DAMN YOU, PIG FLU

Sick today. So for the first time in many moons I'm subjecting you to a "Here, go read some other stuff that is more interesting than me anyway" post.

– Sarah Palin is the keynote speaker at the 2010 International Bowling Expo. "Her presence underscores the impact and importance of bowling." This is like a glimpse into her future. She'll be doing state fairs before you know it.

A former Bank of America employee talks about the company's displeasure with her habit of putting as many cardholders as possible on their Fix Pay plan…because said borrowers were poor credit risks. So they were good risks for the 30.99% APR (plus fees) credit card BoA gave them but not a good risk for a 6% fixed APR installment loan to replace the overdue balance on said card. Nice.

– The convicted felon who set Free Republic atwitter with the revelation that he "took drugs [and] had homo sex with Obama" is running for Congress. Contribute now, before he goes back to prison.

– Harry Reid allegedly threatens his caucus with reconciliation. I don't believe it, but if true it certainly is funny how he discovered a nutsack when he realized that he's trailing his race for re-election in 2010.

NATURAL EXPERIMENT

Two days in a row on political science-related topics. I promise I won't make a habit of it.

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People in the social and "hard" sciences like to snipe at one another – they do "real" science with microscopes and Bunsen burners, while we retort that we study things people actually give a shit about rather than tyrosine-specific kinase proteins. One undisputed advantage the chemists and biologists have is the ability to conduct really well controlled experiments. An experiment isn't the only way to study something, of course, but it's pretty cool. Political scientists try to do experiments and some people get a lot of mileage out of it, but you can't really simulate an election or real world decision-making. But we get to do natural experiments. Which is like having someone else do half of the work for us.

If State A adopts voting machines but States B and C stick with paper ballots it sets us up to test hypotheses about the effects of different voting technologies on turnout, wait times, or whatever. Or, to use one prominent example, Nebraska has a unicameral, non-partisan state legislature while every other state has a bicameral legislature with parties. So in comparing the different systems in action we have an opportunity to study a lot of different aspects of the role of parties in the legislative process. Since we can't recreate politics in a lab or control everything we would like in our research, we have to be a little more creative and take advantage of opportunities where they exist.

Now that the President has predictably bowed to pressure and sent another 30,000 people to get shot at in Afghanistan to accomplish…whatever our goal is over there…it is going to be really interesting to watch the poll numbers about the war over the next year. Right now and for the past several years there has been a fairly lopsided partisan distribution in opinions about Afghanistan, with Republicans urging us to "listen to the generals" and send more troops, Democrats opposing it, and independent flipping a coin as usual:

afghanpoll

Something tells me that if we revisit these numbers in December 2010 we'll find that a lot of Republicans are suddenly very dissatisfied with the direction of the war and stridently opposed to committing more resources to it. Are the Democratic numbers going to change as well? I'm a little more skeptical on that one. If anything I think the President is going to find himself increasingly unable to hold his party together, as Bill Clinton did, the more aggressively he reinvents his agenda as Republican Lite, as Bill Clinton did.

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The specifics of the situation are lost on everyone answering these poll questions, of course – nobody has any idea what's going on over there or what we're supposed to be doing (note this hilarious expression of what Americans believe our goal is). That's pathetic, of course, but why let facts or knowledge thereof get in the way of a knee-jerk partisan response?
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THE GIANT SUCKING SOUND

Mike has an interesting thing up on Atlantic about the contribution of credit cards to income inequality. It is not really debatable that credit card issuers make very little money off of the wealthy. For people with ample resources who pay their balance monthly, the only way a credit card company is making money is from an annual fee (which is a drop in the bucket to the wealthy) and merchant fees for purchases, usually 3%. There's no reason to give a rich person a credit card beyond the hope that they will buy a lot of expensive things and rack up fees at the point of sale – fees that are paid by retailers and are invisible to consumers. No, rich people with 0,000 credit limits aren't of much use.
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Giving a bunch of poor people a $2,000 limit and then assholing them with late fees and 28% APRs is where it's at. This is common knowledge.

What is not as widely recognized is the redistributive effect Mike points out. Exorbitant interest rates on high-risk borrowers effectively subsidize the prime interest rates paid by the more affluent (not to mention the benefits to wealthy consumers' stock portfolios when the financial industry rakes in profits). Perhaps that is why we are starting to see stories in the Wall Street Journal about how 90s-style conspicuous consumption is returning to Wall Street – albeit a bit more quietly than before, lest the people who provided the bailout/handout six months ago take offense – alongside New York Times stories about how one in four children in America is receiving food stamps. One in four. Don't worry, though, the right wasted no time reminding us that this is merely evidence of how food stamps are too easy to get.

Yes, our financial industry does a hell of a job of extracting money from plebeians and passing it up the food chain to their social betters. It's not limited to banks and credit card companies, of course. Here in Georgia we have a particularly egregious legislative "fuck you" to the poor called the HOPE Scholarship program. It essentially provides any Georgia high school student who graduates with a 3.0 (which, if I recall high school correctly, is real hard to get) with four years of free tuition at state universities.
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It is contingent upon maintaining a 3.0 in college, but the vast majority of students I see are paying no tuition. So where does the money come from? A Harvard-sized endowment? Hardly. A generous state legislature? Perish the thought. No, it comes from Lotto tickets.

I'm sure there are some legitimately poor students for whom the HOPE program is the determinative factor in going to college. Overall, though, the program sends a phenomenal number of white kids from the suburbs and from middle- to upper-middle class households to college on the backs of people buying Lotto tickets. In other words, on the backs or poor people, including a disproportionate number of black people, with little to no formal education. Yes, in Georgia as in every other state the vast majority of Lotto sales – thanks in no small part to aggressive targeted marketing – are among low income minority consumers. What is ostensibly a magnanimous scholarship program is a weakly disguised plan to suck money from the poor and give it to suburbanites by paying for Billy's four years at Tech.
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You have to admire the sheer amount of balls required to propose such a scheme let alone to pass it.

It will be nice if the broader discussion about credit and debt addresses income inequality.
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What would be really nice, however, would be a passing nod in recognition of the structural and institutional causes of inequality rather than a simple descent into a patronizing moral argument about personal responsibility and meritocracy. These people get screwed because our social, financial, and political institutions are carefully designed to screw them. It's all remarkably effective.