April 27, 2024

Archives for November 2013

Limit on Access Stirs Tensions Between White House Photographer and Press Corps

Permitting a private citizen to use the Rose Garden for a personal event is extraordinarily unusual, and it attests to the deep ties the president and his photographer have forged, as Mr. Souza has shadowed Mr. Obama on virtually every day of his presidency.

Now, though, Mr. Souza’s privileged access — combined with the rise of services like Facebook, Flickr and Instagram, which has allowed the White House to distribute his official photos rapidly to the news media — is generating tension between him and the news photographers who are assigned to the White House.

In a letter two weeks ago to the press secretary, Jay Carney, the White House Correspondents’ Association and other organizations, including The New York Times, protested that the White House routinely excluded news photographers from sessions with the president and then released photographs of the events, usually taken by Mr. Souza.

“You are, in effect, replacing independent journalism with visual press releases,” said the letter, which criticized the White House’s policy as “an arbitrary restraint and unwarranted interference in legitimate news-gathering activities.”

At the best of times, the relationship between outside photographers and the White House’s in-house one is fraught: they jostle for the same image of the president, but the official photographer is invariably three steps ahead of them when the president works a rope line or is in the Oval Office for his meeting while they wait outside.

Mr. Souza, a plain-spoken 58-year-old who was a news photographer for The Chicago Tribune before moving to the White House, said he believes that photographers have better access to Mr. Obama than they did to President Ronald Reagan, whom he documented in an earlier stint as a White House photographer.

Still, he said he understood the frustration of the news photographers and has advocated more access for them — to a point. “It’s legitimate for them to push for more access, and in some cases I think their arguments are valid, and in some instances I think their arguments aren’t valid,” Mr. Souza said last week in an interview in his cubbyhole office in the West Wing.

This traditional tug of war has been exacerbated by digital technology, which the White House has exploited to distribute his pictures, often soon after he takes them. That puts Mr. Souza in de facto competition with other photographers since, owing to his access, his photos are sometimes more newsworthy than theirs.

“The core issue is the White House uses his images and disseminates them to the public, and they become the only historical document of events,” said J. David Ake, the assistant bureau chief for photos at The Associated Press.

Doug Mills, a longtime White House photographer for The Times, added: “It’s not about Pete. It’s that we see Pete’s pictures of things that we’re not getting access to, and that’s incredibly frustrating for all the photographers who cover the White House.”

David Hume Kennerly, the official photographer for President Gerald R. Ford, said: “Everybody is trying to come to terms with the impact of social media. I don’t know what the right balance is, but I understand his position in terms of the historical record.”

Indeed, Mr. Souza’s principal job is to document the presidency, and all of his photographs, published and unpublished, are filed in the National Archives.

White House officials say Mr. Souza is being turned into a scapegoat for a press corps frustrated by how technology is upending its business. (The Times, they note, charges clients a service fee for reprinting Mr. Souza’s pictures and sends him royalty checks, which he does not cash.) They also say the public benefits from behind-the-scenes images, like Mr. Souza’s dramatic shot of Mr. Obama and aides watching the raid on Osama bin Laden in 2011.

“When there are decisions to release photos, those are made by the press office,” said the deputy press secretary, Josh Earnest. “We’ve always acknowledged there is a difference between what Pete does and what independent photographers do.”

That difference was evident in the case of the Bin Laden photo, which the White House digitally altered to blur out a classified document on a table in front of Hillary Rodman Clinton, then the secretary of state. Mr. Souza said he tried to get the document declassified to show it in the image, and when his request was rejected, he opted to airbrush it because otherwise the White House would not have released it.

Article source: http://www.nytimes.com/2013/12/01/us/politics/limit-on-access-stirs-tensions-between-white-house-photographer-and-press-corps.html?partner=rss&emc=rss

American Made: That ‘Made in U.S.A.’ Premium

Her company occupies six floors in a building on West 35th Street and uses, among other businesses, six nearby sewing factories, a cutting room and even a maker of fabric flowers in the neighborhood. She organizes “Save the Fashion District” rallies, writes about the danger of losing local production and lobbies lawmakers in Washington to support the American fashion industry.

“If my only option as a young designer was to make my clothing overseas, I could not have started my business,” she said.

Yet Ms. Lepore says that when she signed a deal with J. C. Penney for a low-cost clothing line for teenagers — clothing that sells for about one-tenth the price of her higher-end lines — Penney could not afford production in New York.

Of the 150 or so items she now has featured on Penney’s website, none are made in this country. “That price point can’t be done here,” Ms. Lepore said of lower-end garments.

As textile and apparel companies begin shifting more production to the United States, taking advantage of automation and other cost savings, a hard economic truth is emerging:  Production of cheaper goods, for which consumers are looking for low prices, is by and large staying overseas, where manufacturers can find less expensive manufacturing. Even when consumers are confronted with the human costs of cheap production, like the factory collapse in Bangladesh that killed more than 1,000 garment workers, garment makers say, they show little inclination to pay more for clothes.

