“Nothing that is off-limits to political data mining”

Your consumer data is of value to political campaigns and parties eager to reach individual voters:

But as presidential campaigns push into a new frontier of voter targeting, scouring social media accounts, online browsing habits and retail purchasing records of millions of Americans, they have brought a privacy imposition unprecedented in politics. By some estimates, political candidates are collecting more personal information on Americans than even the most aggressive retailers. Questions are emerging about how much risk the new order of digital campaigning is creating for unwitting voters as the vast troves of data accumulated by political operations becomes increasingly attractive to hackers…

“There is a tremendous amount of data out there and the question is what types of controls are in place and how secure is it,” said Craig Spiezle, executive director of the nonprofit Online Trust Alliance. The group’s recent audit of campaign websites for privacy, security and consumer protection gave three-quarters of the candidates failing grades…One firm, Aristotle, boasts how it helped a senior senator win reelection in 2014 using “over 500 demographic and consumer points, which created a unique voter profile of each constituent.” Company officials declined an interview request.

When investigators in Congress and the FTC looked into the universe of what data brokers make available to their clients – be they political, corporate or nonprofit – some of the findings were unsettling. One company was selling lists of rape victims; another was offering up the home addresses of police officers.

I think several things are relevant to note. First, it sounds like the majority of this data is not collected by political actors but rather is aggregated by them to help predict voter behavior. In other words, this data collection is happening whether political actors use the information or not. This is a bigger issue than just politics. Second, should American residents be more concerned that this information is available in the political realm or is available to corporations? The story suggests political campaigns aren’t well prepared to protect all this data but how do corporations stack up? Again, this is a larger issue of who is gathering all of this data to start, from where, and how is it being protected.

Another area worth thinking more about is how effective all this data actually is in elections. This story doesn’t say and numerous other stories on this subject I’ve read tend not to say: just how big are the differences in voting behavior among these microgroups or people identified by particular consumer behaviors? Is this the only way to win campaigns today (see media reports on political campaigns successfully using this data here and here)? Is this knowledge worth 1% in the final outcome, 5%, 10%? Perhaps this is hard to get at because this is a relatively new phenomena and because data companies as well as campaigns want to guard their proprietary methods. Yet, it is hard to know how big of a deal this is to either consumers or political actors. Is this data mining manipulating elections?

Max Weber, Bernie Sanders, and a difficult revolution

Why not have more sociological theory applied to the 2016 election? Here is one application of Weber’s ideas to Bernie Sander’s chances for starting a revolution:

Max Weber, the great sociologist best remembered for coining the phrase “Protestant work ethic,” would have loved Sunday’s Democratic debate. Leaving aside the sad and quixotic figure of Martin O’Malley, the two main contenders Hillary Clinton and Bernie Sanders perfectly illustrated a distinction Weber made in his classic 1919 essay “Politics as a Vocation.” In that essay, Weber distinguished between two different ethical approaches to politics, an “ethics of moral conviction” and an “ethics of responsibility.”

Sanders is promoting an “ethics of moral conviction” by calling for a “political revolution” seeking to overthrow the deeply corrupting influence of big money on politics by bringing into the system a counterforce of those previously alienated, including the poor and the young. Clinton embodies the “ethics of responsibility” by arguing that her presidency won’t be about remaking the world but trying to preserve and build on the achievements of previous Democrats, including Obama.

The great difficulty Sanders faces is that given the reality of the American political system (with its divided government that has many veto points) and also the particular realities of the current era (with an intensification of political polarization making it difficult to pass ambitious legislation through a hostile Congress and Senate), it is very hard to see how a “political revolution” could work.

Read Weber’s piece here and a summary here. As I skim through the original piece, it is a reminder of Weber’s broad insights as well as his occasional interest in addressing current conditions (political unrest in Germany). Wouldn’t Weber suggest that either Sanders needs (1) a ridiculous amount of charisma (which he has to some degree to come this far in politics) and/or (2) unusually large-scale support from the public in order to counter the power of  existing government? Reaching either objective this time around may prove too difficult…

Scientific misinformation flows through online echo chambers

New research examines how scientific misinformation is dispersed:

Research published this week in the journal Proceedings of the National Academy of Sciences maps out the factors that influence the spread of scientific misinformation and skepticism within online social networks — and the findings were disturbing.

