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Archives for September 2017

China Tries to Steer Loans to Small Businesses

The People’s Bank of China had used reserve ratio cuts in past years to spur broader economic growth. This time appears to be different.

The central bank said it would cut the ratio only for banks that meet minimums for lending to small businesses or other borrowers that it called “inclusive finance.” The new category encompasses loans typically of less than 5 million yuan, or about $750,000, that are issued to small businesses, small family companies, farmers, students and poverty alleviation programs.

Zhu Ning, a prominent economist at Tsinghua University, said that the central bank was trying to ease credit for the smallest-scale borrowers without setting off more wasteful lending.

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The move on Saturday, he said, “kills two birds with one stone, by providing liquidity to small enterprises while also providing a subtle sign of loosening.”

Reserve ratios are currently 15 to 17 percent of a bank’s assets, depending on the bank’s size. The central bank said that it would reduce the reserve ratio by half a percentage point for banks that have at least 1.5 percent of their loans in inclusive finance. It also said that it would lower the ratio by 1.5 percentage points for banks with at least 10 percent of their loans in inclusive finance — a threshold that practically no banks meet in China except for a few small, mainly rural financial institutions, experts said.

In another move that makes the announcement this weekend different from past moves on reserve requirements meant to spur growth, the central bank said the rules would not take effect until the beginning of next year. In the past, such changes took effect immediately or within a few days. Delaying the start of the rule this time gives banks time to increase their lending to small businesses so they can qualify for the new reserve ratios.

Gary Liu, the president of the China Financial Reform Institute, a research group in Shanghai, said that the timing of the central bank’s action on Saturday, the day before China’s National Day holiday on Sunday and before a week when most of the country will be on vacation, suggested that the central bank was trying to show that it was following a broad Communist Party mandate to regulatory agencies to keep the financial sector stable ahead of an important political meeting.

The Chinese Communist Party will hold its twice-a-decade congress beginning on Oct. 18, an event that is expected to confirm President Xi Jinping as the party’s general secretary for another five years while also shaking up the rest of the party’s top leadership.

Reserve ratio cuts were once one of the People’s Bank of China’s most potent moves to stimulate the economy. But since the last reduction in the reserve ratio, early last year, officials have turned to subtler and more precise tools, like transactions in China’s increasingly sophisticated credit markets, that allow them to guide the economy in more directed ways.

Follow Keith Bradsher on Twitter, @KeithBradsher.

Ailin Tang contributed research.

A version of this article appears in print on October 1, 2017, on Page A4 of the New York edition with the headline: China Moves to Steer More Loans to Small Businesses.

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Article source: https://www.nytimes.com/2017/09/30/business/china-tries-to-steer-loans-to-small-businesses.html?partner=rss&emc=rss

‘Faux’ Male Feminists Draw Ire in Hollywood

Examples of these higher standards abound.

Critics of men who sport “The Future is Female” T-shirts also maintain that some are using the word “feminist” inappropriately. The preferred term, they argue, is “feminist allies.” The rationale is that white people who fight against racism wouldn’t call themselves “black,” just as straight people who rally for lesbian, gay, bisexual and transgender rights wouldn’t call themselves “transgender.”

BuzzFeed recently published “17 Types of Male ‘Feminists’ That Need to Be Stopped,” an illustrated list that included a new father who suddenly becomes a feminist after he has a daughter, and a male manager who congratulates himself for hiring a female employee.

“It’s something I encounter all the time, but that man Robbie Tripp was the real kick in the pants in inspiring the post,” said Loryn Brantz, who wrote and illustrated the article and is also the author of the book “Feminist Baby.”

Mr. Tripp is the San Francisco man who became an internet sensation this summer when he posted a gushing ode to his wife’s “curvy body” on Instagram. People were divided on his seemingly self-congratulatory realization that “the media marginalizes women,” and his appreciation of his wife’s “thick thighs, big booty, cute little side roll.” Some cooed and said “Ah”; others sneered and said “Ew.”

“Good Morning America” interviewed the couple in a segment titled “Hero Husband or Fake Feminist?” The culture site Refinery29 dismissed Mr. Tripp’s paean as “the worst type of ‘male feminism.’”

