CHENGDU, China — One day last summer, Pu Xiaolan was halfway through a shift inspecting iPad cases when she received a beige wooden chair with white stripes and a high, sturdy back.
Readers shared their thoughts on this article.
Posted by Michael B. Calyn in Ecology, Environment, Perspective on May 19, 2013
A Black Mound of Canadian Oil Waste Is Rising Over Detroit

Fabrizio Costantini for The New York Times
Petroleum coke, a waste byproduct of refining oil sands oil, is piling up along the Detroit River.
By IAN AUSTEN
Published: May 17, 2013
WINDSOR, Ontario — Assumption Park gives residents of this city lovely views of the Ambassador Bridge and the Detroit skyline. Lately they’ve been treated to another sight: a three-story pile of petroleum coke covering an entire city block on the other side of the Detroit River.

Fabrizio Costantini for The New York Times
Brian Masse, a member of the Canadian Parliament, wants a bilateral agency to investigate the pile accumulating in Detroit.
Detroit’s ever-growing black mountain is the unloved, unwanted and long overlooked byproduct of Canada’s oil sands boom.
And no one knows quite what to do about it, except Koch Carbon, which owns it.
The company is controlled by Charles and David Koch, wealthy industrialists who back a number of conservative and libertarian causes including activist groups that challenge the science behind climate change. The company sells the high-sulfur, high-carbon waste, usually overseas, where it is burned as fuel.
The coke comes from a refinery alongside the river owned by Marathon Petroleum, which has been there since 1930. But it began refining exports from the Canadian oil sands — and producing the waste that is sold to Koch — only in November.
“What is really, really disturbing to me is how some companies treat the city of Detroit as a dumping ground,” said Rashida Tlaib, the Michigan state representative for that part of Detroit. “Nobody knew this was going to happen.” Almost 56 percent of Canada’s oil production is from the petroleum-soaked oil sands of northern Alberta, more than 2,000 miles north.
An initial refining process known as coking, which releases the oil from the tarlike bitumen in the oil sands, also leaves the petroleum coke, of which Canada has 79.8 million tons stockpiled. Some is dumped in open-pit oil sands mines and tailing ponds in Alberta. Much is just piled up there.
Detroit’s pile will not be the only one. Canada’s efforts to sell more products derived from oil sands to the United States, which include transporting it through the proposed Keystone XL pipeline, have pulled more coking south to American refineries, creating more waste product here.
Marathon Petroleum’s plant in Detroit processes 28,000 barrels a day of the oil sands bitumen.
Residents on both sides of the Detroit River are concerned that the coke mountain is both an environmental threat and an eyesore.
“Here’s a little bit of Alberta,” said Brian Masse, one of Windsor’s Parliament members. “For those that thought they were immune from the oil sands and the consequences of them, we’re now seeing up front and center that we’re not.”
Mr. Masse wants the International Joint Commission, the bilateral agency that governs the Great Lakes, to investigate the pile. Michigan’s state environmental regulatory agency has submitted a formal request to Detroit Bulk Storage, the company holding the material for Koch Carbon, to change its storage methods. Michigan politicians and environmental groups have also joined cause with Windsor residents. Paul Baltzer, a spokesman for Koch’s parent company, Koch Companies Public Sector, did not respond to questions about its storage or the ultimate destination of the petroleum coke.
Coke, which is mainly carbon, is an essential ingredient in steelmaking as well as producing the electrical anodes used to make aluminum.
While there is high demand from both those industries, the small grains and high sulfur content of this petroleum coke make it largely unusable for those purposes, said Kerry Satterthwaite, a petroleum coke analyst at Roskill Information Services, a commodities analysis company based in London.
“It is worse than a byproduct,” Ms. Satterthwaite said.“It’s a waste byproduct that is costly and inconvenient to store, but effectively costs nothing to produce.”
Murray Gray, the scientific director for the Center for Oil Sands Innovation at the University of Alberta, said that about two years ago, Alberta backed away from plans to use the petroleum coke as a fuel source, partly over concerns about greenhouse-gas emissions. Some of it is burned there, however, to power coking plants.
The Keystone XL pipeline will provide Gulf Coast refineries with a steady supply of diluted bitumen from the oil sands. The plants on the coast, like the coking refineries concentrated in California to deal with that state’s heavy crude oil, are positioned to ship the waste to China or Mexico, where it is burned as a fuel. California exports about 128,000 barrels of petroleum coke a day, mainly to China.
Tony McCallum, a spokesman for the Canadian Association of Petroleum Producers, played down the impact of Keystone XL. “Most of the Canadian oil earmarked for the U.S. Gulf Coast is to replace declining heavy oil imports from Mexico and Venezuela that produces the same amount of petcoke, so it doesn’t create a new issue,” he wrote in an e-mail.
Much of the new coking investment has gone into refineries in the Midwest to allow them to take advantage of the oil sands. BP, the British energy company, is building what it describes as the second-largest coke refinery in Whiting, Ind. When completed, the unit will be able to process about 102,000 barrels of bitumen or other heavy oils a day.
And what about the leftover coke? The Environmental Protection Agency will no longer allow any new licenses permitting the burning of petroleum coke in the United States. But D. Mark Routt, a staff energy consultant at KBC Advanced Technologies in Houston, said that overseas companies saw it as a cheap alternative to low-grade coal. In China, it is used to generate electricity, adding to that country’s air-quality problems. There is also strong demand from India and Latin America for American petroleum coke, where it mainly fuels cement-making kilns.
“I’m not making a value statement, but it comes down to emission controls,” Mr. Routt said. “Other people don’t seem to have a problem, which is why it is going to Mexico, which is why it is going to China.”
“One man’s junk is another man’s treasure,” he said. One of the world’s largest dealers of petroleum coke is the Oxbow Corporation, which sells about 11 million tons of fuel-grade coke a year. It is owned by William I. Koch, a brother of David and Charles.
Lorne Stockman, who recently published a study on petroleum coke for the environmental group Oil Change International, says, “It’s really the dirtiest residue from the dirtiest oil on earth,” he said.
Rhonda Anderson, an organizing representative of the Sierra Club in Detroit, said that the mountain’s rise took her group by surprise, but it had one benefit.
“Those piles kind of hit us upside to the head,” she said. “But it also triggered a kind of relationship between Canada and the United States that’s allowed us to work together.”
Mountain of Petroleum Coke From Oil Sands Rises in Detroit – NYTimes.com.
Posted by Michael B. Calyn in Technology on May 17, 2013
Amtrak Upgrades Wi-Fi Service on Trains

Luke Sharrett for The New York Times
Steven Jackson using Amtrak’s Wi-Fi service on a Boston-bound train last year. The service has drawn technology jokes, and praise, from passengers.
By RON NIXON
Published: May 16, 2013
WASHINGTON — After years of criticism of the wireless service on its trains, Amtrak announced on Thursday that it had upgraded its cellular-based Wi-Fi using broadband technologies that will improve the speed and reliability of the Internet in its passenger cars.