“Our analysis shows that users mostly tend to select content according to a specific narrative and to ignore the rest,” Dr. Walter Quattrociocchi, a computer scientist at the IMT Institute for Advanced Studies in Italy and one of the study’s authors, told The Huffington Post in an email. Users are driven to content based on the brain’s natural confirmation bias — the tendency to seek information that reinforces pre-existing beliefs — which leads to the formation of “echo chambers,” he said…

For the study, the researchers conducted a quantitative analysis of articles shared on Facebook related to either conspiracy theories or fact-based science news. They found that users tended to cluster within homogenous, polarized groups, and within those groups, to share the same types of content, perpetuating the circulation of similar ideas.

Is the problem echo chambers or believing misinformation (when certain people want you to believe something else)? The way this article in the Huffington Post is written, it suggests that conservatives get stuck in these echo chambers – particularly for an issue like climate change – and don’t have a chance to engage with the real information. Something then needs to be done to break into or out of these echo chambers. Once people are exposed to ideas beyond the cluster of people like them, they will then find the truth. But, it may not work exactly this way:

  1. What if people actually are exposed to a range of information and still believe certain things? Exposure to a range of ideas is not necessarily a guarantee that people will believe the right things.
  2. How does the echo chamber participation on the conservative side compare with the echo chamber influence on the liberal side? The research study found echo chambers on both sides – the conspiracy and the science sides. Humans tend more toward people like them, a phenomenon called homophily, as found in numerous network studies. Are we worried generally that people might be too influenced by echo chambers (and not figuring out things for themselves) or are more worried that people have the correct ideas? Depending on one’s perspective on a particular issue, echo chambers could be positive or negative influences.

Illinois bans creating new government bodies for four years

Among new laws in Illinois is one that limits the formation of new government units:

HB 0228: Prohibits creating new levels of government for four years.

The Chicago Tribune interprets this law:

No new units of government can be formed in Illinois for four years.

According to Illinois Policy, Illinois has the most local governments with 6,963, giving Illinois nearly a 2,000 unit lead over Texas. A four year ban presumably slows the growth of these government bodies but I still have questions about the efficacy of this law:

  1. Does this translate into savings for taxpayers? Perhaps it simply slows future costs.
  2. Does this mean that lawmakers were unable to consolidate local governments and this was the best they could do? On one hand, people decry the spread of local governments and taxing bodies but they tend to like local control when it suits their interests.
  3. Are any others states ever going to approach the number of local government units that Illinois has?

What politician would kill the 30-year fixed-rate mortgage?

The second to last chapter of Shaky Ground: The Strange Saga of the U.S. Mortgage Giants includes this summary of the American housing industry:

But there is widespread agreement among policy makers on at least this element of investors’ argument, which is that you cannot keep a cheap, long-term, fixed-rate mortgage available to the wide swath of Americans through big economic ups and downs without some sort of government backstop. There is a reason no other country has such a product. For all the supposed ideological purity in today’s Washington, no politician wants to be responsible for the loss of something Americans have come to see as a right. Indeed, despite Alan Greenspan’s admonition years ago that many Americans would do better with adjustable-rate mortgages, in November 2014 a stunning 87 percent of Americans who took out a mortgage to buy a house chose a 30-year fixed-rate mortgage, according to data from the Urban Institute.

As the rest of the book argues, the 30-year fixed-rate mortgage today the result of particular arrangements involving Fannie Mae and Freddie Mac. Americans after World War II may have thought they were after owning a single-family home but less attention was paid to what was undergirding all of this: a particular financial instrument – the 30-year fixed-rate mortgage – that made some people a lot of money and helped dictate other areas of policy and social life.

Cruz campaign using psychological data to reach potential voters

Campaigns not working with big data are behind: Ted Cruz’s campaign is working with unique psychological data as they try to secure the Republican nomination.

To build its data-gathering operation widely, the Cruz campaign hired Cambridge Analytica, a Massachusetts company reportedly owned in part by hedge fund executive Robert Mercer, who has given $11 million to a super PAC supporting Cruz. Cambridge, the U.S. affiliate of London-based behavioral research company SCL Group, has been paid more than $750,000 by the Cruz campaign, according to Federal Election Commission records.

To develop its psychographic models, Cambridge surveyed more than 150,000 households across the country and scored individuals using five basic traits: openness, conscientiousness, extraversion, agreeableness and neuroticism. A top Cambridge official didn’t respond to a request for comment, but Cruz campaign officials said the company developed its correlations in part by using data from Facebook that included subscribers’ likes. That data helped make the Cambridge data particularly powerful, campaign officials said…

The Cruz campaign modified the Cambridge template, renaming some psychological categories and adding subcategories to the list, such as “stoic traditionalist” and “true believer.” The campaign then did its own field surveys in battleground states to develop a more precise predictive model based on issues preferences.

