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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Among the suggestions? Hiring armored courier services to handle the industry’s cash and studying whether the state should create a public bank for cannabis businesses.\u003c/p>\n\u003cp>But Chiang admits California can only do so much.\u003c/p>\n\u003cp>\"The definitive bulletproof solution will remain elusive until the federal government removes cannabis from its official list of banned drugs,\" he says. \"Or Congress approves safe harbor legislation protecting banks that serve business from prosecution.\"\u003c/p>\n\u003cfigure id=\"attachment_11629081\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11629081\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/WeedCounter-800x531.jpg\" alt=\"A customer prepares to buy marijuana from a cannabis farmers market in L.A.\" width=\"800\" height=\"531\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-800x531.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-160x106.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-1020x677.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-1180x783.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-960x637.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-240x159.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-375x249.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/WeedCounter-520x345.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A customer prepares to buy marijuana from a cannabis farmers market in L.A. \u003ccite>(Frederic J. Brown/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Jim Araby is with the United Food and Commercial Workers Union, which is \u003ca href=\"http://www.ufcw.org/cannabis-workers/\">working to unionize\u003c/a> the cannabis industry in everything from cultivating and manufacturing to dispensing. He says better banking practices would also benefit workers.\u003c/p>\n\u003cp>\"A safe banking system that brings the industry out of the shadows means workers can enter the mainstream workforce, declare their incomes, pay their taxes and be recognized under the law,\" Araby says.\u003c/p>\n\u003cp>Chiang is hoping a group approach might be more effective with the federal government.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He says California should join with other cannabis legal-states to lobby for changes to federal law.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "The Paradise Papers: Revelations Spring From Leaked Records of World's Wealthy",
"title": "The Paradise Papers: Revelations Spring From Leaked Records of World's Wealthy",
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"content": "\u003cp>U.S. Commerce Secretary Wilbur Ross, Britain's Queen Elizabeth and a key ally to Canadian Prime Minister Justin Trudeau are among the 120 rich and powerful people mentioned in the Paradise Papers, a new release of data about offshore tax havens and obscure financial dealings.\u003c/p>\n\u003cp>\u003ca href=\"https://www.icij.org/investigations/paradise-papers/\">The Paradise Papers\u003c/a> are a massive trove of 13.4 million records — many of which were leaked from the offshore law firm Appleby, which was founded more than 100 years ago and operates in places ranging from Bermuda and the Cayman Islands to the Isle of Man, Mauritius, Shanghai and Hong Kong.\u003c/p>\n\u003cp>Reflecting millions of loan deals, financial statements, emails and other documents, the data reveal how specialty firms handle the money of wealthy individuals, families and corporations.\u003c/p>\n\u003cp>Some 380 journalists collaborated to unravel the connections in the Paradise Papers' nearly 1.5 terabytes of data. The trove was acquired by \u003ca href=\"http://www.sueddeutsche.de/wirtschaft/paradise-papers-das-paradies-der-reichen-1.3735767\">the German newspaper Süddeutsche Zeitung\u003c/a>, which says the records show how the wealthy and powerful sometimes duck taxes, regulations, sanctions and \"at least their social responsibility.\"\u003c/p>\n\u003cp>https://www.youtube.com/watch?v=o4XeBz1hYJQ\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Wilbur Ross \"was a major client of Appleby,\" the International Consortium of Investigative Journalists says, noting that the law firm administered more than 50 companies and partnerships linked to investments on behalf of his private equity firm, W.L. Ross & Co, LLC.\u003c/p>\n\u003cp>\"Ross divested himself of most of his business interests when he joined the Trump Cabinet in February 2017,\" \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/wilbur-louis-ross-jr\">the group says\u003c/a>. \"But he kept a stake in the shipping company Navigator Holdings through a chain of companies in the Cayman Islands, Appleby's files and public records show.\"\u003c/p>\n\u003cp>Discussing Ross' Paradise Papers file with NPR's Mary Louise Kelly, reporter Jon Swaine of \u003cem>The Guardian\u003c/em> said Ross' investments link him to Navigator — which is in turn linked to Russian President Vladimir Putin's son-in-law.\u003c/p>\n\u003cp>\u003cem>\"\u003c/em>Navigator is paid about $20 million a year to ship gas out of Russia for a Russian company named Sibur,\" Swaine said on \u003cem>Morning Edition\u003c/em>. \"And Sibur is co-owned by Putin's son-in-law, Kirill Shamalov.\"\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://www.npr.org/player/embed/562349277/562349927\" width=\"100%\" height=\"290\" frameborder=\"0\" scrolling=\"no\" title=\"NPR embedded audio player\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>In \u003ca href=\"http://www.bbc.com/news/world-us-canada-41883392\">an interview with the BBC\u003c/a>, Ross said Monday, \"There is nothing whatsoever improper about Navigator having a relationship with Sibur.\"\u003c/p>\n\u003cp>Ross said that Sibur wasn't under sanctions when the deal was made and that it's not under sanctions now. But critics of the arrangement note that in addition to Shamalov, another of Sibur's co-owners is Gennady Timchenko, a close Putin ally who is currently under U.S. sanctions.\u003c/p>\n\u003cp>As for the money generated by the deal, Swaine says, \"Navigator's brought in about $68 million in revenue since 2014 from the deal. The contract is worth at least $200 million a year, and it's scheduled to continue for about a decade.\"\u003c/p>\n\u003cp>Referring to Sibur, the commerce secretary said, \"The fact that it happens to be called a Russian company does not mean that there's any evil in it.\"\u003c/p>\n\u003cp>Referring to his financial disclosure Form 278 that was filed with the U.S. Office of Government Ethics, Ross said, \"Where there is evil is the misstatement that I did not disclose those holdings in my original form.\"\u003c/p>\n\u003cp>Another high-profile figure named in the papers is \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/queen-elizabeth-ii\">Queen Elizabeth\u003c/a>, who reportedly had around 10 million pounds (some $13 million) of her money offshore, \u003ca href=\"http://www.bbc.com/news/live/world-41879690\">the BBC says\u003c/a>. The queen's investments included a previously undisclosed stake in a Cayman fund in control of a rent-to-own company called BrightHouse, which, as the \u003cem>Guardian \u003c/em>reports, has been criticized \"for exploiting thousands of poor families and vulnerable people.\"\u003c/p>\n\u003cp>\u003ca href=\"https://www.theguardian.com/news/2017/nov/05/revealed-queen-private-estate-invested-offshore-paradise-papers\">The Guardian notes\u003c/a> that Elizabeth's estate, the Duchy of Lancaster, says it was unaware of the holding prior to being contacted by news agencies. The ICIJ notes that \"the queen voluntarily pays tax on income received.\"\u003c/p>\n\u003cp>[contextly_sidebar id=\"3iSL3usQwBbjT0c84fwIwAjRPzSVZThT\"]\u003c/p>\n\u003cp>Other notable names include tech giants Facebook and Twitter — which \u003ca href=\"https://www.revealnews.org/article/kremlin-owned-firms-linked-to-major-investments-in-twitter-and-facebook\">the news site Reveal\u003c/a> says benefited from large investments that were indirectly made by \"two Russian government-owned firms known as vehicles for the Kremlin's politically sensitive dealings.\"\u003c/p>\n\u003cp>Those investments — reportedly $191 million, in the case of Twitter — were used to buy early stakes in Twitter and Facebook via the investment firm DST Global, according to Reveal, which adds that DST founder Yuri Milner and others made profits of more than $1 billion when it sold some holdings after the two social media giants took their stocks public.\u003c/p>\n\u003cp>Those revelations come as Russia's attempts to use social media to influence the 2016 U.S. election remains a hot topic. Both tech firms and members of President Trump's inner circle have faced scrutiny; the Paradise Papers add to that conversation.\u003c/p>\n\u003cp>\"More recently, Milner invested $850,000 in Cadre, a real estate firm co-founded by Trump's son-in-law and White House adviser, Jared Kushner,\" \u003ca href=\"https://www.icij.org/investigations/paradise-papers/paradise-papers-exposes-donald-trump-russia-links-and-piggy-banks-of-the-wealthiest-1-percent/\">the ICIJ reports\u003c/a>.\u003c/p>\n\u003cp>The ICIJ adds, \"Milner is a Russian citizen who lives in Silicon Valley. His ties to Twitter, Facebook and Kushner's firm have been previously disclosed. But his links to the Kremlin financial institutions weren't known.\"\u003c/p>\n\u003cfigure id=\"attachment_11628987\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11628987\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/TimCook-800x559.jpg\" alt=\"Apple CEO Tim Cook.\" width=\"800\" height=\"559\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-800x559.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-160x112.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-1020x712.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-1180x824.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-960x671.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-240x168.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-375x262.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-520x363.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Apple CEO Tim Cook. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Many of the deals and documents cited in the Paradise Papers have to do with avoiding taxes — and that is the focus of reports on Apple, the most valuable publicly traded company in the world.\u003c/p>\n\u003cp>Recording billions in profits, Apple began to look for a new way to shelter itself from taxes after Ireland toughened its stance on international corporations in late 2013. That prompted Apple to make a plan with Appleby to use subsidiaries to park money in Jersey, a tax haven in the English Channel, according to \u003ca href=\"https://www.icij.org/investigations/paradise-papers/apples-secret-offshore-island-hop-revealed-by-paradise-papers-leak-icij/\">the ICIJ\u003c/a>.\u003c/p>\n\u003cp>As \u003ca href=\"https://www.nytimes.com/2017/11/06/world/apple-taxes-jersey.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region®ion=top-news&WT.nav=top-news\">the New York Times reports\u003c/a>, \"Apple has accumulated more than $128 billion in profits offshore, and probably much more, that is untaxed by the United States and hardly touched by any other country. Nearly all of that was generated over the past decade.\"\u003c/p>\n\u003cp>Another Trump Cabinet member, Secretary of State Rex Tillerson, is mentioned in the documents as a former director of a Bermuda company named Marib Upstream Services Co., which the ICIJ says was \"created to conduct oil and gas operations\" in Yemen. Tillerson reportedly served on Marib's board for roughly a year, from 1997 to 1998.\u003c/p>\n\u003cp>[contextly_sidebar id=\"l3oAyMgTe6NyZH6cYbeIEtX7v2L3PVat\"]\u003c/p>\n\u003cp>The report also highlights two Democrats who are not currently in government. \u003ca href=\"https://offshoreleaks.icij.org/stories/penny-pritzker\">Former Commerce Secretary Penny Pritzker\u003c/a> is said to have transferred shares of two companies into a limited liability corporation that is referred to as being \"owned by trusts that are for the benefit of Penny Pritzker's children,\" the ICIJ says, citing Appleby documents. The move was made just after Pritzker was confirmed; the report says she later filed ethics paperwork in which the holdings were \"simply listed as having been sold.\"\u003c/p>\n\u003cp>In a shorter entry, former \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/wesley-k-clark\">presidential candidate Wesley Clark\u003c/a> is mentioned for his ties to Amaya, an online gaming company that is now called the Stars Group.\u003c/p>\n\u003cp>The Paradise Papers are the fruit of a new branch of the work that brought \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/04/04/472985787/heres-what-you-need-to-know-so-far-about-panama-papers\">the Panama Papers\u003c/a> to light in 2015 and 2016. Those leaked documents caused embarrassment among the elites in several countries, from the U.K. to Ukraine, and resulted in the prime ministers of Iceland and Pakistan leaving office.\u003c/p>\n\u003cp>The leaked Appleby records that are at the heart of the Paradise Papers detail more ties to the U.S. than to any other nation, according to the ICIJ.\u003c/p>\n\u003cp>\"At least 31,000 of the individual and corporate clients included in Appleby's records are U.S. citizens or have U.S. addresses, more than from any other country,\" \u003ca href=\"https://www.icij.org/investigations/paradise-papers/about/\">the ICIJ said in a statement about the release\u003c/a>. \"Appleby also counted clients from the United Kingdom, China and Canada among its biggest sources of business.\"\u003c/p>\n\u003cp>\u003ca href=\"http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511\">The Canadian Broadcasting Corp. reports\u003c/a> that the names of more than 3,000 Canadian citizens, companies and other entities appear in the Paradise Papers, including three former prime ministers: Brian Mulroney, Jean Chrétien and Paul Martin.\u003c/p>\n\u003cp>Also mentioned is Stephen Bronfman, a key fundraiser for Prime Minister Justin Trudeau. Noting that Trudeau has mentioned tax fairness as a priority, the CBC says that Bronfman, a Seagram family heir, and his investment company, Claridge Inc., \"were key players linked to a $60 million U.S. offshore trust in the Cayman Islands that may have cost Canadians millions in unpaid taxes.\"\u003c/p>\n\u003cp>More revelations seem likely to come from the Paradise Papers — so far, we're seeing only a sampling of the documents; the stories that were launched by dozens of collaborating media outlets on Sunday reflect only the highlights of the data. A member of the ICIJ's data team says the group will release \"the full structured data from the Paradise Papers investigation in the coming weeks.\"\u003c/p>\n\u003cp>As for the timeline described in the leaked documents, the ICIJ says the records date back to 1950 and run forward to 2016.\u003c/p>\n\u003cp>In response to the reports, Appleby released a statement saying in part, \"The journalists do not allege, nor could they, that Appleby has done anything unlawful. There is no wrongdoing. It is a patchwork quilt of unrelated allegations with a clear political agenda and movement against offshore.\"\u003c/p>\n\u003cp>The law firm added, \"We wish to reiterate that our firm was not the subject of a leak but of a serious criminal act. This was an illegal computer hack.\"\u003c/p>\n\u003cp>News of offshore accounts and tax havens has been grabbing headlines since it broke on Sunday. But the ICIJ warns against assuming the guilt of anyone mentioned in its reporting. Noting that there are \"legitimate uses for offshore companies and trusts,\" the group says, \"we do not intend to suggest or imply that any people, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly.\"\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>The International Consortium of Investigative Journalists was founded in 1997, as part of the Center for Public Integrity; it became an independent organization early in 2017.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>U.S. Commerce Secretary Wilbur Ross, Britain's Queen Elizabeth and a key ally to Canadian Prime Minister Justin Trudeau are among the 120 rich and powerful people mentioned in the Paradise Papers, a new release of data about offshore tax havens and obscure financial dealings.\u003c/p>\n\u003cp>\u003ca href=\"https://www.icij.org/investigations/paradise-papers/\">The Paradise Papers\u003c/a> are a massive trove of 13.4 million records — many of which were leaked from the offshore law firm Appleby, which was founded more than 100 years ago and operates in places ranging from Bermuda and the Cayman Islands to the Isle of Man, Mauritius, Shanghai and Hong Kong.\u003c/p>\n\u003cp>Reflecting millions of loan deals, financial statements, emails and other documents, the data reveal how specialty firms handle the money of wealthy individuals, families and corporations.\u003c/p>\n\u003cp>Some 380 journalists collaborated to unravel the connections in the Paradise Papers' nearly 1.5 terabytes of data. The trove was acquired by \u003ca href=\"http://www.sueddeutsche.de/wirtschaft/paradise-papers-das-paradies-der-reichen-1.3735767\">the German newspaper Süddeutsche Zeitung\u003c/a>, which says the records show how the wealthy and powerful sometimes duck taxes, regulations, sanctions and \"at least their social responsibility.\"\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/o4XeBz1hYJQ'\n title='//www.youtube.com/embed/o4XeBz1hYJQ'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Wilbur Ross \"was a major client of Appleby,\" the International Consortium of Investigative Journalists says, noting that the law firm administered more than 50 companies and partnerships linked to investments on behalf of his private equity firm, W.L. Ross & Co, LLC.\u003c/p>\n\u003cp>\"Ross divested himself of most of his business interests when he joined the Trump Cabinet in February 2017,\" \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/wilbur-louis-ross-jr\">the group says\u003c/a>. \"But he kept a stake in the shipping company Navigator Holdings through a chain of companies in the Cayman Islands, Appleby's files and public records show.\"\u003c/p>\n\u003cp>Discussing Ross' Paradise Papers file with NPR's Mary Louise Kelly, reporter Jon Swaine of \u003cem>The Guardian\u003c/em> said Ross' investments link him to Navigator — which is in turn linked to Russian President Vladimir Putin's son-in-law.\u003c/p>\n\u003cp>\u003cem>\"\u003c/em>Navigator is paid about $20 million a year to ship gas out of Russia for a Russian company named Sibur,\" Swaine said on \u003cem>Morning Edition\u003c/em>. \"And Sibur is co-owned by Putin's son-in-law, Kirill Shamalov.\"\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://www.npr.org/player/embed/562349277/562349927\" width=\"100%\" height=\"290\" frameborder=\"0\" scrolling=\"no\" title=\"NPR embedded audio player\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>In \u003ca href=\"http://www.bbc.com/news/world-us-canada-41883392\">an interview with the BBC\u003c/a>, Ross said Monday, \"There is nothing whatsoever improper about Navigator having a relationship with Sibur.\"\u003c/p>\n\u003cp>Ross said that Sibur wasn't under sanctions when the deal was made and that it's not under sanctions now. But critics of the arrangement note that in addition to Shamalov, another of Sibur's co-owners is Gennady Timchenko, a close Putin ally who is currently under U.S. sanctions.\u003c/p>\n\u003cp>As for the money generated by the deal, Swaine says, \"Navigator's brought in about $68 million in revenue since 2014 from the deal. The contract is worth at least $200 million a year, and it's scheduled to continue for about a decade.\"\u003c/p>\n\u003cp>Referring to Sibur, the commerce secretary said, \"The fact that it happens to be called a Russian company does not mean that there's any evil in it.\"\u003c/p>\n\u003cp>Referring to his financial disclosure Form 278 that was filed with the U.S. Office of Government Ethics, Ross said, \"Where there is evil is the misstatement that I did not disclose those holdings in my original form.\"\u003c/p>\n\u003cp>Another high-profile figure named in the papers is \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/queen-elizabeth-ii\">Queen Elizabeth\u003c/a>, who reportedly had around 10 million pounds (some $13 million) of her money offshore, \u003ca href=\"http://www.bbc.com/news/live/world-41879690\">the BBC says\u003c/a>. The queen's investments included a previously undisclosed stake in a Cayman fund in control of a rent-to-own company called BrightHouse, which, as the \u003cem>Guardian \u003c/em>reports, has been criticized \"for exploiting thousands of poor families and vulnerable people.\"\u003c/p>\n\u003cp>\u003ca href=\"https://www.theguardian.com/news/2017/nov/05/revealed-queen-private-estate-invested-offshore-paradise-papers\">The Guardian notes\u003c/a> that Elizabeth's estate, the Duchy of Lancaster, says it was unaware of the holding prior to being contacted by news agencies. The ICIJ notes that \"the queen voluntarily pays tax on income received.\"\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Other notable names include tech giants Facebook and Twitter — which \u003ca href=\"https://www.revealnews.org/article/kremlin-owned-firms-linked-to-major-investments-in-twitter-and-facebook\">the news site Reveal\u003c/a> says benefited from large investments that were indirectly made by \"two Russian government-owned firms known as vehicles for the Kremlin's politically sensitive dealings.\"\u003c/p>\n\u003cp>Those investments — reportedly $191 million, in the case of Twitter — were used to buy early stakes in Twitter and Facebook via the investment firm DST Global, according to Reveal, which adds that DST founder Yuri Milner and others made profits of more than $1 billion when it sold some holdings after the two social media giants took their stocks public.\u003c/p>\n\u003cp>Those revelations come as Russia's attempts to use social media to influence the 2016 U.S. election remains a hot topic. Both tech firms and members of President Trump's inner circle have faced scrutiny; the Paradise Papers add to that conversation.\u003c/p>\n\u003cp>\"More recently, Milner invested $850,000 in Cadre, a real estate firm co-founded by Trump's son-in-law and White House adviser, Jared Kushner,\" \u003ca href=\"https://www.icij.org/investigations/paradise-papers/paradise-papers-exposes-donald-trump-russia-links-and-piggy-banks-of-the-wealthiest-1-percent/\">the ICIJ reports\u003c/a>.\u003c/p>\n\u003cp>The ICIJ adds, \"Milner is a Russian citizen who lives in Silicon Valley. His ties to Twitter, Facebook and Kushner's firm have been previously disclosed. But his links to the Kremlin financial institutions weren't known.\"\u003c/p>\n\u003cfigure id=\"attachment_11628987\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11628987\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/TimCook-800x559.jpg\" alt=\"Apple CEO Tim Cook.\" width=\"800\" height=\"559\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-800x559.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-160x112.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-1020x712.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-1180x824.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-960x671.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-240x168.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-375x262.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/TimCook-520x363.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Apple CEO Tim Cook. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Many of the deals and documents cited in the Paradise Papers have to do with avoiding taxes — and that is the focus of reports on Apple, the most valuable publicly traded company in the world.\u003c/p>\n\u003cp>Recording billions in profits, Apple began to look for a new way to shelter itself from taxes after Ireland toughened its stance on international corporations in late 2013. That prompted Apple to make a plan with Appleby to use subsidiaries to park money in Jersey, a tax haven in the English Channel, according to \u003ca href=\"https://www.icij.org/investigations/paradise-papers/apples-secret-offshore-island-hop-revealed-by-paradise-papers-leak-icij/\">the ICIJ\u003c/a>.\u003c/p>\n\u003cp>As \u003ca href=\"https://www.nytimes.com/2017/11/06/world/apple-taxes-jersey.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region®ion=top-news&WT.nav=top-news\">the New York Times reports\u003c/a>, \"Apple has accumulated more than $128 billion in profits offshore, and probably much more, that is untaxed by the United States and hardly touched by any other country. Nearly all of that was generated over the past decade.\"\u003c/p>\n\u003cp>Another Trump Cabinet member, Secretary of State Rex Tillerson, is mentioned in the documents as a former director of a Bermuda company named Marib Upstream Services Co., which the ICIJ says was \"created to conduct oil and gas operations\" in Yemen. Tillerson reportedly served on Marib's board for roughly a year, from 1997 to 1998.