Amtrak’s Wi-Fi has been the target of technology jokes since the railroad introduced the service, with some passengers comparing it to dial-up services like America Online or Prodigy. But others have praised the service, saying it allows them to be productive while traveling between cities, unlike airline travel. Because of the technical difficulties of maintaining a strong Internet connection on a moving train, the increase in speed would still be less than most people experience at home.
The railroad said the broadband upgrade was complete on the high-speed Acela trains that travel the more than 400 miles between Washington and Boston. Several state-supported routes in California, including the Capitol Corridor, Pacific Surfliner and San Joaquin routes, have also been upgraded.
Amtrak said it would roll out the upgrades to all remaining Amtrak trains equipped with Wi-Fi, including the Northeast Regional, by late summer.
“We continue to place a strong focus on improving customer satisfaction, and this upgrade is delivering the improved speeds and connectivity required to maintain a competitive edge,” Deborah Stone-Wulf, Amtrak’s chief of sales distribution and customer service, said in a statement.
Amtrak said Acela passengers have already noticed an improvement in the Wi-Fi service aboard the trains and have been commenting through social media.
But not all the social media chatter has been positive.
Shelton Mercer, chief executive of TwitChange, an Atlanta-based Web site that brings celebrities and fans together for good causes, wrote on Twitter last month, “#Amtrak ‘Wi-fi’ should be renamed ‘Why-Try.’ ”
Amtrak responded to some negative Twitter posts, saying the upgrades would strengthen its Wi-Fi network and increase the amount of bandwidth available for tech-savvy passengers who have become accustomed to being connected while traveling.
Sara Wachter-Boettcher, an author and Web consultant in Lancaster, Pa., called the service an infuriating luxury. On a recent trip home from teaching a workshop in New York, she said, she was desperately trying to catch up on e-mail. But the Wi-Fi on the train booted her off every few minutes, she said, and she had to resort to a combination of her smartphone and laptop to keep working.
“On the one hand, we’re lucky to have such pervasive Internet access,” she said in an e-mail. “On the other, it’s frustrating anytime something that should work doesn’t.”
Unlike most airlines, Amtrak said it would continue to provide free Wi-Fi service. The railroad said that Wi-Fi was available on trains that serve 75 percent of Amtrak passengers, and that it routinely supported 30 percent to 50 percent of passengers on a given train.
But Amtrak also said it would continue to limit some Internet activities.
To ensure that all passengers have an opportunity to use the Wi-Fi service, Amtrak said, it would still restrict data-heavy activities that could slow the service down, like streaming video sites like Netflix and music sites like Pandora. The railroad also restricts file downloads larger than 10MB.
Even with the upgrades, Amtrak will continue to face some challenges with its wireless service. High-speed service is not available everywhere, and because the railroad uses different carriers along its routes, including Verizon and AT&T, service could still be interrupted or slowed as the Wi-Fi signals switch between the carriers. In addition, as the speed of the service increases, so will the number of people trying to use it, potentially slowing it down.
Still, Amtrak seems confident that passengers will have a better Internet experience aboard its trains. In a news release announcing the upgrades, the railroad suggested the following Twitter post: “Productivity on @Amtrak #Acela just got better. Their onboard #Wi-Fi is now powered by 4G technology.”
Amtrak Upgrades Wi-Fi Service on Trains – NYTimes.com.
Posted by Michael B. Calyn in Technology on April 29, 2013
Written By: Jason Dorrier
Posted: 04/28/13 12:38 PM
ROBOTS WILL DO EVERYTHING YOU DO NOW ONLY BETTER—WHAT THEN?

The S&P 500 is at record highs, having finally regained all it lost in the 2008 financial crisis. It would be cause for celebration if it didn’t feel so out of touch with the “main street” reality of continued high unemployment. As a recent New York Times headline read, “recovery in the US is lifting profits, but not adding jobs.”
The NYT goes on to blame the divide between rising corporate profits, recovering stocks, and stubborn unemployment on big gains in productivity over the last few years. The article notes that the giant industrial conglomerate, United Technologies, “does not need as many workers as it once did to churn out higher sales and profits.”
While United Technologies (and other manufacturing firms) may not be adding jobs, it’s strange to blame today’s high rate of unemployment on the trend. Due in large part to automation, manufacturing jobs have been disappearing for over 30 years. During that period, unemployment has been as high as 10.8% and as low as 3.8%. A better headline might read, “recovery in the US is lifting profits, but not adding traditional jobs in manufacturing and that’s nothing new.”

Credit: MJ Perry, Carpe Diem, BEA, BLS
It’s rarely noted, but even as manufacturing jobs have steadily decreased, total manufacturing output has steadily grown. Since World War II, manufacturing output in the US has risen over 700%. While rising productivity is often demonized as a job killer, in truth, it is a very powerful force for good in the modern economy.
The time and creativity that productivity growth frees—and it’s been happening since the Industrial Revolution—is responsible for every modern invention from healthcare to high tech, smartphones to non-invasive surgery. If humans hadn’t started using machines to do some things for us, most would still be working in the fields with few moments to spare pondering economic theory, let alone inventing new technologies.
One argument says that this time is different because soon robots will be able to do everything a human does. But it’s misguided to assume we can forecast what humans “will do.” What that statement really means is, “In the future, robots will do everything humans dotoday.” But what exactly it is that humans will do in the future is anyone’s guess—and few, if any, have ever successfully predicted it.

Before the 20th century, most folks in the West farmed. Now, thanks to massive productivity gains in agriculture, virtually none do. To a 19th century farmer that would imply nothing less than the collapse of the economy. Why? Because the thing most people did back then was farm. Our farmer might understandably wonder, “What will we do when machines perform our jobs for us? How will we make money? How will we survive?”
We are gifted with the vision of our times and cursed with the temptation to extrapolate that vision into the future. How could our farmer know that in 2013 humans would be paid to make movies, pick up garbage, write online, build robots, clean bathrooms, engineer rockets, lead guided tours, drive trucks, play in garage bands, brew artisanal beer, or write code?
The revolution in agricultural technology liberated vast resources and made us all richer and the economy more diverse as a result. And while one might think that those riches should have accrued to only those making agricultural tech, thus permanently widening the income gap, no such thing happened in practice. While those making agricultural machinery undoubtedly made some bucks, the next economic waves provided different work and income for many levels of skill and motivation.
This is understandably a firebrand topic right now. If current unemployment marked the beginning of mass technological unemployment, you can be sure mass social unrest would be quick to follow. But we can’t prove it’s structural yet. Unemployment is a typically lagging indicator. (Click ‘show recessions’ here to see how unemployment continues long after recessions end.) In the last sizable downturn in the early 80s, unemployment didn’t drop below 7% for four years after the recession ended. And that preceded two decades of virtually unbroken growth.
