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Fascinating and somewhat long article from New York Times economics reporter Edmund L. Andrews about how he and his wife managed to run up tons of mortgage and credit card debt.

While one has to applaud Andrews’ courage in writing the article, certain bits have an almost surreal quality.

Between humongous loan balances and high rates, we had hung ourselves with the rope they gave us. In the previous December alone, we charged $2,845 on the Chase card for Christmas gifts, food, gasoline, clothing and other expenses. The charges included almost $350 for groceries, $700 in clothes from J. Crew, $179 at GapKids and $700 for airplane tickets for two of Patty’s children to visit their father in Los Angeles. Our balance climbed from $14,118 to $17,135, and in January 2006 we maxed out at our $19,000 credit limit. And there were other expenses on other cards: $1,200 in dental work for Patty’s son Ben; $1,600 to rent a beach house the previous year for us and all the children. Granted, the beach house was an embarrassing mistake. But given that Patty had landed a solid job, it seemed like an indulgence we could work off later.

Obviously this man has been coming to terms with stuff, so good for him.

Everyone knows stuff costs money, and lots of circumstances can cause difficulties. Andrews was divorced and paying alimony and child support, but people have difficulties due to illness and all sorts of other life events as well.

But good lord, if you spent $700 at J. Crew while drowning in debt, you had a problem. My kin ate squirrels, catfish and possum during the Great Depression, and while I’ve managed to avoid that particular experience, the wisdom my ancestors passed on about not wasting things and living within one’s means does come to mind. Somehow my kids have been clothed just fine at Fred Meyer and Target.

The key point to take away from the article is that the banksters became societal faith healers, temporarily solving problems with suspect mortgages and HELOCS. Whether it was lust for a woman or lust for material goods, the banksters could rub that out for you.

Tons of people needed to make their self-worth about material things that they couldn’t afford. It’s sad, but it’s true.

Don’t get me wrong, our family has stuff, we like our stuff, and many times I try to impress upon our kids how lucky we are to have stuff. But in the end it’s just stuff. Well, it’s stuff we paid for either with cash or with a credit card that is paid off monthly, excluding the mortgage and one car loan at a time.

If you’re buying tens of thousands of dollars of other stuff on credit, you have a problem. And the banksters will gladly give you a lap dance in hopes of making you feel better about yourself.

The speculative orgy wasn’t, in the end, about capitalism, economics or any other “rational” endeavor, it was about selling the supposed good life to anyone who would fall for it. Never mind that the granite counter tops are too expensive, or that the BMW adds too much to the monthly budget. The banksters were gyrating, the music was loud and tomorrow was for the suckers who play by the rules.

For some reason, many otherwise rational people needed to scratch an itch, and the time period coincided with the reign of George W. Bush. The excessive materialism and condescension towards us were part of the same social malignancy that yielded the invasion of Iraq, the Schiavo madness and the indifference to massive suffering after Hurricane Katrina.

A society doesn’t go mad in one little corner, it goes mad everywhere. The mindset that excuses torture can easily excuse a few little financial excesses, can’t it?

Interestingly, those who were conservative in their personal lives and finances probably didn’t get hit so bad. Funny how that works out.

(Props to Atrios for noticing the article.)

Seattle Port Commission candidate Rob Holland joins the podcast, prompting Goldy to ask, “What the hell is the Port of Seattle?” Rob offers an overview of the Port and shares his vision for the Port’s future.

The panel then takes on the outrageous, inflammatory, tasteless, over-the-top routine of Wanda Sykes at the White House Correspondents’ dinner. Doesn’t this just prove that Republicans flat-out lack a sense of humor?

What is this world coming to when a lawyer makes charges of libel and defamation against a lowly blogger and demands the removal of an old post? Get the inside story, in which Goldy graciously declines to both remove the post and “out” the offending attorney.

Goldy was joined by Seattle Port Commission candidate Rob Holland, Effin’ Unsound’s & Horsesass’s Carl Ballard, and Horsesass contributor (and brand new dad) Lee.

