learning. Business. Technology.

Could AI Manage an entire Economy.

AI could look at multiple factors to maintain standard benchmarks.

What is the story with AI in growing the economy.

Issues.

Money supply and flow: Problem inflation rates: deflation, growing inflation, hyper inflation. High short or long term interest rates. Tight money or money printing. High asset prices, transaction costs and diminishing rates of return.

Supplies and workers: High materials costs based on demand side or supply side issues. Tight employment and hiring or rampant unemployment. High labor costs or low productivity increases with low wage growth.

For increase in activity: Low efficiency and growth rates. Or bubble market GDP expansion. New technology breakthroughs or lack of innovation. Revolution change. Need capital spending, infrastructure investment, new education facilities.

Variables.

Macro level: Assistance to small business or local organizations. Command economy with government enterprises and agencies. Provide or curtail availability of local or international resource supplies.

For production: Alternative supplies and new sustainable resources and energy. Alternative means of production and diverse sourcing of services. Alternative markets and novelty uses of products for new consumers.

For industries: Proliferation of markets: local, int’l, online, auction, wholesale, retail. Supply chain logistics with increasing trade locally or internationally. Outsourcing of services or contracts for offshore parts manufacture.

For companies: New technology research. Along with development and design. New avenues for financing from corporate business or large banks. New media for advertising, marketing and sales for new consumers.

For government: Changes to monetary policy for central bank with reserves and rates. Changes to government borrowing along with tax rates and levies.

Laws and rules: Availability of patents and expiration. Public domain and licenses. Increasing regulations, increased scrutiny and stricter enforcement. Look out for environment, labor, women, diversity, seniors, challenged.

How will AI come to the rescue.

Lofty Goals.

Using the framework, the AI would use current news to manage variables.

Competition. Allow for fair competition amongst businesses to satisfy real needs of the consumers using efficient operations.

Optimized. AI should be able to look at the publicly available economic data listed below for highest growth rates and highest employment rates with lowest inflation or tax rates or interest rates.

Holistic. While at the same time taking care of struggling industries, the infrastructure, the environment, labor laws, safety and emergencies.

Minutiae Details.

Specifics. Rather than looking at macro factors or micro drivers, AI would be able to trace particular resources, production, management and supply chains to investigate where problems really lie. Or potentially lurking.

Inefficiency. Barriers to entry, local fiefdoms, discrimination and rigged contracts. Need to investigate economic bottlenecks and pending checks.

Changes. Macro changes to technology, infrastructure, taxes, supply chains, trade laws could be managed and tracked with more understanding.

The economy should become more efficient with increase in leisure time.

Economy.

Variety of markets, assets, financial instruments serve as a store of value.

Investors. Level of investor sentiment, small business optimism and stock market trends. Level of shorting of stocks and hedges on portfolios.

Growth. Check if economy is tending toward bubbles or moving towards recession. GDP numbers, GDP deflator, productivity, unit labor costs.

Inflation. Inflation and Federal interest rates and Provide Fed repo window for emergencies. Supply side or demand side inflation. Look at CPI or PPI numbers. Food, energy or employment inflation.

Unemployment. Check lowering of unemployment towards natural limit while maintaining wage stability. Check the number of people on unemployment insurance and needing federal assistance. Participation rate for number of people dropped out of the workforce and stopped looking for work. Initial jobless, continuing claims numbers, hourly earnings and unemployment change numbers.

Markets.

Bonds. Bond prices should move higher as interest rates decrease and cost of borrowing decreases.

Trade. Trade should increase along with better trade balance. Lower import prices and higher export prices. Oil and gas inventories should be high.

Currencies. Stable value of US Dollar and comparison with other currencies.

Enforcement. Check and monitoring of scams, frauds and rackets that could be slowing growth or showing false profits.

A full spectrum economy with wide range of industries at different growth rates.

Government.

Building institutions for support with quality, safety, security.

Taxes. Government spending on things besides defense, social security, Medicare, Medicaid and interest payments. Increase taxes for growing industries. Provide tax rebates and incentives for slowing industries.

Infrastructure. Infrastructure spending on highways, bridges, waterways, power lines, internet fiber, ports and airports. Also consider daycare, schools and hospitals.

Healthcare. Spending on emergency care, preventive tests, rehab facilities, hospitals and prescription meds.

Crime. Check levels in affluent society as well as low income areas. Students and temp workers as well as technical and professionals.

Externals.

Environment. Keep increasing environmental regulations for better air, water and soil standards. Check for emissions, pollutants and toxins.

Defense. Look to increase defense spending based on wars and conflicts.

Disasters. FEMA and emergency assistance for natural calamities such as fires, floods, blizzards and storms. Check for insurance protection and provide funds for rebuilding.

Collapses. Loss of economic growth for certain industries, locations, ethnic groups or work skills. Highlight for remediation.

Government support, assistance and enforcement for variety of needs.

Business.

Production, employment, transport and consumption.

Industries. Look at the different factors driving diverse industries and the output rates: resource, service, manufacturing and tech. Also need to look at education, finance and housing industries. PMI for manufacturing and services along with durable goods orders, factory orders, capacity utilization.

Facilities. Besides the standard production output, also look at capital spending, inventories, depreciation, human resources and retirement.

Logistics. Look at the spread out supply chains and convoluted logistics operations. Look at the increased time and risks.

Employment. Rates of hiring along with levels of wage inflation across different professions and experience levels.

Working Conditions. Labor laws, diversity, safety, pollution, security, hazards as well as work timings and work loads need to be monitored.

Public.

Shopping. Look at consumer expectations and consumer confidence and see how this affects retail sales, retail inventories, personal spending, consumer credit.

Housing. Look at housing increases and quality of housing. Check on availability of loans and interest rates. Mortgage applications, mortgage rates, building permits, housing starts, new home sales and existing home sales.

Education. Check for levels of education and graduation rates. Check on admission rates and availability of student loans. Development of human resources with skills, tools, collaboration and health.

Poverty. Look at rates for poverty, homelessness and joblessness. Also look at how this affects development and the underground economy.

Active businesses, consumers and cultural organizations for a vibrant society.

Worldwide.

How would this be useful in any economy at any growth stage in any country.

Tracking Production. Automatic collection of information at every step of the way using the internet and wireless. Current up to date statistics and dashboard with variety of reports. Open and free system of economic governance for the masses. No need for special tax filing for ordinary citizens.

Economic Theories. Different economies are at different stages of development. AI could use different models to evaluate the economy and propose a variety of solutions. Whether Maynard Keynes, Vaclav Havel or Milton Friedman.

Variety of Metrics. Not just GDP and growth rates. But look at health, education, housing, crime, equity, fairness, diversity, quality of life and standard of living.

Results.

Effective Government. Would this reduce corruption. Would this lead to better elections. Would this lead to better elected representatives.

Growth Business. Would this lead to growth in business and decrease in poverty. Better health and education. Better transport and communications. Better parks and recreation.

Personal Values. More free time, hobbies, fine dining, concerts or sports leagues. More values and higher standards. More community life and lively neighborhoods.

Would this finally help citizens and government to become functional. Would more accountability lead to more economic rewards.

Thank You !

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