We don’t know precisely what the future holds, but we do know that most in the developed world—even the poorest—live longer, healthier lives than they did a century ago. And while the world will never be a perfect place, technology and productivity have freed more minds to ponder, play, and invent today than ever before.
Robots Will Do Everything You Do Now Only Better—What Then? | Singularity Hub.
Posted by Michael B. Calyn in Economy on March 8, 2013
No More Excuses: Soaring Market Latest Evidence of Need to Tax Wall Street
With all the pain the economic crash has inflicted, the bill for Wall Street is due.
March 7, 2013
Now that the boom times have returned for Wall Street with consecutive days of record market highs, the time for excuses must end, and the Obama administration and Congress should join with the other world markets in adopting a Robin Hood tax on financial speculation.
The signs could not be more clear. The New York Times, March 3, calls this a “golden age for corporate profits,” and the financial sector is leading the gold rush. Just last year the top six U.S. banks raked in $63 billion – with Bank of America pulling in more than Walt Disney and McDonalds combined.
But it remains a different story in Main Street communities across America, a new pauper’s age would be a more apt label.
“How is this recovery if only Wall Street, but not our families and communities, are on the upswing?” asks Amanda Devecka-Rinear of National People’s Action and the Robin Hood campaign.
“It has always been true that Wall Street can clearly afford to bail out Main Street with enough money to build homes, strengthen education, end the AIDS pandemic, fight global climate change and create jobs. Here is just further proof,” notes Jennifer Flynn, managing director of Health GAP and the Robin Hood campaign.
Just ask the banksters and high rollers themselves.
“What’s amazing about this bull market is that people still don’t think it’s real,” said Richard Bernstein, chief executive of Richard Bernstein Advisors, a money management firm to the New York Times March 5. “We think this could be the biggest bull market of our careers.”
“The momentum is clearly in the upward direction,” Brian Lazorishak, portfolio manager and quantitative analyst at Chase Investment Counsel told the Wall Street Journal March 6.
“So far in this recovery, corporations have captured an unusually high share of the income gains,” Ethan Harris, co-head of global economics at Bank of America Merrill Lynch told the New York Times on March 3. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”
So will Wall Street share their good fortune voluntarily with those harmed by the economy they wrecked with their reckless gambling with our homes, our savings, and our futures?
Apparently no time soon. “Right now, C.E.O.’s are saying, ‘I don’t really need to hire because of the productivity gains of the last few years,’ ” said Robert E. Moritz, chairman of the accounting giant PricewaterhouseCoopers to the New York Times March 3.
With all the pain the economic crash has inflicted, the bill for Wall Street is due.
A major step forward is within sight.
The Inclusive Prosperity Act, introduced by Rep. Keith Ellison, could raise up to $350 billion every year with a minimal tax of just 50 cents on every $100 of stock trades, and lesser percentages on trading of bonds, currencies, derivatives and other financial instruments.
Most other major markets have already figured this out, including 11 European Union nations, among them the big economies of France, Germany, Italy, and Spain. Major financial centers, including London, Switzerland, Hong Kong and Singapore, also have financial transactions taxes on their stock exchanges.
Are we just slow learners or does Wall Street throw around too much clout in Washington?
As to claims by the Wall Street opponents of a financial transaction tax that the impact would mostly fall on “ordinary investors,” a video distributed this week by Mother Jones, “The Great American Inequality Video,” tells a different story.
The video notes that:
Let’s get off the dime and act now.
No More Excuses: Soaring Market Latest Evidence of Need to Tax Wall Street | Alternet.
Posted by Michael B. Calyn in Opinion, Perspective on January 5, 2013
WEDNESDAY, JANUARY 2, 2013
Robots Don’t Destroy Jobs; Rapacious Corporate Executives Do
By William Lazonick, professor of economics and director of the UMass Center for Industrial Competitiveness. He cofounded and is president of the Academic-Industry Research Network. His book, “Sustainable Prosperity in the New Economy? Business Organization and High-Tech Employment in the United States” (Upjohn Institute, 2009) won the 2010 Schumpeter Prize. Cross posted from Alternet
Americans are understandably upset about profits without prosperity. Corporate executives seem to be the big winners, while the middle class is declining and young people face a bleak economic future. How did this happen? It’s easy to blame technology, especially the automation that supposedly displaces workers. But that’s not the real story. The fact is that automation creates jobs. It’s the misuse of corporate profits that are destroying them.
There was a time when high corporate profits meant bright employment prospects for most members of the US labor force. That relation between profits and prosperity was strongest in the immediate post-World War II decades when US corporations led the world in manufacturing, provided workers with career-long employment security, and reinvested profits in productive capabilities in the United States. For the past three decades, however, the pursuit of corporate profits has been at the expense of prosperity for an ever-growing proportion of the American population.
This disconnect between profits and prosperity began in the 1980s with permanent plant closings that cost production workers their middle-class jobs. It increased in the 1990s as major US corporations scrapped the career-with-one-company norm that had prevailed for salaried employees, and it became common even for college-educated people with a couple of decades of work experience to find themselves on the wrong end of the pink slip. Then in the 2000s, as US corporations accelerated the globalization of production activities, the jobs of all members of the US labor force, no matter what their level of educational attainment, became vulnerable to competition from qualified people in lower wage areas of the world.
Profits without prosperity is now starting to get attention in the mainstream press. In his New York Times op-ed, “Robots and Robber Barons” (Dec. 9, 2012), Paul Krugman seeks to explain why, with corporate profits up, labor compensation is down. As part of the ongoing digital revolution, he argues, robots are throwing American workers out of their jobs. In addition, he claims that corporations are making high profits through price gouging, and are not sharing these gains with their employees.
Krugman is on to something important that needs to become part of the national policy debate. But he is off target in blaming a combination of automation and monopolistic practices for the disconnect between profits and prosperity.
Automation is not the problem. As part of a process that could reconnect profits and prosperity, the US economy needs more, not less, corporate investment in automation. A company that successfully invests in automation creates far more, and typically better, jobs than those it destroys. Indeed, the study of industrial history reveals that when a nation’s leading companies fail to make sufficient investments in automation its economy runs into trouble.
As Krugman himself notes, the argument that automation is bad for workers’ employment and incomes dates back almost two centuries to the British economist, David Ricardo, who was writing during the world’s first industrial revolution. By definition, automation displaces the need for workers to perform the tasks that have been automated. If, however, automation only destroyed jobs, advanced economies such as those of Britain, France, Germany, Italy, Japan, and the United States would not have risen to positions of world industrial leadership with strong middle classes.
Some of these new jobs are created in the industries that produce automated equipment. By far Japan is the world leader in both the production and use of robotics. An original source of Japan’s competitive advantage in this capital-goods sector was the willingness and ability of production workers to cooperate with engineers in automating tasks they performed on the shop floor Under Japan’s system of “lifetime employment,” these production workers did not fear that the introduction of robots would result in loss of employment, while their involvement in the automation process gave them experience that, post-automation, could be put to productive use in other parts of the business organization.