Essentially, to buy American is to pay a premium — a reality that is acting as a drag on the nascent manufacturing resurgence in textiles and apparel, while also forcing United States companies to focus their American-made efforts on higher-quality goods that fetch higher prices.

Last year, Dillard’s, the midtier department store, wanted to promote American-made clothing, according to Fessler USA, an apparel maker in eastern Pennsylvania. It turned to Fessler to produce tops. Theirs was a brief relationship. “Almost overnight, they called and said, ‘Made in America just doesn’t sell better than made in Asia, and you can’t beat the price,’ ” said Walter Meck, Fessler’s chief executive and principal owner.

The pattern repeats across retailers. Brooks Brothers’ American-made cashmere sport coats sell for $1,395; comparable imported ones go for $1,098. At Lands’ End, American-made sweatshirts cost $59, while the ones made in Vietnam cost $25. The label on an Abercrombie Fitch American-made sweater, which sells for $150, screams about its American origins. But most of the sweaters for sale at Abercrombie are the cheaper ones priced at $68 and up, and made abroad.

Eric Schiffer, known as Ricky, and his business partner, Leonard Keff, last year opened Keff NYC, a knitting operation in New York’s garment district. Business has been good, with contracts from higher-price retailers like Abercrombie, Anthropologie and Ralph Lauren. One afternoon earlier this year, Mr. Schiffer watched as a table full of women knotted loose threads on Ralph Lauren gloves destined for the American team in the Winter Olympics next year in Sochi, Russia. (Ralph Lauren chose American manufacturing only under pressure from consumers and government officials up in arms after it supplied Olympics uniforms made in China for the 2012 Summer Games.)

Though labor costs about 40 percent more than in China, and retail prices end up 20 percent higher, Mr. Schiffer says Keff’s clients — and, more important, their customers — can afford it.

“We can’t work with the Targets and the J. C. Penneys of the world,” he said. “It’s not for everyone. It’s really just for the higher-end companies.”

Paying for Quality, or Not

Americans spend more than $340 billion a year on clothes and shoes, more than double what they spend on new cars, according to the American Apparel and Footwear Association. And they say they want to buy American, even if it hits them harder in the pocketbook.

Two-thirds of Americans say they check labels when shopping to see if they are buying American goods, according to a New York Times poll taken early this year. Given the example of a $50 garment made overseas, almost half of respondents — 46 percent — said they would be willing to pay from $5 to $20 more for a similar garment made in the United States.

It is a sentiment that advertisers have picked up on. In the first half of 2013, according to the most recent data available from the research firm Kantar Media, spending on advertising by companies like the Toyota Dealer Association, Chevron and New Balance that emphasized products’ American-made status nearly tripled when compared with the first half of 2012.

The flurry of new promotions also has the Federal Trade Commission policing made-in-America claims. According to its rules, “all or virtually all” of a product has to be both assembled and sourced in the United States in order to qualify.

But shoppers’ statements that they are interested in American-made goods don’t always square with how they actually spend their money, especially when they are on a budget.

Article source: http://www.nytimes.com/2013/12/01/business/that-made-in-usa-premium.html?partner=rss&emc=rss

Where Factory Apprenticeship Is Latest Model From Germany

“It seemed like we had sucked up everybody who knew about diesel engines,” said Mr. Klisch, vice president for North American operations of Tognum America. “It wasn’t working as we had planned.”

So Mr. Klisch did what he would have done back home in Germany: He set out to train them himself. Working with five local high schools and a career center in Aiken County, S.C. — and a curriculum nearly identical to the one at the company’s headquarters in Friedrichshafen — Tognum now has nine juniors and seniors enrolled in its apprenticeship program.

Inspired by a partnership between schools and industry that is seen as a key to Germany’s advanced industrial capability and relatively low unemployment rate, projects like the one at Tognum are practically unheard-of in the United States.

But experts in government and academia, along with those inside companies like BMW, which has its only American factory in South Carolina, say apprenticeships are a desperately needed option for younger workers who want decent-paying jobs, or increasingly, any job at all. And without more programs like the one at Tognum, they maintain, the nascent recovery in American manufacturing will run out of steam for lack of qualified workers.

“South Carolina offers a fantastic model for what we can do nationally,” said Ben Olinsky, co-author of a forthcoming report by the Center for American Progress, a liberal Washington research organization, recommending a vast expansion in apprenticeships.

Despite South Carolina’s progress and the public support for apprenticeships from President Obama, who cited the German model in his last State of the Union address, these positions are becoming harder to find in other states. Since 2008, the number of apprentices has fallen by nearly 40 percent, according to the Center for American Progress study.

“As a nation, over the course of the last couple of decades, we have regrettably and mistakenly devalued apprenticeships and training,” said Thomas E. Perez, the secretary of labor. “We need to change that, and you will hear the president talk a lot about it in the weeks and months ahead.”

In November, the White House announced a new $100 million grant program aimed at advancing technical training in high schools. But veteran apprenticeship advocates say the Obama administration has been slow to act.