Celebrities also weighed in. Melanie Lynskey, who will star in the TV series “Castle Rock,” said on Twitter: “Public announcements of devotion are very sexy to me,” she said. “What isn’t sexy is acting as though you’re one of the few men on earth who could possibly love a woman who looks like that.”

Dr. Peretz has coined a term, “the Pedestal Effect,” to describe how men are given special treatment for small acts of gender equality, like changing a diaper or Mr. Tripp’s love letter. “It is basically when guys get a whole lot of bonus points just for being nominal feminists,” he said.

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Mr. Whedon’s agent did not respond to requests for comment, but a representative released a statement to The Wrap that read: “While this account includes inaccuracies and misrepresentations which can be harmful to their family, Joss is not commenting, out of concern for his children and out of respect for his ex-wife.”

Mr. Whedon did, however, give an interview to BuzzFeed in 2015 that seems to have foreshadowed the current hubbub.

“When you declare yourself politically, you destroy yourself artistically,” he said in an article about why he deleted his Twitter account (he has since returned). “Because suddenly that’s the litmus test for everything you do — for example, in my case, feminism. If you don’t live up to the litmus test of feminism in this one instance, then you’re a misogynist,” he added. “It circles directly back upon you.”

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Article source: https://www.nytimes.com/2017/09/30/style/male-feminists-joss-whedon-snl.html?partner=rss&emc=rss

Puerto Rico could face 6 months without power

© Carlos Garcia RawlinsMany Americans unaware storm-stricken Puerto Ricans are fellow US citizens

As of today there’s still no power on the island except for a handful of generators powering high-priority buildings like select hospitals, and the island likely won’t return to full power for another half a year. This also means that there are next to zero working cell phone towers and no reception anywhere on the island.

Due to the blackout, many residents are relying on small gas-fed generators, and fuel is running out (though authorities in Puerto Rico insist that it’s a distribution problem, not a shortage). Puerto Ricans are waiting in six-hour lines for fuel, while many stations have run completely dry.

In most of Puerto Rico there’s no water either – that means no showers, no flushable toilets, and no drinkable water that’s not out of a bottle. In some of the remoter parts of the island, rescue workers are just barely beginning to arrive.

Puerto Rico is experiencing all of the normal catastrophes brought on by a major hurricane – and then some. In Houston after Harvey and Florida after Irma, wastewater pumping systems failed, causing significant sewage spillage. The same is almost guaranteed to happen in Puerto Rico thanks to the sustained power outages, but will be greatly exacerbated by the fact that the island’s electrical system was already “degraded and unsafe”.

READ MORE: Hurricane Maria leaves Puerto Rico ‘100% without power’

In fact, nearly every problem typically faced in the wake of natural disaster will be amplified and accelerated in Puerto Rico thanks to long-existing financial and environmental problems and far fewer rescue and relief workers.

Florida and Texas also dealt with contamination from Superfund sites, but Puerto Rico has a whopping 23 in its relatively tiny area.

According to the US Department of Health and Public Services, a superfund site is “any land in the United States that has been contaminated by hazardous waste and identified by the EPA as a candidate for cleanup because it poses a risk to human health and/or the environment.” These sites are put on the National Priorities List (NPL), a list of the most dire cases of environmental contamination in the US and its territories. These are places where a person can’t even walk on the ground and breathe the air without seriously endangering their health.

A flooded street is seen in the Juana Matos neighbourhood in Catano municipality after Hurricane Maria © Reuters StaffPuerto Rico asks for federal help to recover from Hurricane Maria

Even within the designation of Superfund, sites can be ranked in their level of catastrophism, and Puerto Rico is home to one of the very worst. For sixty years the US military used Vieques, an outlying island, for extensive bomb testing. Two thirds of the island now have extreme levels of contamination which have been related to disproportionately high cancer rates among the 9,000 residents. Even today Vieques remains blanketed with unexploded bombs, bullets, and projectiles.

Puerto Rico also has more contaminants to worry about thanks to the coal industry, which has been stockpiling coal ash in southern Puerto Rico. According to Adriana Gonzales of the Sierra Club, an uncovered five-story pile of coal ash situated next to a low-income and minority community in the town of Guayama threatens to toxify the entire area thanks to its content of heavy metals like arsenic, mercury, and chromium that will be released when the rain liquefies the ash.