Increasingly, moreover, in the age of nanotechnology, automation performs productive functions that no human being could ever have possibly done. Rather than destroy jobs, these automated processes make it possible for companies to produce all kinds of sophisticated goods and services. These products are the hallmark of an advanced economy, and open up all kinds of new employment opportunities in companies and countries in which these goods and services are produced.
Automation entails huge upfront investments. Companies that invest in automation have to build organizations to ensure steady supplies of high-quality materials, improve and maintain machinery, and capture sufficiently large market shares to achieve economies of scale. These investments in the development and utilization of automated facilities create lots of high-value-added jobs, especially for companies that, because of their investments, can grow large by producing higher quality, lower costs products than the competition.
To repeat, automation is not the problem. The three-decades long erosion of middle-class jobs in the United States is the result of, as stated earlier, permanent plant closings, layoffs of older employees, and the globalization of employment – none of which have been the result of automation. In the process, many US industrial corporations have become very profitable (for now, but by no means forever). The question that needs to be asked is why US corporations are failing to reinvest these profits in new products and processes that can create large numbers of new high value-added employment opportunities in the United States.
The problem lies in the ideology that corporations should be governed to “maximize shareholder value,” which became prevalent in boardrooms and business schools in the 1980s, and has become totally dominant since. In the name of shareholder value over the decade 2001-2010, the 500 corporations in the S&P 500 Index (representing about 75 percent of US stock-market capitalization) expended not only 40 percent of their profits on cash dividends – the normal mode of rewarding shareholders – but also another 54 percent on stock buybacks, the purpose of which is to give a manipulative boost to a company’s own stock price. Large established companies did hardly any buybacks in the early 1980s. Over the past decade, buybacks by S&P 500 companies totaled about $3 trillion, which has left scant corporate resources for investment in innovation and high-value-added job creation.
When companies do massive buybacks to boost their own stock prices, the big winners are the very same top executives who make these resource-allocation decisions. Why? Because the largest single component of top executive pay is the income from exercising stock options – which become more lucrative when the stock price goes up, even if for just a short period of time during which the options can be exercised and the acquired stock sold.
Many corporate executives justify buybacks by arguing that they represent the best corporate investments available. How about investments in innovation and job creation? Or how about corporate support for government investments in the national knowledge base, which typically provides the foundation for enterprise innovation and profits? If top executives have been the big winners of this financialized buybacks-options game, then the big losers have been erstwhile members of the US middle class as well as tens of millions of younger Americans who will never have the opportunity of entering the middle class.
Robots Don’t Destroy Jobs; Rapacious Corporate Executives Do « naked capitalism.
Posted by Michael B. Calyn in Opinion, Perspective, Politics on December 31, 2012
By PAUL KRUGMAN
Howard Schultz, the C.E.O. of Starbucks, has a reputation as a good guy, a man who supports worthy causes. And he presumably thought he would add to that reputation when he posted an open letter urging his employees to promote fiscal bipartisanship by writing “Come together” on coffee cups.

Paul Krugman
In reality, however, all he did was make himself part of the problem. And his letter was actually a very good illustration of the forces that created the current mess.
In the letter, Mr. Schultz warned that elected officials “have been unable to come together and compromise to solve the tremendously important, time-sensitive issue to fix the national debt,” and suggested that readers further inform themselves at the Web site of the organization Fix the Debt. Let’s parse that, shall we?
First of all, it’s true that we face a time-sensitive issue in the form of the fiscal cliff: unless a deal is reached, we will soon experience a combination of tax increases and spending cuts that might push the nation back into recession. But that prospect doesn’t reflect a failure to “fix the debt” by reducing the budget deficit — on the contrary, the danger is that we’ll cut the deficit too fast.
How could someone as well connected as Mr. Schultz get such a basic point wrong? By talking to the wrong people — in particular, the people at Fix the Debt, who’ve been doing their best to muddle the issue. For example, in a new fund-raising letter Maya MacGuineas, the organization’s public face, writes of the need to “make hard decisions when it comes to averting the ‘fiscal cliff’ and stabilizing our national debt” — even though the problem with the fiscal cliff is precisely that it stabilizes the debt too soon. Clearly, Ms. MacGuineas was trying to confuse readers on that point, and she apparently confused Mr. Schultz too.
More about Fix the Debt in a moment. Before I get there, however, let’s move on to Mr. Schultz’s misdiagnosis of the political problem we face.
Look, it’s true that elected politicians have been unable to “come together and compromise.” But saying that in generic form, and implying a symmetry between Republicans and Democrats, isn’t just misleading, it’s actively harmful.
The reality is that President Obama has made huge concessions. He has already cut spending sharply, and has now offered additional big spending cuts, including a cut in Social Security benefits, while signaling his willingness to retain many of the Bush tax cuts, even for people with very high incomes. Taken as a whole, the president’s proposals are arguably to the right of those made by Erskine Bowles and Alan Simpson, the co-chairmen of his deficit commission, in 2010.
In return, the Republicans have offered essentially nothing. Oh, they say they’re willing to increase revenue by closing loopholes — but they’ve refused to specify a single loophole they’re willing to close. So if there’s a breakdown in negotiations, the blame rests entirely with one side of the political divide.
Given that reality, think about the effect when people like Mr. Schultz respond by blaming both sides equally. They may sound virtuously nonpartisan, but what they’re actually doing is rewarding intransigence and extremism — which, in the current context, means siding with the G.O.P.
I’m willing to believe that Mr. Schultz doesn’t know what he’s doing. The same can’t be said, however, about Fix the Debt.
You might not know it reading some credulous reporting, but Fix the Debt isn’t some kind of new gathering of concerned citizens. On the contrary, it’s just the latest addition to a group of deficit-scold shops supported by billionaire Peter Peterson, a group ranging from think tanks like the Committee for a Responsible Federal Budget to the newspaper The Fiscal Times. The main difference seems to be that this gathering of the usual suspects is backed by an impressive amount of corporate cash.
Like all the Peterson-funded groups, Fix the Debt seems much more concerned with cutting Social Security and Medicare than with fighting deficits in general — and also not nearly as nonpartisan as it pretends to be. In its list of “core principles,” it actually calls for lower tax rates — a very peculiar position for people supposedly horrified by the budget deficit. True, the group calls for revenue increases via unspecified base broadening, that is, closing loopholes. But that’s unrealistic. And it’s also, as you may have noticed, the Republican position.
What’s happening now is that all the Peterson-funded groups are trying to exploit the fiscal cliff to push a benefit-cutting agenda that has nothing to do with the current crisis, using artfully deceptive language — as in that MacGuineas letter — to hide the bait and switch.
Mr. Schultz apparently fell for the con. But the rest of us shouldn’t.
Brewing Up Confusion – NYTimes.com.