The Cruz algorithm was then applied to what the campaign calls an “enhanced voter file,” which can contain as many as 50,000 data points gathered from voting records, popular websites and consumer information such as magazine subscriptions, car ownership and preferences for food and clothing.

Building a big data operation behind a major political candidate seems pretty par for the course these days. The success of the Obama campaigns was often attributed to tech whizzes behind the scenes. Since this is fairly normal these days, perhaps we need to move on to other questions: what do voters think about such micro targeting and how do they experience it? Does this contribute to political fragmentation? What is the role of the mass media amid more specific approaches? How valid are the predictions for voters and their behavior (since they are based on certain social science data and theories)? How does this all significantly change political campaigns?

How far are we from just getting ridding of the candidates all together and putting together AI apps/machines/data programs that garner support…

 

Shift in US toward more inequality across cities

The differences in per capita incomes across US cities have grown in recent decades:

Until the early 1980s, a long-running feature of American history was the gradual convergence of income across regions. The trend goes back to at least the 1840s, but grew particularly strong during the middle decades of the 20th century. This was, in part, a result of the South catching up with the North in its economic development. As late as 1940, per-capita income in Mississippi, for example, was still less than one-quarter that of Connecticut. Over the next 40 years, Mississippians saw their incomes rise much faster than did residents of Connecticut, until by 1980 the gap in income had shrunk to 58 percent…

Yet starting in the early 1980s, the long trend toward regional equality abruptly switched. Since then, geography has come roaring back as a determinant of economic fortune, as a few elite cities have surged ahead of the rest of the country in their wealth and income. In 1980, the per-capita income of Washington, D.C., was 29 percent above the average for Americans as a whole; by 2013 it had risen to 68 percent above. In the San Francisco Bay area, the rise was from 50 percent above to 88 percent. Meanwhile, per-capita income in New York City soared from 80 percent above the national average in 1980 to 172 percent above in 2013.

The article has a long discussion of the various reasons behind this. But, I think the conclusion is correct:

Growing inequality between and among regions and metro areas is obvious. But it is almost completely absent from the current political conversation.

Inequality may be a broad issue for the entire country to address but what is happening in different places is unique. This may make it difficult to address variations within a presidential race where the candidates are supposed to represent everyone. Imagine a Republican or Democrat trying to appeal to a particular metropolitan region: “my platform is built around what Detroit needs!” or “the success I’ve helped create in Burlington, Vermont is what we should bring to the entire country!” (This does highlight the unique role mayors or former mayors could play in national elections. They are likely to think more at the city or metropolitan level but it is really hard for such experience to translate into national electoral success.) But, city-level issues certainly could be addressed by Congress or by states.

“Pollsters defend craft amid string of high-profile misses”

Researchers and polling organizations continue to defend their efforts:

Pollsters widely acknowledge the challenges and limitations taxing their craft. The universality of cellphones, the prevalence of the Internet and a growing reluctance among voters to respond to questions are “huge issues” confronting the field, said Ashley Koning, assistant director at Rutgers University’s Eagleton Center for Public Interest Polling…

“Not every poll,” Koning added, “is a poll worth reading.”

Scott Keeter, director of survey research at the Pew Research Center, agreed. Placing too much trust in early surveys, when few voters are paying close attention and the candidate pools are their largest, “is asking more of a poll than what it can really do.”…

Kathryn Bowman, a public opinion specialist at the American Enterprise Institute, also downplayed the importance of early primary polls, saying they have “very little predictive value at this stage of the campaign.” Still, she said, the blame is widespread, lamenting the rise of pollsters who prioritize close races to gain coverage, journalists too eager to cover those results and news consumers who flock to those types of stories.

Given the reliance on data in today’s world, particularly in political campaigns, polls are unlikely to go away. But, there will be likely be changes in the future that might include:

  1. More consumers of polls, the media and potential voters, learn what exactly polls are saying and what they are not. Since the media seems to love polls and horse races, I’m not sure much will change in that realm. But, we need great numeracy among Americans to sort through all of these numbers.
  2. Continued efforts to improve methodology when it is harder to reach people and obtain representative samples and predict who will be voting.
  3. A consolidation of efforts by researchers and poling organizations as (a) some are knocked out by a string of bad results or high-profile wrong predictions and (b) groups try to pool their resources (money, knowledge, data) to improve their accuracy. Or, perhaps (c) polling will just become a partisan effort as more objective observers realize their efforts won’t be used correctly (see #1 above).