“The results have not matched the rhetoric in terms of direct funding for apprenticeships so far,” said Robert Lerman, a professor of economics at American University in Washington. “I’m hoping for a new push.”

In Germany, apprentices divide their time between classroom training in a public vocational school and practical training at a company or small firm. Some 330 types of apprenticeships are accredited by the government in Berlin, including such jobs as hairdresser, roofer and automobile electronics specialist. About 60 percent of German high school students go through some kind of apprenticeship program, which leads to a formal certificate in the chosen skill and often a permanent job at the company where the young person trained.

If there is a downside to the German system, it is that it can be inflexible, because a person trained in a specific skill may find it difficult to switch vocations if demand shifts.

In South Carolina, apprenticeships are mainly funded by employers, but the state introduced a four-year, annual tax credit of $1,000 per position in 2007 that proved to be a boon for small- to medium-size companies. The Center for American Progress report recommends a similar credit nationwide that would rise to $2,000 for apprentices under age 25.

The emphasis on job training has also been a major calling card overseas for South Carolina officials, who lured BMW here two decades ago and more recently persuaded France’s Michelin and Germany’s Continental Tire to expand in the state.

“The European influence is huge,” said Brad Neese, director of Apprenticeship Carolina, which links the state’s technical college system with private companies to help create specialized programs. “They are our strongest partners.”

Jack Ewing contributed reporting from Frankfurt.

Article source: http://www.nytimes.com/2013/12/01/business/where-factory-apprenticeship-is-latest-model-from-germany.html?partner=rss&emc=rss

Indian Editor Is Arrested in Assault of Employee

The editor, Tarun Tejpal, has denied any wrongdoing in two episodes that occurred in a hotel elevator at an annual intellectual symposium held by his magazine, Tehelka. Mr. Tejpal made written apologies to the young woman after she complained to her manager at the magazine, evidently hoping it would be possible to avoid a criminal case.

But the police in the coastal state of Goa, where the episodes occurred, reached Mr. Tejpal’s home in Delhi on Friday, and on Saturday a district court rejected a petition by his legal team for anticipatory bail, paving the way for his arrest. The public prosecutor in the case, Saresh Lotlikar, said Mr. Tejpal could not be properly interrogated unless he was in custody.

“The accused has been changing colors like a chameleon through different statements,” Mr. Lotlikar said, according to The Times of India.

If convicted, Mr. Tejpal faces a maximum of 10 years in jail. His lawyer Geeta Luthra emerged from court late Saturday, saying that he “has already joined the investigation” and plans to cooperate.

Almost two weeks ago the young woman, who has not been identified, in accordance with Indian law, approached Tehelka’s managing editor, Shoma Chaudhury, with allegations that Mr. Tejpal had assaulted her twice, at one point removing her underwear despite her protestations and manually penetrating her.

Ms. Chaudhury told staff members that there had been “an untoward incident” and that Mr. Tejpal had apologized and would step down for six months.

This seeming attempt to treat the case as an internal matter infuriated many journalists and activists, who are highly sensitized to the issue of sexual violence nearly a year after a gang rape that killed a 23-year-old student in Delhi.

After weathering widespread criticism, Ms. Chaudhury stepped down Thursday, saying in a letter that she did not want questions about her actions to “tarnish the image of Tehelka.”

The case has taken on strong political overtones, in part because Mr. Tejpal and his magazine have carried out investigations and sting operations that damaged Hindu nationalist figures and the opposition Bharatiya Janata Party.

As Mr. Tejpal left the airport terminal in Goa’s capital city on Friday evening, he was greeted by a group of protesters from the opposition party, waving black flags and chanting slogans. A party activist also defaced Ms. Chaudhury’s home late on Thursday, spattering black paint outside it and painting the word “accused” beside her gate.

Mr. Tejpal has said the investigation, initiated by the Goa government rather than the victim, is being driven by his ideological opponents at the Bharatiya Janata Party.

In a bail plea, his legal team described him as “a foremost critic of right-wing majoritarian politics in the country” and said the inquiry was “being used to satisfy the longstanding grudge of the political executive against the works and ideological stand of the present applicant.”

His accuser responded angrily in a letter published on Friday. She said suggestions that partisan politics was behind her complaint were “the latest depressing indications that sections of our public discourse are unwilling to acknowledge that women are capable to making decisions about themselves for themselves.”

“It is not the victim that categorizes crime: it is the law,” the letter said. “And in this case, the law is clear: What Mr. Tejpal did to me falls within the legal definition of rape.”

She went on to say that by making a public complaint about the episodes, she had lost her job and “opened myself to personal slanderous attack.”

Ellen Barry contributed reporting.

Article source: http://www.nytimes.com/2013/12/01/world/asia/indian-editor-arrest.html?partner=rss&emc=rss

The Big Ten’s Bigger Footprint

A year ago, the Rutgers athletic department’s deficit was nearly $28 million, bringing the hole it has dug since 2005 to $190 million. To offset the losses, student fees have been raised and state funds reallocated. Last summer, Maryland’s athletic department cut seven varsity sports in trying to patch a $21 million shortfall.