The coal industry also dumped thousands of tons of coal ash in Puerto Rican landfills for years, a common practice that has recently mushroomed into a disaster as local landfills overflow thanks to the territory’s financial crisis. While the ash is not Puerto Rico’s (it’s owned by Pennsylvania-based Applied Energy Systems) they are now faced with its toxic burden, despite the fact that the Puerto Rican government ordered the company to cover and secure the pile under the threat of Hurricane Irma, weeks before Maria hit.

Puerto Rico’s fallout of Maria will result in a long, long road to recovery. Even though the island is home to 3.5 million US citizens, help is few and far between compared to response in the US, and the island’s pre-existing poverty and environmentally dangerous Superfund Sites will make rebuilding a tricky and toxic business, costing in the billions of dollars.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/405104-puerto-rico-power-outages/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

What’s Up in Coal Country: Alternative-Energy Jobs


‘This Is Bee Paradise’

HINTON, W.Va. — “Solar’s not going to be everything, and one of the big challenges for the state is how do we diversify and get lots of cool stuff going,” Mr. Conant, the Solar Holler founder, was saying as he drove from a solar installation at a hilltop farmhouse toward a 1940s summer camp that the local coal company provided for the children of its employees until 1984. “When you’ve been a one-industry town for a really long time, that’s an issue. The last thing we would want to do is pin our hopes on doing that again, just with some other technology.”

After winding down a road canopied by emerald-green trees, he passed the opening of the Great Bend Tunnel, during whose construction in the 1870s, as one legend tells it, the African-American folk hero John Henry beat a steam drill in opening a hole in the rock, only to die from his efforts. Minutes later, Mr. Conant came to Camp Lightfoot, which a nonprofit organization, Appalachian Headwaters, is turning into an apiary with an eye toward helping displaced coal workers and military veterans get into the honey business. Early next year, Mr. Conant plans to install solar panels on an old gymnasium, which now holds racks of wood frames for the hives.

Deborah Delaney, an assistant professor of entomology and wildlife ecology who oversees the apiary and bee program at the University of Delaware, said the area was well suited for a honey enterprise. It is largely forest, unsullied by the pesticides that threaten the insects in industrial farm areas, and it has plant species like black locust and sourwood whose honey can fetch a high price.

“This is bee paradise,” she said, sitting on the porch of the cafeteria building where a Patriot Coal banner hung askew on one wall. For now, Ms. Delaney and the program’s staff are getting the colony established on a hillside in 86 hives that buzz away behind electrified wire fencing to protect them from bears. Next spring, they plan to distribute about 150 hives to 35 beekeepers either free or through a low- or no-interest loan. Come harvest time, the beekeepers would bring their honey-laden frames to the camp for extraction and processing; organizers would pay them for their yield and then sell the honey to support the program.

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An old cabin at Camp Lightfoot. Credit George Etheredge for The New York Times

“For some people it might be a side hustle, but for other people it could really turn into, over time, a true income that could sustain a family,” said Kate Asquith, program director at Appalachian Headwaters.

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Economists say this kind of diversification is important, especially in a region where coal is unlikely to make a major comeback, even if Trump administration policies are able to foster a revival elsewhere. Demand is strongest for the low-sulfur coal from the Powder River Basin straddling Wyoming and Montana, rather than what Appalachia produces. The new-energy industries cannot replicate what coal once did, economists say. Long-term jobs at the Wyoming wind farm would number in the hundreds at best, while the solar program thus far trains only 10 workers each year.

Even a coal boom wouldn’t create jobs the way it used to: like the steam drill that ultimately took John Henry’s place, new equipment and technologies have replaced workers in heavy industries. Production of coal, for instance, increased over all from the 1920s until 2010, while the number of jobs dropped to 110,000 from 870,000.

So interest in the bees has been high here. “Thought it was weird at first — bugs in a box in the backyard,” said Sean Phelps, 27, who left a secure job as a school janitor to work with the bee program. Exposure to his father-in-law’s hives changed his perspective. Now he sees them as a way to help the area, as well as fun. “This is what I want to do,” he said. “Whenever you’re out in them, it reduces a lot of stress.”