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The report also highlights two Democrats who are not currently in government. \u003ca href=\"https://offshoreleaks.icij.org/stories/penny-pritzker\">Former Commerce Secretary Penny Pritzker\u003c/a> is said to have transferred shares of two companies into a limited liability corporation that is referred to as being \"owned by trusts that are for the benefit of Penny Pritzker's children,\" the ICIJ says, citing Appleby documents. The move was made just after Pritzker was confirmed; the report says she later filed ethics paperwork in which the holdings were \"simply listed as having been sold.\"\u003c/p>\n\u003cp>In a shorter entry, former \u003ca href=\"https://offshoreleaks.cloud.icij.org/stories/wesley-k-clark\">presidential candidate Wesley Clark\u003c/a> is mentioned for his ties to Amaya, an online gaming company that is now called the Stars Group.\u003c/p>\n\u003cp>The Paradise Papers are the fruit of a new branch of the work that brought \u003ca href=\"http://www.npr.org/sections/thetwo-way/2016/04/04/472985787/heres-what-you-need-to-know-so-far-about-panama-papers\">the Panama Papers\u003c/a> to light in 2015 and 2016. Those leaked documents caused embarrassment among the elites in several countries, from the U.K. to Ukraine, and resulted in the prime ministers of Iceland and Pakistan leaving office.\u003c/p>\n\u003cp>The leaked Appleby records that are at the heart of the Paradise Papers detail more ties to the U.S. than to any other nation, according to the ICIJ.\u003c/p>\n\u003cp>\"At least 31,000 of the individual and corporate clients included in Appleby's records are U.S. citizens or have U.S. addresses, more than from any other country,\" \u003ca href=\"https://www.icij.org/investigations/paradise-papers/about/\">the ICIJ said in a statement about the release\u003c/a>. \"Appleby also counted clients from the United Kingdom, China and Canada among its biggest sources of business.\"\u003c/p>\n\u003cp>\u003ca href=\"http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511\">The Canadian Broadcasting Corp. reports\u003c/a> that the names of more than 3,000 Canadian citizens, companies and other entities appear in the Paradise Papers, including three former prime ministers: Brian Mulroney, Jean Chrétien and Paul Martin.\u003c/p>\n\u003cp>Also mentioned is Stephen Bronfman, a key fundraiser for Prime Minister Justin Trudeau. Noting that Trudeau has mentioned tax fairness as a priority, the CBC says that Bronfman, a Seagram family heir, and his investment company, Claridge Inc., \"were key players linked to a $60 million U.S. offshore trust in the Cayman Islands that may have cost Canadians millions in unpaid taxes.\"\u003c/p>\n\u003cp>More revelations seem likely to come from the Paradise Papers — so far, we're seeing only a sampling of the documents; the stories that were launched by dozens of collaborating media outlets on Sunday reflect only the highlights of the data. A member of the ICIJ's data team says the group will release \"the full structured data from the Paradise Papers investigation in the coming weeks.\"\u003c/p>\n\u003cp>As for the timeline described in the leaked documents, the ICIJ says the records date back to 1950 and run forward to 2016.\u003c/p>\n\u003cp>In response to the reports, Appleby released a statement saying in part, \"The journalists do not allege, nor could they, that Appleby has done anything unlawful. There is no wrongdoing. It is a patchwork quilt of unrelated allegations with a clear political agenda and movement against offshore.\"\u003c/p>\n\u003cp>The law firm added, \"We wish to reiterate that our firm was not the subject of a leak but of a serious criminal act. This was an illegal computer hack.\"\u003c/p>\n\u003cp>News of offshore accounts and tax havens has been grabbing headlines since it broke on Sunday. But the ICIJ warns against assuming the guilt of anyone mentioned in its reporting. Noting that there are \"legitimate uses for offshore companies and trusts,\" the group says, \"we do not intend to suggest or imply that any people, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The International Consortium of Investigative Journalists was founded in 1997, as part of the Center for Public Integrity; it became an independent organization early in 2017.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "As Fires Approached, Some Wealthy North Bay Homeowners Got Extra Help",
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"content": "\u003cp>\u003cem>Update, Tuesday Nov. 7 12:00 p.m.\u003c/em>\u003c/p>\n\u003cp>Some of the nation’s largest insurance companies sent teams of retired firefighters into Napa and Sonoma counties to help protect several hundred homes of the wealthy during last month’s fire siege.\u003c/p>\n\u003cp>The firms offer “wildfire protection units” for thousands of houses covered by more expensive homeowner insurance plans in several states.\u003c/p>\n\u003cp>For instance, the service is offered to policyholders in a “private client group” managed by American International Group (AIG). That particular program insures 40 percent of the Forbes 400 richest Americans, according to Stephen Poux, the group’s global head of risk management services and loss prevention. The policies AIG has with the added service can cost more than $100,000 a year, Poux said.\u003c/p>\n\u003cp>AIG began the practice in 2005 and several other companies, including Chubb Limited, USAA and Privilege Underwriters Reciprocal Exchange (PURE), have created plans since then. Some of the companies told the \u003ca href=\"https://www.wsj.com/articles/as-wildfires-raged-insurers-sent-in-private-firefighters-to-protect-homes-of-the-wealthy-1509886801?mod=e2tw\" target=\"_blank\" rel=\"noopener\">Wall Street Journal\u003c/a> they get a jump in consumer interest when “homeowners see the special treatment received by their neighbors during big fires.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=”yHVZnFHTcK0DRhVzvD1nhsC3151oAMKI”]\u003c/p>\n\u003cp>The insurance plans provide teams made up of former firefighters with Cal Fire, the U.S. Forest Service and local fire departments to work with homeowners on ways to prevent wildfires from damaging or destroying their properties. The units suggest changes to landscaping and reduce brush near houses “so the home has the best possible chance to withstand the encroachment of a wildfire,” Poux said.\u003c/p>\n\u003cp>Those teams also rush into neighborhoods as wildfires are beginning to threaten homes of customers with the wildfire coverage. The private crews move wood piles and barbecues away from homes, take out foam cushions from patio furniture, remove leaves from gutters and trim branches from nearby trees. They also set up sprinklers and apply fire retardant chemicals directly to the buildings.\u003c/p>\n\u003cp>But just because a home is covered by the wildfire coverage doesn’t necessarily mean it’s saved.\u003c/p>\n\u003cp>Chubb’s wildfire teams visited the homes of more than 250 policyholders in the recent Northern California wildfires, according to company spokesman Jeffrey Zack. The group worked to protect more than half of those properties, Zack said in an email. At least nine of those properties were saved, but Zack did not disclose how many homes were damaged or lost.\u003c/p>\n\u003cp>“That means but for the actions taken by Chubb, the homes would have been lost,” Zack said.\u003c/p>\n\u003cp>[contextly_sidebar id=”K5cFzA7MVOAd0GUtjhIiIYdoPFJzOo7l”]\u003c/p>\n\u003cp>PURE’s wildfire risk team “took action” on more than 100 properties owned by its Northern California customers during last month’s blazes, Scott Spencer, a senior vice president of risk management at the company, said in an emailed statement Tuesday.\u003c/p>\n\u003cp>The team applied fire retardant to 30 percent of those properties that were in the direct path of fire, Spencer said.\u003c/p>\n\u003cp>“While a handful of homes were structurally compromised, the majority of the homes PURE served were saved due to the efforts of these crews,” said Spencer.\u003c/p>\n\u003cp>AIG had multiple teams in the area that visited several hundred homes, but the company would not release specific data on how many were saved.\u003c/p>\n\u003cp>At least one insurance company, \u003ca href=\"https://www.usaa.com/inet/wc/faq_Enterprise_Wildfire_Response_Program_index\" target=\"_blank\" rel=\"noopener\">USAA\u003c/a>, offers the service to policyholders, regardless of the value of their property.\u003c/p>\n\u003cp>The industry emphasizes that its insurance wildfire units are not firefighters. “We do not respond to structure fires. That’s the job of the fire departments,” Poux said.\u003c/p>\n\u003cp>Cal Fire says the presence of wildfire insurance units in big wildfire situations is increasing.\u003c/p>\n\u003cp>“We’re seeing more during these major events, and more so within Napa and Sonoma counties,” Cal Fire spokesman Scott McLean said.\u003c/p>\n\u003cp>The wildfire insurance teams are required to get permission from state fire officials to enter areas threatened by blazes, according to McLean, who added that the groups have to wear protective equipment and provide documents associated with their companies and the homes they plan to check on.\u003c/p>\n\u003cp>[contextly_sidebar id=”ImTiBmBsS4kj3Bi85iySsLRVgM7dKbmf”]\u003c/p>\n\u003cp>“They can come when there’s an evacuation advisory or warning. However, when that turns into an evacuation order to leave, they must leave,” McLean said.\u003c/p>\n\u003cp>In general, Cal Fire wants the insurance company fire crews to stay in their lane.\u003c/p>\n\u003cp>“If they’re doing their job and taking fuel away from that fire, sure, that’s a help,” McLean said. “But … they need to stay on that property and take care of what they’re supposed to do. If they leave … and start going around the fire area, then no, they cannot do that.”\u003c/p>\n\u003cp>State regulators are aware that some insurance companies offer extra wildfire protection but they do not have a full grasp of how prevalent the fire risk units are, according to Nancy Kincaid, press secretary for Insurance Commissioner Dave Jones.\u003c/p>\n\u003cp>“While it is part of a company’s rate/form filing, we do not track them or keep data on how many companies offer this type of coverage,” Kincaid said in an email.\u003c/p>\n\u003cp>One consumer advocacy group wants the industry to spread the service around to more consumers.\u003c/p>\n\u003cp>“Insurance companies have the knowledge, they have access to the technology and they have access to resources to make homes more resistant to damage,” said Amy Bach, executive director of United Policyholders.\u003c/p>\n\u003cp>“We want them to use that knowledge to benefit their policy holders, not just the few, but the many,” Bach said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Editor’s Note: A PURE representative had told KQED previously that the company’s wildfire risk team visited 81 homes in Northern California during last month’s blazes and three of those houses were destroyed. But, the company issued a revised statement on Tuesday.\u003c/em>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Update, Tuesday Nov. 7 12:00 p.m.\u003c/em>\u003c/p>\n\u003cp>Some of the nation’s largest insurance companies sent teams of retired firefighters into Napa and Sonoma counties to help protect several hundred homes of the wealthy during last month’s fire siege.\u003c/p>\n\u003cp>The firms offer “wildfire protection units” for thousands of houses covered by more expensive homeowner insurance plans in several states.\u003c/p>\n\u003cp>For instance, the service is offered to policyholders in a “private client group” managed by American International Group (AIG). That particular program insures 40 percent of the Forbes 400 richest Americans, according to Stephen Poux, the group’s global head of risk management services and loss prevention. The policies AIG has with the added service can cost more than $100,000 a year, Poux said.\u003c/p>\n\u003cp>AIG began the practice in 2005 and several other companies, including Chubb Limited, USAA and Privilege Underwriters Reciprocal Exchange (PURE), have created plans since then. Some of the companies told the \u003ca href=\"https://www.wsj.com/articles/as-wildfires-raged-insurers-sent-in-private-firefighters-to-protect-homes-of-the-wealthy-1509886801?mod=e2tw\" target=\"_blank\" rel=\"noopener\">Wall Street Journal\u003c/a> they get a jump in consumer interest when “homeowners see the special treatment received by their neighbors during big fires.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The insurance plans provide teams made up of former firefighters with Cal Fire, the U.S. Forest Service and local fire departments to work with homeowners on ways to prevent wildfires from damaging or destroying their properties. The units suggest changes to landscaping and reduce brush near houses “so the home has the best possible chance to withstand the encroachment of a wildfire,” Poux said.\u003c/p>\n\u003cp>Those teams also rush into neighborhoods as wildfires are beginning to threaten homes of customers with the wildfire coverage. The private crews move wood piles and barbecues away from homes, take out foam cushions from patio furniture, remove leaves from gutters and trim branches from nearby trees. They also set up sprinklers and apply fire retardant chemicals directly to the buildings.\u003c/p>\n\u003cp>But just because a home is covered by the wildfire coverage doesn’t necessarily mean it’s saved.\u003c/p>\n\u003cp>Chubb’s wildfire teams visited the homes of more than 250 policyholders in the recent Northern California wildfires, according to company spokesman Jeffrey Zack. The group worked to protect more than half of those properties, Zack said in an email. At least nine of those properties were saved, but Zack did not disclose how many homes were damaged or lost.\u003c/p>\n\u003cp>“That means but for the actions taken by Chubb, the homes would have been lost,” Zack said.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>PURE’s wildfire risk team “took action” on more than 100 properties owned by its Northern California customers during last month’s blazes, Scott Spencer, a senior vice president of risk management at the company, said in an emailed statement Tuesday.\u003c/p>\n\u003cp>The team applied fire retardant to 30 percent of those properties that were in the direct path of fire, Spencer said.\u003c/p>\n\u003cp>“While a handful of homes were structurally compromised, the majority of the homes PURE served were saved due to the efforts of these crews,” said Spencer.\u003c/p>\n\u003cp>AIG had multiple teams in the area that visited several hundred homes, but the company would not release specific data on how many were saved.\u003c/p>\n\u003cp>At least one insurance company, \u003ca href=\"https://www.usaa.com/inet/wc/faq_Enterprise_Wildfire_Response_Program_index\" target=\"_blank\" rel=\"noopener\">USAA\u003c/a>, offers the service to policyholders, regardless of the value of their property.\u003c/p>\n\u003cp>The industry emphasizes that its insurance wildfire units are not firefighters. “We do not respond to structure fires. That’s the job of the fire departments,” Poux said.\u003c/p>\n\u003cp>Cal Fire says the presence of wildfire insurance units in big wildfire situations is increasing.\u003c/p>\n\u003cp>“We’re seeing more during these major events, and more so within Napa and Sonoma counties,” Cal Fire spokesman Scott McLean said.\u003c/p>\n\u003cp>The wildfire insurance teams are required to get permission from state fire officials to enter areas threatened by blazes, according to McLean, who added that the groups have to wear protective equipment and provide documents associated with their companies and the homes they plan to check on.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“They can come when there’s an evacuation advisory or warning. However, when that turns into an evacuation order to leave, they must leave,” McLean said.\u003c/p>\n\u003cp>In general, Cal Fire wants the insurance company fire crews to stay in their lane.\u003c/p>\n\u003cp>“If they’re doing their job and taking fuel away from that fire, sure, that’s a help,” McLean said. “But … they need to stay on that property and take care of what they’re supposed to do. If they leave … and start going around the fire area, then no, they cannot do that.”\u003c/p>\n\u003cp>State regulators are aware that some insurance companies offer extra wildfire protection but they do not have a full grasp of how prevalent the fire risk units are, according to Nancy Kincaid, press secretary for Insurance Commissioner Dave Jones.\u003c/p>\n\u003cp>“While it is part of a company’s rate/form filing, we do not track them or keep data on how many companies offer this type of coverage,” Kincaid said in an email.\u003c/p>\n\u003cp>One consumer advocacy group wants the industry to spread the service around to more consumers.\u003c/p>\n\u003cp>“Insurance companies have the knowledge, they have access to the technology and they have access to resources to make homes more resistant to damage,” said Amy Bach, executive director of United Policyholders.\u003c/p>\n\u003cp>“We want them to use that knowledge to benefit their policy holders, not just the few, but the many,” Bach said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Editor’s Note: A PURE representative had told KQED previously that the company’s wildfire risk team visited 81 homes in Northern California during last month’s blazes and three of those houses were destroyed. But, the company issued a revised statement on Tuesday.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "The Withering California Dream, by the Numbers",
"title": "The Withering California Dream, by the Numbers",
"headTitle": "The California Dream | The California Report | KQED News",
"content": "\u003cp>The California dream isn’t dead. It just upped and moved to South Dakota.\u003c/p>\n\u003cp>Less than half of people born in California in 1980 are making more money than their parents did as young adults. That’s the lowest percentage of children out-earning their parents that California has seen since at least 1940.\u003c/p>\n\u003cp>By contrast, 62 percent of people born in South Dakota in 1980 out-earn their parents. That’s the highest percentage for any state in the country.\u003c/p>\n\u003cp>Those figures come from a \u003ca href=\"http://www.equality-of-opportunity.org/papers/abs_mobility_paper.pdf\">study\u003c/a> by Stanford economist Raj Chetty and several prominent co-authors, whose \u003ca href=\"https://www.nytimes.com/interactive/2015/05/03/upshot/the-best-and-worst-places-to-grow-up-how-your-area-compares.html?mtrref=www.nytimes.com&gwh=A162EB05EBD48940B641AB3545D9DB70&gwt=pay\">widely publicized\u003c/a> work on intergenerational income mobility—the likelihood children will fare better financially than their parents—has transformed what we know about the data behind the American dream.\u003c/p>\n\u003cp>Chetty’s research has profound implications for California, a state whose unique mythology of boundless opportunity and instant riches has attracted generations of migrants to settle here in pursuit of a better life for their children. There’s a reason you’ve heard of “\u003ca href=\"https://ww2.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">the California dream\u003c/a>,” while the phrase “Vermont dream” doesn’t really evoke much beyond a good name for a Ben and Jerry’s flavor.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=\"ISmXptzosfdXWTjzaqEL1FDv8ziNa5Z3\"]\u003c/p>\n\u003cp>With the president \u003ca href=\"https://www.youtube.com/watch?v=aqUP3kCA5jo\">declaring the American Dream dead\u003c/a> and at least \u003ca href=\"http://antonioforcalifornia.com/\">one leading candidate \u003c/a>\u003ca href=\"http://antonioforcalifornia.com/\">for\u003c/a>\u003ca href=\"http://antonioforcalifornia.com/\"> governor\u003c/a> staking claim to “the California dream” as a major campaign theme, let’s play Freud for a moment and analyze why decades ago young Californians dreamt of picket fences and swimming pools, while many of today’s young Californians can dream only that their parents will subsidize their cell phone bill well into their forties.\u003c/p>\n\u003cp>To the charts and graphs!\u003c/p>\n\u003ch2>Since 1940, the Proportion of Californians Out-earning Their Parents has Dropped by Nearly Half\u003c/h2>\n\u003cp>According to Chetty’s research—which is revolutionary primarily because of access to a longitudinal database of Americans’ tax records—children born in 1940 in California had a roughly 90 percent chance of making more money than their parents did around the age of 30. Fast-forward 40 years, and Californians born in 1980 stand less than a 50 percent chance of making more than their parents.\u003c/p>\n\u003cp>[OddsOfOutEarning]\u003c/p>\n\u003cp>It’s important to think through how the comparison between children and parents is actually being measured here. For California babies born in 1980, researchers are using the total income they’re receiving as young adults in 2010, regardless of whether they stay in the state or move elsewhere.\u003c/p>\n\u003cp>They are then comparing that income to what their parents made at around the same age, regardless of their age when they became parents, or where those parents were born. So we’re not just comparing one generation of native Californians to another.\u003c/p>\n\u003cp>Obviously, part of that drop over that 50-year-period can be attributed simply to how poor everyone was back in 1940, when the United States had yet to fully escape the depths of the Great Depression. In 2014 dollars, the national median income of parents for children born in 1940 was around $18,000.\u003c/p>\n\u003ch2>Falling Income Mobility Closely Tracks What's Happening Nationwide\u003c/h2>\n\u003cp>Younger Californians shouldn’t feel uniquely sheepish about making less than their parents. California mirrors the national pattern in income mobility very closely.\u003c/p>\n\u003cp>Nationwide, only 50 percent of Americans born in 1980 were out-earning their parents at the age of 30. That percentage has ticked up a bit in subsequent years, but not by much.\u003c/p>\n\u003cp>[Ohio]\u003c/p>\n\u003cp>There’s not a lot of variation between states in levels of income mobility, or in changes in mobility over time. There are some exceptions to this—states like South Dakota, Montana, and Arkansas all appear to have above-average mobility rates for younger natives.\u003c/p>\n\u003cp>But interestingly, California does not fare much better than many states in the Midwest, where the narrative of a dying American dream played heavily in the 2016 presidential campaign. Ohio and California have very similar mobility rates.\u003c/p>\n\u003ch2>How Can We Be Similar to Ohio? We Have Silicon Valley and the World's 6\u003csup>th\u003c/sup> Largest Economy! Ohio has… LeBron?\u003c/h2>\n\u003cp>To be fair to Chetty and his co-authors, their research is less focused on state-by-state differences than the broader national picture of declining mobility. But one of the study’s conclusions about why the American dream is fading could help explain what’s happening at the state level.\u003c/p>\n\u003cp>There are two primary determinants of mobility: economic growth and inequality.\u003c/p>\n\u003cp>To use the overwrought \"pie metaphor,\" it’s inherently good for income mobility when the economic pie grows over time. But when a smaller share of the population receives a larger chunk of that pie, the odds that the average child will out-earn his or her parents shrinks.\u003c/p>\n\u003cp>“What we’re seeing on the national level is that most of the decline (in mobility) is not due to overall economic growth,” says Robert Fluegge, a Stanford researcher who contributed to the study. “What counts more is the change in the distribution for income growth.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"fZmLIWuyAsmoylCTrY6dlqGYfVwXT3VJ\"]\u003c/p>\n\u003cp>To test how much rising inequality determined mobility rates, Chetty’s team simulated what would have happened if the United States kept its very equal income distribution from 1940 through 2010. Under that scenario, 80 percent of children born in 1980 made more than their parents.\u003c/p>\n\u003cp>That would help explain why despite its remarkable economic growth over the past half century, California’s mobility rate is not that much different than states like Ohio or Indiana.\u003c/p>\n\u003cp>\"Even if you’re in California, you’re getting a concentration of income growth among high skilled labor that are able to use technology,\" says Fluegge. \"And those type of jobs are likely grabbing a lot of that income growth.\"\u003c/p>\n\u003cp>Fluegge cautions that although inequality is likely part of the explanation for California, researchers have yet to drill down on the state specifically.\u003c/p>\n\u003cp>Interestingly, plotting the level of inequality in a state to its level of mobility doesn’t reveal much of a relationship. Nor does plotting changes in the level of inequality over the past decade, which arguably would affect young wage-earners more. Researchers will have more work to do disentangling the relationship between inequality, growth and mobility at the state level.\u003c/p>\n\u003ch2>Can’t You Tell Me Some Good News About Living in this State?\u003c/h2>\n\u003cp>While the fact that only 49 percent of younger Californians are making more than their parents may seem concerning, there are reasons to think that number may be overstating things a little.\u003c/p>\n\u003cp>That figure is at the household level, and does not adjust for household size. So a single 30-year-old born in 1980 may be compared to the dual incomes of their married parents at the same age.\u003c/p>\n\u003cp>When adjusting for family size, the share of young adults out-earning their parents nationally improves from 50 percent to 60 percent (unfortunately those figures aren’t calculated at the state level). The sharp downward trend from 1940 persists, but the picture is somewhat rosier.\u003c/p>\n\u003cp>[contextly_sidebar id=\"u94itVnNHwUTiotZfiEfuAUIt90tIaZR\"]\u003c/p>\n\u003cp>Perhaps more significant for California, the 49 percent figure does not include immigrant children.\u003c/p>\n\u003cp>That shortcoming could be of enormous consequence to the Golden State, which has the highest percentage of foreign-born residents of any state in the country (27 percent).\u003c/p>\n\u003cp>Also, 2010 was also a particularly bad year for California incomes. In the depths of the Great Recession, median California household income dipped to a five-year low. The result could be that measuring the income of a 30-year old born in 1980 is artificially depressed in California, relative to both previous generations and other states where the recession took less of a toll.\u003c/p>\n\u003ch2>What About Cost of Living?\u003c/h2>\n\u003cp>So that’s the glass half full version of income mobility in California.\u003c/p>\n\u003cp>The glass half empty version? Nothing in Chetty’s study accounts for this chart:\u003c/p>\n\u003cp>[MedianHome]\u003c/p>\n\u003cp>Over the past 40 years, the cost of housing has exploded in California relative to the rest of the United States. While the chart above only refers to median housing prices, there’s nothing much better about California’s rental market.\u003c/p>\n\u003cp>That means that those 49 percent of Californians making more than their parents are likely seeing their paycheck stretched much thinner by steeper mortgages and rents.\u003c/p>\n\u003cp>[contextly_sidebar id=\"jWti9zsY6bN7Dva5uEHprhE2yEImE84S\"]\u003c/p>\n\u003cp>Here again, Californians might look at South Dakota with envy. Before adjusting for cost of living, younger Californians could defend the state’s lackluster mobility numbers by saying, “well, sure South Dakotans may be making more than their parents. But that doesn’t mean Californians aren’t making more than South Dakotans overall.”\u003c/p>\n\u003cp>Indeed, the median household income for 25 to 44 year-olds in California is about $8,000 more than their equivalents in South Dakota.\u003c/p>\n\u003cp>But after adjusting for California’s high cost of living, South Dakotans appear much better off.\u003c/p>\n\u003cp>[SouthDakota]\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-medium wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg\" alt=\"\" width=\"800\" height=\"219\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/p>\n\n",