Posted by Michael B. Calyn in Apple, Business on December 28, 2012

The iEconomy: Factory Upgrade: Change comes to factories in China.
CHENGDU, China — One day last summer, Pu Xiaolan was halfway through a shift inspecting iPad cases when she received a beige wooden chair with white stripes and a high, sturdy back.
A series examining challenges posed by increasingly globalized high-tech industries.
ON THE LINE Workers assembling Hewlett-Packard computers at a plant in Chongqing, China, operated by Foxconn of Taiwan. More Photos »
Readers shared their thoughts on this article.
At first, Ms. Pu wondered if someone had made a mistake. But when her bosses walked by, they just nodded curtly. So Ms. Pu gently sat down and leaned back. Her body relaxed.
The rumors were true.
When Ms. Pu was hired at this Foxconn plant a year earlier, she received a short, green plastic stool that left her unsupported back so sore that she could barely sleep at night. Eventually, she was promoted to a wooden chair, but the backrest was much too small to lean against. The managers of this 164,000-employee factory, she surmised, believed that comfort encouraged sloth.
But in March, unbeknown to Ms. Pu, a critical meeting had occurred between Foxconn’s top executives and a high-ranking Apple official. The companies had committed themselves to a series of wide-ranging reforms. Foxconn, China’s largest private employer, pledged to sharply curtail workers’ hours and significantly increase wages — reforms that, if fully carried out next year as planned, could create a ripple effect that benefits tens of millions of workers across the electronics industry, employment experts say.
Other reforms were more personal. Protective foam sprouted on low stairwell ceilings inside factories. Automatic shut-off devices appeared on whirring machines. Ms. Pu got her chair. This autumn, she even heard that some workers had received cushioned seats.
The changes also extend to California, where Apple is based. Apple, the electronics industry’s behemoth, in the last year has tripled its corporate social responsibility staff, has re-evaluated how it works with manufacturers, has asked competitors to help curb excessive overtime in China and has reached out to advocacy groups it once rebuffed.
Executives at companies like Hewlett-Packard and Intel say those shifts have convinced many electronics companies that they must also overhaul how they interact with foreign plants and workers — often at a cost to their bottom lines, though, analysts say, probably not so much as to affect consumer prices. As Apple and Foxconn became fodder for “Saturday Night Live” and questions during presidential debates, device designers and manufacturers concluded the industry’s reputation was at risk.
“The days of easy globalization are done,” said an Apple executive who, like many people interviewed for this article, requested anonymity because of confidentiality agreements. “We know that we have to get into the muck now.”
Even with these reforms, chronic problems remain. Many laborers still work illegal overtime and some employees’ safety remains at risk, according to interviews and reports published by advocacy organizations.
But the shifts under way in China may prove as transformative to global manufacturing as the iPhone was to consumer technology, say officials at over a dozen electronics companies, worker advocates and even longtime factory critics.
“This is on the front burner for everyone now,” said Gary Niekerk, a director of corporate social responsibility at Intel, which manufactures semiconductors in China. No one inside Intel “wants to end up in a factory that treats people badly, that ends up on the front page.”
The durability of many transformations, however, depends on where Apple, Foxconn and overseas workers go from here. Interviews with more than 70 Foxconn employees in multiple cities indicate a shift among the people on iPad and iPhone assembly lines. The once-anonymous millions assembling the world’s devices are drawing lessons from the changes occurring around them.
As summer turned to autumn and then winter, Ms. Pu began to sign up for Foxconn’s newly offered courses in knitting and sketching. At 25 and unmarried, she already felt old. But she decided that she should view her high-backed chair as a sign. China’s migrant workers are, in a sense, the nation’s boldest risk-takers, transforming entire industries by leaving their villages for far-off factories to power a manufacturing engine that spans the globe.
Ms. Pu had always felt brave, and as this year progressed and conditions inside her factory improved, she became convinced that a better life was within reach. Her parents had told her that she was free to choose any husband, as long as he was from Sichuan. Then she found someone who seemed ideal, except that he came from another province.
Reclining in her new seat, she decided to ignore her family’s demands, she said. The couple are seeing each other.
“There was a change this year,” she said. “I’m realizing my value.”
An Inspector’s Push
“This is a disgrace!” shouted Terry Gou, founder and chairman of Foxconn, the world’s largest electronics manufacturer and Apple’s most important industrial partner.
It was March of this year and Mr. Gou — seen by activists as a longtime obstacle to improving conditions inside his factories — was meeting with his top deputies in Shenzhen, China. In 2011, The New York Times began sending Apple and Foxconn extensive questions about working conditions in factories manufacturing Apple products.The resulting articles in late January detailed problems ranging from excessive overtime and under-age workers to sometimes deadly hazards, such as workers’ using a poisonous chemical to clean iPhone screens at another manufacturer, and an explosion in Ms. Pu’s Foxconn plant that killed four workers.
In January, Apple publicly released the names of many of its suppliers for the first time. Additionally, the company made the unusual move of joining the Fair Labor Association, one of the largest workplace monitoring groups. Auditors from that association were soon inspecting Apple’s partners in China, starting with Foxconn.
Now, Mr. Gou was learning the results of those examinations. Foxconn was still failing to stop illegal overtime, the association’s lead inspector told Mr. Gou and his lieutenants, according to multiple people with knowledge of the meeting. The company was failing to keep student interns off night shifts. Foxconn had not put sufficient safety policies into practice and had exposed potentially hundreds of thousands of workers to at least 43 violations of Chinese laws and regulations.
“The world is watching!” Mr. Gou yelled, according to multiple people. “We are going to fix this, right here!”
But the inspector was not done.
He turned to the only Apple executive in the room, the senior vice president for operations, Jeff Williams. Apple needed to change as well, the inspector said. Apple, to its credit, had been working for years to improve conditions in overseas factories, but the company was treating such problems too much like engineering puzzles, the inspector said.
“Long-term solutions require a messier, more human approach,” that inspector, Auret van Heerden of the Fair Labor Association, told Mr. Williams. Instead of concentrating on writing more policies, Apple needed to listen better to workers’ complaints and advocacy groups’ recommendations.
Some of those suggestions surprised Mr. Williams, say people who worked with him. Since 2007, Apple had built one of the most extensive auditing programs in the electronics industry, inspecting over 800 facilities. It was a point of pride for both Mr. Williams and the company’s top leadership.
When Mr. Williams, who declined to comment for this article, returned from that March meeting to California, changes began. Among them, say people with firsthand knowledge, was the hiring of roughly 30 professionals into Apple’s social responsibility unit in the last year, which tripled the size of that division and brought high-profile corporate activists into the company. Two widely respected former Apple executives — Jacky Haynes and Bob Bainbridge — were recruited back to help lead the unit, reporting ultimately to Mr. Williams and the chief executive, Timothy D. Cook.
“Everyone knows Bob and Jacky,” said a former Apple executive. “It sends a message that Jeff and Tim expect everyone to get on board.”
