Limitations of the Data

The first thing any empirical analyst should learn is to identify the limitation of the data for predictive utility.

Recognizing the limits is not just for the data itself but also for the analytical modeling.

A mathematical model, for example, that allows for leveraging assests with little-to-no-risk because the "system" is "self-correcting" incurs a risk of ignorance of a monumental proportion.

The most recent example of invoking a pluralist legitimacy, and low risk, of the outcome through consolidated means very clearly demonstrates the moral hazard of trying to hard boil an egg with dry ice. It is "hard" alright, but not legitimately boiled.

The frozen liquidity of the easily predictable crisis of most recent record operated with a free-market (democratic) legitimacy through non-free-market (undemocratic) means. The crisis was inevitable and the correction (the recession) is anything but a beneficial exercise in empiricism (the philosophy of inductive, continuous improvement in which pure modeling has a continuously verified limitation).

If modeling the economy into crisis over and over again is not considered a mistake, then it is considered the intended outcome. The analyst is able to fully and accurately predict the outcome based on the public policy designed to manage the gamma risk.

A single-payer system for health care is a good example.

If government provides the pluralistic check to private-sector enterprise (the gamma risk), when government becomes the provider, or the payer, where is the check and balance? The "risk" to the pluralistic process is so high to warrant a clear demand, a confirmation, of pluralistic processes over singular (consolidated) forces of legitimacy.

The polarity has not just been reversed with a single-payer system because government is an entity of ultimate authority--it presents the "gamma" risk that cannot be avoided or checked.

Government should be there to ensure the plurality of the marketplace in priority, not absorb it to check the accumulated power of private sector entities. Solving the problem with the problem is an illusion suffered by the perfect abstractions of mathematical modeling intentionally masqueraded as the ontology of an empirical truth.