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"excerpt": "Less than half of people born in California in 1980 make more money than their parents did. That's the lowest percentage California's seen since at least 1940.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California dream isn’t dead. It just upped and moved to South Dakota.\u003c/p>\n\u003cp>Less than half of people born in California in 1980 are making more money than their parents did as young adults. That’s the lowest percentage of children out-earning their parents that California has seen since at least 1940.\u003c/p>\n\u003cp>By contrast, 62 percent of people born in South Dakota in 1980 out-earn their parents. That’s the highest percentage for any state in the country.\u003c/p>\n\u003cp>Those figures come from a \u003ca href=\"http://www.equality-of-opportunity.org/papers/abs_mobility_paper.pdf\">study\u003c/a> by Stanford economist Raj Chetty and several prominent co-authors, whose \u003ca href=\"https://www.nytimes.com/interactive/2015/05/03/upshot/the-best-and-worst-places-to-grow-up-how-your-area-compares.html?mtrref=www.nytimes.com&gwh=A162EB05EBD48940B641AB3545D9DB70&gwt=pay\">widely publicized\u003c/a> work on intergenerational income mobility—the likelihood children will fare better financially than their parents—has transformed what we know about the data behind the American dream.\u003c/p>\n\u003cp>Chetty’s research has profound implications for California, a state whose unique mythology of boundless opportunity and instant riches has attracted generations of migrants to settle here in pursuit of a better life for their children. There’s a reason you’ve heard of “\u003ca href=\"https://ww2.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">the California dream\u003c/a>,” while the phrase “Vermont dream” doesn’t really evoke much beyond a good name for a Ben and Jerry’s flavor.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>With the president \u003ca href=\"https://www.youtube.com/watch?v=aqUP3kCA5jo\">declaring the American Dream dead\u003c/a> and at least \u003ca href=\"http://antonioforcalifornia.com/\">one leading candidate \u003c/a>\u003ca href=\"http://antonioforcalifornia.com/\">for\u003c/a>\u003ca href=\"http://antonioforcalifornia.com/\"> governor\u003c/a> staking claim to “the California dream” as a major campaign theme, let’s play Freud for a moment and analyze why decades ago young Californians dreamt of picket fences and swimming pools, while many of today’s young Californians can dream only that their parents will subsidize their cell phone bill well into their forties.\u003c/p>\n\u003cp>To the charts and graphs!\u003c/p>\n\u003ch2>Since 1940, the Proportion of Californians Out-earning Their Parents has Dropped by Nearly Half\u003c/h2>\n\u003cp>According to Chetty’s research—which is revolutionary primarily because of access to a longitudinal database of Americans’ tax records—children born in 1940 in California had a roughly 90 percent chance of making more money than their parents did around the age of 30. Fast-forward 40 years, and Californians born in 1980 stand less than a 50 percent chance of making more than their parents.\u003c/p>\n\u003cp>[OddsOfOutEarning]\u003c/p>\n\u003cp>It’s important to think through how the comparison between children and parents is actually being measured here. For California babies born in 1980, researchers are using the total income they’re receiving as young adults in 2010, regardless of whether they stay in the state or move elsewhere.\u003c/p>\n\u003cp>They are then comparing that income to what their parents made at around the same age, regardless of their age when they became parents, or where those parents were born. So we’re not just comparing one generation of native Californians to another.\u003c/p>\n\u003cp>Obviously, part of that drop over that 50-year-period can be attributed simply to how poor everyone was back in 1940, when the United States had yet to fully escape the depths of the Great Depression. In 2014 dollars, the national median income of parents for children born in 1940 was around $18,000.\u003c/p>\n\u003ch2>Falling Income Mobility Closely Tracks What's Happening Nationwide\u003c/h2>\n\u003cp>Younger Californians shouldn’t feel uniquely sheepish about making less than their parents. California mirrors the national pattern in income mobility very closely.\u003c/p>\n\u003cp>Nationwide, only 50 percent of Americans born in 1980 were out-earning their parents at the age of 30. That percentage has ticked up a bit in subsequent years, but not by much.\u003c/p>\n\u003cp>[Ohio]\u003c/p>\n\u003cp>There’s not a lot of variation between states in levels of income mobility, or in changes in mobility over time. There are some exceptions to this—states like South Dakota, Montana, and Arkansas all appear to have above-average mobility rates for younger natives.\u003c/p>\n\u003cp>But interestingly, California does not fare much better than many states in the Midwest, where the narrative of a dying American dream played heavily in the 2016 presidential campaign. Ohio and California have very similar mobility rates.\u003c/p>\n\u003ch2>How Can We Be Similar to Ohio? We Have Silicon Valley and the World's 6\u003csup>th\u003c/sup> Largest Economy! Ohio has… LeBron?\u003c/h2>\n\u003cp>To be fair to Chetty and his co-authors, their research is less focused on state-by-state differences than the broader national picture of declining mobility. But one of the study’s conclusions about why the American dream is fading could help explain what’s happening at the state level.\u003c/p>\n\u003cp>There are two primary determinants of mobility: economic growth and inequality.\u003c/p>\n\u003cp>To use the overwrought \"pie metaphor,\" it’s inherently good for income mobility when the economic pie grows over time. But when a smaller share of the population receives a larger chunk of that pie, the odds that the average child will out-earn his or her parents shrinks.\u003c/p>\n\u003cp>“What we’re seeing on the national level is that most of the decline (in mobility) is not due to overall economic growth,” says Robert Fluegge, a Stanford researcher who contributed to the study. “What counts more is the change in the distribution for income growth.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>To test how much rising inequality determined mobility rates, Chetty’s team simulated what would have happened if the United States kept its very equal income distribution from 1940 through 2010. Under that scenario, 80 percent of children born in 1980 made more than their parents.\u003c/p>\n\u003cp>That would help explain why despite its remarkable economic growth over the past half century, California’s mobility rate is not that much different than states like Ohio or Indiana.\u003c/p>\n\u003cp>\"Even if you’re in California, you’re getting a concentration of income growth among high skilled labor that are able to use technology,\" says Fluegge. \"And those type of jobs are likely grabbing a lot of that income growth.\"\u003c/p>\n\u003cp>Fluegge cautions that although inequality is likely part of the explanation for California, researchers have yet to drill down on the state specifically.\u003c/p>\n\u003cp>Interestingly, plotting the level of inequality in a state to its level of mobility doesn’t reveal much of a relationship. Nor does plotting changes in the level of inequality over the past decade, which arguably would affect young wage-earners more. Researchers will have more work to do disentangling the relationship between inequality, growth and mobility at the state level.\u003c/p>\n\u003ch2>Can’t You Tell Me Some Good News About Living in this State?\u003c/h2>\n\u003cp>While the fact that only 49 percent of younger Californians are making more than their parents may seem concerning, there are reasons to think that number may be overstating things a little.\u003c/p>\n\u003cp>That figure is at the household level, and does not adjust for household size. So a single 30-year-old born in 1980 may be compared to the dual incomes of their married parents at the same age.\u003c/p>\n\u003cp>When adjusting for family size, the share of young adults out-earning their parents nationally improves from 50 percent to 60 percent (unfortunately those figures aren’t calculated at the state level). The sharp downward trend from 1940 persists, but the picture is somewhat rosier.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Perhaps more significant for California, the 49 percent figure does not include immigrant children.\u003c/p>\n\u003cp>That shortcoming could be of enormous consequence to the Golden State, which has the highest percentage of foreign-born residents of any state in the country (27 percent).\u003c/p>\n\u003cp>Also, 2010 was also a particularly bad year for California incomes. In the depths of the Great Recession, median California household income dipped to a five-year low. The result could be that measuring the income of a 30-year old born in 1980 is artificially depressed in California, relative to both previous generations and other states where the recession took less of a toll.\u003c/p>\n\u003ch2>What About Cost of Living?\u003c/h2>\n\u003cp>So that’s the glass half full version of income mobility in California.\u003c/p>\n\u003cp>The glass half empty version? Nothing in Chetty’s study accounts for this chart:\u003c/p>\n\u003cp>[MedianHome]\u003c/p>\n\u003cp>Over the past 40 years, the cost of housing has exploded in California relative to the rest of the United States. While the chart above only refers to median housing prices, there’s nothing much better about California’s rental market.\u003c/p>\n\u003cp>That means that those 49 percent of Californians making more than their parents are likely seeing their paycheck stretched much thinner by steeper mortgages and rents.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Here again, Californians might look at South Dakota with envy. Before adjusting for cost of living, younger Californians could defend the state’s lackluster mobility numbers by saying, “well, sure South Dakotans may be making more than their parents. But that doesn’t mean Californians aren’t making more than South Dakotans overall.”\u003c/p>\n\u003cp>Indeed, the median household income for 25 to 44 year-olds in California is about $8,000 more than their equivalents in South Dakota.\u003c/p>\n\u003cp>But after adjusting for California’s high cost of living, South Dakotans appear much better off.\u003c/p>\n\u003cp>[SouthDakota]\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cb>Tech giants testify in Russian hearings\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Silicon Valley executives testified before Congress this week about the role their companies played in allowing Russian misinformation to spread in the run-up to the presidential election. Congressman Adam Schiff (D-Calif.), who led the hearings, says many questions continue to revolve around how Russian operatives were able to pose as Americans and spread content through Facebook, Google and Twitter on divisive issues such as immigration and race relations.\u003c/span>\u003c/p>\n\u003cp>\u003cb>Political Analysis: Mueller’s indictments and GOP tax reform\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Our political experts analyze the week’s key developments, from indictments handed down by special counsel Bob Mueller in the investigation into alleged Russian meddling in U.S. politics to the GOP’s tax reform proposal. \u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Guests:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Lanhee Chen, Hoover Institution fellow\u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Carla Marinucci, POLITICO senior writer \u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Tim Miller, Definers Public Affairs partner\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>\u003cb>Helping Puerto Rico\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Six weeks after Hurricane Maria tore through Puerto Rico, roughly 70 percent of the U.S. territory remains without power. Last month the Registered Nurse Response Network sent 50 volunteer nurses on a two-week relief mission. We hear from two California nurses about what they witnessed and why residents are still desperate for assistance.\u003cbr>\n\u003c/span>\u003cspan style=\"font-weight: 400\">\u003cbr>\n\u003c/span>\u003cspan style=\"font-weight: 400\">Guests:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Sandy Adler Killen, Registered Nurse Response Network\u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Randee Litten, Registered Nurse Response Network\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>\u003cem>\u003cspan style=\"font-weight: 400\">To contribute to Randee Litten’s Go Fund Me page, visit: \u003c/span>\u003ca href=\"https://www.gofundme.com/hurricanemarianurserelief\">\u003cspan style=\"font-weight: 400\">https://www.gofundme.com/hurricanemarianurserelief\u003c/span>\u003c/a>\u003c/em>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cb>Tech giants testify in Russian hearings\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Silicon Valley executives testified before Congress this week about the role their companies played in allowing Russian misinformation to spread in the run-up to the presidential election. Congressman Adam Schiff (D-Calif.), who led the hearings, says many questions continue to revolve around how Russian operatives were able to pose as Americans and spread content through Facebook, Google and Twitter on divisive issues such as immigration and race relations.\u003c/span>\u003c/p>\n\u003cp>\u003cb>Political Analysis: Mueller’s indictments and GOP tax reform\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Our political experts analyze the week’s key developments, from indictments handed down by special counsel Bob Mueller in the investigation into alleged Russian meddling in U.S. politics to the GOP’s tax reform proposal. \u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Guests:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Lanhee Chen, Hoover Institution fellow\u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Carla Marinucci, POLITICO senior writer \u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Tim Miller, Definers Public Affairs partner\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>\u003cb>Helping Puerto Rico\u003cbr>\n\u003c/b>\u003cspan style=\"font-weight: 400\">Six weeks after Hurricane Maria tore through Puerto Rico, roughly 70 percent of the U.S. territory remains without power. Last month the Registered Nurse Response Network sent 50 volunteer nurses on a two-week relief mission. We hear from two California nurses about what they witnessed and why residents are still desperate for assistance.\u003cbr>\n\u003c/span>\u003cspan style=\"font-weight: 400\">\u003cbr>\n\u003c/span>\u003cspan style=\"font-weight: 400\">Guests:\u003c/span>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Sandy Adler Killen, Registered Nurse Response Network\u003c/span>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003cspan style=\"font-weight: 400\">Randee Litten, Registered Nurse Response Network\u003c/span>\u003c/li>\n\u003c/ul>\n\u003cp>\u003cem>\u003cspan style=\"font-weight: 400\">To contribute to Randee Litten’s Go Fund Me page, visit: \u003c/span>\u003ca href=\"https://www.gofundme.com/hurricanemarianurserelief\">\u003cspan style=\"font-weight: 400\">https://www.gofundme.com/hurricanemarianurserelief\u003c/span>\u003c/a>\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "Republicans Propose Big Tax Cuts, But Target Popular Deductions",
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"content": "\u003cp>\u003cstrong>Updated at 3:10 p.m. ET \u003c/strong>\u003c/p>\n\u003cp>House Republicans unveiled a draft tax bill on Thursday, calling for deep cuts in both individual and corporate tax rates.\u003c/p>\n\u003cp>\"With this bill, we will grow our economy by delivering more jobs, fairer taxes and bigger paychecks to Americans of all walks of life,\" said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee.\u003c/p>\n\u003cp>The rollout, originally scheduled for Wednesday, was postponed to give bill drafters more time. They're still struggling to find sufficient revenue to avoid a budget-busting score. As a result, some of the tax changes have been made temporary or phased in over time.\u003c/p>\n\u003cp>Here are some of the highlights of the bill (\u003ca href=\"https://apps.npr.org/documents/document.html?id=4172077-Tax-Bill-Text\">you can read the full text here\u003c/a>):\u003c/p>\n\u003cul>\n\u003cli>Four individual tax brackets would be introduced at 12 percent, 25 percent, 35 percent, with the top rate of 39.6 percent remaining in place for the very wealthy.\u003c/li>\n\u003cli>Corporate taxes would drop from 35 percent to 20 percent permanently.\u003c/li>\n\u003cli>Standard deduction increases from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.\u003c/li>\n\u003cli>Child tax credit would expand from $1,000 to $1,600.\u003c/li>\n\u003cli>Federal deductions for state and local income and sales taxes to be eliminated, but local property taxes can be deducted up to $10,000.\u003c/li>\n\u003cli>No changes to limits on 401(k) pretax contributions.\u003c/li>\n\u003cli>Alternative minimum tax to be repealed.\u003c/li>\n\u003cli>Estate tax would kick in at $11.2 million, up from $5.49 million, but it would be fully repealed as of 2024.\u003c/li>\n\u003cli>Corporate profits from overseas would no longer be taxed, but there would be a minimum 10 percent tax on foreign subsidiaries.\u003c/li>\n\u003c/ul>\n\u003cp>The plan leaves intact a top individual tax rate of 39.6 percent to address charges that the cuts are unduly favorable to the rich. The bill would raise the income threshold at which the top tax rate would apply to $500,000 or a million dollars for couples. In a boost for the wealthy, the plan also eliminates the alternative minimum tax and phases out the estate tax over a period of six years.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Broadly speaking, the GOP bill would sharply reduce taxes on both individuals and corporations, potentially draining trillions of dollars from federal coffers over the next decade. The Republican budget, however, makes room for only $1.5 trillion in revenue reduction over that period. And fast-track Senate rules, designed to avoid a Democratic filibuster, say the bill can't add to the deficit beyond 10 years.\u003c/p>\n\u003cp>Republicans hope to offset some of the lost revenue from lower tax rates by eliminating tax breaks elsewhere in the code.\u003c/p>\n\u003cp>[contextly_sidebar id=\"7Z5MSb8qSCkd3FrXDL2262W5PnIV9Z4A\"]\u003c/p>\n\u003cp>\"With this plan, we are getting rid of loopholes for special interests and we are leveling the playing field,\" said House Speaker Paul Ryan, R-Wis.\u003c/p>\n\u003cp>But that's politically challenging. Two of the costliest tax breaks — for mortgage interest and gifts to charity — were declared off-limits at the outset, although the draft plan limits the mortgage deduction on future home purchases to loans of $500,000, down from the current $1 million. Efforts to curtail other popular breaks — for retirement savings and state and local taxes — have faced pushback from the White House and Republicans in high-tax states.\u003c/p>\n\u003cp>The draft bill released by the House Ways and Means Committee would reduce the number of individual tax rates from seven to four: 12 percent, 25 percent, 35 percent and 39.6 percent. The bill nearly doubles the standard deduction, which will make tax filing easier for some people. However, it eliminates personal exemptions, which could adversely affect larger families.\u003c/p>\n\u003cp>As expected, the corporate tax rate would drop from 35 percent to 20 percent. And the bill would establish a lower tax rate of 25 percent for so-called \"pass through\" businesses such as partnerships that currently pay taxes at their owners' individual rate.\u003c/p>\n\u003cp>President Trump suggested the reduced corporate tax rate would help to spur economic growth.\u003c/p>\n\u003cp>\"At 20 percent, we're very, very competitive with the rest of the world,\" Trump said during a White House meeting to celebrate the bill's release. \"You're going to see growth and you're going to see jobs and you're going to see really wages going up.\"\u003c/p>\n\u003cp>[contextly_sidebar id=\"jhakk7Q4TuUoJFASA4QA4sksu3AzpKYa\"]\u003c/p>\n\u003cp>The bill also aims to encourage business investment by allowing companies to deduct those costs immediately, rather than spreading the deduction over a period of years. However, this provision is scheduled to sunset after five years.\u003c/p>\n\u003cp>Multinational corporations would no longer be taxed on profits earned overseas, although the plan would establish a minimum tax rate of 10 percent on foreign subsidiaries.\u003c/p>\n\u003cp>Democrats blasted the GOP plan as a giveaway to corporations and the wealthy.\u003c/p>\n\u003cp>\"The American people deserve real, bipartisan tax reform that puts the middle class first, [creates] good-paying jobs and lowers the deficit,\" said House Democratic leader Nancy Pelosi of California. \"This Republican plan doesn't do any of that.\"\u003c/p>\n\u003cp>Although House lawmakers floated the idea of limiting tax breaks for retirement savings, the draft bill unveiled today would preserve the deduction for 401(k)-style savings.\u003c/p>\n\u003cp>The bill would eliminate the deduction for state and local income taxes, a move that's particularly costly in high-tax states such as New York, New Jersey, and California. In an effort to mollify House Republicans from those states, drafters included a provision to allow taxpayers to deduct up to $10,000 in local property taxes.\u003c/p>\n\u003cp>But Democratic Senate leader Chuck Schumer of New York warned that the GOP push to limit tax breaks would leave some families paying more.\u003c/p>\n\u003cp>\"Republicans are trying to argue that the middle class gets a tax break,\" Schumer said. \"But what they won't tell you is that many, many, many middle-class families will see their taxes go up under this plan.