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Article source: https://www.nytimes.com/2017/09/30/business/energy-environment/coal-alternative-energy-jobs.html?partner=rss&emc=rss

The Ad Campaign: In Ad, Malliotakis Takes Swing at de Blasio Over Subway Woes


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In her “Subway Nightmare” ad, Nicole Malliotakis, the Republican candidate for mayor in New York, appeals to frustrated commuters regardless of their party.

The Republican candidate for mayor in New York, Nicole Malliotakis, an assemblywoman from Staten Island, is struggling to get the attention of voters in a heavily Democratic city, with a little more than five weeks before the Nov. 7 election. Ms. Malliotakis just received a payment of $1.5 million in public matching funds from the Campaign Finance Board, giving her campaign a needed boost and making a large advertising purchase possible.

With this ad, called “Subway Nightmare,” she appeals to New Yorkers’ frustration with deteriorating subway service, an issue that may resonate with voters regardless of party — even though Mayor Bill de Blasio does not control the transit system.

Subway Nightmare – New Yorkers Deserve Better Video by Nicole Malliotakis

PRODUCER BrabenderCox

THE SCRIPT Ms. Malliotakis says: “What’s it like riding the subway under Bill de Blasio? A lot like this. A nightmare. Three quarters of subway lines are now plagued by delays. That’s over 70,000 delays a month. People are packed in like sardines. And subway sex crimes are up over 50 percent. While we deal with this, Bill de Blasio is being chauffeured to his gym miles away. New Yorkers deserve better and I’m going to fight everyday to make sure they get it.”

ON SCREEN The ad shows an elevated subway train rattling by at night, with the Manhattan skyline, including the Empire State Building, in the background. It cuts to Ms. Malliotakis standing inside an empty subway car, speaking to the camera. The lights go out and the screen stays dark briefly until she flicks on a cigarette lighter that partly illuminates her face in close-up. Images follow of crowded platforms surrounded by darkness, and jammed subway cars. A steady drumbeat plays in the background.

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Next up is a still image of a scowling Mr. de Blasio superimposed on video of a black sport utility vehicle, like the one the mayor uses, crossing a bridge. We see Ms. Malliotakis inside the subway car again, and then the ad closes with a shot of a subway train seen from outside, this time against the backdrop of a golden sky at either sunrise or sunset. It is an N train.

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ACCURACY It is true that subway service has deteriorated, with increases in delays and crowding that have been widely characterized as symptoms of a crisis. However, the subways are operated by the Metropolitan Transportation Authority, whose chairman is appointed by Gov. Andrew M. Cuomo, who has great influence within the authority. The mayor appoints four members on a board with a total of 14 votes.

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Article source: https://www.nytimes.com/2017/09/29/nyregion/nicole-malliotakis-subway-ad-de-blasio.html?partner=rss&emc=rss

Kit Reed, Author of Darkly Humorous Fiction, Dies at 85

“They are, after all, in this together,” she wrote. “Hunter and hunted. Instrument and destiny, for every great pursuit demands the cooperation of both parties. For every Jean Valjean there is a Javert and if either died the other would be desolate. Imagine Ahmed and Rushdie, the perfection of pursuit and flight. Neither exists without the other.”

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A 2004 novel by Ms. Reed that satirizes the slimming industry and the modern preoccupation with body image.

Ms. Reed saw herself as a writer of speculative fiction who trafficked not in aliens or flying saucers but in quirky, fantastic and tough-minded leaps from the realities of contemporary culture. In one novel, “Thinner Than Thou” (2004), she satirizes a modern preoccupation with body image; in “The Night Children” (2008), runaway children live in a shopping mall and come out only at night.

Rather than feel bound to science fiction, Ms. Reed saw herself as part of a group of imaginative writers that included Shirley Jackson, Ray Bradbury and George Orwell.

“For me,” she told The Hartford Courant in 2011, “it’s a great big literary ballpark.”

In Ms. Reed’s first published story, “The Wait” (1958) — which evokes Shirley Jackson as well as Stephen King — a mother falls ill in a small Southern town, leaving her teenage daughter, Miriam, to become part of a bizarre ritual involving 18-year-old virgins.

“When they came to the field,” Ms. Reed wrote, “Miriam first thought the women were still busy at a late harvest, but she saw that the maidens, scores of them, were just sitting on little boxes at intervals in the seemingly endless field.” When the frightened Miriam asked why she was there, a woman tells her little more than “Remember, the man must be a stranger.”