Both schools have hit upon the same solution to their athletic and fiscal troubles: Next summer, they will join the Big Ten, among the most storied conferences in college football. To understand how Rutgers and Maryland — and college athletics in general — got to this point, you need to understand Jim Delany, the Big Ten’s 65-year-old commissioner, now in his 25th year on the job. It was the Big Ten, which will crown a football champion when Ohio State meets Michigan State on Saturday, Dec. 7, that Forbes magazine recently proclaimed the “cash king” of college sports.

The conference generated $315 million in revenue in the fiscal year ended in June 2012, the most of any conference, and was expected to reward most of its member schools with a split of $25.7 million each the next year. The primary source of the money has been television — most of it coming from a lucrative contract that Mr. Delany negotiated with ESPN and from the conference’s own cable network, which Mr. Delany was mostly responsible for creating in 2007. “Jim is a superstar,” said E. Gordon Gee, a former president of Ohio State, a Big Ten stalwart. “He knows the power of TV better than anyone.”

Mr. Delany was among the first to recognize the influence of cable, then satellite. His biggest coup has been the creation of the Big Ten Network, which is expected to produce $270 million of revenue in 2013 for the conference and its schools. And yet, for all of the TV money now in college sports, according to a recent Moody’s study, 90 percent of athletic departments at public schools require subsidies from their universities to meet their budgets.

Even as the TV ratings grow, the National Collegiate Athletic Association, college sports’ governing body, faces mounting litigation and questions about the core purpose of college athletics, most prominently: Who should benefit from all of the money that college sports generate? And why do most athletic departments still run at a deficit?

As Mr. Delany pushes the Big Ten into the New York and Washington metropolitan areas, he acknowledges the issues but says, “I’d rather have the problem of too much money than too little.”

One morning in July, Mr. Delany hosted a breakfast in a ballroom at the Hilton Chicago for athletic directors and bowl executives. The Big Ten is affiliated with 16 bowls from coast to coast, and Mr. Delany, dressed in a dark suit, posed for photographs with a representative from each one, from the Rose Bowl to the Gator Bowl.

Mr. Delany navigated the crowd as the morning’s main attraction, schmoozing, shaking hands and making introductions. When his guests sat, he addressed them about the conference’s East Coast expansion. “Our footprint is Colorado to the mid-Atlantic, Canada to the mid-South,” he said. “We wanted to have a national slate of bowls because we’re the closest thing to a national conference.”

From 1953 until 1990, the Big Ten comprised 10 schools. In 1990, Mr. Delany’s second year, Penn State, previously independent, joined. Then, in 2010, Mr. Delany plucked the University of Nebraska from the Big 12, and schools have been jumping from one conference to another ever since.

After the Southeastern Conference expanded to include the University of Missouri and after the Atlantic Coast Conference added the University of Notre Dame (the school’s football program remained independent) and the University of Pittsburgh — both schools within the Big Ten’s geographic footprint — Mr. Delany concluded that the Big Ten was in danger of ceding strategic ground. “We felt threatened,” he said.

Mr. Delany countered with the invitations to Rutgers, then of the Big East, and Maryland of the A.C.C. With their addition, the conference will cover roughly 30 percent of the country by population and more than 15 percent by geography. There are 4.7 million Big Ten alumni scattered nationwide, part of what Mr. Delany calls the Big Ten diaspora.

The strategy is about television. Mr. Delany does not expect New Yorkers to start following Rutgers football the way they follow the Giants or the Yankees, but the Big Ten alums spread throughout the New York region are likely to pay attention when Michigan and Ohio State show up. In essence, Mr. Delany has found a back door into two of the largest television markets in the country and a way to tap into that alumni diaspora.

Article source: http://www.nytimes.com/2013/12/01/business/the-big-tens-bigger-footprint.html?partner=rss&emc=rss

Fair Game: A Trusting Couple, Now Thrown for Two Loops

But then along came Michael A. Stern. A Miami businessman, Mr. Stern rented space from Mr. Rose in 2000 to open a Foot Locker store. Over the next four years, Mr. Stern, now 53, gained the trust of Mr. Rose and Ms. Starr, and they began investing in properties with him.

In addition to the investments that the couple knew about, Mr. Stern was also secretly taking out mortgages on other of the couple’s properties, according to a 2012 federal indictment. Their lawyer said he found that Mr. Stern had forged their signatures or cut and pasted them from other documents. Mr. Rose and Ms. Starr, who never received a nickel from the loans taken out on their properties, the records show, were on the hook for tens of millions of dollars in mortgages they didn’t know existed.

In early 2009, Mr. Rose and Ms. Starr started receiving foreclosure notices from institutions claiming to hold mortgages on properties the couple had owned outright. They thought it was some kind of mistake.

If only. Mr. Stern, who had left Florida for Uruguay, had stopped paying on the mortgages. Now the banks were coming after them. “Michael Stern was smooth and we’re not that perceptive,” Ms. Starr said. “He played us.”