\"\u003c/p>\n\u003cp>The lower limit on mortgage interest that's tax deductible is sure to invite opposition from the housing industry, a powerful player in Washington.\u003c/p>\n\u003cp>\"Eliminating or nullifying the tax incentives for homeownership puts home values and middle-class homeowners at risk,\" said William E. Brown, president of the National Association of Realtors.\u003c/p>\n\u003cp>The Ways and Means Committee plans to take up the draft tax bill next week, with an eye toward a House vote before Thanksgiving. Trump is eager to sign a tax overhaul by December.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\"We're working to give the American people a giant tax cut for Christmas,\" Trump said. \"It will also be tax reform and it will create jobs.\"\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=Republicans+Propose+Big+Tax+Cuts%2C+But+Target+Popular+Deductions&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Updated at 3:10 p.m. ET \u003c/strong>\u003c/p>\n\u003cp>House Republicans unveiled a draft tax bill on Thursday, calling for deep cuts in both individual and corporate tax rates.\u003c/p>\n\u003cp>\"With this bill, we will grow our economy by delivering more jobs, fairer taxes and bigger paychecks to Americans of all walks of life,\" said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee.\u003c/p>\n\u003cp>The rollout, originally scheduled for Wednesday, was postponed to give bill drafters more time. They're still struggling to find sufficient revenue to avoid a budget-busting score. As a result, some of the tax changes have been made temporary or phased in over time.\u003c/p>\n\u003cp>Here are some of the highlights of the bill (\u003ca href=\"https://apps.npr.org/documents/document.html?id=4172077-Tax-Bill-Text\">you can read the full text here\u003c/a>):\u003c/p>\n\u003cul>\n\u003cli>Four individual tax brackets would be introduced at 12 percent, 25 percent, 35 percent, with the top rate of 39.6 percent remaining in place for the very wealthy.\u003c/li>\n\u003cli>Corporate taxes would drop from 35 percent to 20 percent permanently.\u003c/li>\n\u003cli>Standard deduction increases from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.\u003c/li>\n\u003cli>Child tax credit would expand from $1,000 to $1,600.\u003c/li>\n\u003cli>Federal deductions for state and local income and sales taxes to be eliminated, but local property taxes can be deducted up to $10,000.\u003c/li>\n\u003cli>No changes to limits on 401(k) pretax contributions.\u003c/li>\n\u003cli>Alternative minimum tax to be repealed.\u003c/li>\n\u003cli>Estate tax would kick in at $11.2 million, up from $5.49 million, but it would be fully repealed as of 2024.\u003c/li>\n\u003cli>Corporate profits from overseas would no longer be taxed, but there would be a minimum 10 percent tax on foreign subsidiaries.\u003c/li>\n\u003c/ul>\n\u003cp>The plan leaves intact a top individual tax rate of 39.6 percent to address charges that the cuts are unduly favorable to the rich. The bill would raise the income threshold at which the top tax rate would apply to $500,000 or a million dollars for couples. In a boost for the wealthy, the plan also eliminates the alternative minimum tax and phases out the estate tax over a period of six years.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Broadly speaking, the GOP bill would sharply reduce taxes on both individuals and corporations, potentially draining trillions of dollars from federal coffers over the next decade. The Republican budget, however, makes room for only $1.5 trillion in revenue reduction over that period. And fast-track Senate rules, designed to avoid a Democratic filibuster, say the bill can't add to the deficit beyond 10 years.\u003c/p>\n\u003cp>Republicans hope to offset some of the lost revenue from lower tax rates by eliminating tax breaks elsewhere in the code.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>\"With this plan, we are getting rid of loopholes for special interests and we are leveling the playing field,\" said House Speaker Paul Ryan, R-Wis.\u003c/p>\n\u003cp>But that's politically challenging. Two of the costliest tax breaks — for mortgage interest and gifts to charity — were declared off-limits at the outset, although the draft plan limits the mortgage deduction on future home purchases to loans of $500,000, down from the current $1 million. Efforts to curtail other popular breaks — for retirement savings and state and local taxes — have faced pushback from the White House and Republicans in high-tax states.\u003c/p>\n\u003cp>The draft bill released by the House Ways and Means Committee would reduce the number of individual tax rates from seven to four: 12 percent, 25 percent, 35 percent and 39.6 percent. The bill nearly doubles the standard deduction, which will make tax filing easier for some people. However, it eliminates personal exemptions, which could adversely affect larger families.\u003c/p>\n\u003cp>As expected, the corporate tax rate would drop from 35 percent to 20 percent. And the bill would establish a lower tax rate of 25 percent for so-called \"pass through\" businesses such as partnerships that currently pay taxes at their owners' individual rate.\u003c/p>\n\u003cp>President Trump suggested the reduced corporate tax rate would help to spur economic growth.\u003c/p>\n\u003cp>\"At 20 percent, we're very, very competitive with the rest of the world,\" Trump said during a White House meeting to celebrate the bill's release. \"You're going to see growth and you're going to see jobs and you're going to see really wages going up.\"\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The bill also aims to encourage business investment by allowing companies to deduct those costs immediately, rather than spreading the deduction over a period of years. However, this provision is scheduled to sunset after five years.\u003c/p>\n\u003cp>Multinational corporations would no longer be taxed on profits earned overseas, although the plan would establish a minimum tax rate of 10 percent on foreign subsidiaries.\u003c/p>\n\u003cp>Democrats blasted the GOP plan as a giveaway to corporations and the wealthy.\u003c/p>\n\u003cp>\"The American people deserve real, bipartisan tax reform that puts the middle class first, [creates] good-paying jobs and lowers the deficit,\" said House Democratic leader Nancy Pelosi of California. \"This Republican plan doesn't do any of that.\"\u003c/p>\n\u003cp>Although House lawmakers floated the idea of limiting tax breaks for retirement savings, the draft bill unveiled today would preserve the deduction for 401(k)-style savings.\u003c/p>\n\u003cp>The bill would eliminate the deduction for state and local income taxes, a move that's particularly costly in high-tax states such as New York, New Jersey, and California. In an effort to mollify House Republicans from those states, drafters included a provision to allow taxpayers to deduct up to $10,000 in local property taxes.\u003c/p>\n\u003cp>But Democratic Senate leader Chuck Schumer of New York warned that the GOP push to limit tax breaks would leave some families paying more.\u003c/p>\n\u003cp>\"Republicans are trying to argue that the middle class gets a tax break,\" Schumer said. \"But what they won't tell you is that many, many, many middle-class families will see their taxes go up under this plan.\"\u003c/p>\n\u003cp>The lower limit on mortgage interest that's tax deductible is sure to invite opposition from the housing industry, a powerful player in Washington.\u003c/p>\n\u003cp>\"Eliminating or nullifying the tax incentives for homeownership puts home values and middle-class homeowners at risk,\" said William E. Brown, president of the National Association of Realtors.\u003c/p>\n\u003cp>The Ways and Means Committee plans to take up the draft tax bill next week, with an eye toward a House vote before Thanksgiving. Trump is eager to sign a tax overhaul by December.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"We're working to give the American people a giant tax cut for Christmas,\" Trump said. \"It will also be tax reform and it will create jobs.\"\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=Republicans+Propose+Big+Tax+Cuts%2C+But+Target+Popular+Deductions&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "After Tax Cuts Derailed the 'California Dream,' Can the State Get Back on Track?",
"title": "After Tax Cuts Derailed the 'California Dream,' Can the State Get Back on Track?",
"headTitle": "The California Dream | The California Report | KQED News",
"content": "\u003cp>\u003cem>\u003ca href=\"https://theconversation.com/profiles/manuel-pastor-378283\">Manuel Pastor\u003c/a> is Professor of Sociology at \u003ca href=\"http://theconversation.com/institutions/university-of-southern-california-dornsife-college-of-letters-arts-and-sciences-2669\">University of Southern California – Dornsife College of Letters, Arts and Sciences. \u003c/a>\u003c/em>\u003cem>This article was originally published on \u003ca href=\"http://theconversation.com\">The Conversation\u003c/a>. Read the \u003ca href=\"https://theconversation.com/after-tax-cuts-derailed-the-california-dream-can-the-state-get-back-on-track-77919\">original article\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>In 1978, the year I graduated from college with a degree in economics, most voters in my state chose to turn their backs on the “California dream.”\u003c/p>\n\u003cp>Not unlike the American dream, California’s iteration focused on the limitless possibilities awaiting anyone who moved to the state. It was the state’s basic philosophic footing, a \u003ca href=\"https://www.russellsage.org/publications/immigrants-and-boomers-0\">social compact\u003c/a> that connected generations, geographies and economic classes in a common destiny.\u003c/p>\n\u003cp>Proposition 13, which Californians approved in a referendum in June 1978, marked a turning point away from the kind of public investment in education, infrastructure and social services – as well as a shift in an attitude that welcomed all comers – that made the California dream a reality for so many.\u003c/p>\n\u003cp>[contextly_sidebar id=\"AgEvOMGuTdBnpmOt37Y2DzDNTZCWwsxc\"]\u003c/p>\n\u003cp>The \u003ca href=\"http://www.sfgate.com/politics/article/Prop-13-remains-controversial-after-a-quarter-of-2595918.php\">highly controversial measure\u003c/a> slashed property taxes, impoverished local governments and made it very hard for the state to raise new revenues. Besides ushering in an era of underinvestment, it spread the fantasy – since gone national – that governments can cut taxes without reducing services.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Almost 40 years later, California \u003ca href=\"https://www.thenation.com/article/have-california-voters-finally-had-enough-of-prop-13/\">is at a crossroads\u003c/a> and may finally be ready to begin to reverse Prop 13’s damage. As \u003ca href=\"https://stateofresistancebook.com/\">I explore in a forthcoming book\u003c/a>, the state is pushing against the national grain by protecting immigrants, tackling climate change and raising the minimum wage. And most significantly for the legacy of Proposition 13, more residents are coming to see how replenishing the state’s coffers is key to restoring prosperity.\u003c/p>\n\u003ch2>Pulling Up the Drawbridge\u003c/h2>\n\u003cp>Just days after Proposition 13 passed, I stood in front of my fellow graduates at the University of California, Santa Cruz, to give the student address. I chose to talk about the result of the vote – not because it had anything to do with my chosen field of study but because of the sharp rift with the past it represented.\u003c/p>\n\u003cp>California had invested in me, like millions of others, by funding quality public schools, a world-class university system and economic growth. Now, a majority of voters were seeking to selfishly pull up the drawbridge on future generations. So I spent my 15 minutes of fame in front of classmates, professors and parents explaining why I thought Prop 13 would shipwreck the state.\u003c/p>\n\u003cp>I wish I had been wrong – and that I’d spent more of my allotted time thanking my parents, neither of whom had finished high school and were beaming with pride because the California dream had come true for their son. Sadly, Prop 13 meant that dream would be much less likely to come true for others.\u003c/p>\n\u003cfigure id=\"attachment_11627344\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11627344\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/Prop13Celebrants-800x410.jpg\" alt=\"Proposition 13 backers celebrate the measure's passage in 1978.\" width=\"800\" height=\"410\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-800x410.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-160x82.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-1020x523.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-1180x605.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-960x493.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-240x123.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-375x192.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-520x267.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Proposition 13 backers celebrate the measure's passage in 1978. \u003ccite>(RetroReport/YouTube)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At its core, Proposition 13 was written as an amendment to the state’s constitution with \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">three key elements\u003c/a> and affected all types of property, from residential to commercial:\u003c/p>\n\u003cul>\n\u003cli>It rolled back assessed property values to their estimated market value in 1975 and limited annual increases to no more than 2 percent as long as the property wasn’t sold. With any new sale, the assessed value could climb to the actual sale price, essentially locking in the property tax for long-time homeowners and shifting the burden to newcomers.\u003c/li>\n\u003cli>It capped the property tax rate at 1 percent of the assessed value for city, county, school and other local governments, down from an \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">average of 2.6 percent\u003c/a> before the measure, draining local coffers.\u003c/li>\n\u003cli>It mandated that any change in state taxes that would increase the tax take would require a two-thirds vote in the Legislature (while tax cuts required only a majority vote) and that any increase in designated or special purpose taxes by local governments would require two-thirds voter approval. This effectively staightjacketed the ability of a changing electorate to raise new revenues.\u003c/li>\n\u003c/ul>\n\u003ch2>Prop 13 and its Racial Undertones\u003c/h2>\n\u003cp>One reason for Prop 13’s popularity was that the median value of a house in California rose by over \u003ca href=\"http://www.census.gov/hhes/www/housing/census/histcensushsg.html\">250 percent\u003c/a> from 1970 to 1980, more than twice as fast as \u003ca href=\"http://www.fiscalpolicy.org/Databank/Income/state1.xls\">median household income\u003c/a> in the state. With reassessments triggering property tax hikes that outpaced family finances, the die was cast for a taxpayer rebellion.\u003c/p>\n\u003cp>But the roots of this \u003ca href=\"http://press.princeton.edu/titles/7634.html\">suburban-based revolt\u003c/a> were far deeper than a fight over taxes. The forces behind it were the same ones that fought against fair housing in the 1960s and busing to promote \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266568\">school integration\u003c/a> throughout the 1970s. And they were goaded by a series of court decisions that mandated the \u003ca href=\"https://heydaybooks.com/book/game-changers/\">equalization of school spending\u003c/a> across districts, stirring white resentment that local property tax dollars were not being spent on “our kids.”\u003c/p>\n\u003cp>Indeed, at the same time that property rates were soaring, the \u003ca href=\"https://usa.ipums.org/usa\">share of youths who were minorities\u003c/a> rose from 30 percent in 1970 to 44 percent by 1980 – the largest decadal change in California’s history. And while these racial undertones were, well, undertones, the resentment of the changing demography was clear when Prop 13’s main architect, Orange County businessman \u003ca href=\"https://www.hjta.org\">Howard Jarvis\u003c/a>, wrote after it passed that immigrants “\u003ca href=\"https://web.stanford.edu/%7Emrosenfe/Hanono_Thesis_California_Dreamin.pdf\">just come over here to get on the taxpayers’ gravy train\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11627346\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11627346\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/HowardJarvis2-800x398.jpg\" alt=\"Howard Jarvis\" width=\"800\" height=\"398\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-800x398.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-160x80.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-1020x507.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-1180x586.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-960x477.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-240x119.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-375x186.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-520x258.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Howard Jarvis \u003ccite>(RetroReport/YouTube)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In essence, Proposition 13 became the first shot across the bow in a series of referendums some dubbed “\u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266643\">racial propositions\u003c/a>” that reached their apogee with \u003ca href=\"https://ballotpedia.org/California_Proposition_187,_Illegal_Aliens_Ineligible_for_Public_Benefits_(1994)\">Proposition 187\u003c/a>, the famous 1994 measure that sought to cut off nearly all public services, including education, to undocumented immigrants.\u003c/p>\n\u003cp>That was followed by voter-approved measures to ban affirmative action, eliminate bilingual education and expand a prison system \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266643\">marred by racial disproportionality\u003c/a> in its sentencing and rates of incarceration.\u003c/p>\n\u003cp>That Prop 13 itself was a sort of generational warfare with overtones of race was clear in its structure. Since the assessment didn’t increase more than 2 percent unless property changed hands, incumbent homeowners (\u003ca href=\"https://www.census.gov/prod/www/decennial.html\">who were older and whiter\u003c/a>) wouldn’t see their tax burden change much as long as they didn’t sell. Meanwhile, \u003ca href=\"http://popdynamics.usc.edu/pdf/2009_Myers_Demographics-Prop-13.pdf\">new homeowners\u003c/a> (more likely to be younger, minority and eventually immigrant) would have to pay higher tax rates and thus bear a disproportionate share of the costs of local services.\u003c/p>\n\u003cp>And that wasn’t the only bias against the future. The requirement for a supermajority to pass legislation to raise taxes effectively constrained the ability of future state governments to pour in the sort of money that had built the state’s \u003ca href=\"http://www.penguinrandomhouse.com/books/171974/california-by-kevin-starr/9780812977530/\">famed transportation, water and university systems\u003c/a>.\u003c/p>\n\u003ch2>The Consequences\u003c/h2>\n\u003cp>The immediate damage from Prop 13, however, was masked. When local property tax revenues quickly fell by about 60 percent, the \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">state government stepped in\u003c/a> to fill the gaps.\u003c/p>\n\u003cp>But over time, the damaging effects of Proposition 13 in terms of education spending and income inequality became increasingly apparent. In the 1960s, California \u003ca href=\"http://www.dailybreeze.com/article/zz/20130727/NEWS/130728685\">ranked among the top 10 states\u003c/a> in terms of per-pupil spending. By 2014, its ranking \u003ca href=\"http://www.edweek.org/media/2016/12/29/school-finance-education-week-quality-counts-2017.pdf\">had plunged to as low as 46\u003c/a>. And while California’s level of income inequality was in the middle of the pack nationally in 1969, it is now the \u003ca href=\"https://stateofresistancebook.com/\">fourth most unequal state in the country\u003c/a>.\u003c/p>\n\u003cp>[contextly_sidebar id=\"ht7XVyAenz69bBdQY7t08y60z8JPdqyo\"]\u003c/p>\n\u003cp>While Proposition 13 was the not the only culprit behind these trends, it didn’t help. About \u003ca href=\"http://lao.ca.gov/Publications/Report/3497\">half of the total residential property tax relief\u003c/a> provided by Prop 13 went to homeowners with incomes in excess of US$120,000 a year – or about 15 percent of all households.\u003c/p>\n\u003cp>And because the property tax was no longer a growing source of revenue for local governments, cities and counties had more reason to chase sales taxes with retail development and less incentive to promote housing, helping to set in motion the \u003ca href=\"http://www.ocregister.com/2017/03/29/amending-prop-13-by-raising-property-taxes-could-help-solve-housing-affordability-crisis-expert-says/\">severe housing shortage that wracks the state today\u003c/a>.\u003c/p>\n\u003cp>The final irony is that Prop 13 – a measure promoted by those in favor of smaller government – \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266568\">pushed authority and decision-making to the state capitol\u003c/a>, which became the main source to bail out local municipalities.\u003c/p>\n\u003ch2>Efforts to Change It\u003c/h2>\n\u003cp>So why has Proposition 13 not been overturned?\u003c/p>\n\u003cp>Its political appeal remains, particularly to older residents who vote and to businesses worried about any increase in taxes. Efforts to keep the protections for residential homeowners but allow commercial and industrial property to be assessed at market rates – a so-called “split roll” – have \u003ca href=\"https://www.boe.ca.gov/meetings/pdf/3a_101911_Split_Roll.pdf\">failed or stalled\u003c/a> and currently command the \u003ca href=\"http://www.ppic.org/content/pubs/survey/S_515MBS.pdf\">thinnest possible majority in public polling\u003c/a>.\u003c/p>\n\u003cp>So while the split role remains \u003ca href=\"http://makeitfairca.com/\">a goal for some reformers\u003c/a>, many concerned about the effects of Prop 13 have simply tried to raise taxes elsewhere to offset the lost revenue. California voters approved a \u003ca href=\"https://ballotpedia.org/California_Proposition_30,_Sales_and_Income_Tax_Increase_(2012)\">temporary “millionaire’s tax”\u003c/a> in 2012 and its \u003ca href=\"https://ballotpedia.org/California_Proposition_55,_Extension_of_the_Proposition_30_Income_Tax_Increase_(2016)\">long-term extension\u003c/a> in 2016. And more than two-thirds of voting taxpayers in Los Angeles County approved sales tax hikes in 2008 and 2016 that will generate \u003ca href=\"http://prospect.org/article/great-los-angeles-revolt-against-cars\">$160 billion over the next 40 years\u003c/a> for transportation investments ranging from rail expansion to highway improvement to new bike paths.\u003c/p>\n\u003cp>But such tinkering does not solve the fundamental problems with Prop 13 that I’ve noted above. Addressing those will require a new set of conversations about optimal tax policy and how to address legitimate concerns such as how to protect older homeowners with a fixed income from the potential end of Prop 13.\u003c/p>\n\u003ch2>California – and the Country – at a Crossroads\u003c/h2>\n\u003cp>Unfortunately, the same demographic shifts, economic anxieties and political polarization that spurred Prop 13 have since gone national. The president’s plan to “Make America Great Again” similarly involves slashing taxes while underinvesting in \u003ca href=\"http://www.npr.org/sections/ed/2017/05/22/529534031/president-trumps-budget-proposal-calls-for-deep-cuts-to-education\">education\u003c/a> and social services – the kinds of investments that actually made America great in the 20th century.\u003c/p>\n\u003cp>California has the opportunity to show the nation how to get this right and invest in our future and our collective dreams rather than shortchange them. And a \u003ca href=\"http://makeitfairca.com/endorsements/\">growing number of voices\u003c/a>, including local governments, unions and political groups, are calling for reform.\u003c/p>\n\u003cp>\u003cimg src=\"https://counter.theconversation.com/content/77919/count.gif\" alt=\"The Conversation\" width=\"1\" height=\"1\">So while the discussion about Prop 13 might seem to be about a few obscure tax rules, it is highly symbolic: At stake is the future of the state and, indeed, the nation. A day of reckoning for a measure that seems increasingly out of date may soon be upon us.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://theconversation.com/profiles/manuel-pastor-378283\">Manuel Pastor\u003c/a> is Professor of Sociology at \u003ca href=\"http://theconversation.com/institutions/university-of-southern-california-dornsife-college-of-letters-arts-and-sciences-2669\">University of Southern California – Dornsife College of Letters, Arts and Sciences. \u003c/a>\u003c/em>\u003cem>This article was originally published on \u003ca href=\"http://theconversation.com\">The Conversation\u003c/a>. Read the \u003ca href=\"https://theconversation.com/after-tax-cuts-derailed-the-california-dream-can-the-state-get-back-on-track-77919\">original article\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-medium wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg\" alt=\"\" width=\"800\" height=\"219\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/p>\n\u003cp>http://bit.ly/kqedcadream\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp> \u003c/p>\n\n",