The show is 45:25, and is available here as an MP3:

[audio:http://www.podcastingliberally.com/podcasts/podcasting_liberally_may_12_2009.mp3]

[Recorded live at the Seattle chapter of Drinking Liberally. Special thanks to Confab creators Gavin and Richard for hosting the Podcasting Liberally site.]

So, let’s say, a few years back, Joni Balter refinanced her house. She got a good, 30-year fixed rate, not one of those adjustable, sub-prime, pieces of crap, but today she gets a letter from the bank telling her that, you know, times are tough, profits are down, and they didn’t do so well on that stress test thing, so, sorry… that 6-percent mortgage we agreed on? We’re canceling that, and your new 7-percent mortgage starts next month.  Have a nice a day.

Or imagine you’re Kate Riley, and you just leased yourself a fancy new Cadillac Escalade, but GM, well, they’re struggling just to make it through the end of the month, so they deliver a Chevy Malibu instead.  But the $800/month lease payment? That stays the same. Oops… sorry.

Or let’s say you’re Frank Blethen, and you’ve got $70 million in loans coming due the end of the year… only the bank now says, on second thought, we need that money today. (You know, tough times, stress test, and all that.) And if you can’t afford to pay up right now, that’s okay, we’ll just take your family newspaper and your real estate holdings and we’ll liquidate them at auction.  C’est la vie.

Yeah, just imagine the howls of righteous outrage we’d hear from the Seattle Times editorial board should anybody unilaterally rewrite a legally binding contract on them.  A contract is a contract is a contract, after all.  Unless, of course, it’s signed between an employer and a labor union.

The letter from Superintendent Maria Goodloe-Johnson states the district cannot renew the 182-day contract, but can offer a 181-day contract. Information on how to appeal the proposal is included.

Response by the teachers union, the Seattle Education Association, has been unhelpful and destructive. Union leaders are being purposely obtuse about the letter’s intent, even threatening legal action.

This strategy of killing the message by maligning the messenger shouldn’t work. This issue is less about the superintendent and more about tough state budget cuts.

Indeed, the letter could have been more artfully written…

Could have been more artfully written? Technically, the district just fired all 3,300 Seattle teachers… during Teacher Appreciation Week, no less!  And rather than attempting to renegotiate a contract that was bargained in good faith, the Superintendent chooses to bypass the union entirely, and go directly to the individual teachers, basically telling them to sign the new contract… or else.

And the union’s “ire is uncalled for and misdirected”…?

The issue here is not about tough state budget cuts; it’s about the complete and utter disregard the district (and the Times) has shown for a legally binding contract, and the collective bargaining rights of teachers. Nobody questions the dire financial straits in which the district now finds itself, but the proper and legal way to address this particular shortfall would be to renegotiate the contract with the union, not unilaterally shove a new contract directly down the throats of teachers.

Did the union refuse to give up that 182nd day? No, they weren’t even asked. The union was never given the opportunity to even earn a little public good will by working with the Superintendent… you know, the same way the Times thinks Bank of America should work with the Columbian to renegotiate its contractual obligations:

What makes the Columbian’s plight so sad is that Southwest Washington could lose its dominant news provider because Bank of America is apparently not willing to work with the company.

Get that? When you have a legally binding contract with a struggling newspaper publisher, you have a civic responsibility to work with the company to renegotiate the terms of the deal.  But when you have a legally binding contract with a labor union… well… screw them, those “unhelpful and destructive” DFH‘s.

Had the roles been reversed, had the union sent an unartful letter to Goodloe-Johnson declaring that teachers would no longer work that 182nd day, but would still be paid for it nonetheless, union officials would have been roundly ridiculed for their temerity. The Superintendent would never honor the demand, and no court would uphold such a unilateral violation of a collective bargaining agreement.  And you can rest assured that the Times would never characterize the district’s ire as “misdirected.”

No, the issue here is not the 182nd day, but rather the Superintendent’s blatant disregard for the collective bargaining rights of the teachers, and her absolute failure to view the union as a constructive partner during these tough budgetary times.  And I’m guessing that the Times’ own disregard for the collective bargaining rights of teachers, tells us everything we really need to know about their stance on education “reform.”