One of her more famous stories, “The Attack of the Giant Baby” (1976), follows the misadventures of Leonard Freibourg, a 14-month-old who accidentally swallows a culture in his father’s laboratory, turning him into a giant who terrorizes New York City. Similarities between her tale and the plot of the 1992 Disney film “Honey, I Blew Up the Kid,” the sequel to “Honey, I Shrunk the Kids,” led Ms. Reed to sue the Walt Disney Company. In a settlement, she received a “special recognition” credit.

Kit Reed was born Lillian Hyde Craig in San Diego on June 7, 1932, and was known as Kitten from a young age. Her father, John R. Craig, was the commanding officer of the Grampus, a submarine that is believed to have been sunk by the Japanese in early 1943. Her mother, the former Lillian Hyde, was a schoolteacher. Before she could read, young Kit’s father read her L. Frank Baum’s Oz books.

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At age 7, she read “Beowulf” in her bathroom “because it was the only way the babysitter would let me stay up,” Ms. Reed told The Los Angeles Review of Books. By 12, she had written a series of books about a stand-up bunny rabbit. At the College of Notre Dame of Maryland (now Notre Dame of Maryland University), nuns let her write short stories instead of a research paper for her senior thesis, allowing her to avoid the research she hated.

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A 2008 novel by Ms. Reed about children who live in a shopping mall and come out only at night.

For five years Ms. Reed was a reporter, first for The St. Petersburg Times in Florida and then for The New Haven Register, where she won awards for a series of articles about juvenile courts in Connecticut. Reporter characters would later turn up occasionally in her fiction, like the one in the novel “Son of Destruction” (2013) who investigates three cases of spontaneous human combustion in his mother’s hometown.

Writing for the online Weird Fiction Review in 2013, Adam Mills praised Ms. Reed’s mind-set. He described her “weirdness of perspective, a knack for finding the strangest, most faithful way for inhabiting a character’s head and plumbing the depths for the things that are both surprising and compelling, things we wouldn’t think to look for without Reed pointing them out.”

Her final story, “Disturbance in the Produce Aisle,” was published this month in Asimov’s Science Fiction.

Ms. Reed is survived by her husband, Joseph; her daughter, Kate Maruyama, also an author; her sons, Mack and John; and four grandchildren.

Ms. Reed, who was a professor and resident writer at Wesleyan University in Connecticut for decades and wrote a few thrillers under the pseudonym Kit Craig, had an unconventional, no-holds-barred personality. On Facebook, Mack Reed wrote of his mother: “She loved like a child, worked like a stevedore, cursed like a sailor and sampled the world with Twainian zest.”

And Jen Gunnels, her editor at Tor Books, said in an interview that Ms. Reed had a “lusciously warped mind.” One day, she said, Ms. Reed described to her a new story she had written about a woman’s nightmarish relationship with parrots.

“I remember thinking, ‘You’re really sick,’ ” Ms. Gunnels said. “But that was part of her charm.”

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Article source: https://www.nytimes.com/2017/09/28/obituaries/kit-reed-dead-author-of-darkly-humorous-fiction.html?partner=rss&emc=rss

Study Finds More Diversity Among First-Time TV Directors


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Thomas Schlamme in 2015. He’s now the president of the Directors Guild of America. Credit Richard Shotwell/Invision, via Associated Press

The pool of first-time television directors has grown more diverse, according to a new industry report, but not everyone is convinced of the findings.

The Directors Guild of America announced this week that, according to a study it conducted, women and “ethnic minorities” — a term the group used but did not define — are being hired as first-time directors at significantly higher rates than they were in 2009.

For the 2016-17 season, “ethnic minorities” made up 24.9 percent of new hires, up from 12.1 percent for the 2009-10 season, when the study began. The number of first-time female directors rose at an even greater rate, to 32.4 percent in 2016, from 11.1 percent in 2009, according to the report.

“After years of our efforts to educate the industry, hold employers accountable through our contracts and push them to do better, we’re seeing signs of meaningful improvement,” Thomas Schlamme, the guild’s president, said in a statement. The guild, which has over 16,000 members, represents directors working in film, television, news and new media.