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"excerpt": "USC's Manuel Pastor argues Prop. 13, approved in '78, marked a turning away from the kind of public investment in education, infrastructure and social services that made the California dream a reality for so many.",
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"description": "USC's Manuel Pastor argues Prop. 13, approved in '78, marked a turning away from the kind of public investment in education, infrastructure and social services that made the California dream a reality for so many.",
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"nprByline": "Manuel Pastor, University of Southern California – Dornsife College, for The Conversation",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>\u003ca href=\"https://theconversation.com/profiles/manuel-pastor-378283\">Manuel Pastor\u003c/a> is Professor of Sociology at \u003ca href=\"http://theconversation.com/institutions/university-of-southern-california-dornsife-college-of-letters-arts-and-sciences-2669\">University of Southern California – Dornsife College of Letters, Arts and Sciences. \u003c/a>\u003c/em>\u003cem>This article was originally published on \u003ca href=\"http://theconversation.com\">The Conversation\u003c/a>. Read the \u003ca href=\"https://theconversation.com/after-tax-cuts-derailed-the-california-dream-can-the-state-get-back-on-track-77919\">original article\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>In 1978, the year I graduated from college with a degree in economics, most voters in my state chose to turn their backs on the “California dream.”\u003c/p>\n\u003cp>Not unlike the American dream, California’s iteration focused on the limitless possibilities awaiting anyone who moved to the state. It was the state’s basic philosophic footing, a \u003ca href=\"https://www.russellsage.org/publications/immigrants-and-boomers-0\">social compact\u003c/a> that connected generations, geographies and economic classes in a common destiny.\u003c/p>\n\u003cp>Proposition 13, which Californians approved in a referendum in June 1978, marked a turning point away from the kind of public investment in education, infrastructure and social services – as well as a shift in an attitude that welcomed all comers – that made the California dream a reality for so many.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The \u003ca href=\"http://www.sfgate.com/politics/article/Prop-13-remains-controversial-after-a-quarter-of-2595918.php\">highly controversial measure\u003c/a> slashed property taxes, impoverished local governments and made it very hard for the state to raise new revenues. Besides ushering in an era of underinvestment, it spread the fantasy – since gone national – that governments can cut taxes without reducing services.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Almost 40 years later, California \u003ca href=\"https://www.thenation.com/article/have-california-voters-finally-had-enough-of-prop-13/\">is at a crossroads\u003c/a> and may finally be ready to begin to reverse Prop 13’s damage. As \u003ca href=\"https://stateofresistancebook.com/\">I explore in a forthcoming book\u003c/a>, the state is pushing against the national grain by protecting immigrants, tackling climate change and raising the minimum wage. And most significantly for the legacy of Proposition 13, more residents are coming to see how replenishing the state’s coffers is key to restoring prosperity.\u003c/p>\n\u003ch2>Pulling Up the Drawbridge\u003c/h2>\n\u003cp>Just days after Proposition 13 passed, I stood in front of my fellow graduates at the University of California, Santa Cruz, to give the student address. I chose to talk about the result of the vote – not because it had anything to do with my chosen field of study but because of the sharp rift with the past it represented.\u003c/p>\n\u003cp>California had invested in me, like millions of others, by funding quality public schools, a world-class university system and economic growth. Now, a majority of voters were seeking to selfishly pull up the drawbridge on future generations. So I spent my 15 minutes of fame in front of classmates, professors and parents explaining why I thought Prop 13 would shipwreck the state.\u003c/p>\n\u003cp>I wish I had been wrong – and that I’d spent more of my allotted time thanking my parents, neither of whom had finished high school and were beaming with pride because the California dream had come true for their son. Sadly, Prop 13 meant that dream would be much less likely to come true for others.\u003c/p>\n\u003cfigure id=\"attachment_11627344\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11627344\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/Prop13Celebrants-800x410.jpg\" alt=\"Proposition 13 backers celebrate the measure's passage in 1978.\" width=\"800\" height=\"410\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-800x410.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-160x82.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-1020x523.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-1180x605.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-960x493.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-240x123.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-375x192.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/Prop13Celebrants-520x267.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Proposition 13 backers celebrate the measure's passage in 1978. \u003ccite>(RetroReport/YouTube)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At its core, Proposition 13 was written as an amendment to the state’s constitution with \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">three key elements\u003c/a> and affected all types of property, from residential to commercial:\u003c/p>\n\u003cul>\n\u003cli>It rolled back assessed property values to their estimated market value in 1975 and limited annual increases to no more than 2 percent as long as the property wasn’t sold. With any new sale, the assessed value could climb to the actual sale price, essentially locking in the property tax for long-time homeowners and shifting the burden to newcomers.\u003c/li>\n\u003cli>It capped the property tax rate at 1 percent of the assessed value for city, county, school and other local governments, down from an \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">average of 2.6 percent\u003c/a> before the measure, draining local coffers.\u003c/li>\n\u003cli>It mandated that any change in state taxes that would increase the tax take would require a two-thirds vote in the Legislature (while tax cuts required only a majority vote) and that any increase in designated or special purpose taxes by local governments would require two-thirds voter approval. This effectively staightjacketed the ability of a changing electorate to raise new revenues.\u003c/li>\n\u003c/ul>\n\u003ch2>Prop 13 and its Racial Undertones\u003c/h2>\n\u003cp>One reason for Prop 13’s popularity was that the median value of a house in California rose by over \u003ca href=\"http://www.census.gov/hhes/www/housing/census/histcensushsg.html\">250 percent\u003c/a> from 1970 to 1980, more than twice as fast as \u003ca href=\"http://www.fiscalpolicy.org/Databank/Income/state1.xls\">median household income\u003c/a> in the state. With reassessments triggering property tax hikes that outpaced family finances, the die was cast for a taxpayer rebellion.\u003c/p>\n\u003cp>But the roots of this \u003ca href=\"http://press.princeton.edu/titles/7634.html\">suburban-based revolt\u003c/a> were far deeper than a fight over taxes. The forces behind it were the same ones that fought against fair housing in the 1960s and busing to promote \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266568\">school integration\u003c/a> throughout the 1970s. And they were goaded by a series of court decisions that mandated the \u003ca href=\"https://heydaybooks.com/book/game-changers/\">equalization of school spending\u003c/a> across districts, stirring white resentment that local property tax dollars were not being spent on “our kids.”\u003c/p>\n\u003cp>Indeed, at the same time that property rates were soaring, the \u003ca href=\"https://usa.ipums.org/usa\">share of youths who were minorities\u003c/a> rose from 30 percent in 1970 to 44 percent by 1980 – the largest decadal change in California’s history. And while these racial undertones were, well, undertones, the resentment of the changing demography was clear when Prop 13’s main architect, Orange County businessman \u003ca href=\"https://www.hjta.org\">Howard Jarvis\u003c/a>, wrote after it passed that immigrants “\u003ca href=\"https://web.stanford.edu/%7Emrosenfe/Hanono_Thesis_California_Dreamin.pdf\">just come over here to get on the taxpayers’ gravy train\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11627346\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11627346\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/11/HowardJarvis2-800x398.jpg\" alt=\"Howard Jarvis\" width=\"800\" height=\"398\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-800x398.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-160x80.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-1020x507.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-1180x586.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-960x477.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-240x119.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-375x186.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/11/HowardJarvis2-520x258.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Howard Jarvis \u003ccite>(RetroReport/YouTube)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In essence, Proposition 13 became the first shot across the bow in a series of referendums some dubbed “\u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266643\">racial propositions\u003c/a>” that reached their apogee with \u003ca href=\"https://ballotpedia.org/California_Proposition_187,_Illegal_Aliens_Ineligible_for_Public_Benefits_(1994)\">Proposition 187\u003c/a>, the famous 1994 measure that sought to cut off nearly all public services, including education, to undocumented immigrants.\u003c/p>\n\u003cp>That was followed by voter-approved measures to ban affirmative action, eliminate bilingual education and expand a prison system \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266643\">marred by racial disproportionality\u003c/a> in its sentencing and rates of incarceration.\u003c/p>\n\u003cp>That Prop 13 itself was a sort of generational warfare with overtones of race was clear in its structure. Since the assessment didn’t increase more than 2 percent unless property changed hands, incumbent homeowners (\u003ca href=\"https://www.census.gov/prod/www/decennial.html\">who were older and whiter\u003c/a>) wouldn’t see their tax burden change much as long as they didn’t sell. Meanwhile, \u003ca href=\"http://popdynamics.usc.edu/pdf/2009_Myers_Demographics-Prop-13.pdf\">new homeowners\u003c/a> (more likely to be younger, minority and eventually immigrant) would have to pay higher tax rates and thus bear a disproportionate share of the costs of local services.\u003c/p>\n\u003cp>And that wasn’t the only bias against the future. The requirement for a supermajority to pass legislation to raise taxes effectively constrained the ability of future state governments to pour in the sort of money that had built the state’s \u003ca href=\"http://www.penguinrandomhouse.com/books/171974/california-by-kevin-starr/9780812977530/\">famed transportation, water and university systems\u003c/a>.\u003c/p>\n\u003ch2>The Consequences\u003c/h2>\n\u003cp>The immediate damage from Prop 13, however, was masked. When local property tax revenues quickly fell by about 60 percent, the \u003ca href=\"https://www.nationalaffairs.com/public_interest/detail/on-understanding-proposition-13\">state government stepped in\u003c/a> to fill the gaps.\u003c/p>\n\u003cp>But over time, the damaging effects of Proposition 13 in terms of education spending and income inequality became increasingly apparent. In the 1960s, California \u003ca href=\"http://www.dailybreeze.com/article/zz/20130727/NEWS/130728685\">ranked among the top 10 states\u003c/a> in terms of per-pupil spending. By 2014, its ranking \u003ca href=\"http://www.edweek.org/media/2016/12/29/school-finance-education-week-quality-counts-2017.pdf\">had plunged to as low as 46\u003c/a>. And while California’s level of income inequality was in the middle of the pack nationally in 1969, it is now the \u003ca href=\"https://stateofresistancebook.com/\">fourth most unequal state in the country\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>While Proposition 13 was the not the only culprit behind these trends, it didn’t help. About \u003ca href=\"http://lao.ca.gov/Publications/Report/3497\">half of the total residential property tax relief\u003c/a> provided by Prop 13 went to homeowners with incomes in excess of US$120,000 a year – or about 15 percent of all households.\u003c/p>\n\u003cp>And because the property tax was no longer a growing source of revenue for local governments, cities and counties had more reason to chase sales taxes with retail development and less incentive to promote housing, helping to set in motion the \u003ca href=\"http://www.ocregister.com/2017/03/29/amending-prop-13-by-raising-property-taxes-could-help-solve-housing-affordability-crisis-expert-says/\">severe housing shortage that wracks the state today\u003c/a>.\u003c/p>\n\u003cp>The final irony is that Prop 13 – a measure promoted by those in favor of smaller government – \u003ca href=\"https://www.ucpress.edu/book.php?isbn=9780520266568\">pushed authority and decision-making to the state capitol\u003c/a>, which became the main source to bail out local municipalities.\u003c/p>\n\u003ch2>Efforts to Change It\u003c/h2>\n\u003cp>So why has Proposition 13 not been overturned?\u003c/p>\n\u003cp>Its political appeal remains, particularly to older residents who vote and to businesses worried about any increase in taxes. Efforts to keep the protections for residential homeowners but allow commercial and industrial property to be assessed at market rates – a so-called “split roll” – have \u003ca href=\"https://www.boe.ca.gov/meetings/pdf/3a_101911_Split_Roll.pdf\">failed or stalled\u003c/a> and currently command the \u003ca href=\"http://www.ppic.org/content/pubs/survey/S_515MBS.pdf\">thinnest possible majority in public polling\u003c/a>.\u003c/p>\n\u003cp>So while the split role remains \u003ca href=\"http://makeitfairca.com/\">a goal for some reformers\u003c/a>, many concerned about the effects of Prop 13 have simply tried to raise taxes elsewhere to offset the lost revenue. California voters approved a \u003ca href=\"https://ballotpedia.org/California_Proposition_30,_Sales_and_Income_Tax_Increase_(2012)\">temporary “millionaire’s tax”\u003c/a> in 2012 and its \u003ca href=\"https://ballotpedia.org/California_Proposition_55,_Extension_of_the_Proposition_30_Income_Tax_Increase_(2016)\">long-term extension\u003c/a> in 2016. And more than two-thirds of voting taxpayers in Los Angeles County approved sales tax hikes in 2008 and 2016 that will generate \u003ca href=\"http://prospect.org/article/great-los-angeles-revolt-against-cars\">$160 billion over the next 40 years\u003c/a> for transportation investments ranging from rail expansion to highway improvement to new bike paths.\u003c/p>\n\u003cp>But such tinkering does not solve the fundamental problems with Prop 13 that I’ve noted above. Addressing those will require a new set of conversations about optimal tax policy and how to address legitimate concerns such as how to protect older homeowners with a fixed income from the potential end of Prop 13.\u003c/p>\n\u003ch2>California – and the Country – at a Crossroads\u003c/h2>\n\u003cp>Unfortunately, the same demographic shifts, economic anxieties and political polarization that spurred Prop 13 have since gone national. The president’s plan to “Make America Great Again” similarly involves slashing taxes while underinvesting in \u003ca href=\"http://www.npr.org/sections/ed/2017/05/22/529534031/president-trumps-budget-proposal-calls-for-deep-cuts-to-education\">education\u003c/a> and social services – the kinds of investments that actually made America great in the 20th century.\u003c/p>\n\u003cp>California has the opportunity to show the nation how to get this right and invest in our future and our collective dreams rather than shortchange them. And a \u003ca href=\"http://makeitfairca.com/endorsements/\">growing number of voices\u003c/a>, including local governments, unions and political groups, are calling for reform.\u003c/p>\n\u003cp>\u003cimg src=\"https://counter.theconversation.com/content/77919/count.gif\" alt=\"The Conversation\" width=\"1\" height=\"1\">So while the discussion about Prop 13 might seem to be about a few obscure tax rules, it is highly symbolic: At stake is the future of the state and, indeed, the nation. A day of reckoning for a measure that seems increasingly out of date may soon be upon us.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://theconversation.com/profiles/manuel-pastor-378283\">Manuel Pastor\u003c/a> is Professor of Sociology at \u003ca href=\"http://theconversation.com/institutions/university-of-southern-california-dornsife-college-of-letters-arts-and-sciences-2669\">University of Southern California – Dornsife College of Letters, Arts and Sciences. \u003c/a>\u003c/em>\u003cem>This article was originally published on \u003ca href=\"http://theconversation.com\">The Conversation\u003c/a>. 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"title": "All That Online Shopping You're Doing? It's Also Bringing Jobs to Inland California",
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"content": "\u003cp>The unemployment rate in Santa Clara County — the heart of Silicon Valley — is 3.8 percent. The rate is even lower in other tech-focused cities in the region, such as Cupertino, Palo Alto and Menlo Park.\u003c/p>\n\u003cp>The tech sector is driving those jobs, from Apple to Google to Facebook.\u003c/p>\n\u003cp>One of the biggest areas of growth continues to be within e-commerce. E-commerce jobs have existed in Silicon Valley since the dawn of the first dot-com era, way back in the late 1990s. Remember, if you will, Pets.com.\u003c/p>\n\u003cp>But the Silicon Valley e-commerce jobs aren’t stockers and shippers and blue-collar jobs — the office parks for e-commerce companies in Silicon Valley are filled with software engineers, web developers and marketers.\u003c/p>\n\u003cp>But as e-commerce, or online shopping, has grown, \u003ca href=\"https://ww2.kqed.org/news/2017/10/29/why-the-explosive-growth-of-e-commerce-could-mean-more-jobs/\">it has fueled another type of job:\u003c/a> Jobs in warehouses and distribution centers, where the stuff we order gets sorted, packed and shipped.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=”LJbbV8ojxnEDKPcQ6n52qcIesXNsXIHt”]\u003c/p>\n\u003cp>One measure of this growth is in jobs labeled as “general warehousing” by the federal Bureau of Labor Statistics.\u003c/p>\n\u003cp>In California, those jobs jumped dramatically from 57,047 in 2007 to 90,263 in 2016. The growth has been concentrated in places like the Inland Empire, which helps fill demand from customers in and around Los Angeles. In Riverside County, for instance, warehouse jobs quadrupled from 4,944 to 20,567 between 2007 and 2016.\u003c/p>\n\u003cp>According to economist Michael Mandel with the Progressive Policy Institute, online shopping has the potential to bring employment to areas far beyond Silicon Valley, including areas like Riverside County, which are in need of jobs and growth.\u003c/p>\n\u003cp>“These are jobs that are fairly well paid. They are not entry-level retail jobs,” said Mandel. “They’ve got decent salaries and very often are full benefits. So this really makes a difference to the growth of a region like this, helping pull jobs out of the concentrated center cities, those really dense areas, to areas that really need it.”\u003c/p>\n\u003cp>Mandel said the growth in the number of warehouse-related jobs has more than offset the stagnation of jobs in the world of brick-and-mortar retail. Mandel acknowledged that the jobs are quite different, and in some cases more difficult.\u003c/p>\n\u003cp>“These are basically industrial jobs,” said Mandel. “They’re hard work. They’re physical labor.\u003c/p>\n\u003cp>“They’re hard work, but they’re also decently paid,” he added.\u003c/p>\n\u003cp>However, there have been complaints and concerns that the jobs don’t, in fact, pay well enough. That’s \u003ca href=\"https://ww2.kqed.org/news/2017/06/06/valley-farm-towns-transformed-by-your-online-shopping/\">especially true in the Central Valley town of Tracy\u003c/a>, which is home to two large Amazon distribution centers among many others.\u003c/p>\n\u003cp>In San Joaquin County, where Tracy is located, warehouse jobs increased from 4,338 in 2007 to 11,691 in 2016, according to the Bureau of Labor Statistics. Meanwhile, housing costs in Tracy have skyrocketed, and warehouse wages haven’t been able to keep up.\u003c/p>\n\u003cp>As companies like Amazon push the boundaries of automation in their distribution centers, there is a fear that these jobs could be short-lived. A \u003ca href=\"https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/where-machines-could-replace-humans-and-where-they-cant-yet\">recent study from McKinsey\u003c/a> ranked different job sectors where machines are most likely to replace humans, and “Transportation and Warehousing” ranked near the top. That’s because jobs with lots of repetitive tasks, like those often done in warehouses, are most at risk from automation.\u003c/p>\n\u003cp>For now, however, there are \u003ca href=\"https://ww2.kqed.org/news/2017/06/07/warehouses-promise-jobs-but-what-happens-when-the-robots-come/\">some jobs that people do better than robots\u003c/a> — things like picking delicate or oddly-shaped items from a shelf. In many cases, people and machines are working side by side. And it appears that ever-growing demand for online shopping is only creating more jobs.\u003c/p>\n\u003cp>The map below shows data from the Bureau of Labor Statistics for general warehouse jobs in 2016. Counties in a darker shade of red had more jobs. The average county had 3,600 general warehouse jobs in 2016.\u003c/p>\n\u003cp>[warehouseJobs]\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The Associated Press contributed data to this report.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The unemployment rate in Santa Clara County — the heart of Silicon Valley — is 3.8 percent. The rate is even lower in other tech-focused cities in the region, such as Cupertino, Palo Alto and Menlo Park.\u003c/p>\n\u003cp>The tech sector is driving those jobs, from Apple to Google to Facebook.\u003c/p>\n\u003cp>One of the biggest areas of growth continues to be within e-commerce. E-commerce jobs have existed in Silicon Valley since the dawn of the first dot-com era, way back in the late 1990s. Remember, if you will, Pets.com.\u003c/p>\n\u003cp>But the Silicon Valley e-commerce jobs aren’t stockers and shippers and blue-collar jobs — the office parks for e-commerce companies in Silicon Valley are filled with software engineers, web developers and marketers.\u003c/p>\n\u003cp>But as e-commerce, or online shopping, has grown, \u003ca href=\"https://ww2.kqed.org/news/2017/10/29/why-the-explosive-growth-of-e-commerce-could-mean-more-jobs/\">it has fueled another type of job:\u003c/a> Jobs in warehouses and distribution centers, where the stuff we order gets sorted, packed and shipped.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>One measure of this growth is in jobs labeled as “general warehousing” by the federal Bureau of Labor Statistics.\u003c/p>\n\u003cp>In California, those jobs jumped dramatically from 57,047 in 2007 to 90,263 in 2016. The growth has been concentrated in places like the Inland Empire, which helps fill demand from customers in and around Los Angeles. In Riverside County, for instance, warehouse jobs quadrupled from 4,944 to 20,567 between 2007 and 2016.\u003c/p>\n\u003cp>According to economist Michael Mandel with the Progressive Policy Institute, online shopping has the potential to bring employment to areas far beyond Silicon Valley, including areas like Riverside County, which are in need of jobs and growth.\u003c/p>\n\u003cp>“These are jobs that are fairly well paid. They are not entry-level retail jobs,” said Mandel. “They’ve got decent salaries and very often are full benefits. So this really makes a difference to the growth of a region like this, helping pull jobs out of the concentrated center cities, those really dense areas, to areas that really need it.”\u003c/p>\n\u003cp>Mandel said the growth in the number of warehouse-related jobs has more than offset the stagnation of jobs in the world of brick-and-mortar retail. Mandel acknowledged that the jobs are quite different, and in some cases more difficult.\u003c/p>\n\u003cp>“These are basically industrial jobs,” said Mandel. “They’re hard work. They’re physical labor.\u003c/p>\n\u003cp>“They’re hard work, but they’re also decently paid,” he added.\u003c/p>\n\u003cp>However, there have been complaints and concerns that the jobs don’t, in fact, pay well enough. That’s \u003ca href=\"https://ww2.kqed.org/news/2017/06/06/valley-farm-towns-transformed-by-your-online-shopping/\">especially true in the Central Valley town of Tracy\u003c/a>, which is home to two large Amazon distribution centers among many others.\u003c/p>\n\u003cp>In San Joaquin County, where Tracy is located, warehouse jobs increased from 4,338 in 2007 to 11,691 in 2016, according to the Bureau of Labor Statistics. Meanwhile, housing costs in Tracy have skyrocketed, and warehouse wages haven’t been able to keep up.\u003c/p>\n\u003cp>As companies like Amazon push the boundaries of automation in their distribution centers, there is a fear that these jobs could be short-lived. A \u003ca href=\"https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/where-machines-could-replace-humans-and-where-they-cant-yet\">recent study from McKinsey\u003c/a> ranked different job sectors where machines are most likely to replace humans, and “Transportation and Warehousing” ranked near the top. That’s because jobs with lots of repetitive tasks, like those often done in warehouses, are most at risk from automation.\u003c/p>\n\u003cp>For now, however, there are \u003ca href=\"https://ww2.kqed.org/news/2017/06/07/warehouses-promise-jobs-but-what-happens-when-the-robots-come/\">some jobs that people do better than robots\u003c/a> — things like picking delicate or oddly-shaped items from a shelf. In many cases, people and machines are working side by side. And it appears that ever-growing demand for online shopping is only creating more jobs.\u003c/p>\n\u003cp>The map below shows data from the Bureau of Labor Statistics for general warehouse jobs in 2016. Counties in a darker shade of red had more jobs. The average county had 3,600 general warehouse jobs in 2016.\u003c/p>\n\u003cp>[warehouseJobs]\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The Associated Press contributed data to this report.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Short-Term Rental Boom Leaves Yosemite Struggling to Fill Jobs",