When I started obsessively plugging a high-earners income tax during the last session, I was publicly and privately informed that I was absolutely nuts.  Washington state voters would never approve an income tax in any form, I was told, and so it was futile, if not downright counterproductive, to even attempt to start the conversation.  One state lawmaker even went so far as to privately congratulate me for cementing my reputation as a “political crackpot.”

Well… if I’m a crackpot, it looks like I’m not the only one, for in an unsigned editorial today in The Olympian, our state capital’s paper of record takes up the challenge, warning that “Hesitance to rethink taxes will bite lawmakers.”

The need for tax reform is long overdue.

That effort has to come from Gov. Chris Gregoire and legislative leaders. They simply must engage the public in a constructive conversation about this state’s overreliance on property and sales taxes and how the missing third leg of the stool — an income tax — is necessary to level out the revenue peaks and valleys that this state constantly experiences.

Of course, one way to effectively start this conversation would be to use the coming special session to put a high-earners income tax on the November ballot.  Some might call that a crackpot idea.  I prefer to think of it as leadership.

The Franklin County Republican Central Committee censured State Rep. Maureen Walsh (R-16) on Tuesday, for her vote in favor of HB 1727, the recently signed domestic partnership bill.  A party press release accuses Walsh of “stripping traditional marriage of its meaning,” and gives official “NOTICE” that she no longer represents “the values of the Franklin County Republican Party.”

But what really happened at Tuesday’s FCRCC meeting?  Jimmy at McCranium reports:

Once source tells me it was more like mob rule than a meeting when a group consisting largely of evangelicals led by Nicole Prasch and Brenda High (complete with a area representative from Focus on the Family) pressured for a censure vote (Ok… censure… exactly what does that even accomplish?).

This isn’t good for Franklin County moderate Republicans who like many others, are increasingly coming around to the understanding that civil unions are not the great threat (or the best platform issue) they had been led to believe.

Looks like that Republican big tent just got a little smaller.

It’s a Cinco de Mayo edition of the podcast, and the panel is joined by Seattle City Council candidate David Ginsberg. Goldy puts the candidate in the hot seat and (using only DOJ-approved interrogation methods) extracts from Mr. Ginsberg his real reasons for running.

There is also a race coming up for King County Executive, and a new poll puts former Discovery Institute Fellow Susan Hutchison way out in front with 20%. Does this poll bode well for a candidate who beats the competition, hands down, with 62% name recognition? The conversation then meanders to transit for the Puget Sound region. Goldy wonders about a new rumor that Sound Transit wants to electrocute the I-90 floating bridge.

In the other Washington there is a forthcoming nomination to the Supreme Court, and the Republicans are ready to demonize and block just about anyone nominated by Obama. Can they succeed? Will they succeed? Listen and learn!

Goldy was joined by Seattle City Council candidate David Ginsberg, Peace Tree Farm’s N in Seattle, Effin’ Unsound’s & Horsesass’s Carl Ballard, and Seattle Transit Blog’s Andrew Smith.

The show is 44:50, and is available here as an MP3

[audio:http://www.podcastingliberally.com/podcasts/podcasting_liberally_may_5_2009.mp3]

[Recorded live at the Seattle chapter of Drinking Liberally. Special thanks to Confab creators Gavin and Richard for hosting the Podcasting Liberally site.]

A few days back I suggested that newspaper publishers should take personal responsibility for their own bad business decisions, arguing that as poor as industry fundamentals may be, it’s the mountain of highly leveraged debt, not operating losses, that threatens to crush many of our daily newspapers.  And as an example, I pointed to two of Washington’s most prominent struggling dailies.

While the whole industry is struggling, the financial precariousness of some of our most threatened papers is at least partially due to the awful business decisions of their owners, in particular, the incredibly over-leveraged position they find themselves in as a result of ill-advised acquisitions and other bone-headed ventures.