Moreover, the company has reached out to advocates it once rebuffed. In late April, Apple allowed the first in a series of pollution audits by Ma Jun, a Chinese environmental advocate who works closely with dozens of other multinationals but whom Apple had refused to speak with until last year, according to Mr. Ma. In September, the company joined the Sustainable Trade Initiative, an advocacy group based in the Netherlands.
“They know now if they don’t participate, it is the same as saying nothing,” Mr. Ma said.
Foxconn has also shifted. After the meeting with the Fair Labor Association, Foxconn announced that by July 2013, no employee would be allowed to work more than an average of 49 hours a week — the limit set by Chinese law. Previously, some Foxconn employees worked schedules that approached 100 hours a week. No other major manufacturer has pledged to abide by China’s work-hour laws in such a public manner. Foxconn, which is based in Taiwan, also promised to increase wages, so employees’ total pay would not decline despite fewer hours — the equivalent of a 50 percent raise for many workers, analysts say.
With 1.4 million employees in China — the most of any private company — Foxconn is setting a bar that all manufacturers will be judged against, say executives at other companies.
“When the largest company raises wages and cuts hours, it forces every other factory to do the same thing whether they want to or not,” said Tony Prophet, a senior vice president at Hewlett-Packard. “A firestorm has started, and these companies are in the glare now. They have to improve to compete. It’s a huge change from just 18 months ago.”
Foxconn, in a statement, said that it was “committed to ensuring that we provide a safe and healthy working environment for all our employees,” and that the company had regularly increased wages over the last three years.
Secrecy and Transparency
Despite those reforms, however, worker advocates inside Apple and with outside groups say the electronics industry’s problems will not genuinely diminish until Apple — the world’s most valuable company — starts filling a public leadership role similar to that of companies in other industries with overseas problems, like Nike in footwear manufacturing and Patagonia in apparel.
Such public leadership and transparency can run counter to a culture of secrecy that pervades Apple. Employees often don’t know what their lunch companions or next-door office mates are working on. This secrecy has helped Apple stay ahead of competitors, but has been a problem when it spills into the broader corporate culture, say past executives.
“It’s remarkable how the paranoia in Silicon Valley prevents companies from cooperating, even on something like corporate social responsibility,” said Mr. van Heerden of the Fair Labor Association, who added that his work with Apple, Foxconn and other companies was confidential.
While Apple is the only electronics company to join Mr. van Heerden’s monitoring group, it has not opened up in some other ways. Apple has declined to release audit reports on the hundreds of facilities the company has inspected. After two factory explosions last year, Apple did not share investigative reports with other companies so they might avoid similar accidents. Apple does not, in general, publicly identify terminated suppliers or factories that have violated Apple’s supplier code of conduct.
Moreover, Apple’s growing team of safety and corporate responsibility experts are typically prohibited from sharing their findings at conferences, in academic journals or other forums where their insights could be absorbed by other companies, according to former members of that team.
“Apple is scared that if we open the kimono too wide, it will ruin what has made Apple special,” said one former company official. “But that’s the only way to really improve things. If you don’t share what you know, then no one else gets a chance to learn from your mistakes and discoveries.”
Apple declined requests for interviews. In a statement, it said the company embraced its “unique position to lead” and had taken working conditions very seriously for a long time. “No one in our industry is doing as much as we are, in as many places, touching as many people as we do. Through years of hard work and steadfast commitment, we have set workplace, dormitory and safety standards, sought help from the world’s leading experts, and established groundbreaking educational programs for workers.”
“We have been upfront about the challenges we face and are attacking issues aggressively,” the statement continues. “We believe deeply in transparency and have demonstrated this through reporting our shortcomings and exposing violations.”
At a conference in May, Mr. Cook, the chief executive, said that the company was “going to double down on secrecy on products.”
He added, however, that “there’s going to be other things that we do that we’re going to be the most transparent company in the world on. Like social change. Supplier responsibility. On what we’re doing for the environment. We’re going to be the most transparent, because we think that transparency is so important in these areas, and that if we are, other people will copy what we’re doing.”
This year, Apple began publishing monthly summaries of suppliers’ compliance with overtime standards. In October, Apple hosted other technology companies for a private discussion on responses to excessive work hours overseas. While Apple’s annual supplier responsibility reports do not contain details on specific factories, they are still among the most thorough in the electronics business.
But Apple has not sought the high-profile leadership opportunities that have set off transformations in other industries. Nike, for instance, has convened public meetings of labor, human rights, environmental and business leaders to discuss how to improve overseas factories. The clothing retailer Gap Inc. has invited outside organizations to critique its purchasing practices and publish their findings. Patagonia shares its factory audits with competitors and has been a vocal supporter of a centralized audit report clearinghouse that lets companies share information.
“That’s the standard Apple has to meet,” said a former Apple executive. “That’s how a leader transforms an industry.”
A More Human Touch
Almost 200 miles southeast of the factory where Ms. Pu received her new chair is another plant that is experimenting with improving workers’ quality of life — and shows the trade-offs of such gains.
The factory, in Chongqing, makes computers for Hewlett-Packard, a company with little of Apple’s glamour. It is operated by Quanta, a little-known Taiwanese manufacturer.
Inside the plant, amid thousands of workers in bright white uniforms, are occasional flashes of pink worn by people like Zhang Xuemei, a bubbly 19-year-old with glinting earrings whose sole job is to chat with co-workers.
For eight hours a day, Ms. Zhang collects complaints about the factory’s free meals and dorms. She listens to workers who are divorcing, homesick or arguing with managers. When she finds someone suffering, she refers them to the company’s full-time doctor or professional counselors.
Quanta’s 10-story dormitories feel like a college campus. There is a free movie theater, television rooms, a large martial arts gym, two spacious karaoke bars, a huge cafeteria and an aerobics hall playing a Chinese remix of “Gangnam Style.”
Neither Quanta nor Hewlett-Packard claims it has solved every labor woe. And the amenities are partly selfish: one of the biggest problems for Chinese factories is that workers are constantly leaving. Hewlett-Packard hopes that by improving living conditions, turnover and training costs will fall.
“You can tweak the line and get one second out of the process, but if the people turn over every three months, think what that does to your quality,” said Mr. Prophet, the Hewlett-Packard executive.
Last year, a worker advocacy group criticized another Quanta plant, in Shanghai, for harsh working conditions found at many factories, including extensive overtime and poor food. In Chongqing, Hewlett-Packard has agreed to pay slightly higher prices initially so that Quanta can offer workers a better quality of life. Such payments are the price all companies should bear for more humane factories, say Hewlett-Packard executives.
There are costs for workers, too. Quanta’s employees earn slightly less than their peers at Foxconn. What’s more, Quanta’s emphasis on hours that are easier on employees means they are prohibited from overtime shifts that advocates say are abusive, but which some workers insist they want.