In October, Mr. Stern was sentenced to five years in prison for swindling Dwight Freeney, a linebacker for the San Diego Chargers, out of $3 million. In California, Mr. Stern went by the name of Michael Millar. He will soon face prosecution in the Florida matter, said the prosecutor in California.

But the federal indictment didn’t end the troubles for the couple. They could lose all their properties and also be on the hook for millions of dollars. This is because Stewart Title, the company that insured the fraudulent mortgage loans — and whose policies require it to cover all the losses on the loans arising from forgeries and other defects — has refused to make a settlement on most of the properties.

And Stewart Title is doing this at the same time it is asserting, in another court venue, that one of its agents helped Mr. Stern secure bogus loans. It is suing that agent.

So how did this situation take such a twist?

First, it helps to understand the role of a title insurer. When a borrower applies for a mortgage on a property, the prospective holder of the note — usually a bank or investor in a mortgage trust — pays a title insurer to guarantee that the property’s title is free of defects, such as previous liens or taxes owed. Title insurance also protects a noteholder from loss if the lien created by the mortgage is invalid or unenforceable. Forgery, for one noteworthy example, invalidates a lien.

Stewart Title, a unit of Stewart Information Services, is based in Houston and is among the larger companies in the business. It is prospering, generating almost $2 billion in revenue last year, up 17 percent from 2011. Revenue in its title insurance unit rose 14.6 percent last year, while the money put aside to cover future losses declined $2 million, to $140 million.

Title insurers like Stewart hire agents to sell insurance policies to lenders and to handle mortgage closings. Court documents show that Stewart signed a contract in 2003 with Arlene Raijman to represent it as a title agent and lawyer. She collected title insurance premiums and was authorized to issue policies up to $500,000.

According to a lawsuit that Stewart filed against her, Ms. Raijman breached her duties at more than two dozen loan closings, issuing title insurance even though loan documentation was improper. Fifteen of those closings were for properties belonging to Mr. Rose and Ms. Starr.

Chief among the improprieties, the documents show, was her disbursement of loan proceeds to Mr. Stern rather than to the couple, as the loan documents required.

Stewart’s own court filings state, “Stern, with the assistance of Raijman, systematically induced Rose and Starr to use their property as security for loans for which they received no benefit and which benefited Stern, Raijman and the Raijman family entities.”

Article source: http://www.nytimes.com/2013/12/01/business/a-trusting-couple-now-thrown-for-two-loops.html?partner=rss&emc=rss

Economic View: How to Gauge the Price of Danger

If you answered “true,” you are in tune with the models that underlie most modern economic analysis. Those models assume that people care only about the absolute quantity and quality of the goods they consume. So the investment banker would still be happy with his twin-engine plane, no matter what his neighbor was flying. Yet in the real world, context matters. As the economist Richard Layard wrote, “In a poor country a man proves to his wife that he loves her by giving her a rose, but in a rich country he must give a dozen roses.”

Context shapes our evaluations more heavily for some goods than for others, an asymmetry that can distort our decisions. That simple fact is the key to understanding many otherwise puzzling real-world spending patterns. It also helps explain why we should support regulations that limit our freedom to act in specific ways.

Consider the familiar trade-off between wages and workplace safety. Because safety devices are expensive, additional safety means lower wages. Reducing risk to zero is impossible, so the practical question must always be this: How much safety is enough? Since Adam Smith’s day, classical economic theory has held that well-informed workers in competitive markets will navigate this trade-off sensibly. They will accept additional risk in return for higher pay only if the satisfaction resulting from their additional buying power is greater than the corresponding loss in satisfaction from reduced safety. Regulations that mandate higher safety levels make workers worse off by forcing them to buy safety they value at less than its cost.

That’s the theory, anyway.

But why, then, does virtually every country in the world regulate workplace safety? (Even the poorest countries have at least rudimentary safety requirements.) Classical economic theory doesn’t have a good answer. It either portrays such regulations as anomalous, or else needed only because workers are uninformed or markets aren’t competitive enough. Yet we regulate many safety risks that workers clearly understand, and most safety regulations have their greatest impact in precisely those markets that most closely approximate the competitive ideal.

The mystery is resolved when we remember that context shapes evaluations of safety less heavily than it does for other goods — say, housing. In that case, even well-informed workers in perfectly competitive markets will tend to buy too little safety on their own. The forces that underlie this distortion are captured in a pair of thought experiments involving choices between two environments.

In World A, your family lives in a 4,000-square-foot house, while everyone else lives in 6,000-square-foot houses. In World B, you live in a 3,000-square-foot house, while everyone else has to make do with just 2,500 square feet. If conditions were otherwise identical and would forever remain, which would you choose?

Classical economics, which says that only absolute values matter, portrays World A as the correct choice, because you would have a larger house there. But when researchers confront real people with variations on this hypothetical decision, most of them choose B. Once houses expand past a certain size, it seems, relative advantage trumps absolute size.