"title": "Short-Term Rental Boom Leaves Yosemite Struggling to Fill Jobs",
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"content": "\u003cp>Short-term rental websites are changing the communities near Yosemite National Park. \u003c/p>\n\u003cp>The booming vacation rental market is creating a shortage of places for locals to rent for the long-term, and in some cases it's contributing to the area's homeless problem. And now the growing lack of long-term rentals is causing a hiring issue in Yosemite.\u003c/p>\n\u003cp>It takes an army of people to keep Yosemite National Park’s facilities tidy from the constant barrage of tourists -- 4 million people are expected to visit this year, with the majority in the summer months. This spring Ron Borne, with the maintenance division of the park, was on track to hire a full custodial staff.\u003c/p>\n\u003cp>“Of 30 seasonal custodial workers that we had positions, with funds, we were only able to fill 17 of those positions,” say Borne.\u003c/p>\n\u003cp>He couldn't fill 10 percent of his workforce of about 300 people -- custodians, trail crews, maintenance crews -- when they chose to not work in the park because of the lack of rentals in the area. One of his employees was recently in the process of trying to rent a house in Mariposa County.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“They were negotiating and the owner came back and said, ‘No, I’m sorry. I can’t rent to you because I can make my mortgage as an Airbnb. So, I’m sorry, I cannot do a long-term rental agreement.’”\u003c/p>\n\u003cfigure id=\"attachment_11626885\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/RonBorn-800x552.jpg\" alt=\"Ron Borne, with Yosemite's maintenance division, says he lost 10 percent of his staff this year due to housing issues.\" width=\"800\" height=\"552\" class=\"size-medium wp-image-11626885\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-800x552.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-160x110.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-1020x704.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-1180x814.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-960x663.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-240x166.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-375x259.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-520x359.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Ron Borne, with Yosemite's maintenance division, says he lost 10 percent of his staff this year due to housing issues. \u003ccite>(Ezra David Romero/Valley Public Radio)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Borne himself commutes from Merced to Yosemite. After he sold his home in the area, he wasn’t able to find a long-term rental close to the park.\u003c/p>\n\u003cp>That gap in hires left the park vulnerable and a bit dirty this summer. During busy months thousands use the restrooms daily at Lower Yosemite Falls. \u003c/p>\n\u003cp>“We’re seeing that it’s dirty,” says Yosemite National Public Information Officer Scott Gediman as he shows me one of the busiest restrooms in the park. “There's some litter I see. Somebody left some gloves and there's toilet paper. We would like the public to see a cleaner restroom.”\u003c/p>\n\u003cp>The Lower Yosemite Falls restrooms have multiple stalls and sinks. Gediman says one tour bus full of visitors can make it look like no one's cleaned it in days.\u003c/p>\n\u003cp>[contextly_sidebar id=\"b7iL6tKPY1tIojKk8DpfO1c6UnAMJhVr\"]\u003c/p>\n\u003cp>“In the middle of the summer we’ll get 50 to 60 tour buses a day,” Gediman says. “With the staffing shortages that we experienced this summer there were times when I walked in personally and it would just be a lot messier than it is now.”\u003c/p>\n\u003cp>Gediman says potential employees can’t find places to live because so many long-term rentals are being converted to vacation rentals, like Airbnb and VRBO, in the communities that lead into the park. In Madera County there are more than 300 short-term rentals and over 600 in Mariposa County. Both counties have established guidelines for short-term rentals, but aren’t discouraging them because they stand to make a lot of money from taxes they bring in. \u003c/p>\n\u003cp>So far this year Madera County has collected over $3 million in taxes from hotel and short-term rental visitors.\u003c/p>\n\u003ch2>'After a while it takes a toll on a person'\u003c/h2>\n\u003cp>Patty Radanovich-Sousa is a property manager in the gold rush town of Mariposa. She gets calls daily from people looking for long-term rentals.\u003c/p>\n\u003cp>“We’ve been turning away people since the first of the year consistently,” says Radanovich-Sousa. “We have had one or two homes come up and surprisingly they were large expensive homes and they surprisingly rented within a month.”\u003c/p>\n\u003cp>She says it's almost easier to buy a home in the mountains near Yosemite than it is to rent a spot. Radanovich-Sousa says there’s a long waiting list for rentals here and she wishes she could rent to more park employees.\u003c/p>\n\u003cp>“You also then have an opportunity as a business person to weed through your applicants a little bit more,” says Radanovich-Sousa. “You can get good applicants, which means long-term applicants. The other thing is park service people are one of our best customers.”\u003c/p>\n\u003cfigure id=\"attachment_11626887\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/KathleenMorse-800x598.jpg\" alt=\"Kathleen Morse, division chief for strategic planning at Yosemite, says the lack of rentals, long commutes and cost end up driving away potential hires.\" width=\"800\" height=\"598\" class=\"size-medium wp-image-11626887\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-800x598.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-1020x763.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-1180x883.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-960x718.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-375x280.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-520x389.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Kathleen Morse, division chief for strategic planning at Yosemite, says the lack of rentals, long commutes and cost end up driving away potential hires. \u003ccite>(Ezra David Romero/Valley Public Radio)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Still it's not just low-paid short-term employees that are saying it’s hard to find rentals in the area.\u003c/p>\n\u003cp>“Our permanent workforce is making good money, but they’re not making enough to afford some of the better homes in the area,” says Kathleen Morse, division chief for strategic planning with Yosemite National Park. “It hits everybody fairly equally. It’s not like the permanent job and the permanent salary gives you that much of a leg up.”\u003c/p>\n\u003cp>The park employs around 450 long-term employees and around 600 short-term employees, but only has about 400 beds for them. At the height of the summer the park needs about 200 more, but Morse says NPS has no plans to build more at this time. Morse says many who take jobs end up having to live further and further away in places like Merced. She says hires then have to decide if the long commute and cost to travel into the park are worth it.\u003c/p>\n\u003cp>[contextly_sidebar id=\"H6Tzwna6AHeTHXc8mC8s0W8Z9gJxeVJ4\"]\u003c/p>\n\u003cp>“After a while it takes a toll on a person,” say Morse. “So we’ll have people for a while and then they’ll fall off, they’ll disappear and then they’ll quit. And then we’ll have to go through the hiring process again. So you lose efficiencies.”\u003c/p>\n\u003cp>In response Morse joined a new taskforce in Mariposa County to come up with ways to increase housing opportunities here.\u003c/p>\n\u003cp>“I don’t think [the county] feels like they have their arms around the problem,” says Morse. “So this committee is designed to examine the different opportunities out there. Is there a way the county can be more effective in gathering resources and directing them towards this problem?”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Morse anticipates the problem will get worse next year and that means she and her team are going to have come up with a solution pretty quick, but at this point, she admits, she doesn’t have one. \u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Short-term rental websites are changing the communities near Yosemite National Park. \u003c/p>\n\u003cp>The booming vacation rental market is creating a shortage of places for locals to rent for the long-term, and in some cases it's contributing to the area's homeless problem. And now the growing lack of long-term rentals is causing a hiring issue in Yosemite.\u003c/p>\n\u003cp>It takes an army of people to keep Yosemite National Park’s facilities tidy from the constant barrage of tourists -- 4 million people are expected to visit this year, with the majority in the summer months. This spring Ron Borne, with the maintenance division of the park, was on track to hire a full custodial staff.\u003c/p>\n\u003cp>“Of 30 seasonal custodial workers that we had positions, with funds, we were only able to fill 17 of those positions,” say Borne.\u003c/p>\n\u003cp>He couldn't fill 10 percent of his workforce of about 300 people -- custodians, trail crews, maintenance crews -- when they chose to not work in the park because of the lack of rentals in the area. One of his employees was recently in the process of trying to rent a house in Mariposa County.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“They were negotiating and the owner came back and said, ‘No, I’m sorry. I can’t rent to you because I can make my mortgage as an Airbnb. So, I’m sorry, I cannot do a long-term rental agreement.’”\u003c/p>\n\u003cfigure id=\"attachment_11626885\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/RonBorn-800x552.jpg\" alt=\"Ron Borne, with Yosemite's maintenance division, says he lost 10 percent of his staff this year due to housing issues.\" width=\"800\" height=\"552\" class=\"size-medium wp-image-11626885\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-800x552.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-160x110.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-1020x704.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-1180x814.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-960x663.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-240x166.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-375x259.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RonBorn-520x359.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Ron Borne, with Yosemite's maintenance division, says he lost 10 percent of his staff this year due to housing issues. \u003ccite>(Ezra David Romero/Valley Public Radio)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Borne himself commutes from Merced to Yosemite. After he sold his home in the area, he wasn’t able to find a long-term rental close to the park.\u003c/p>\n\u003cp>That gap in hires left the park vulnerable and a bit dirty this summer. During busy months thousands use the restrooms daily at Lower Yosemite Falls. \u003c/p>\n\u003cp>“We’re seeing that it’s dirty,” says Yosemite National Public Information Officer Scott Gediman as he shows me one of the busiest restrooms in the park. “There's some litter I see. Somebody left some gloves and there's toilet paper. We would like the public to see a cleaner restroom.”\u003c/p>\n\u003cp>The Lower Yosemite Falls restrooms have multiple stalls and sinks. Gediman says one tour bus full of visitors can make it look like no one's cleaned it in days.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“In the middle of the summer we’ll get 50 to 60 tour buses a day,” Gediman says. “With the staffing shortages that we experienced this summer there were times when I walked in personally and it would just be a lot messier than it is now.”\u003c/p>\n\u003cp>Gediman says potential employees can’t find places to live because so many long-term rentals are being converted to vacation rentals, like Airbnb and VRBO, in the communities that lead into the park. In Madera County there are more than 300 short-term rentals and over 600 in Mariposa County. Both counties have established guidelines for short-term rentals, but aren’t discouraging them because they stand to make a lot of money from taxes they bring in. \u003c/p>\n\u003cp>So far this year Madera County has collected over $3 million in taxes from hotel and short-term rental visitors.\u003c/p>\n\u003ch2>'After a while it takes a toll on a person'\u003c/h2>\n\u003cp>Patty Radanovich-Sousa is a property manager in the gold rush town of Mariposa. She gets calls daily from people looking for long-term rentals.\u003c/p>\n\u003cp>“We’ve been turning away people since the first of the year consistently,” says Radanovich-Sousa. “We have had one or two homes come up and surprisingly they were large expensive homes and they surprisingly rented within a month.”\u003c/p>\n\u003cp>She says it's almost easier to buy a home in the mountains near Yosemite than it is to rent a spot. Radanovich-Sousa says there’s a long waiting list for rentals here and she wishes she could rent to more park employees.\u003c/p>\n\u003cp>“You also then have an opportunity as a business person to weed through your applicants a little bit more,” says Radanovich-Sousa. “You can get good applicants, which means long-term applicants. The other thing is park service people are one of our best customers.”\u003c/p>\n\u003cfigure id=\"attachment_11626887\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/KathleenMorse-800x598.jpg\" alt=\"Kathleen Morse, division chief for strategic planning at Yosemite, says the lack of rentals, long commutes and cost end up driving away potential hires.\" width=\"800\" height=\"598\" class=\"size-medium wp-image-11626887\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-800x598.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-1020x763.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-1180x883.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-960x718.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-375x280.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/KathleenMorse-520x389.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Kathleen Morse, division chief for strategic planning at Yosemite, says the lack of rentals, long commutes and cost end up driving away potential hires. \u003ccite>(Ezra David Romero/Valley Public Radio)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Still it's not just low-paid short-term employees that are saying it’s hard to find rentals in the area.\u003c/p>\n\u003cp>“Our permanent workforce is making good money, but they’re not making enough to afford some of the better homes in the area,” says Kathleen Morse, division chief for strategic planning with Yosemite National Park. “It hits everybody fairly equally. It’s not like the permanent job and the permanent salary gives you that much of a leg up.”\u003c/p>\n\u003cp>The park employs around 450 long-term employees and around 600 short-term employees, but only has about 400 beds for them. At the height of the summer the park needs about 200 more, but Morse says NPS has no plans to build more at this time. Morse says many who take jobs end up having to live further and further away in places like Merced. She says hires then have to decide if the long commute and cost to travel into the park are worth it.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“After a while it takes a toll on a person,” say Morse. “So we’ll have people for a while and then they’ll fall off, they’ll disappear and then they’ll quit. And then we’ll have to go through the hiring process again. So you lose efficiencies.”\u003c/p>\n\u003cp>In response Morse joined a new taskforce in Mariposa County to come up with ways to increase housing opportunities here.\u003c/p>\n\u003cp>“I don’t think [the county] feels like they have their arms around the problem,” says Morse. “So this committee is designed to examine the different opportunities out there. Is there a way the county can be more effective in gathering resources and directing them towards this problem?”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "Is a Hollywood Tax Credit Still Needed to Protect Industry Jobs?",
"title": "Is a Hollywood Tax Credit Still Needed to Protect Industry Jobs?",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>Posters in the hallway announce upcoming club meetings and homecoming events. Placards next to lockers note yearly academic achievements. In a nearby basketball gym, banners hang from the ceiling to celebrate the Liberty High Tigers' past championships.\u003c/p>\n\u003cp>But you won't find any students at this meticulously detailed production set, constructed inside a former Navy recreation center on Mare Island in the Bay Area city of Vallejo.\u003c/p>\n\u003cp>Fields and buildings abandoned by the Navy in 1996 have been transformed into Film Mare Island, a production facility that hosted the soon-to-be-released second season of \"13 Reasons Why,\" the controversial Netflix show about a teen's suicide.\u003c/p>\n\u003cp>The facility has been heralded as a successful product of California's expanded film tax credit program, \u003ca href=\"https://www.youtube.com/watch?v=kLwZ3VAValw\" target=\"_blank\" rel=\"noopener\">signed by Gov. Jerry Brown \u003c/a>in 2014. The initiative aims to expand production to all corners of the state and to protect an industry at risk of losing film jobs to other countries and states.\u003c/p>\n\u003cfigure id=\"attachment_11620274\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620274 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/13RW-e1506912178829-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A former naval building on Mare Island in Vallejo is transformed into the set of the Netflix hit \"13 Reasons Why.\" \u003ccite>(Guy Marzorati/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But as many competing programs have come up short in their goal of creating sustained film production, it seems that the threat of new Tinseltowns sprouting up across the country has diminished.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Speaking in front of the Hollywood Chamber of Commerce \u003ca href=\"https://www.youtube.com/watch?v=gloBpyzENg8&t=2613s\" target=\"_blank\" rel=\"noopener\">in August\u003c/a>, Senate President Pro Tem Kevin de León said the film tax credit investment \"is paying off\" as other states reduce their incentive programs.\u003c/p>\n\u003cp>\"With the sheer scale of our commitment to the industry, we’re out-competing states like Florida and North Carolina,\" he said. \"Both states have dropped their programs after we overhauled ours here in California.\"\u003c/p>\n\u003cp>The extension and expansion of California's film and TV tax credit was chaptered in \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB1839\" target=\"_blank\" rel=\"noopener\">Assembly Bill 1839\u003c/a>, which grew the program from $100 million to $330 million annually through 2020.\u003c/p>\n\u003cp>Proponents argued that the legislation, which received bipartisan support, would stem the tide of thousands of film production jobs \u003ca href=\"http://www.milkeninstitute.org/publications/view/620\" target=\"_blank\" rel=\"noopener\">leaving the state\u003c/a> every year.\u003c/p>\n\u003cp>\"The film and TV industry is an indigenous kind of industry, especially in Southern California,\" said Assemblyman Raul Bocanegra, D-Pacoima, who helped write the tax credit bill. \"We were losing our lunch to other places in the country and the world for filming.\"\u003c/p>\n\u003cp>The solution offers greater incentives to production companies than the original film tax credit program did and changed a number of features of the earlier program.\u003c/p>\n\u003cp>A budget cap that excluded blockbuster films from receiving credits was eliminated, and the process of selecting films to receive credits was changed from a random lottery to a formula that aims to choose productions most likely to deliver jobs.\u003c/p>\n\u003cp>Films and TV shows can receive a tax credit covering 20 percent of expenses with added incentives for shows relocating to California. The qualified expenses include wages for cameramen and crew, and money spent on equipment, but not the salaries of actors or directors.\u003c/p>\n\u003cp>[contextly_sidebar id=\"rqjy3ZLpNvtZJlhkJ0BNnG0JDPe5QqUY\"]\u003c/p>\n\u003cp>Without the tax credit, the money given back to film studios would go to the state's general fund to help pay for programs like public education and Medi-Cal.\u003c/p>\n\u003cp>The direct benefits of the program can be challenging to track.\u003c/p>\n\u003cp>Brian Weatherford, a fiscal and policy analyst with the Legislative Analyst's Office, says a \u003ca href=\"http://www.lao.ca.gov/reports/2016/3502/First-Film-Tax-Credit-Prog-092916.pdf\" target=\"_blank\" rel=\"noopener\">study of the first film incentive program \u003c/a>found that many productions that missed out on a tax credit in California ended up relocating to another state or country.\u003c/p>\n\u003cp>But the circumstances for each project are so unique that researchers found it impossible to simulate what would have happened to the industry if no tax breaks were given.\u003c/p>\n\u003cp>\"We found that there was some justification to consider having [the tax credits] because of this very aggressive competition from other states,\" Weatherford said, \"but we have no way of knowing what the alternative is.\"\u003c/p>\n\u003cp>Backers of the program say it has delivered on its goal of providing a shot in the arm to one of California's signature industries.\u003c/p>\n\u003cp>A \u003ca href=\"http://film.ca.gov/wp-content/uploads/CA-Tax-Credit-Progress-Report-09-2017-FINAL.pdf\" target=\"_blank\" rel=\"noopener\">recent report\u003c/a> from the California Film Commission concluded that during the program's first two years, the state \"attracted or retained\" 100 projects, which created an estimated $3.7 billion of spending.\u003c/p>\n\u003cp>\"We’re definitely seeing a resurgence in the level of production all over the state,\" said Amy Lemisch, executive director of the California Film Commission. \"Our soundstage facilities are pretty much operating at capacity.\"\u003c/p>\n\u003cp>Legislators behind the expansion also tout an extra 5 percent credit given to projects filming outside the 30-mile zone around Los Angeles.\u003c/p>\n\u003cp>Among the projects taking advantage of the bonus tax credit is \"13 Reasons Why,\" which this summer filmed its second season in the Bay Area.