For The Columbian, it was the construction of a new $40 million office tower that landed a shrunken newsroom back in its old digs, and publisher Scott Campbell in bankruptcy court.  For The Times, it was Frank Blethen’s ill-fated foray into the Maine media market that has left him with a couple hundred million dollars of debt coming due, and no obvious means of raising more capital.  Both papers are currently losing money on their daily operations, but neither would be struggling to survive this particular recession if the bankers weren’t pounding at their doors.

As usual, my trolls took issue with my analysis, arguing that I was bucking conventional wisdom simply to take another potshot at my friends at The Seattle Times. Uh-huh. So I’m guessing they’ll probably be disappointed to read the unsigned editorial in today’s Times, that picks up on my basic premise in arguing that the bankruptcy of the Columbian is “different” than that of debt-laden giants like The Philadelphia Inquirer and The Los Angeles Times:

Like every newspaper, the Columbian’s advertising revenue has been whacked by the recession. Unlike larger companies such as Philadelphia and Tribune, the Columbian’s push into Chapter 11 does not stem from a debt-laden purchase of newspapers.

The Campbell family, three-generation owners of the Columbian, took on debt to help revitalize downtown Vancouver by constructing a new building. The newspaper quickly moved back to its old building because of the recession. Now Bank of America is calling in its loan of about $17 million — a pittance compared to what other newspaper companies owe.

What makes the Columbian’s plight so sad is that Southwest Washington could lose its dominant news provider because Bank of America is apparently not willing to work with the company. This is a newspaper that in ordinary times would be doing well and will likely do well after the recession.

Forget for a moment the Times’ effort to spin the Campbell’s ill-fated real estate speculation as an act of civic engagement; what’s important here is that The Times acknowledges my core thesis… that it is debt, not operating losses, that threatens both the Columbian and its larger cousins.  The Times also confirms that it was the construction of its new/old headquarters that ultimately pushed the Columbian into bankruptcy, not the Great Recession, or the fundamental weakness of the newspaper industry itself.

Of course, what we don’t see from the Times is a mention of their own poor business decisions, or an admission that they and their friends at the Columbian should take any personal responsibility for the current sorry state of their respective family businesses.  On the contrary, the Times paints evil, Bank of America as the bogeyman for demanding that the Campbells actually make good on their debt, according to the terms contractually promised.

The Times solution to The Columbian’s mismanagement of their own finances?  Appeal to gov’ment to force BoA to renegotiate the loan.

The U.S. Senate Commerce Committee is holding a hearing today about the future of journalism. This hearing and the Columbian’s plight should grab the attention of the governor, the state Legislature and our federal delegation.

The time is right for politicians, journalists and the public to start working toward preserving an independent press.

One can’t help but wonder if this is a preview of the arguments the Times will make on its own behalf should it seek bankruptcy protection later this year… that the government should use its bailout accrued leverage to force financial institutions to renegotiate terms with struggling newspapers, in the interest of preserving an independent press?

Irony aside, I’m not necessarily opposed to the government doing exactly that.  It would be a shame to see Southwest Washington lose its only major daily, just as much as it would for Seattle to become our nation’s largest no-newspaper town.

But as a condition of any such government-brokered bailout, I’d want to see a genuine public admission from the likes of the Blethens and the Campbells of their own culpability in their respective paper’s near demise—not out of vindictiveness or a craving for public humiliation, or even the hope that acknowledging their own plight might moderate their editors’ demands for less government and more personal responsibility—but because self awareness is the first step to recovery.  For the most effective thing we can do to prevent newspaper publishers from repeating their own mistakes of the past fifteen years is to force them to admit these mistakes to themselves… something the Times, if today’s bankers-as-villains editorial is any indication, simply isn’t ready to do.

State lawmakers have put a lot of faith in deep-bore technology and the latest advances that, we’re told, will make the Viaduct tunnel possible. But apparently, not too much faith.  That’s why as a condition of providing a couple billion dollars of funding in the recently passed transportation budget, legislators threw in a provision that requires Seattle taxpayers to pull out their checkbooks for any cost overruns.

But you know… what are the chances of that?  Transportation mega-projects always come in on time and on budget, and those giant tunnel boring machines?  They’re as infallible as the Pope.

