Obama Said Chill, So Chill!

Obama's economic team is working to use dynamic stochastic general equilibrium... wait wait wait, an economic "team"? I would, along with most everyone else in the country, probably stop right about there. It’s not that we don’t under the word “team,” it’s just that there’s only so much Americans can handle hearing intellectually in one sentence. President Obama might have problems in finding the finality of a solid economic structure, but wouldn't you find it understandable considering the alternative is us not being able to pay attention?

Obama’s "economic team" at this point in time has found refuge in leaving the classic economic finer points of past eras in an attempt to boost the spirit of the depressed beast that is the economy of the United States. The multiple different strategies he is attempting are definitely new and ingenious to the government, but may also prove to be an archetype for administrations to come.

Dynamic Stochastic General Equilibrium, or DSGE for short, is an economic structure that is a branch of the general equilibrium theory which today’s politics consider to beincreasing influential in contemporary macroeconomics. Obama’s critics believe this a flawed system that assumes the economic world will stay perfect, when in reality it’s still depressing. The other main structure is econometric, which critics also have questions with because econometric maintenance is said not to hold in the face of great change. This claim, however, has not been well-tested and the result of a DSGE is still up for debate as to whether it is disastrous or favorable.

Although these two are in fact included somewhat in economic decisions, they are not at all his only two plans to use for the financial beast of the United States. That might be the reality, but due to slanted news articles and online opinion entries, the case is still and always will be ignorance and advice. This is where I find problems. Some new ideas on the brighter side seeing light include the introduction of agent-based modeling. Agent-based modeling is a computerized simulation of a number of decision-makers (agents), which interact through prescribed rules. The agents can be as diverse as needed — from consumers to policy-makers and Wall Street professionals — and the institutional structure can include everything from banks to the government.

When Obama ran for office I clearly remember one of the things he reinforced over and over again in his speeches was the idea that you can’t change an entire country by yourself with just one year, but in four years of presidency you would definitely see change. I’m not saying people should hold back critizing things about Obama if they want, but this time I want an honest consideration. We, as a great country, as the United States of America, need to make sure that we sympathize. Yes there are crises all over and yes we are in a depression, but we did elect him and we should try to stand behind him and see if he and his economic team can make something positive out of this negative.