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Not everyone shares the guild’s interpretation of the report.

“The D.G.A. is trying to say all things are wonderful,” said Jennifer Warren, chairwoman and founder of the Alliance of Women Directors. “They’re much better, but are they wonderful? No. Have all the improvements happened because of what the D.G.A. has been doing? No.”

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Article source: https://www.nytimes.com/2017/09/29/arts/television/study-finds-more-diversity-among-first-time-tv-directors.html?partner=rss&emc=rss

Restoring Those Old Liner Notes in Music’s Digital Era

For a Bob Dylan song, the app shows vintage photographs of Greenwich Village, news clippings and links to related artists (like Martin Scorsese, who directed the Bob Dylan documentary “No Direction Home”). The goal is to present fans with a web of educational “rabbit holes” to explore.

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TunesMap co-founders Erik Loyer, center left, and G. Marq Roswell, center right, inside the company’s office in Pacific Palisades, Calif. Credit Kendrick Brinson for The New York Times

“We’re going through the prism of music,” Mr. Roswell said, “but it’s film, it’s fashion, it’s art, it’s news, it’s comedy — it’s everything that created that scene.”

The company has deals with publishers like Genesis Publications and Rock’s Backpages, a decades-deep archive of music journalism, as well as rock photographers like Jay Blakesberg; TunesMap receives a cut of any sales made through the app. (TunesMap also shows articles from The New York Times by using the paper’s programming interface.)

During its long gestation, the company secured two patents for its navigation system and raised $4.75 million from entertainment-industry veterans like Andy Summers, the guitarist for the Police, and Jerry Moss, one of the founders of AM Records, and from the Visionary Private Equity Group.

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For a Bob Dylan song, the app will show items like vintage photographs, handwritten lyrics and links to related artists. Credit TunesMap

“I produced a Hank Williams film with Tom Hiddleston that took 10 years to put together,” Mr. Roswell said, referring to the 2015 biopic “I Saw the Light.” “I wouldn’t know any other way to do it. I just never let the vision die.”

The app is free, and it works when a user plays songs on Sonos from Spotify, Apple Music and other major streaming services. But in many ways, TunesMap runs counter to the trends of digital music consumption, which are moving toward simple mobile displays and programmed playlists.

Equipment costs are another potential barrier. The cheapest Sonos and Apple TV systems cost a total of $350. TunesMap said a minimal mobile version would also be available.

Reimagining liner notes for the digital age is a guiding concept, but Mr. Loyer, TunesMap’s director of user experience, said the company has tried to avoid the nostalgia of “Oh, remember when we had liner notes.”

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“The real question,” Mr. Loyer said, “is how do we design the systems in such a way that values the real output of all the culture that surrounds a piece of music.”

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Article source: https://www.nytimes.com/2017/09/29/business/media/tunesmap-liner-notes.html?partner=rss&emc=rss

Economic View: Why Public Health Insurance Could Help, Even if You Don’t Want It

But the people who stick with private plans could still be helped by the public option because its mere existence will be a jolt to private insurers, which will need to reduce prices or improve quality to retain market share. Consumers who stick with private plans will enjoy those benefits — even if they never buy the public plan.

We can’t really know for sure that these predictions about the health care market will materialize until we try it, but the experience of the rural labor market in India is instructive.

For the last decade, the Indian government has been running a workfare program in villages throughout the country. The program offers people welfare payments in exchange for work on infrastructure projects, like digging irrigation ditches. Every household in rural India is entitled to 100 days of this publicly paid work a year. For many families, the extra earnings are a lifeline, though these public works jobs are a small part of the total employment in most villages.

One of the program’s most striking effects has been indirect, maybe even inadvertent: It has led private employers to increase the wages they offer workers. Workfare is often thought of as welfare with strings attached. But you can also think of it as the government getting into the rural employment game, hiring tens of millions of people each year. The Indian government has essentially offered a “public option” for employment.

The program has paid a daily wage that was often higher than what local employers had offered. As a result, private-sector employers needed to make their jobs more attractive to retain workers.

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The government’s wage served as a de facto floor on the wage others could offer for similar work. Several studies found that the program caused local wages to increase 4 percent to 5 percent when it was active. In Indian states that carried out the program most effectively, the increase in the private-sector wage was even bigger.