Zhang Jiang, a slim 21-year-old, previously assembled laptop computers at another company in Shanghai. Each week, he sent the bulk of his pay home so his younger brother could stay in school. Overtime was like a blessing, he said.
But last summer, fed up with the 25-hour train trip to see his family, Mr. Zhang moved to Chongqing and joined Quanta. He enjoys the better facilities and dorms. He frequently visits his parents’ home. But his take-home pay has fallen by nearly a third and the thought that his brother may have to drop out of school so he can help the family gnaws at Mr. Zhang. Instead of working in the factory each night, he spends hours playing an online game, Dungeon Fighter.
“I’d like to work 80 hours a week,” he said.
Change Is Hard
Hewlett-Packard also makes products at Foxconn factories, as does almost every major electronics firm. Foxconn, more than any other company, has proved that Chinese plants can deliver obsessive attention to quality. The company has helped make China into a manufacturing juggernaut through strict discipline that is visible everywhere, even in the salutes managers give visiting executives.
That discipline, say former Apple executives, is one reason every iPhone is put together so well.
It is also one reason the reforms enjoyed by employees like Ms. Pu — who received the new chair — have not spread quickly. Though Foxconn has trained managers to treat employees more gently, foremen still use profanity and intimidation, workers say.
“The managers speak in a manner that often feels like a threat,” said Mou Kezhang, who works in iPad quality assurance at the Foxconn factory in Chengdu.
Foxconn, in a statement, said it had “always been among the fastest to adopt change and reform.” Its policy, the company said, is “to treat employees with respect and if we find any transgressions, they are immediately investigated and addressed.”
In the last two years, Hewlett-Packard has increasingly moved its manufacturing to Quanta. Foxconn has not fought particularly hard to win that business back, according to Hewlett-Packard officials. Often, the quality-of-life improvements requested by Western electronics executives come at the cost of a supplier’s bottom line. Even within Apple, tensions erupt because executives often believe improvements should be financed by suppliers, whereas suppliers say changes are not feasible unless Apple pays more.
And ultimately, some workers themselves resist reforms. In March, when Foxconn announced that workers’ hours would be reduced to China’s legal limits, employees began complaining. “Absolutely I’d like to do overtime to work more than 60 hours, but now there’s a ceiling on it,” said Ma Changqiao, a 23-year-old at Foxconn’s Chongqing factory.
Change is hard, say officials at multiple companies. Reforming labor conditions in a country as large as China will probably take decades, and labor abuses are an ever-evolving problem without just one right answer.
In September, six months after Foxconn agreed to a Fair Labor Association request for new internship rules, two worker advocacy groups found that students in nonmanufacturing courses were being improperly forced to work at a Foxconn plant in north central China. One student studying preschool education said she was prohibited from quitting her internship and was compelled to work night shifts. Afterward, Mr. Gou of Foxconn issued apologies to wronged interns and the responsible official was fired.
Today, Foxconn’s internship program continues — a testament, executives say, to Foxconn’s commitment to a program that can benefit thousands of students, even when making improvements is hard and stumbles are inevitable. Changing the company’s culture is slow going. But the needed reforms, executives at Apple and Foxconn hope and believe, are falling into place.
Signs of Changes Taking Hold in Electronics Factories in China – NYTimes.com.
Posted by Michael B. Calyn in Retail on December 28, 2012
Instantly Yours, for a Fee

Richard Perry/The New York Times
Arianna Simpson of Shoptiques.com, a retail Web site, made a same-day delivery to a Manhattan office building last week.
By STEPHANIE CLIFFORD and CLAIRE CAIN MILLER
Published: December 27, 2012
Ivy Wu did not immediately need the navy lace cocktail dress she ordered the other day. But when a representative from Shoptiques, an e-commerce site, arrived at her Midtown Manhattan office with the dress only hours after Ms. Wu, 26, had placed her order, “I was really impressed that it was here,” she said.
This holiday season, same-day shipping has replaced free shipping as the new must-have promotion. It’s logistically complicated and money-losing — and may not even be a service that consumers want or need, analysts say. But retailers from Walmart to small shops like Shoptiques are willing to take the risk. Even the Postal Service has introduced a same-day option for retailers. And the reason is simple: fear of Amazon.com.
Amazon, the world’s biggest online retailer, has hinted that it will expand its same-day shipping service, giving customers the immediate gratification that has been the biggest advantage of brick-and-mortar stores.
For small outfits like Shoptiques, it is not an easy proposition. The courier who showed up at Ms. Wu’s office was the company’s head of boutique operations, who has put aside her regular job this holiday season to make deliveries by hand. Bigger retailers, like Toys “R” Us, Macy’s and Target, have worked with eBay to deliver items the same day, as have other old-line stores. Google has begun testing a local delivery service with several chains.
“There’s lots going on in this space, and it’s all driven by Amazon,” said Tom Allason, founder and chief executive of Shutl, a British same-day delivery service that will expand to the United States next year. “It’s not really being driven by consumers at the moment.”
The same-day delivery idea was a spectacular failure during the dot.com boom. Companies like Kozmo.com and Webvan went under because the services simply cost too much to be profitable. Amazon has offered same-day shipping since 2009, but with limits — only in big cities near Amazon warehouses on certain items ordered in the morning.
The geographical limits exist because Amazon had built warehouses far from major cities to avoid charging sales tax in certain states. But it has now given in on the sales tax fight, and in return, is erecting warehouses near cities like San Francisco, which analysts say is paving the way for faster, more widespread same-day delivery and spurring competitors.
“It’s the old idiom, ‘time is money,’ ” said Lina Shustarovich, an eBay spokeswoman. “How much time are you saving by not going to the store? People want it now, they want it fast.”
Walmart, which is the nation’s biggest retailer but sells just a fraction of what Amazon does online, is testing same-day shipping during the holiday season in five markets. Generally, it gives shoppers a four-hour delivery window and charges $10 for same- or next-day delivery. The idea is “to give customers convenience, by way of combining our online shopping with the local presence of stores,” said Amy Lester, a Walmart spokeswoman for global commerce.
But, Ms. Lester said, the test is showing that consumers often pick next-day delivery rather than same day. She declined to give a specific figure for same-day orders, but said thousands of same- and next-day orders had been placed.
Net-a-Porter, the designer apparel e-commerce site, said its same-day service is quite popular. Its $25 delivery service in the London and New York areas pays for itself, said Alison Loehnis, its managing director. But its clients are accustomed to paying for concierge service, like the customer who ordered clothing to be delivered the same day to her private jet before a vacation.
With the eBay Now iPhone app, introduced this year in San Francisco and New York, customers choose items from physical stores and eBay sends a courier to the store to pick it up and drop it off — at an apartment, office, coffee shop or bar — for a $5 fee.
EBay declined to say whether it loses money on the orders, but analysts who study logistics say it is not profitable.
“The goal with this pilot was never to monetize,” Ms. Shustarovich said. But in the future, it could make money, she said, for example if retailers pay eBay a fee for bringing them customers.