Chicago keeps a low residential property tax rate to keep residents?

As the Chicago Tribune highlights the low residential property tax in Chicago compared to nearby communities, could this be a tactic to stem the population decline of the city?

Chicago homeowners pay less in property taxes than the vast majority of their suburban neighbors, even with Mayor Rahm Emanuel’s record property tax increase applied. But business properties are taxed differently in Cook County, resulting in higher tax rates on those parcels in Chicago than nearly all collar county suburbs. Those conclusions emerge from a Tribune analysis of tax rates applied on 2015 bills in 388 city and suburban locations in Cook and the five collar counties.

While housing owners pay less, the business owners of Chicago pay more than their counterparts in the suburbs:

The story is different, however, for those who own city manufacturing plants, offices and shopping centers. They already pay more in property taxes than their counterparts in most suburbs outside Cook County. That gap will only become wider after Emanuel’s tax hike, with Chicago business property owners being taxed at higher rates than those in all but seven collar county towns…

There are plenty of collar county suburbs with room for all types of business development that start to look even more attractive than Chicago, at least in terms of property taxes. In places like Joliet, Downers Grove and Naperville, tax bills on business properties would be half that of equally priced parcels in the city…Deputy Mayor Steve Koch dismissed the business tax differences found in the KPMG study, saying they were not enough to sway business location decisions. He noted recent decisions by Motorola Solutions to move to the city from Schaumburg and ConAgra Foods to move to Chicago from Omaha, Neb., when everyone knew the big property tax hike was coming.

The Tribune suggests one reason for the low residential property tax rates is to not anger voters:

“Because we didn’t have in our leadership the political will to actually tell taxpayers and voters that (more money was needed), frankly folks were sold some snake oil, and they got to believe they could have very low taxes and still have adequate service, and after a while that doesn’t really work,” Martire said. “They should have been (raising property taxes) for a long time, and the pain would have been significantly lower.”

Politicians do need votes. But, to return to the suggestion I made in the opening sentence, I wonder if this is also about keeping residents in Chicago. City leaders argue that businesses are not going to avoid Chicago just because of higher taxes. Chicago has other benefits including other notable businesses, lots of office space, lots of human capital, and numerous attractive cultural and entertainment options. In other words, enough businesses will pay these higher property tax rates in Chicago because there is still money to be made in the city.

Yet, homeowners also consider property tax rates as they look for housing. While Chicago doesn’t suffer from the kind of affordable housing issues as San Francisco or Manhattan, it is still quite expensive in some neighborhoods while suburbs throughout the region provide all sorts of additional housing options as well as jobs and other amenities. Why should many residents stay? Lower property tax rates may just help. And for its international prestige – the seventh-rated global city – Chicago has lost plenty of people in recent decades with a peak of just over 3.6 million in 1950 to just over 2.7 million people today.

Votes and people staying could go together: residents who think the politicians are on their side and then show it by not raising their residential property taxes may be more likely to stay in Chicago.

Dreaming of pres. candidates competing in other TV formats

As the presidential candidate debates continue, I thought of some other TV formats that might be both entertaining and tell us more than the repeated talking points. Americans like the drama of multiple candidates and they like TV so why not try some other options?

  1. A game show format. Want to see who is smarter? Jeopardy. How well they know Americans based on survey results? Family Feud. Want to see them all live together and who can form alliances? Big Brother or Survivor. Want to see some physical competitions? American Ninja Warrior. In any game show, we would see their competitive side and a particular ability.
  2. A reality TV format. How would they each get along with the Dance Moms? Or on The Biggest Catch? Or tracking down online personas in Catfish? Or looking for homes on a HGTV show? Though the show has particular setup, the candidates could act “natural.”
  3. A hidden camera show. The show could try to catch candidates in situations that push them to respond – like What Would You Do? – or it could be more of a comedy like Candid Camera. This could give viewers some idea of how candidates would react in particular situations.
  4. Some sort of presidential simulation. Lock them in a sound stage that mimics the White House or some other government facility. What would they do after two or three nights with little sleep in reaction to a military threat against the United States? How would they act toward a set of Congressional leaders who are tough negotiators? How would they treat their staff after weeks of tension?

I get why most candidates would be very hesitant about many of these. At the same time, debates where the candidates stand around talk/interrupt/respond to questions aren’t necessarily favorable to everyone. Additionally, we know what debates can tell us but these other TV options could offer very interesting (and entertaining) insights into the candidates. These don’t have to be a joke if they are well-designed and the candidates take them seriously.