Now suppose you need to choose between levels of workplace safety. In World A, you would have a two-in-100,000 chance of dying on the job this year, while everyone else has a one-in-100,000 chance. In World B, you would have a four-in-100,000 chance of dying, versus a six-in-100,000 chance for everyone else.

Death is sobering. Again, the choice is between absolute and relative advantage, but this time almost everyone chooses World A. For safety, it seems, choice patterns affirm the classical theory’s assumption that only absolute quantities matter.

Here is where it gets tricky: Relative advantage matters more for housing than for safety, so markets won’t sustain an optimal trade-off between the two. Suppose a worker accepts a slightly riskier job for slightly higher pay. The extra money buys a house whose size, in absolute terms, isn’t enough to compensate for the reduction in safety. But that house is larger in relative terms, too, and that makes the difference. Now the exchange is attractive on balance.

Similar incentives apply to everyone else, though, so when all workers sacrifice safety in the hope of buying a relatively larger house, no one moves forward. They are like spectators in a sporting event: All stand to get a better view, yet no one sees any better than before.

The problem isn’t that workers are ill-informed, or that markets are insufficiently competitive. Even with full knowledge, there just isn’t much that workers can do to change matters on their own.

Consider safety regulations in hockey. Helmets are required, even in the National Hockey League but that’s a fairly recent development. Many players had believed that they could see and hear better without them. But when everyone skated without helmets, the relative advantage disappeared, resulting in gratuitous risk of injury to all players. In 1979, the N.H.L. required all newly hired players to wear helmets, but veterans were exempted. Some continued to skate without a helmet until 1997, believing that it gave them an edge — but today’s players seem to see futility in sacrificing safety for an unsustainable relative advantage.

We all value freedom. But while classical economics encourages the complaint that safety regulations violate workers’ freedom, that complaint is misguided. It is little different from complaining that helmet rules violate athletes’ freedom. Of course they do — but with athletes as with workers, that’s precisely what people wanted.

ROBERT H. FRANK is an economics professor at the Johnson Graduate School of Management at Cornell University.

Article source: http://www.nytimes.com/2013/12/01/business/how-to-gauge-the-price-of-danger.html?partner=rss&emc=rss

Peter Kaplan, Editor of New York Observer, Dies at 59

The cause was cancer, his brother James said.

Founded in 1987 by the investment banker Arthur L. Carter, The Observer, in the words of its website, observer.com, seeks to report on “finance, media, real estate, politics, society, tech and culture with an insider’s perspective, a keen sense of curiosity and a sharp wit.” Published weekly on pinkish paper that in its smoked-salmon hue trumpets Gotham, it reaches a primarily high-income readership.

Though its circulation has long been small — about 50,000 in Mr. Kaplan’s day and only slightly higher now — the newspaper became, under his stewardship, required reading for the very demographic it skewered.

Appointed in 1994, Mr. Kaplan served the longest term of any Observer editor. During his tenure, the paper featured the work of journalists renowned for a cutting-edge sensibility, among them Joe Conason, now the editor in chief of the political website The National Memo; Nikki Finke, who went on to found the entertainment-industry site now known as Deadline.com; and Choire Sicha, who later helped found The Awl, the current-events site.

The vigorously reported, tart-tongued coverage of New York’s power elites that Mr. Kaplan helped bring to The Observer prefigured the work of many websites devoted to politics, culture and the press.

“It’s hard to find a major publication right now, in print or online, that’s not in some way flavored by the old Observer,” The New Republic wrote in a profile of Mr. Kaplan last year. “Subtract Kaplan from the media landscape of the past 20 years and you lose The Awl, much of Gawker and a good bit of Politico, too.”

When The Observer began, it was intended to be a hyperlocal Manhattan affair. In light of what it later became, its early tone and purview — community board meetings loomed somewhat large in its coverage — seem almost bucolic.

Esteemed as a mentor to writers, Mr. Kaplan, by all accounts, helped usher in a delectable dose of snark. Writing about The Observer in The New York Times in 2006, David Carr called him “the man who turned it into a maypole of Manhattan gossip and intrigue.”

Among Mr. Kaplan’s greatest coups was hiring a little-known freelance writer named Candace Bushnell to write a column about the hunt for love, or something approximately like it, in the urban jungle. Ms. Bushnell’s column, “Sex and the City,” which appeared in The Observer from 1994 to 1996, became the basis for the hit HBO series starring Sarah Jessica Parker.

“The more cancellations we got for her column,” Mr. Kaplan wrote in an essay in New York magazine in 2011, “the more the paper knew we had hit the jackpot.”

Though he went on to help carry The Observer across the digital threshold, overseeing the creation of its website, Mr. Kaplan was regarded by those who knew him as a throwback to an earlier age — to the New York of the Stork Club, the Automat and the Algonquin. He revered the stuff of that era, from classic black-and-white films that portrayed the city at its noirish finest (he knew the credits of nearly all of them by heart) to newspapers as they were originally conceived: damp, sweet-smelling and black and white, or, in his case, black and pink.

