Budgets for Fun: 2012 Edition – Debt, Tea Party & the Grand Bargain

This year we witnessed the debt ceiling debacle, the chance of a ‘Grand Bargain betwwen President Obama & Speaker Boehner, along with the emergence of the ‘Occupy Wall Street’ movement. These events demonstrate that matters of economic policy continue to hold prime importance even three years after the financial crisis of 2008. But the issues of tax, spending and overall government policy appear complicated to most citizens.

But up steps ‘Budget Hero’, with a 2011 update, to help enjoyably navigate the US federal budget. ‘Budget Hero’ allows you to choose government policy and watch their financial consequences, simulated according to assumptions taken from the non-partisan Congressional Budget Office.

First, you choose your priorities:

Budget Hero Badges

What's important to you?

The ‘Tea Party’, ‘President’s Budget’ and ‘The Great Compromise’ badges are new to the 2011 update, reflecting: The Tea Party’s emergence in the political debate, Obama’s difficultly in passing a budget this year and the comprehensive bipartisan budget plans released this year. The Tea Party…

Budget Hero - The Tea Party Goal

Cut, cap and balance...

Continue Reading... Budgets for Fun: 2012 Edition – Debt, Tea Party & the Grand Bargain

“There must be a Reason”: Motivated Reasoning

Motivated ReasoningWe believe what we want to believe. Or do we? At least, it seems that way to me sometimes. This link between beliefs and facts raises issues more complicated than simple desire and bias. In a 2009 scientific study, psychologists and sociologists  observed and documented how people respond when faced with overwhelming evidence that contradicts their beliefs. In the study, the researchers studied the link between the attacks on 9/11 and Saddam. During the 2004 presidential election, many Americans believed that Saddam was at least partially responsible for the terrorist attacks. People with these beliefs tended more to vote for Bush than Kerry. But no evidence for this link has ever been found.

The researchers presented two pieces of evidence to those interviewees who held this false belief. These were 1) A conclusion from the 9/11 Commission Report that stated Saddam was not involved, and 2) A statement from President Bush himself stating that there was no link between Saddam and Al-Qaeda. The researchers presented these facts in a conversational but firm manner. Then, the researchers studied the responses to these facts.

Scholars have explained this perceived link between Saddam & 9/11 through a model called ‘Bayesian Updating’, which assumes people come to decisions by “incrementally and rationally changing their opinions” in light of new evidence. Most researchers determined that the Bush administration and the media had persuaded the general public that there was a link between Saddam and 9/11 by modifying the ‘information environment’. Therefore, these researchers concluded that had the American public possessed the correct information, they would have reached the true conclusion. But this recent study concludes that a different socio-psychological phenomenon is at work; it was not the disinformation that caused their misunderstanding.
Continue Reading... “There must be a Reason”: Motivated Reasoning

That Mosque Issue…

Has the ‘Ground Zero’ Mosque given Republicans a cultural issue to clobber Democrats with in the coming election? No. I doubt this will be a defining issue in the midterms or 2012 presidential election. The economy by far remains the dominant political narrative. If and when the Republicans do well in November, it will because of the economy. There’s a fair amount of research to show that the economy (or the rate of improvement/slowdown thereof) has a significant electoral effect. And the economy looks like it’s going through a post recovery slowdown, so that bodes even worse for democrats. And the situation looks really bad for democrats: FiveThirtyEight shows that polls even 200 days before an election are a good predictor of election outcomes.
Continue Reading... That Mosque Issue…

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