On Beacon Hill, Christine Miller-Panganiban said she was doing a little gardening in her front yard a couple of Sundays ago, when she noticed a mysterious hole. She stuck her shovel  down. It didn’t feel the bottom.

Her husband got a piece of tubing seven feet long. Still they couldn’t feel the bottom. Only when she looked down it with a flashlight did she find that it went down 21 feet. “Oh my God,” she thought, and more when she realized that suddenly there was a deep void that now only went down and down, but extended under her house.

The hole was apparently created when Sound Transit was boring the tunnel for the new light rail line. On Monday, Sound Transit spokesman Bruce Gray acknowledged the agency has found seven underground voids caused by its boring machine within a couple of blocks east of the future Beacon Hill station, though the one in Miller-Panganiban’s front yard was the only one visible from the surface. Aside from causing concern in the neighborhood, he said testing for them and filling them would cost the agency up to $1 million.Oops. Apparently, the boring machine hit a layer of sand, which flowed into the tunnel leaving a gap in its place.

What kind of gap? “An empty gap,” Sound Transit’s Bruce Gray explains to us laymen.

But let’s not worry about all those boring details. The scientifically minded folks at the Discovery Institute assure us that recent technological advances make it possible to dig the world’s largest diameter deep bore tunnel, straight under downtown Seattle, cheaper, faster and more reliably than ever before possible. So unforeseen and costly technical hurdles — like, you know… sand — couldn’t possibly happen here.

Oh wait… it just did.

Sigh.

Larry Stickney, president of the Washington Values Alliance, has a noon appointment to file a referendum that, if passed, would repeal Washington’s most recent domestic partnership bill, says Washington Secretary of State spokesman David Ammons.

But who, exactly, is running the show?

It’s unclear which group will actually run the referendum. Faith and Freedom had been fundraising for the referendum, but the group, led by the carpetbagging and tax-evading Gary Randall, may not run the campaign after all. “The latest buzz we’re getting is that it will be run by the Washington Values Alliance,” says Brian Vysltra, a spokesman for the Secretary of State.

For more on the skeevy nature of Faith and Freedom, check out this diary at Washblog by poster Lurleen.

The major recipient of PAC expense payouts was Northern Concepts LLC. Northern Concepts LLC is owned by the Faith & Freedom PAC Vice Chair and former F&F lobbyist, Jon Russell. He and his wife reportedly “run the business from their home”. The PAC paid Mr. Vice Chair $3,790 in “event planning” fees. The previous year, he had received a Warning Letter from the Public Disclosure Commission dated March 8, 2007 for failure to file his monthly lobbyist expense report (L-2) for January, 2007. Commission files relating to Jon’s tenure with FFN contain several memos between himself and the Commission regarding his mistakes in depositing funds in the wrong accounts and failure to submit reports on time. For the latter he was assessed a fine on June 3, 2008.

It’s the endless multi-level marketing nature of conservatism that’s the problem. A few rich and ultra-conservative nutballs pay the wannabes to do their dirty work for them, and the wannabes call themselves bidnessmen. Let’s call it “the Tim Eyman model.”

We should just take up a collection and pay these people to sell diet formulas and steam cleaners on late night television, give them a Chamber card, maybe they’d go away finally.

Public health officials announced tonight that they have identified six probable cases of swine flu in Washington state: three in Seattle, two in Snohomish County and one in Spokane County. Confirmation is expected over the next couple days.

The Seattle cases include an 11-year-old boy who attends Madrona K-8. No doubt attendance will be a tad sparse at the school tomorrow.

King County Executive Ron Sims released the following statement this evening:

We are now in the type of worldwide health situation that King County has spent years planning and preparing for. The probable cases of swine flu here in Washington serve as a reminder to all of us that we are a community of connected individuals, each with a role to play in keeping each other safe.

Our excellent public health doctors and staff, along with regional hospitals and health care providers are using the comprehensive pandemic flu plans we’ve created to respond and limit impacts and spread as much as possible.