Mr. Kaplan remained with The Observer after it passed into the hands of a new owner — Jared Kushner, then 25 — in 2006, and through its transformation from a broadsheet into a tabloid the next year. When he left the newspaper in 2009, amid a retrenchment that entailed staff cuts and shorter articles, his departure appeared to many in the industry to herald the last heady days of a certain brand of old-school print journalism.

Peter Wennik Kaplan was born in Manhattan on Feb. 10, 1954, and reared primarily in northern New Jersey. At Harvard, where he received a bachelor’s degree in American studies, he was a stringer for Time magazine; he also ran a campus film society, named for the Hollywood screenwriter Herman J. Mankiewicz, that specialized in showing the most obscure movies possible.

Before joining The Observer, Mr. Kaplan was a reporter at The Times, covering the television industry in the mid-1980s; the executive editor of the business magazine Manhattan,inc.; and the executive producer of Charlie Rose’s PBS talk show.

After leaving The Observer, Mr. Kaplan was the editorial creative director at Condé Nast Traveler. In 2010, he was named editorial director of the Fairchild Fashion Group (now Fairchild Fashion Media, a division of Condé Nast Publications), where his portfolio included Women’s Wear Daily, WWD.com, Footwear News and Fairchild Books.

At Fairchild, Mr. Kaplan oversaw the relaunch last year of M magazine, a glossy quarterly aimed at affluent men.

Mr. Kaplan’s marriage to Audrey Walker ended in divorce. Besides his brother James, a novelist and biographer, survivors include his second wife, Lisa Chase, whom he married last year; their son, David; three children from his marriage to Ms. Walker, Caroline Kaplan, Charles Kaplan and Peter Walker Kaplan; and another brother, Robert.

Though he had long made his home in suburban Larchmont, N.Y., Mr. Kaplan never stopped regarding New York City as a shimmering object of desire. Decades afterward, looking back on boyhood car trips into town, he recalled his father’s words on seeing the Manhattan skyline rise up on the horizon:

“There’s the Emerald City.”

And for the son, so it was.

Article source: http://www.nytimes.com/2013/12/01/nyregion/peter-kaplan-who-brought-a-cutting-edge-to-the-new-york-observer-dies-at-59.html?partner=rss&emc=rss

Exhausted Shoppers Head Home, Replaced by the Next Wave

For Mrs. Zuniga and so many others taking advantage of the expanded store hours on Thanksgiving that spilled into Black Friday, the biggest shopping event of the year has become less of a frantic sprint driven by the drum beat of opening times, and more like a relay race, with purchases delivered several times to the car still parked in the lot.

For others, it’s a shopping spree split between trips on both days.

While some malls across the country were busy during the traditional postholiday shopping on Friday, the crowds at others seemed sparse to some regular customers, who compared them to a regular weekend’s atmosphere. Perhaps the earlier Thanksgiving hours and the increase in online shopping — with so many e-tailers offering competitive deals — had lessened the desire to peruse racks of clothes in crowded stores.

Still, customers sensed there were deals to be had on both days, and parking lots at some malls were jammed again on Friday. At the Westfield Garden State Plaza mall in New Jersey, a few of the upscale stores like Louis Vuitton opened without the fanfare of special sales. That didn’t deter Ozzoi Altimi, 20, and his friend, Sam Fad, 23, who had waited for it to open a few minutes before 9 a.m. The two men, both local college students but originally from India, said they were on the hunt for shoes, each with a budget of $800 a pair.  

“They don’t do a discount,” said Mr. Altimi. “But I hope so.”

Others braved the cold temperatures to try to snare a good discount. A mother-daughter team, with red hats adorned with jingling bells, arrived at the Leesburg Corner Premium Outlets before 5 a.m. on Friday. Ashley Hawkins, 25, got half-off a professional bag at Kate Spade, a sale she took note of on Facebook. “Using the social networking, the stores have definitely got out and reached out to shoppers,” she said.

On both Friday and Thursday, some customers complained about their fellow shoppers. Holly Schneider, another shopper at the Leesburg outlets, said prices were far better than consumer behavior. “People are rude, just really rude,” Mrs. Schneider said. “There’s no personal space. It’s like you’re not even there. They’re bumping into you, knocking you down. They don’t see you. They see where they’re going.”

There were scattered reports of disputes around the country, with shoppers elbowing one another for some deals in a few stores, and even violence. A young man in California was accused of stabbing another man in a mall, according to the City of Carlsbad Police Department. In Romeoville, Ill., a suspect in a theft was shot outside a Kohl’s department store after a struggle with the police, The Chicago Tribune reported.

The shopping season also was the occasion for protests by labor groups and some Walmart workers at stores across the country in an effort to rally support for higher wages, with some demonstrators conducting civil disobedience sit-ins in Chicago, Los Angeles, Alexandria, Va., and several other cities. Our Walmart, a union-backed group, said more than 110 people had been arrested at the demonstrations.