\u003c/p>\n\u003cp>\"It is the catalyst for why we're here today,\" said Mark Walter, general manager of Film Mare Island, where the Netflix show and an additional feature film are being shot. \"We would not be here if it wasn’t for that added incentive.\"\u003c/p>\n\u003cfigure id=\"attachment_11620275\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620275 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/Mark-Walter-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Film Mare Island General Manager Mark Walter, outside his office in Vallejo. \u003ccite>(Guy Marzorati/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As he zips between soundstages and design studios in his golf cart, Walter points to the network of lumber yards, catering companies and hotels that benefit from a production coming to town.\u003c/p>\n\u003cp>The California Film Commission report found that during the production of the first season of \"13 Reasons Why,\" nearly $22 million was spent in Contra Costa, Marin, Solano and Sonoma counties.\u003c/p>\n\u003cp>\"The bill is doing what it was intended to do,\" said Assemblyman Bocanegra. \"Keep as many jobs as we can in California and to spread it around. Not just in Southern California but throughout the state.\"\u003c/p>\n\u003cp>The question that will face lawmakers when the current tax credit program expires in 2020 is whether California's well-established film infrastructure still needs help to stave off competition.\u003c/p>\n\u003cp>\"In an ideal world, we’d be competing on how good our soundstages are,\" said the Legislative Analyst's Office's Weatherford. \"Not because our government is giving away money.\"\u003c/p>\n\u003cp>Increasingly, other states are deciding that the tax credits are a race to the bottom.\u003c/p>\n\u003cp>A \u003ca href=\"https://priceschool.usc.edu/fade-to-black-exploring-policy-enactment-and-termination-through-the-rise-and-fall-of-state-tax-incentives-for-the-motion-picture-industry/\" target=\"_blank\" rel=\"noopener\">study\u003c/a> by University of Southern California Assistant Professor Michael Thom found that 11 of the 45 states that once offered film tax credits have ended their programs.\u003c/p>\n\u003cp>Others, like Louisiana, have \u003ca href=\"https://www.usnews.com/news/best-states/louisiana/articles/2017-06-02/louisianas-film-tax-credit-program-to-continue-with-a-cap\" target=\"_blank\" rel=\"noopener\">scaled back\u003c/a> investments after seeing little growth in jobs and productions.\u003c/p>\n\u003cp>“It did not help states attract larger shares of the industry,\" Thom said. \"In the long term, most of Hollywood stayed in Hollywood.\"\u003c/p>\n\u003cp>California and New York's inherent advantages (scenery; an established pool of actors, directors and writers; proximity to existing studios) were apparently too difficult to overcome, save for picking off an occasional big-name feature.\u003c/p>\n\u003cfigure id=\"attachment_11620276\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620276 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">State Senate President Pro Tem Kevin de León, D-Los Angeles. \u003ccite>(Bert Johnson/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As California's current film tax credit nears its midway point, lawmakers will consider an expansion amid a field of fewer competitors.\u003c/p>\n\u003cp>\"It’s sort of bizarre to watch California spend more money to retain jobs that there’s no real incentive to leave the state,\" Thom said.\u003c/p>\n\u003cp>Senate President Pro Tem de León said he'll consider possible changes to the program, but he doesn't want to take any chances in letting the incentives expire.\u003c/p>\n\u003cp>\"We have to extend it, and we have to send the signal that we're in this for the long haul,\" de León said. \"We're not out of the woods.\"\u003c/p>\n\u003cp>It may simply prove more politically costly to ditch the tax credits, which de León said many businesses view as \"catnip.\" That metaphor was echoed in Thom's research at USC, which found that the more a state invested in film tax credits, the less likely they were to scale back the incentive.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Once the investment is made and the industry becomes used to the benefit, \"it's very hard to overcome,\" Thom said.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Posters in the hallway announce upcoming club meetings and homecoming events. Placards next to lockers note yearly academic achievements. In a nearby basketball gym, banners hang from the ceiling to celebrate the Liberty High Tigers' past championships.\u003c/p>\n\u003cp>But you won't find any students at this meticulously detailed production set, constructed inside a former Navy recreation center on Mare Island in the Bay Area city of Vallejo.\u003c/p>\n\u003cp>Fields and buildings abandoned by the Navy in 1996 have been transformed into Film Mare Island, a production facility that hosted the soon-to-be-released second season of \"13 Reasons Why,\" the controversial Netflix show about a teen's suicide.\u003c/p>\n\u003cp>The facility has been heralded as a successful product of California's expanded film tax credit program, \u003ca href=\"https://www.youtube.com/watch?v=kLwZ3VAValw\" target=\"_blank\" rel=\"noopener\">signed by Gov. Jerry Brown \u003c/a>in 2014. The initiative aims to expand production to all corners of the state and to protect an industry at risk of losing film jobs to other countries and states.\u003c/p>\n\u003cfigure id=\"attachment_11620274\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620274 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/13RW-e1506912178829-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/13RW-e1506912178829-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A former naval building on Mare Island in Vallejo is transformed into the set of the Netflix hit \"13 Reasons Why.\" \u003ccite>(Guy Marzorati/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But as many competing programs have come up short in their goal of creating sustained film production, it seems that the threat of new Tinseltowns sprouting up across the country has diminished.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Speaking in front of the Hollywood Chamber of Commerce \u003ca href=\"https://www.youtube.com/watch?v=gloBpyzENg8&t=2613s\" target=\"_blank\" rel=\"noopener\">in August\u003c/a>, Senate President Pro Tem Kevin de León said the film tax credit investment \"is paying off\" as other states reduce their incentive programs.\u003c/p>\n\u003cp>\"With the sheer scale of our commitment to the industry, we’re out-competing states like Florida and North Carolina,\" he said. \"Both states have dropped their programs after we overhauled ours here in California.\"\u003c/p>\n\u003cp>The extension and expansion of California's film and TV tax credit was chaptered in \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB1839\" target=\"_blank\" rel=\"noopener\">Assembly Bill 1839\u003c/a>, which grew the program from $100 million to $330 million annually through 2020.\u003c/p>\n\u003cp>Proponents argued that the legislation, which received bipartisan support, would stem the tide of thousands of film production jobs \u003ca href=\"http://www.milkeninstitute.org/publications/view/620\" target=\"_blank\" rel=\"noopener\">leaving the state\u003c/a> every year.\u003c/p>\n\u003cp>\"The film and TV industry is an indigenous kind of industry, especially in Southern California,\" said Assemblyman Raul Bocanegra, D-Pacoima, who helped write the tax credit bill. \"We were losing our lunch to other places in the country and the world for filming.\"\u003c/p>\n\u003cp>The solution offers greater incentives to production companies than the original film tax credit program did and changed a number of features of the earlier program.\u003c/p>\n\u003cp>A budget cap that excluded blockbuster films from receiving credits was eliminated, and the process of selecting films to receive credits was changed from a random lottery to a formula that aims to choose productions most likely to deliver jobs.\u003c/p>\n\u003cp>Films and TV shows can receive a tax credit covering 20 percent of expenses with added incentives for shows relocating to California. The qualified expenses include wages for cameramen and crew, and money spent on equipment, but not the salaries of actors or directors.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Without the tax credit, the money given back to film studios would go to the state's general fund to help pay for programs like public education and Medi-Cal.\u003c/p>\n\u003cp>The direct benefits of the program can be challenging to track.\u003c/p>\n\u003cp>Brian Weatherford, a fiscal and policy analyst with the Legislative Analyst's Office, says a \u003ca href=\"http://www.lao.ca.gov/reports/2016/3502/First-Film-Tax-Credit-Prog-092916.pdf\" target=\"_blank\" rel=\"noopener\">study of the first film incentive program \u003c/a>found that many productions that missed out on a tax credit in California ended up relocating to another state or country.\u003c/p>\n\u003cp>But the circumstances for each project are so unique that researchers found it impossible to simulate what would have happened to the industry if no tax breaks were given.\u003c/p>\n\u003cp>\"We found that there was some justification to consider having [the tax credits] because of this very aggressive competition from other states,\" Weatherford said, \"but we have no way of knowing what the alternative is.\"\u003c/p>\n\u003cp>Backers of the program say it has delivered on its goal of providing a shot in the arm to one of California's signature industries.\u003c/p>\n\u003cp>A \u003ca href=\"http://film.ca.gov/wp-content/uploads/CA-Tax-Credit-Progress-Report-09-2017-FINAL.pdf\" target=\"_blank\" rel=\"noopener\">recent report\u003c/a> from the California Film Commission concluded that during the program's first two years, the state \"attracted or retained\" 100 projects, which created an estimated $3.7 billion of spending.\u003c/p>\n\u003cp>\"We’re definitely seeing a resurgence in the level of production all over the state,\" said Amy Lemisch, executive director of the California Film Commission. \"Our soundstage facilities are pretty much operating at capacity.\"\u003c/p>\n\u003cp>Legislators behind the expansion also tout an extra 5 percent credit given to projects filming outside the 30-mile zone around Los Angeles.\u003c/p>\n\u003cp>Among the projects taking advantage of the bonus tax credit is \"13 Reasons Why,\" which this summer filmed its second season in the Bay Area.\u003c/p>\n\u003cp>\"It is the catalyst for why we're here today,\" said Mark Walter, general manager of Film Mare Island, where the Netflix show and an additional feature film are being shot. \"We would not be here if it wasn’t for that added incentive.\"\u003c/p>\n\u003cfigure id=\"attachment_11620275\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620275 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/Mark-Walter-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/Mark-Walter-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Film Mare Island General Manager Mark Walter, outside his office in Vallejo. \u003ccite>(Guy Marzorati/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As he zips between soundstages and design studios in his golf cart, Walter points to the network of lumber yards, catering companies and hotels that benefit from a production coming to town.\u003c/p>\n\u003cp>The California Film Commission report found that during the production of the first season of \"13 Reasons Why,\" nearly $22 million was spent in Contra Costa, Marin, Solano and Sonoma counties.\u003c/p>\n\u003cp>\"The bill is doing what it was intended to do,\" said Assemblyman Bocanegra. \"Keep as many jobs as we can in California and to spread it around. Not just in Southern California but throughout the state.\"\u003c/p>\n\u003cp>The question that will face lawmakers when the current tax credit program expires in 2020 is whether California's well-established film infrastructure still needs help to stave off competition.\u003c/p>\n\u003cp>\"In an ideal world, we’d be competing on how good our soundstages are,\" said the Legislative Analyst's Office's Weatherford. \"Not because our government is giving away money.\"\u003c/p>\n\u003cp>Increasingly, other states are deciding that the tax credits are a race to the bottom.\u003c/p>\n\u003cp>A \u003ca href=\"https://priceschool.usc.edu/fade-to-black-exploring-policy-enactment-and-termination-through-the-rise-and-fall-of-state-tax-incentives-for-the-motion-picture-industry/\" target=\"_blank\" rel=\"noopener\">study\u003c/a> by University of Southern California Assistant Professor Michael Thom found that 11 of the 45 states that once offered film tax credits have ended their programs.\u003c/p>\n\u003cp>Others, like Louisiana, have \u003ca href=\"https://www.usnews.com/news/best-states/louisiana/articles/2017-06-02/louisianas-film-tax-credit-program-to-continue-with-a-cap\" target=\"_blank\" rel=\"noopener\">scaled back\u003c/a> investments after seeing little growth in jobs and productions.\u003c/p>\n\u003cp>“It did not help states attract larger shares of the industry,\" Thom said. \"In the long term, most of Hollywood stayed in Hollywood.\"\u003c/p>\n\u003cp>California and New York's inherent advantages (scenery; an established pool of actors, directors and writers; proximity to existing studios) were apparently too difficult to overcome, save for picking off an occasional big-name feature.\u003c/p>\n\u003cfigure id=\"attachment_11620276\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11620276 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/10/RS24761_20170324_SenatorKevindeLeon_Credit_BertJohnson-1-qut-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">State Senate President Pro Tem Kevin de León, D-Los Angeles. \u003ccite>(Bert Johnson/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As California's current film tax credit nears its midway point, lawmakers will consider an expansion amid a field of fewer competitors.\u003c/p>\n\u003cp>\"It’s sort of bizarre to watch California spend more money to retain jobs that there’s no real incentive to leave the state,\" Thom said.\u003c/p>\n\u003cp>Senate President Pro Tem de León said he'll consider possible changes to the program, but he doesn't want to take any chances in letting the incentives expire.\u003c/p>\n\u003cp>\"We have to extend it, and we have to send the signal that we're in this for the long haul,\" de León said. \"We're not out of the woods.\"\u003c/p>\n\u003cp>It may simply prove more politically costly to ditch the tax credits, which de León said many businesses view as \"catnip.\" That metaphor was echoed in Thom's research at USC, which found that the more a state invested in film tax credits, the less likely they were to scale back the incentive.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Once the investment is made and the industry becomes used to the benefit, \"it's very hard to overcome,\" Thom said.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"slug": "why-the-explosive-growth-of-e-commerce-could-mean-more-jobs",
"title": "Why the Explosive Growth of E-Commerce Could Mean More Jobs",
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"headTitle": "Why the Explosive Growth of E-Commerce Could Mean More Jobs | KQED",
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"content": "\u003cp>When the robots came to online retailer Boxed, dread came, too: The familiar fear that the machines would take over, leaving a trail of unemployed humans in their wake.\u003c/p>\n\u003cp>“I had a lot of people asking me, ‘What is going to happen to us?'” said Veronica Mena, a trainer for the e-commerce startup, recalling the anxiety that rippled through her co-workers after company executives announced plans to open an automated warehouse in nearby Union, New Jersey.\u003c/p>\n\u003cp>Yet their fears didn’t come to pass.\u003c/p>\n\u003cp>When the new warehouse opened this spring, workers found that their jobs were less physically demanding than at the older, manual warehouse in Edison, New Jersey. Instead of walking thousands of steps a day loading items onto carts, employees could stand at stations as conveyor belts brought the goods to them.\u003c/p>\n\u003cp>And rather than cutting jobs, the company added a third shift to keep up with rapidly growing demand.\u003cbr>\n[contextly_sidebar id=”64lyqklsc4dSrrtcpHFBzWupYhmB6TaN”]\u003cbr>\nWhat happened at Boxed — and has occurred elsewhere — suggests that widespread fears about automation and job loss are often misplaced. Automation has actually helped create jobs in e-commerce, rather than eliminate them, and stands to create more in the years ahead. By accelerating delivery times, robotics and software have made online shopping an increasingly viable alternative to brick-and-mortar stores, and sales have ballooned at online retailers.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The surge in e-commerce has required the rapid build-out of a vast network of warehouses and delivery systems that include both robots and human workers. The robots didn’t take jobs from people, because many of the jobs didn’t exist before.\u003c/p>\n\u003cp>“We’re not looking to do the same work with half the people,” said Rick Zumpano, vice president for distribution at Boxed. “Since we’re growing, we need everyone.”\u003c/p>\n\u003cp>Newer robotic technologies do loom as a threat to some e-commerce jobs. Startup robotics companies are developing robot arm prototypes, for example, that can pick goods from shelves. Those devices may replace some workers over the next decade.\u003c/p>\n\u003cp>But the explosion of e-commerce and the ease of automation are leading e-commerce companies to build more warehouses. So even if each warehouse employs fewer workers, the proliferation of new warehouses is projected to generate hiring across the industry.\u003c/p>\n\u003cp>https://www.youtube.com/watch?time_continue=27&v=CQnt95QGtbY\u003c/p>\n\u003cp>In the meantime, jobs have been lost at storefront retailers, which have suffered under the e-commerce onslaught. Venerable chains such as Toys R Us, RadioShack, and Payless Shoesource have all filed for bankruptcy this year.\u003c/p>\n\u003cp>There are widespread fears that things will get only worse for the nation’s 16 million retail workers. Self-checkout kiosks and experimental stores like Amazon’s Go , which has no cashiers, could theoretically eliminate millions of retail jobs.\u003c/p>\n\u003cp>But worries about a “retail apocalypse” have missed a more important trend: E-commerce actually leads to more jobs by paying people to do things we used to do ourselves.\u003c/p>\n\u003cp>When people shop online, tasks that once filled their days — driving to a store, searching through aisles for a product, bringing it to a cashier and paying for it — are now done by warehouse employees and truck drivers. People spend less time shopping than in the past, research shows.\u003c/p>\n\u003cp>Joe Song, an economist at Bank of America Merrill Lynch who has studied government data, has found that working women are spending less time shopping — nearly 25 hours less per year compared with a decade earlier. Song attributes the time savings mainly to e-commerce. Families increasingly outsource shopping to e-commerce employees, just as many have long outsourced other household tasks to child care workers or house cleaners. In each case, jobs are created.\u003c/p>\n\u003cp>That means the bankruptcies and store closings in the retail sector aren’t the complete picture. While jobs have been lost in stores, many more have been gained from online shopping.\u003c/p>\n\u003cp>Michael Mandel, an economist at the Progressive Policy Institute, calculates that the number of e-commerce and warehousing jobs has jumped by 400,000 in the past decade, easily offsetting the loss of 140,000 brick-and-mortar retail jobs.\u003c/p>\n\u003cp>[WarehouseEmploymentGraph]\u003c/p>\n\u003cp>Amazon accounts for much of the additional employment. Yet it’s also at the vanguard of automation. Since 2014, Amazon has deployed 100,000 robots in 25 warehouses worldwide. At the same time, it’s nearly tripled its hourly workforce, from roughly 45,000 to nearly 125,000.\u003c/p>\n\u003cp>Its use of robotics has shaved the operating costs for a warehouse by about 20 percent, according to a report by Deutsche Bank. Such savings, in turn, have lowered the cost for Amazon to open new facilities — and hire more workers.\u003c/p>\n\u003cp>Mandel points out that it’s a lot like what happened more than a 100 years ago, when Henry Ford’s installation of assembly lines — an early form of automation — helped reduce the price of cars, which boosted demand so much that Ford needed more workers.\u003c/p>\n\u003cp>Robots have displaced many manufacturing workers in the past two to three decades, enabling factories to produce more with fewer employees.\u003c/p>\n\u003cp>Yet e-commerce and warehousing are growing far faster than manufacturing is — a crucial difference that lessens the impact of automation. E-commerce sales are surging roughly five times as fast as storefront retail sales, according to market research firm Forrester. By 2022, they’re expected to account for 17 percent of all retail sales, up from 13 percent this year.\u003c/p>\n\u003cp>[contextly_sidebar id=”JGMzvuK1EivhBdZgXRmVGQCASPgQHmxr”]\u003c/p>\n\u003cp>From a handful of distribution centers in 2000, Amazon now has more than 240 warehouses and smaller delivery facilities, according to MWPVL, a consulting firm. Those warehouses have created tens of thousands of jobs and boosted wages in some communities, which many local employers call “the Amazon effect.”\u003c/p>\n\u003cp>But Amazon is not the only company that has experienced growth due to e-commerce.\u003c/p>\n\u003cp>Walmart, the world’s largest retailer, recently opened its sixth e-commerce campus near Orlando, Florida. Like the others, it includes a million square foot warehouse.\u003c/p>\n\u003cp>Walmart is also expanding its online grocery pickup service to 2,000 stores, double the 1,000 where it is now available. It allows Walmart’s customers to order groceries online, but requires more workers, not fewer. Ravi Jariwala, a spokesman, says Walmart has created a new job classification — “personal shopper” — to do what customers once did themselves: Pick and package orders.\u003c/p>\n\u003cp>And XPO Logistics, which ships mostly appliances and other heavy goods, has hired 3,000 warehouse workers in the past year to keep up with growing e-commerce, bringing its total to 26,000. It’s adding a million square feet of warehouse about every four to six weeks, says Ashfaque Chowdhury, president of XPO’s supply chain in the Americas and Asia.\u003c/p>\n\u003cp>Chowdhury says items that many people wouldn’t have felt comfortable buying on the internet not long ago — from refrigerators to treadmills to furniture — are becoming routine online purchases. And the company is also planning to open a million square foot warehouse in the Midwest exclusively to handle returns.\u003c/p>\n\u003caside class=\"pullquote alignright\">‘There’s less lifting to do. There are a lot of little things that make the job better.’ \u003ccite>Veronica Mena, warehouse employee for e-commerce start-up Boxed\u003c/cite>\u003c/aside>\n\u003cp>All these trends have been helped by automation’s ability to hold down costs, such as Walmart’s use of drones to help track its warehouse inventory.\u003c/p>\n\u003cp>Still, a tour of Boxed’s gleaming new warehouse in Union makes it easy to see why people worry that automation costs jobs. Everywhere you look you see machines and rows of neatly organized pallets of goods.\u003c/p>\n\u003cp>But not so many workers. Through the 140,000-square-foot building, two miles of conveyor belts quietly whisk plastic bins containing customers’ orders. One machine stamps mailing labels on boxes. Spread thinly along the conveyor belts, roughly three dozen workers operate on the floor.\u003c/p>\n\u003cp>Among the first stops on the conveyor is a four-story-high robotic contraption known as “Perfect Pick.” It enables one employee filling orders to choose from 700 items. An automated container, the iBOT, zips up and down and back and forth among the Perfect Pick’s shelves, where products are stored.\u003c/p>\n\u003cp>The iBOT retrieves small items — health and beauty products and snack foods — and brings them to the employee, who places them in bins.\u003c/p>\n\u003cp>At Amazon’s much larger warehouse in Baltimore, there are more workers, but also a lot more robots. They lift shelves of goods and roll them to the company’s pickers, who select items that customers have ordered before the robots return the shelves to storage.\u003c/p>\n\u003cfigure id=\"attachment_11496913\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11496913\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-800x450.jpg\" alt=\"\" width=\"800\" height=\"450\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-1180x664.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-960x540.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-240x135.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-375x211.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-520x293.