The years of planning are just part of the solution though. We must each help limit potential flu impacts by washing our hands, covering our coughs, staying home when we’re sick, and making sure our families have the supplies they need if the situation gets worse.

King County is better prepared than many regions to deal with these flu cases and we will get through this medical challenge, together.

Here that folks?  Wash your hands and cover your damn coughs.

Rep. Ross Hunter (D-48) announces that he is running for King County Executive, and gives his first post-announcement interview on the Podcast. Ross explains why he is the best person for the position, what is right and wrong about the King County government, and what he will do to fix what’s wrong.

Changing into his Rep. hat, Hunter and the panel pick over the carcass of the freshly-ended legislative session—you know…the one that didn’t produce any tax reform, and cut to the bone. Following the nitty-gritty, the panel members give letter grades to the session.

Finally, the panel examines the remarkable transition of Pennsylvania Sen. Arlen Specter from a Republican to a Democrat. The Philly contingent of the panel (i.e. Goldy and Ross) spins yarns about the corruption of that city’s political machine that would make a Chicago politician blush and actually drove Sen. Specter to become a Republican in the first place….

Goldy was joined by King County Executive candidate & state Rep. Ross Hunter (D-48), the Seattlepi.com’s Joel Connelly, and Effin’ Unsound’s & Horsesass’s Carl Ballard.

The show is 53:54, and is available here as an MP3:

[audio:http://www.podcastingliberally.com/podcasts/podcasting_liberally_apr_28_2009.mp3]

[Recorded live at the Seattle chapter of Drinking Liberally. Special thanks to Confab creators Gavin and Richard for hosting the Podcasting Liberally site.]

The US Supreme Court has sided with the FCC, upholding its incredibly unreasonable “fleeting expletive” rule.

The Supreme Court on Tuesday said the government could threaten broadcasters with fines over the use of even a single curse word on live television, yet stopped short of ruling whether the policy violates the Constitution.

The court, in a 5-4 decision, refused to pass judgment on whether the Federal Communications Commission’s ”fleeting expletives” policy is in line with First Amendment guarantees of free speech.

Well, fuck that.

[QUICK! How many of you instantly had a sexual image flash through your heads when I used the word “fuck” in a clearly nonsexual manner?  I’m guessing none, yet that notion—that some words are so offensive because they always evoke sexual or execretory images—is at the heart of the Supreme Court’s logic.  Utterly fucking ridiculous.]

I’m not saying the FCC should have no power at all to regulate the public airwaves, but these regulations should not be arbitrary or unreasonable, and the fleeting expletive rule is both, especially in light of how easy it is to cleverly—and legally—subvert the rule’s intent.

[youtube]http://www.youtube.com/watch?v=2NDPT0Ph5rA[/youtube]

UPDATE:
From Justice Stevens’ dissent:

There is a critical distinction between the use of an expletive to describe a sexual or excretory function and the use of such a word for an entirely different purpose, such as to express an emotion. One rests at the core of indecency; the other stands miles apart. As any golfer who has watched his partner shank a short approach knows, it would be absurd to accept the suggestion that the resultant four-letter word uttered on the golf course describes sex or excrement and is therefore indecent. But that is the absurdity the FCC has embraced in its new approach to indecency.

Exactly.

In his Sunday “Smart Bombs” column, Spokane Spokesman-Review Associate Editor Gary Crooks takes on some common budget myths, and comes to a conclusion that might surprise a lot of his readers.

The best way to measure a state’s tax burden is to total up personal income and divide it by how much money the state collects. […] The same holds true for spending, which was about 6 percent of total income for a decade, then declined. That’s probably surprising to most people given the Republicans’ drumbeat on “out-of-control” spending. Spending has increased in recent years, but a lot of that was to make up for budgetary hits after the economic swoon of the previous recession and the Sept. 11 terrorist attacks. The state then began making up for lost funding on voter-approved initiatives on teacher pay and class sizes and had to backfill pension payments that were delayed to help balance the previous budget.