The company criticized the protests and sit-ins as a publicity stunt, mainly done by union officials and members, with only a small number of Walmart employees joining. Earlier in November, the general counsel’s office of the National Labor Relations Board accused Walmart of illegally disciplining or firing some employees, some of whom had participated in last year’s protests. The company has denied the allegations.

Inside major retail and big-box stores, electronics, frequently used as “doorbusters” on Black Friday, remained a popular staple. At a Best Buy in Falls Church, Va., a pallet of 72 boxes, six rows high, containing Toshiba laptop “essentials” bundles stood behind a customer service desk. Workers just peeled down the plastic wrapping and handed them to shoppers. Each one cost $350 after a discount of nearly $92. Manoj Verma, a diplomat from India, used his smartphone to check reports of a 40-inch Samsung television on sale for $397.

IPad Airs and several televisions sold out on Target.com by midmorning on Thursday. Walmart announced that the company had sold 1.4 million tablets on Thanksgiving Day. Walmart also said it had processed more than 10 million transactions at its registers from 6 p.m. to 10 p.m. Thursday, including lower-tech items like nearly two million dolls.

Over all, online sales were up nearly 10 percent over last year by Black Friday night, according to IBM Digital Analytics Benchmark. While smartphones accounted for nearly 25 percent of all online traffic, they were used to make less than 8 percent of online sales. Online sales on Thanksgiving Day rose more sharply, up nearly 20 percent over last year.

Elizabeth A. Harris reported from New York. Reporting was contributed by Steven Greenhouse from New York; Rachel Abrams from New Jersey; Ken Maguire from Falls Church, Va.; Jada F. Smith from Hyattsville, Md.; Alan Blinder from Atlanta; Kimiya Shokoohi from Los Angeles; and Idalmya Carrera from Chicago.

This article has been revised to reflect the following correction:

Correction: November 29, 2013

An earlier version of this article misspelled the surname of a contributor. Her name is Idalmy Carrera, not Carrerra.

Article source: http://www.nytimes.com/2013/11/30/business/young-bored-and-looking-for-a-deal.html?partner=rss&emc=rss

Seeking Top Toys, Good Housekeeping Puts Them to Test

“The question is not ‘Will a toy break?’ ” said Rachel Rothman, technical manager and engineering director for the Good Housekeeping institute, as she studied the children around her. “It’s how it will break.”

For 113 years, Good Housekeeping has been testing and awarding its seal of approval to all kinds of consumer products, from skin creams to dishwashers. For the last six years, that testing has expanded to include toys. The magazine spends all year finding and reviewing toys for children. Then in the December issue, it bestows awards on about two dozen toys and board games that shoppers can buy just in time for the holidays.

The process is integral to Good Housekeeping’s overall business strategy. Like most magazines, Good Housekeeping, part of Hearst Magazines, has been under more pressure than ever to find new sources of revenue. According to data tracked by the magazine analyst John Harrington, Good Housekeeping’s combined revenue from magazine sales and advertising was $531 million in 2012, compared with $573 million in 2011 and $607 million in 2008. Over the last year, the magazine has undergone a redesign and recently replaced its editor in chief.

Now it is returning to its core testing business and focusing heavily on toys to help attract readers and drive revenue.

Simply put, toys equal traffic — on the web. Mimi Crume Sterling, a spokeswoman for Good Housekeeping, said that last November and December, after the awards were featured on NBC’s “Today” show, on Yahoo’s shopping section and across social media, the toy section received the most visits to the website, surpassing categories like household items and cookware.

David Carey, president of Hearst Magazines, said the digital desirability of toy reviews far outweighed the costs of conducting the tests.

“It was among the most consumed in terms of page views when it ran last year,” he said. “These things lead very long lives in our digital product.”

(Roughly half the testers are children of people affiliated with Hearst, proving that in the magazine business, even if you are a preschooler, it helps to know someone).

Good Housekeeping is also trying to derive more revenue from toy testing by licensing its brand to manufacturers. Starting with this year’s awards, companies can pay a one-year licensing fee of $2,500 to $17,500 to feature the magazine’s emblem on their products. Ms. Sterling said that one company signed up for the license the day a segment about its toy aired on the “Today” show. Lisa Guili, general manager of Educational Insights, a toy company based in Los Angeles, said it might place the emblem on the game Shelby’s Snack Shack, which made this year’s list.

“Some seals don’t add value,” Ms. Guili said. “But their seal definitely adds value.”

Toy manufacturers, especially smaller brands with limited advertising budgets, also say the reviews help make sales. Andrea Barthello, co-founder of ThinkFun, a small toy company, said that when its Yackety Smack toy appeared on the list in 2012, sales doubled. After the company learned it had made the list again this year, for its Laser Maze toy, it arranged to have more items in stock because of what Ms. Barthello called the magazine’s “halo effect.”

“It influences customer buying decisions,” Ms. Barthello said.

Article source: http://www.nytimes.com/2013/11/30/business/seeking-top-toys-good-housekeeping-puts-them-to-test.html?partner=rss&emc=rss