That higher wage applied to a vast amount of private employment, so it has added up to a lot: For each $1 the government paid out in wages, workers earned an additional 50 cents to $4.50 from higher wages in private sector jobs. The Indian government, in effect, created a matching program: For each $1 it paid out, the private sector kicked in 50 cents to $4.50 more. And this from a government program that has many deficiencies in how it is run. It suggests that even if the United States were to provide health insurance in an inefficient way, the indirect benefits to consumers could be substantial.

Shaking up the private market is especially useful if the labor market isn’t very competitive to start with. Powerful employers in such a market can get away with paying a lower wage, allowing them to earn fatter profits (although this entails a probable sacrifice in output). Adding a public option to a market like this is not a zero-sum game where higher wages just shift money from employers to workers. Instead, with better paid workers, the size of the economic pie, or “surplus,” increases.

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In fact, there is evidence that India’s workfare program has increased both wages and private employment levels. This result goes against the most familiar supply-and-demand reasoning that by increasing employers’ costs, a higher wage decreases employment. That reasoning breaks down when a market isn’t competitive. Lack of competition also helps explain the related counterintuitive finding that raising the minimum wage sometimes increases employment in supposedly efficient markets like the United States.

The story plays out similarly among grocery stores in Mexico. In work with colleagues, I found that the few stores that sell beans, vegetable oil and other food staples in Mexico’s poor, remote villages often have considerable market power. We studied a program in which the Mexican government trucked boxes of staple foods into villages and delivered them to poor families.

For those families, the main benefit was the free food, but there was another boon: Local stores responded by reducing prices, and those prices dropped the most in villages with relatively few stores and little competition.

The counterparts to the Mexican villages with only one or two grocery stores — where prices fell a lot — are parts of the United States where only one or two insurers offer plans on the health exchanges that have come into being under the Affordable Care Act.

In Mexico and India, when the government entered the market and started competing with private businesses, those businesses felt the pressure and offered their customers or employees a better deal. If the same thing happens with health insurance in the United States, a public option might help millions of people who don’t end up buying it.

Seema Jayachandran is an economics professor at Northwestern University.

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Article source: https://www.nytimes.com/2017/09/29/business/economy/public-health-insurance.html?partner=rss&emc=rss

Berlin considers Boeing fighters as firm’s trade row with UK & Canada deepens

FILE PHOTO: A U.S. Navy F/A-18F Super Hornet jet © U.S. Navy / Erik HildebrandtUS greenlights $5.2bn sale of Super Hornet jets to Canada amid Boeing trade row with Bombardier

The German defense ministry’s planning division has identified Boeing’s F-15 and F/A-18E/F fighters, according to Reuters. Germany is reportedly looking for potential candidates to replace the Tornado jets, which have been in service since 1981.

A classified briefing is expected to take place in mid-November, following a similar presentation by US officials about the Lockheed Martin F-35 fighter jet in July.

The ministry is also considering the Eurofighter Typhoon, built by a consortium of Airbus, Britain’s BAE Systems, and Italy’s Leonardo.

Boeing is under fire from Canada and Britain after its complaint prompted the US government to impose a preliminary 220 percent duty on CSeries jets built by Bombardier.

In July, Germany announced plans to build a European fighter jet together with France. But the new plane is unlikely to be available by 2025 when Germany’s Tornado fighters are scheduled to go out of service.

Berlin is reportedly planning to buy an existing fighter to replace the Tornado while working with France on a new European jet to replace its Eurofighters at a later point.

The deal to replace the Tornado could be worth tens of billions of dollars, according to analysts, depending on how many jets Germany will buy.

Boeing said it was working with the US government to provide the information Germany had requested.

The UK warned Boeing this week that future defense contracts could be in jeopardy because of its trade dispute with Canada’s Bombardier. London says US tariffs would put over 4,000 jobs at risk at a plant in the British province of Northern Ireland that makes carbon wings for the CSeries jet.

Canadian Prime Minister Justin Trudeau threatened to cancel contracts to buy 18 Boeing F/A-18 Super Hornet jets unless the dispute is dropped.

Article source: https://www.rt.com/business/405032-germany-boeing-fighter-orders/?utm_source=rss&utm_medium=rss&utm_campaign=RSS