To get an idea how much the “spending burden” has declined, it was 5.9 percent of total income for the 2003-’05 budget. This is the much-ballyhooed “tough” budget shepherded through the Legislature by then-Sen. Dino Rossi. Now we’re looking at 5.18 percent. And, yes, even the “Rossi budget” spent more than the state collected.

HA regulars are well familiar with this analysis, but I can’t tell you how heartening it is to read it in the op-ed pages of a major daily, especially considering that the editors at our own Seattle Times have been so aggressive at spreading the myth Crooks so effectively busts.  But perhaps the Times refusal to accept this reality has less to do with their inability to do the math, and more to do with their refusal to accept Crooks’ inevitable conclusion.

It’s the tax code, stupid. The problem with measuring the affordability of taxes and spending against total income is that the state doesn’t have an income tax. The above calculations help explain why it should. The state is relatively rich, but it has a tax code that’s unsuited to tapping that wealth. The result is that high-income households send relatively large sums to the feds and relatively paltry amounts to the state. Conversely, the state taxes the poor at the highest levels in the nation because of the heavy reliance on our regressive sales tax.

If the state instituted an income tax and lowered the sales tax, it could begin to address its chronic budget deficits and lower the tax burden for most Washingtonians. It’s the same argument that was laid out by the Gates Commission several years ago, but lawmakers failed to act.

The paper of record for Eastern Washington joining me in advocating for a state income tax?  Welcome to the radical fringe.

Reporting for the Tacoma News Tribune, Ian Demsky has the scoop on the State Lottery’s new “enhanced” marketing plan to boost impulse sales of scratch tickets by at least 20 percent, and I’m truly impressed with the expertise of his sources:

Informed of the promotion, one gaming critic called using such tactics during an economic downturn “cruel.”

“They are looking to create compulsion,” Seattle blogger David Goldstein said last week. “That’s how the industry works.”

And I’m not just pulling that critique out of my ass.  As I’ve written on numerous occasions, games like slot machines and scratch tickets are scientifically designed to create compulsion—hence the refreshingly honest name of the scratch ticket vendor designing and testing the Lottery’s enhanced marketing plan: “Scientific Games.”

I’ve no doubt that the expanded retail displays, the 48 new scratch ticket games and their seductive second chance feature, were carefully designed in consultation with behavioral psychologists, so as to specifically enable problem gamblers and exploit their weaknesses.  Problem gamblers may comprise only 5 percent of their customers, but they can produce over 50 percent of the gambling industry’s profits.  This is no secret, and like any business, the gambling industry has always catered to its best customers.

So what’s the problem?

Goldstein, a blogger who has advocated against gambling expansion, said the program makes sense – if the state’s primary interest is to maximize profits.

“But it’s the state,” he said. “In the end, its purpose is to provide for the welfare of the citizens. The lottery is at cross-purposes with itself.”

Again, I’m not pulling this stuff out of my ass.  Indeed, the Legislative Declaration that prefaces Washington’s gambling statutes is quite specific:

The public policy of the state of Washington on gambling is to keep the criminal element out of gambling and to promote the social welfare of the people by limiting the nature and scope of gambling activities and by strict regulation and control.

Notice that there’s nothing in that opening statement about maximizing state profits.  Nor should there be.  The social and economic costs of problem and pathological gambling are simply too high.

Problem gambling is a medically recognized addictive behavior associated with a much higher incidence of other addictions, including tobacco, alcohol and drugs, as well as other dangerous behaviors.   And even the lottery’s own problem gambling study suggests that scratch tickets often serve as a gateway to other forms of gambling. So why should the state spend money to promote behavior that harms the welfare of its citizens?

It shouldn’t.

The people who stand to profit the most from this enhanced marketing plan are retailers, and the shareholders at New York based Scientific Games, certainly not the customers, and not state taxpayers, who typically see only 20 cents on the dollar flow back into state coffers out of the more than half billion dollars of revenues the State Lottery takes in annually.

Gov. Gregoire did the right thing in 2006 by instructing the State Lottery to scrap plans to market toward teenagers.  She should once again remind lottery officials that they are not in the business of maximizing revenues at any cost.