Congress To Investigate the Data Sellers - Need To Create a Law to Tax Them As The Algorithms Used For This Business Generate Bi
Posted Jul 25 2012 3:51am
Everybody knows this is favorite topic around the Medical Quack as we don’t seem to have anyone who is aware or who will talk about what a huge gold mine this is as billions and billions are made mining data. As a matter of fact we are basing a little to much of our economy on algorithms and forgetting about creating some addition tangibles so we have jobs..get that? It’s funny as I don’t normally back much the GOP comes up with but singling out one industry for excise taxes, namely medical devices is dated. When healthcare reform was written, the economy was different and the good old algorithms have made the shifts for us. Now I’m not giving the GOP any real credit for research here as they don’t want any tax and this one just happened to fall into that category.
I am surprised the Medical Device business has not jumped all over this one. Sure some device companies sell data and they would be in the group and could pay their share but the would hit a lot less than one tax centered on their market only. I’m going to add some links here for additional reading since I have written about this so extensively that I’m going to save my hands a little keyboard action here as I have already written a rough suggestion on this topic many times. In addition “The Attack of the Killer Algorithms” and flawed data enters in here too. Some of the stuff they sell for profit is flawed!
There are folks higher than me that have written and agree with me on the flawed data side of this. Just a few days ago I wrote a post about “Algo Duping” consumers and society and I guess that goes for lawmakers too as nobody seems to get the difference between formulas that are made for “desired” results and those that create “accurate” results and two should be the same, but not always. All you have to do is listen to Jamie Dimon with “I don’t know” and there’s your answer as the CEOs have no clue either. I was actually very flattered to hear some comments from the folks at Nielsen and Bloomberg on this one…the “Algo Duping” so I guess I said something of value and thank them for their comments:)
Actually if more economists would collaborate with more mathematicians I think we might have a little better forecasting going on as many economists sometimes get those “flawed” reports and rely on antiquated methodologies of math too, so bump head guys and see what collaboration might do. How much is that algorithm in the window?
We have government agencies that have been spoofed as well with some of the flawed data that results from the “intelligence” that emerges from business intelligence that is working for the “desired” results that may not be totally accurate. Again it’s hard to tell the difference at times and when you spin some of the information multiple times and use the old methodology of repetition, we start believing that some of the flawed data is the truth until someone proves otherwise and thus we continue with the world of insanity to where it starts getting out of control as the claims are way beyond what is commonly known to be true. Getting to the bottom of what really is the truth is becoming a big challenge.
Data mining leads to spun data in many areas and it hurts consumers as we are now getting credible data combined with non credible data and crunching numbers is fine but when you do something like FICO sells on the medication compliance analytics they sell, we have mismatched data as this is the perfect example of credible with non credible information being combined. How do you combine such intelligence and then turn around and score people individually from zero to 500 and sell that analyzed data to insurance and drug companies as being credible? It hurts consumers as we don’t have enough folks out there that know how to work with “flawed data” and take everything they see on the computer screen to the bank? There’s the big part of the insanity today and when a naïve novice looks at such numbers a patient may get denied access to medications. Duh?
”Hey dude let’s crunch some numbers and see if we can come up with some analytics to sell”
So I hope in this endeavor that the lawmakers see this for what it is with mining data and look at the huge potential pool it is for a quarterly excise tax. This is part of the reason that inequality keeps getting worse. If you have not figured it out yet, algorithms move and make money. How do you think they did the big mortgage scam…they did it with “spun algorithms” and they sold that credit data, so let’s tax the banks and the corporations getting richer doing so. How big is this pot, example, Walgreens in 2010 made just short of $800 Million, and that’s revenue from selling data only, none of their other business included here so you can figure out how many billions upon billions in profits are out there.
On my blog if you scroll down the “Killer Algorithms” has it’s own section and you can read 35 posts of things that happen to you or others in every day life..it’s the algorithms and lawmakers and politicians don’t get this as it might be above levels of comprehension and that’s why so many of them are useless, talk is cheap but algorithms move and make money. Here’s a good video from someone else who reads here once in while, context is everything and this video too has a permanent spot on the Medical Quack, so where’s the context with those data sellers?How much data has been spun? I was actually looking at my web stats and I’m seeing Google searches now for the “Killer Algorithms” and thank you to those that read the chapters too as we really are under math and code attack. I don’t know when Chapter 36 will appear but on the look out for the next one.
It’s all about the algorithms Congress…please listen up. BD
Again if we want to get revenue from taxes this is it! We can’t win with taxing the rich with Congress but we can certainly win here and those mining and selling data should be licensed and taxed. Poor state servers slow down to a crawl with all the bots in there and they get paid pennies from the companies who access the data. Some states have had to put in more software to keep some of the bots out, so we get hit again as taxpayers to pay for that expense.
In a move that could lay bare the inner workings of the consumer data industry, eight members of Congress have opened a sweeping investigation into data brokers — companies that collect, collate, analyze and sell billions of details annually about consumers’ offline, online and mobile activities for marketing and other purposes.
Representative Edward J. Markey, Democrat of Massachusetts, and Representative Joe L. Barton, Republican of Texas, co-chairmen of the Bipartisan Congressional Privacy Caucus , along with six other lawmakers, sent letters of inquiry on Tuesday afternoon to nine leading industry players. In the letters, the legislators requested extensive information about how the companies amass, refine, sell and share consumer data.
Data brokers often collect details about people’s financial, retail and recreational activities to help clients like airlines, automakers, banks, credit card issuers and retailers retain their best customers and woo new ones.
But Mr. Markey said consumers also needed greater access to data collected about them so they could make more informed choices.
“You have to make sure that the values of the physical world accompany the transition to the virtual, digital world,” he said.