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Amazon’s orange robots move items all over the company’s Tracy fulfillment center, increasing efficiency and helping speed stuff to consumers. \u003ccite>(Erasmo Martinez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Even so, there are still jobs at both warehouses for people to do. At Boxed, the bins glide from the Perfect Pick to other employees, who select additional items to complete an order. A separate group, the packers, puts everything in pastel-hued boxes for shipment. Fitting multiple items of different shapes and textures into a box is something people still do much better than robots.\u003c/p>\n\u003cp>Barbara Ward, 56, is a packer at Boxed, and like all her colleagues, she writes a thank-you note for each order she packages. It’s part of Boxed’s effort to preserve some aspects of the conventional shopping experience. When a customer has ordered diapers, a packer might write a congratulatory note.\u003c/p>\n\u003cp>At Amazon’s Baltimore warehouse, employees called “stowers” are needed to stock the shelves that are carried by robots. And that requires human judgment: Software suggests to workers where each item should be placed. But it’s an employee’s responsibility to make sure the shelves, which are tall and narrow, remain balanced.\u003c/p>\n\u003cp>There are also “problem solvers” who position themselves near a scale on a conveyor belt that weighs each package as it whizzes by. If the weight isn’t consistent with what’s supposed to be in the box, the package is set aside for a problem solver, who opens the box to see whether the order was filled correctly.\u003c/p>\n\u003cp>The warehouse covers the equivalent of 17 football fields and was opened in 2015, one of the first to be designed with robots in mind. Still, it employs 5,000 people.\u003c/p>\n\u003cp>Amazon and Boxed say their automated warehouses actually employ more workers than their non-automated warehouses do, because they handle far more volume.\u003c/p>\n\u003cp>And many employees say all the technology and machinery has made their jobs better.\u003c/p>\n\u003cfigure id=\"attachment_11383243\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/03/Watt_Local-qut.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11383243\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-1180x885.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-960x720.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">This baby shop in Oakland closed its doors in late 2016, due to competition from online retailer, Amazon. \u003ccite>(Brian Watt/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mena, 34, vastly prefers Boxed’s new facility to the manual warehouses where she previously worked. At one warehouse, owned by a medical equipment manufacturer, Mena says she would walk 15,000 steps a day to fill orders, according to her Fitbit. That’s about 7.5 miles.\u003c/p>\n\u003cp>“There’s less lifting to do,” she adds, now that goods are moved by conveyor belt rather than carts. “There are a lot of little things that make the job better.”\u003c/p>\n\u003cp>And with Boxed growing rapidly, she was promoted to trainer less than a year after starting as a temporary employee picking orders.\u003c/p>\n\u003cp>Ward, meanwhile, says she expects to be able to work longer at Boxed because her job is less physically demanding, thanks to automation.\u003c/p>\n\u003cp>Jobs are growing off the warehouse floor, as well. The explosion of online commerce is also building demand for higher-paying jobs in software and robotics. Nearly 14 percent of software job listings are now posted by retailers, according to data analyzed by Glassdoor, the job recruitment website. That share has doubled from 2012, says Andrew Chamberlain, Glassdoor’s chief economist.\u003c/p>\n\u003cp>And the software jobs are not as concentrated in places like Silicon Valley. Dallas, for example, has experienced a surge in software jobs, partly because of greater hiring by Home Depot.\u003c/p>\n\u003cp>“That’s a huge change,” Chamberlain said. “Software-related jobs are a bellwether of automation.”\u003c/p>\n\u003cp>Amazon’s career website lists nearly 5,000 open software jobs and 250 in machine learning, a type of artificial intelligence. Walmart is advertising 475 software and technology jobs, including data analysts, programmers, and software engineers.\u003c/p>\n\u003cp>These aren’t folks who just maintain websites.\u003c/p>\n\u003cp>When a customer shops on Boxed’s website, software calculates what size box will be needed and how much empty space it will contain, Zumpano said. Just before checkout, the website will recommend products that would fill the box’s empty space, yet not so many that the order would require another box.\u003c/p>\n\u003cp>Automation and robotics will only get more sophisticated in the future, which will threaten some jobs.\u003c/p>\n\u003cp>Amazon runs an annual “picking” contest in which mostly startup firms and universities compete to see which team’s robot can most efficiently pick items from a shelf and place them in a box.\u003c/p>\n\u003cp>“What’s going to happen next is robotic arms, combined with vision technology and suction technology,” says Marc Wulfraat, president of MWVPL, a consulting firm. “You can be darn sure that Amazon will take the first swing at it.”\u003c/p>\n\u003caside class=\"pullquote alignright\">‘You’re going to need distribution facilities in the backyard of every city.’ \u003ccite>Marc Wulfraat, president of MWVPL, a consulting firm\u003c/cite>\u003c/aside>\n\u003cp>But it could take several years for such robots to be put into widespread use. For now, they work mostly with items in boxes and other rigid shapes, Wulfraat says. They can’t yet handle bulkier items such as basketballs or softer items like clothes.\u003c/p>\n\u003cp>“Robotic hand technology is still pretty far off,” says Boxed CEO Chieh Huang. The company recently installed robots in its three other manual warehouses to transport goods to workers, as an alternative to conveyor belts. They didn’t lay off any employees.\u003c/p>\n\u003cp>And Mandel argues that if additional automation, such as robotic pickers, lowers costs further, it could create new markets for products and services, such as custom-made goods.\u003c/p>\n\u003cp>Wulfraat predicts that hundreds of smaller warehouses will be built in large cities to shorten delivery times to as low as an hour, particularly for groceries. Amazon already has 53 such facilities, and its competitors will be forced to follow suit.\u003c/p>\n\u003cp>“You’re going to need distribution facilities in the backyard of every city,” Wulfraat says. Those facilities will be smaller and cheaper and won’t be worth fully automating.\u003c/p>\n\u003cp>Automation is also more likely in the coming years to make up for labor shortages rather than replace workers, Wulfraat says. Companies such as Target and Walmart have had to announce widespread pay increases in the past two years to attract and keep employees, a sign of a tighter job market.\u003c/p>\n\u003cp>Many warehouse operators he works with anticipate the problem will only grow worse as baby boomers age and increasingly retire, Wulfraat says. Any warehouse workers displaced by automation will easily find jobs elsewhere.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“I don’t see hundreds of thousands of workers unemployed and on the street,” he said.\u003c/p>\n\n",
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"excerpt": "For many e-commerce companies like Amazon, more automation means more demand which creates more jobs.",
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"title": "Why the Explosive Growth of E-Commerce Could Mean More Jobs | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>When the robots came to online retailer Boxed, dread came, too: The familiar fear that the machines would take over, leaving a trail of unemployed humans in their wake.\u003c/p>\n\u003cp>“I had a lot of people asking me, ‘What is going to happen to us?'” said Veronica Mena, a trainer for the e-commerce startup, recalling the anxiety that rippled through her co-workers after company executives announced plans to open an automated warehouse in nearby Union, New Jersey.\u003c/p>\n\u003cp>Yet their fears didn’t come to pass.\u003c/p>\n\u003cp>When the new warehouse opened this spring, workers found that their jobs were less physically demanding than at the older, manual warehouse in Edison, New Jersey. Instead of walking thousands of steps a day loading items onto carts, employees could stand at stations as conveyor belts brought the goods to them.\u003c/p>\n\u003cp>And rather than cutting jobs, the company added a third shift to keep up with rapidly growing demand.\u003cbr>\n\u003c/p>\u003cp>\u003c/p>\u003cp>\u003cbr>\nWhat happened at Boxed — and has occurred elsewhere — suggests that widespread fears about automation and job loss are often misplaced. Automation has actually helped create jobs in e-commerce, rather than eliminate them, and stands to create more in the years ahead. By accelerating delivery times, robotics and software have made online shopping an increasingly viable alternative to brick-and-mortar stores, and sales have ballooned at online retailers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The surge in e-commerce has required the rapid build-out of a vast network of warehouses and delivery systems that include both robots and human workers. The robots didn’t take jobs from people, because many of the jobs didn’t exist before.\u003c/p>\n\u003cp>“We’re not looking to do the same work with half the people,” said Rick Zumpano, vice president for distribution at Boxed. “Since we’re growing, we need everyone.”\u003c/p>\n\u003cp>Newer robotic technologies do loom as a threat to some e-commerce jobs. Startup robotics companies are developing robot arm prototypes, for example, that can pick goods from shelves. Those devices may replace some workers over the next decade.\u003c/p>\n\u003cp>But the explosion of e-commerce and the ease of automation are leading e-commerce companies to build more warehouses. So even if each warehouse employs fewer workers, the proliferation of new warehouses is projected to generate hiring across the industry.\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/CQnt95QGtbY'\n title='//www.youtube.com/embed/CQnt95QGtbY'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>In the meantime, jobs have been lost at storefront retailers, which have suffered under the e-commerce onslaught. Venerable chains such as Toys R Us, RadioShack, and Payless Shoesource have all filed for bankruptcy this year.\u003c/p>\n\u003cp>There are widespread fears that things will get only worse for the nation’s 16 million retail workers. Self-checkout kiosks and experimental stores like Amazon’s Go , which has no cashiers, could theoretically eliminate millions of retail jobs.\u003c/p>\n\u003cp>But worries about a “retail apocalypse” have missed a more important trend: E-commerce actually leads to more jobs by paying people to do things we used to do ourselves.\u003c/p>\n\u003cp>When people shop online, tasks that once filled their days — driving to a store, searching through aisles for a product, bringing it to a cashier and paying for it — are now done by warehouse employees and truck drivers. People spend less time shopping than in the past, research shows.\u003c/p>\n\u003cp>Joe Song, an economist at Bank of America Merrill Lynch who has studied government data, has found that working women are spending less time shopping — nearly 25 hours less per year compared with a decade earlier. Song attributes the time savings mainly to e-commerce. Families increasingly outsource shopping to e-commerce employees, just as many have long outsourced other household tasks to child care workers or house cleaners. In each case, jobs are created.\u003c/p>\n\u003cp>That means the bankruptcies and store closings in the retail sector aren’t the complete picture. While jobs have been lost in stores, many more have been gained from online shopping.\u003c/p>\n\u003cp>Michael Mandel, an economist at the Progressive Policy Institute, calculates that the number of e-commerce and warehousing jobs has jumped by 400,000 in the past decade, easily offsetting the loss of 140,000 brick-and-mortar retail jobs.\u003c/p>\n\u003cp>[WarehouseEmploymentGraph]\u003c/p>\n\u003cp>Amazon accounts for much of the additional employment. Yet it’s also at the vanguard of automation. Since 2014, Amazon has deployed 100,000 robots in 25 warehouses worldwide. At the same time, it’s nearly tripled its hourly workforce, from roughly 45,000 to nearly 125,000.\u003c/p>\n\u003cp>Its use of robotics has shaved the operating costs for a warehouse by about 20 percent, according to a report by Deutsche Bank. Such savings, in turn, have lowered the cost for Amazon to open new facilities — and hire more workers.\u003c/p>\n\u003cp>Mandel points out that it’s a lot like what happened more than a 100 years ago, when Henry Ford’s installation of assembly lines — an early form of automation — helped reduce the price of cars, which boosted demand so much that Ford needed more workers.\u003c/p>\n\u003cp>Robots have displaced many manufacturing workers in the past two to three decades, enabling factories to produce more with fewer employees.\u003c/p>\n\u003cp>Yet e-commerce and warehousing are growing far faster than manufacturing is — a crucial difference that lessens the impact of automation. E-commerce sales are surging roughly five times as fast as storefront retail sales, according to market research firm Forrester. By 2022, they’re expected to account for 17 percent of all retail sales, up from 13 percent this year.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>From a handful of distribution centers in 2000, Amazon now has more than 240 warehouses and smaller delivery facilities, according to MWPVL, a consulting firm. Those warehouses have created tens of thousands of jobs and boosted wages in some communities, which many local employers call “the Amazon effect.”\u003c/p>\n\u003cp>But Amazon is not the only company that has experienced growth due to e-commerce.\u003c/p>\n\u003cp>Walmart, the world’s largest retailer, recently opened its sixth e-commerce campus near Orlando, Florida. Like the others, it includes a million square foot warehouse.\u003c/p>\n\u003cp>Walmart is also expanding its online grocery pickup service to 2,000 stores, double the 1,000 where it is now available. It allows Walmart’s customers to order groceries online, but requires more workers, not fewer. Ravi Jariwala, a spokesman, says Walmart has created a new job classification — “personal shopper” — to do what customers once did themselves: Pick and package orders.\u003c/p>\n\u003cp>And XPO Logistics, which ships mostly appliances and other heavy goods, has hired 3,000 warehouse workers in the past year to keep up with growing e-commerce, bringing its total to 26,000. It’s adding a million square feet of warehouse about every four to six weeks, says Ashfaque Chowdhury, president of XPO’s supply chain in the Americas and Asia.\u003c/p>\n\u003cp>Chowdhury says items that many people wouldn’t have felt comfortable buying on the internet not long ago — from refrigerators to treadmills to furniture — are becoming routine online purchases. And the company is also planning to open a million square foot warehouse in the Midwest exclusively to handle returns.\u003c/p>\n\u003caside class=\"pullquote alignright\">‘There’s less lifting to do. There are a lot of little things that make the job better.’ \u003ccite>Veronica Mena, warehouse employee for e-commerce start-up Boxed\u003c/cite>\u003c/aside>\n\u003cp>All these trends have been helped by automation’s ability to hold down costs, such as Walmart’s use of drones to help track its warehouse inventory.\u003c/p>\n\u003cp>Still, a tour of Boxed’s gleaming new warehouse in Union makes it easy to see why people worry that automation costs jobs. Everywhere you look you see machines and rows of neatly organized pallets of goods.\u003c/p>\n\u003cp>But not so many workers. Through the 140,000-square-foot building, two miles of conveyor belts quietly whisk plastic bins containing customers’ orders. One machine stamps mailing labels on boxes. Spread thinly along the conveyor belts, roughly three dozen workers operate on the floor.\u003c/p>\n\u003cp>Among the first stops on the conveyor is a four-story-high robotic contraption known as “Perfect Pick.” It enables one employee filling orders to choose from 700 items. An automated container, the iBOT, zips up and down and back and forth among the Perfect Pick’s shelves, where products are stored.\u003c/p>\n\u003cp>The iBOT retrieves small items — health and beauty products and snack foods — and brings them to the employee, who places them in bins.\u003c/p>\n\u003cp>At Amazon’s much larger warehouse in Baltimore, there are more workers, but also a lot more robots. They lift shelves of goods and roll them to the company’s pickers, who select items that customers have ordered before the robots return the shelves to storage.\u003c/p>\n\u003cfigure id=\"attachment_11496913\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11496913\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-800x450.jpg\" alt=\"\" width=\"800\" height=\"450\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-1180x664.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-960x540.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-240x135.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-375x211.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/RS25568_DC_3-qut-520x293.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Amazon’s orange robots move items all over the company’s Tracy fulfillment center, increasing efficiency and helping speed stuff to consumers. \u003ccite>(Erasmo Martinez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Even so, there are still jobs at both warehouses for people to do. At Boxed, the bins glide from the Perfect Pick to other employees, who select additional items to complete an order. A separate group, the packers, puts everything in pastel-hued boxes for shipment. Fitting multiple items of different shapes and textures into a box is something people still do much better than robots.\u003c/p>\n\u003cp>Barbara Ward, 56, is a packer at Boxed, and like all her colleagues, she writes a thank-you note for each order she packages. It’s part of Boxed’s effort to preserve some aspects of the conventional shopping experience. When a customer has ordered diapers, a packer might write a congratulatory note.\u003c/p>\n\u003cp>At Amazon’s Baltimore warehouse, employees called “stowers” are needed to stock the shelves that are carried by robots. And that requires human judgment: Software suggests to workers where each item should be placed. But it’s an employee’s responsibility to make sure the shelves, which are tall and narrow, remain balanced.\u003c/p>\n\u003cp>There are also “problem solvers” who position themselves near a scale on a conveyor belt that weighs each package as it whizzes by. If the weight isn’t consistent with what’s supposed to be in the box, the package is set aside for a problem solver, who opens the box to see whether the order was filled correctly.\u003c/p>\n\u003cp>The warehouse covers the equivalent of 17 football fields and was opened in 2015, one of the first to be designed with robots in mind. Still, it employs 5,000 people.\u003c/p>\n\u003cp>Amazon and Boxed say their automated warehouses actually employ more workers than their non-automated warehouses do, because they handle far more volume.\u003c/p>\n\u003cp>And many employees say all the technology and machinery has made their jobs better.\u003c/p>\n\u003cfigure id=\"attachment_11383243\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/03/Watt_Local-qut.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11383243\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-1180x885.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-960x720.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/03/Watt_Local-qut-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">This baby shop in Oakland closed its doors in late 2016, due to competition from online retailer, Amazon. \u003ccite>(Brian Watt/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mena, 34, vastly prefers Boxed’s new facility to the manual warehouses where she previously worked. At one warehouse, owned by a medical equipment manufacturer, Mena says she would walk 15,000 steps a day to fill orders, according to her Fitbit. That’s about 7.5 miles.\u003c/p>\n\u003cp>“There’s less lifting to do,” she adds, now that goods are moved by conveyor belt rather than carts. “There are a lot of little things that make the job better.”\u003c/p>\n\u003cp>And with Boxed growing rapidly, she was promoted to trainer less than a year after starting as a temporary employee picking orders.\u003c/p>\n\u003cp>Ward, meanwhile, says she expects to be able to work longer at Boxed because her job is less physically demanding, thanks to automation.\u003c/p>\n\u003cp>Jobs are growing off the warehouse floor, as well. The explosion of online commerce is also building demand for higher-paying jobs in software and robotics. Nearly 14 percent of software job listings are now posted by retailers, according to data analyzed by Glassdoor, the job recruitment website. That share has doubled from 2012, says Andrew Chamberlain, Glassdoor’s chief economist.\u003c/p>\n\u003cp>And the software jobs are not as concentrated in places like Silicon Valley. Dallas, for example, has experienced a surge in software jobs, partly because of greater hiring by Home Depot.\u003c/p>\n\u003cp>“That’s a huge change,” Chamberlain said. “Software-related jobs are a bellwether of automation.”\u003c/p>\n\u003cp>Amazon’s career website lists nearly 5,000 open software jobs and 250 in machine learning, a type of artificial intelligence. Walmart is advertising 475 software and technology jobs, including data analysts, programmers, and software engineers.\u003c/p>\n\u003cp>These aren’t folks who just maintain websites.\u003c/p>\n\u003cp>When a customer shops on Boxed’s website, software calculates what size box will be needed and how much empty space it will contain, Zumpano said. Just before checkout, the website will recommend products that would fill the box’s empty space, yet not so many that the order would require another box.\u003c/p>\n\u003cp>Automation and robotics will only get more sophisticated in the future, which will threaten some jobs.\u003c/p>\n\u003cp>Amazon runs an annual “picking” contest in which mostly startup firms and universities compete to see which team’s robot can most efficiently pick items from a shelf and place them in a box.\u003c/p>\n\u003cp>“What’s going to happen next is robotic arms, combined with vision technology and suction technology,” says Marc Wulfraat, president of MWVPL, a consulting firm. “You can be darn sure that Amazon will take the first swing at it.”\u003c/p>\n\u003caside class=\"pullquote alignright\">‘You’re going to need distribution facilities in the backyard of every city.’ \u003ccite>Marc Wulfraat, president of MWVPL, a consulting firm\u003c/cite>\u003c/aside>\n\u003cp>But it could take several years for such robots to be put into widespread use. For now, they work mostly with items in boxes and other rigid shapes, Wulfraat says. They can’t yet handle bulkier items such as basketballs or softer items like clothes.\u003c/p>\n\u003cp>“Robotic hand technology is still pretty far off,” says Boxed CEO Chieh Huang. The company recently installed robots in its three other manual warehouses to transport goods to workers, as an alternative to conveyor belts. They didn’t lay off any employees.\u003c/p>\n\u003cp>And Mandel argues that if additional automation, such as robotic pickers, lowers costs further, it could create new markets for products and services, such as custom-made goods.\u003c/p>\n\u003cp>Wulfraat predicts that hundreds of smaller warehouses will be built in large cities to shorten delivery times to as low as an hour, particularly for groceries. Amazon already has 53 such facilities, and its competitors will be forced to follow suit.\u003c/p>\n\u003cp>“You’re going to need distribution facilities in the backyard of every city,” Wulfraat says. Those facilities will be smaller and cheaper and won’t be worth fully automating.\u003c/p>\n\u003cp>Automation is also more likely in the coming years to make up for labor shortages rather than replace workers, Wulfraat says. Companies such as Target and Walmart have had to announce widespread pay increases in the past two years to attract and keep employees, a sign of a tighter job market.\u003c/p>\n\u003cp>Many warehouse operators he works with anticipate the problem will only grow worse as baby boomers age and increasingly retire, Wulfraat says. Any warehouse workers displaced by automation will easily find jobs elsewhere.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"soldout": {
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"title": "SOLD OUT: Rethinking Housing in America",
"tagline": "A new future for housing",
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"tagline": "True-life supernatural stories",
"info": "",
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