The Postal Service is testing a same-day service in San Francisco that is meant to offset its declining carrier business, a spokesman said. Consumers can order items until 2 p.m. from1-800-Flowers.com, the first retailer offering the service, and a Postal Service employee will pick up the package and deliver it between 4 and 8 p.m.
Smaller companies are trying different approaches.
TaskRabbit, which offers à la carte personal assistant services, noticed last summer that delivering items from local stores was the most popular task requested.
Now, it charges $10 for delivery from local stores, starting in San Francisco.
Today’s technology — including mobile phones, social networking and location-based mapping services — has forever transformed shoppers’ expectations, said Johnny Brackett, a TaskRabbit spokesman.
“People have become accustomed to this idea of instant gratification, where you just type something on your phone and the next thing you know, you have what you need,” he said.
Yossi Sheffi, director of the M.I.T. Center for Transportation and Logistics, said he was “skeptical” about same-day working well. Efficient, high volume same-day delivery — with warehouses that use robots and trucks filled with items — costs $10 an order, he estimated, while one-off deliveries could cost up to $50 each.
It’s “outrageously expensive,” he said.
Not to mention complicated.
Shoptiques, which sells apparel from offline boutiques, already offered free returns and free shipping over $100, but Olga Vidisheva, its founder and chief executive, decided to offer same-day shipping during the holidays in New York to compete with larger retailers.
She could not afford an outside delivery service, though, so on a recent winter day, the task was left to Arianna Simpson, director of boutique operations.
Ms. Simpson had spent the morning dashing between downtown boutiques to pick up orders. Now, carrying a large blue Ikea bag full of Shoptiques parcels, she hurried past a costumed Puss in Boots and talked her way past a front-desk attendant in Midtown Manhattan.
After two hours, two subway rides and 3.2 miles on foot, Ms. Simpson had successfully delivered four packages. With Manhattan dark and commuters rushing toward the Herald Square subway, Ms. Simpson went back uptown for a pickup, took two trains to Bushwick in Brooklyn for a drop-off and went to SoHo for a final delivery.
Despite all that effort, Ms. Vidisheva said, though people appreciate the service, it is not exactly essential.
“Some people would rather get it in the mail,” she said. “You say, ‘I’ll deliver it the same day,’ and they say, ‘Listen, there’s no rush.’ ”
But Mr. Allason said that would change quickly.
“People don’t need immediate delivery today, but they will need it tomorrow, because as soon as you know it’s available, you start expecting it and you start demanding it,” he said.
Fear of Amazon Pushes Stores to Offer Same-Day Shipping – NYTimes.com.
Posted by Michael B. Calyn in Social, Society on December 27, 2012
Are People Really Asking for Credit Scores on their First Dates?
“Scoring on the first date” takes on a whole new meaning.
December 26, 2012

American dating culture just reached a new, almost inconceivable low. According to the New York Times, young singles have a new number they are using to evaluate potential partners: their credit scores.
Apparently, a host of Web sites have sprung up catering to singles looking for a good-credit-wielding mate, including Creditscoredating.com and datemycreditscore.com; while an increasing number of young people have confessed to asking a potential partner’s score on the first date. A bad score, some say, can tank a fledgling relationship. A high score, on the other hand, can fast-track one’s dating application—I mean, er, insert phrase that makes young daters sound less like a mortgage lending company.
First things first: For anyone who has been living under the rock of delusion for the last five years, a credit score is a numerical analysis of a person’s debt history that is supposed to predict how likely he or she will be to pay back a loan. Under the most popular measure, FICO, the magic number ranges from 300-850 — with 850 being the Moby Dick of all credit scores, and anything below 400 being analogous to scoring 200 on the SATs simply for writing one’s name.
So, in other words, more and more young people are choosing potential partners not because of shared interests or values, expressions of love and respect, or even a shallow appreciation for someone’s bangin’ body—but because of how able they’ve been to pay back their past debts.
In terms of sheer inhumanity, evaluating a potential partner based on his or her credit score surpasses other absurd metrics, such as the illusive size 0 dress or size 16 dress shoes.
First, it reflects the almost insane levels of control and power that lenders wield in a highly debt financed economy. Since 1980, individual debt has increased steadily as housing prices soared, wages remained stagnant and everything became so damn expensive that Americans increasingly relied on cheap credit simply to put roofs over their heads, food in their mouths and their kids through college. Remember the era when Henry Ford priced his cars cheap enough for his workers to buy a Model T outright? Today, the total auto debt stands at just under $1 trillion, dwarfed, of course, by mortgage debt at a staggering $8 trillion. The average college student who graduated in 2011 carries nearly $27,00 in student loan debt alone.
The fact that whether or not people are able to pay back these debts has become a measure of romantic eligibility reflects how shockingly acceptable we think this debt-based economic system is—and how much we’ve been tricked into thinking that one’s finances are a measure of his or her moral and ethical character.
Even more disturbing, credit scores — particularly in the wake of the highly racialized subprime-lending crisis — is far from an objective, color-blind number. As the Washington Post reports: “The implosion of the subprime lending market has left a scar on the finances of black Americans—one that not only has wiped out a generation of economic progress but could leave them at a financial disadvantage for decades…. credit scores of black Americans have been systematically damaged, haunting their financial futures.”
It’s a well-proven fact that nearly all of the major mortgage companies discriminated in their subprime lending based on race. Three of the largest lending companies–Wells Fargo, Bank of America and SunTrust—have already settled with the U.S. Department of Justice over charges of racial discrimination in mortgage lending. According to the Center for Responsible Lending, this discrimination held true even when the home buyers had good credit scores.
“Among borrowers with a FICO score of over 660 (indicating good credit), African Americans and Latinos received a high interest rate loan more than three times as often as white borrowers,” explains the Center For Responsible Lending’s 2011 report.
To judge potential dating partners based on credit score, therefore, means African Americans and other people of color that got screwed by the mortgage industry now won’t get screwed in the bedroom. That seems from fair, doesn’t it? It’s almost like the financial industry was able to boil down white privilege into a single number, and then pretend it has nothing to do with race, then sell it to single Americans as a measure of other people’s self-worth and future eligibility. No wait… that’s exactly what it’s like.
Luckily, not everyone — or even most people — are buying (literally) into this trend piece. As one commenter on the Times’ Web site wrote:
This article is so insane on so many levels that I don’t know where to start or even why to start…Unfortunately, it portrays our society with values somewhere on par with a pack of piranhas. It is sad to see these sort of values presented as “normal” and ‘conventional”. And we wonder why our society is so sick.
Why am I not surprised to find something like this in the business section? This article is better than a major ad campaign for the credit scoring companies.
Anyone willing to bet $20* that this man would make a perfectly fine romantic partner — regardless of his credit score?
Are People Really Asking for Credit Scores on their First Dates? | Alternet.
Recent Comments