Marketplace - American Public Media
The pace of fast food service has been getting slower as menus grow more complex.
"You even see something like Taco Bell has some menu items that have 10, 11, 12 ingredients, whereas it didn't used to be the case. So in order to be able to put together these menu items, it takes a little bit more time," he says.
A survey by the magazine found that as a result, drive-through service is now about 20 seconds slower on average. But the industry wants to work to both simplify, and kick into a higher gear.
Click the media player above to hear the full story.
Prom season is in full swing. And if you're thinking to yourself, "That's not a business story," keep reading.
An amazing statistic from Visa: the average prom-going teen will shell out $919 in preparation this year. With that much at stake, formal wear boutiques are courting as much business as possible away from department stores and online retailers, who have the advantage of endless selection and cheaper prices.
One strategy they've hit upon: prom dress registries, so that no two girls from the same high school show up to prom in the same gown.
"I worried about a lot of things as a teenage girl. This was not one of them," said Elizabeth Holmes, senior style reporter for the Wall Street Journal, who recently wrote about prom registries.
The "OMG, Mom!" sense of embarrassment over a twin-effect at prom is nothing new. Beverly Hills, 90210 had a dramatic spring dance moment back in 1993.
To avoid Kelly and Brenda's embarrassment, stores are keeping registries so that each girl has her shining moment on prom night.
Holmes spoke with one Silicon Valley formal wear boutique that tracks 600 high school proms.
"They have this massive computerized dress registry where they're tracking who is wearing what, to which prom," she said.
For store owners, it may be uncomfortable to tell an excited teen, "No, you can't have that dress." But particularly in smaller markets, formal boutiques rely on repeat business and hope that customers will see the value.
Holmes said, it's a "play to the parents," who more often than not are footing the bill for $400 and up gowns.
"They're dealing with a dramatic teenager and they don't want to have — come prom night — tears if someone else had my dress."
Because prom has always been about the pictures as much as the dance, teens now document everything from the dress-buying experience to their "promposals" through social media. And while boys don't have to worry about suit or tuxedo registries (yet, anyway), Holmes said, they tend to foot the bill for increasingly popular promposals,be they elaborate or goofy.
I went to Dayton, Ohio a few weeks ago because I had been reading about just how bad people's chances are of climbing out of poverty there. Dayton is a lovely city in many ways, with a lot of things going for it, but its metro area has one of the worst rates of economic mobility in the country, according to research by a team of Harvard and UC Berkeley economists.
Forty percent of kids who grow up in poverty stay poor as adults.
I met plenty of people around town who were not surprised by this statistic. They had seen or lived it firsthand. But then I met Amira Yousif, who lives with her family in a poor neighborhood on the east end of Dayton. When I asked her if she expected her children to do better than her financially, she said “Absolutely!”
“Especially my oldest son,” she said. “He want to become doctor. Then after he finish he will have a lot of money. Then I have to relax and sit and he pay money for me.”
That's your plan? I asked her.
“Yeah, this is my plan,” she said with a laugh, and seemed to be only half-joking.
Yousif may be naturally optimistic, but she also may also be on to something when it comes to the particular confidence she feels in the face of her city's grim statistics on economic mobility.
That’s because even though her family started with almost nothing when they moved to Dayton five years ago, they did have a few things going for them that make their odds of achieving that proverbial American Dream better than most low-income Daytonians.
First off, they are immigrants.
“There's a lot of evidence out there that the United States is a pretty good place for immigrants,” says Nathan Hendren, a professor of economics at Harvard who has been studying rates of economic mobility across the U.S. “We know there are decently high rates for social mobility for immigrants— from an immigrants’ perspective it's a place that has always been known as this land of opportunity.”
To understand what can make some immigrants' experiences so different when it comes to “getting ahead” compared to native born low-income Americans, it might help to know a bit more about Yousif and her family.
When I visited their home one afternoon recently, the Yousifs’ two daughters were playing that classic American basketball game “Pig,” in the back alley. From that vantage point out on the street, the Yousifs’ house, a unit in an old two-story bungalow, looked like most of the houses on the street: slightly run-down, with a crumbling set of concrete steps leading up to the porch.
But where some might see signs of poverty, the Yousifs say they feel rich relative to where they started. Amira Yousif was born in Kuwait, the daughter of Palestinian refugees. Her husband is from Iraq. Both fled to Jordan during the Gulf War, where they lived in uncertain immigration status. Life was hard.
“It's hard to find a job. It's hard to feed the family. Everything is expensive,” says Amira Yousif of that time. “Finally my husband said, ‘There is no future for the kids.’”
In Jordan, Amira and her husband lived in a crammed apartment with their four children. Their 13-year-old daughter Malath says compared to that world, their new home in Dayton feels luxurious. “It’s bigger. We have more space.”
The Yousifs’ oldest son, Suhaib, 16, says he feels access to more opportunities in Dayton. “It motivates us to work hard. In Jordan because I was Iraqi, it was different. You wouldn't have scholarships to colleges. You had to pay for tuition. And I wanted to be a doctor. We couldn't afford it down there.”
Still, when the Yousifs came to the U.S. through a United Nations refugee program, they worried about what they were getting into. Amira says when she found out they had been randomly assigned to Dayton, Ohio, a place she had never heard of, she Googled it.
“I learned that Dayton is a poor city,” she says. “You cannot find jobs — the life is hard there.”
Amira Yousif came to Dayton, Ohio in 2010 with her family through a refugee program.Krissy Clark/Marketplace
And yet, the moment she stepped off the plane with her family after a 17-hour flight, and walked in to the Dayton airport, her she felt she had been reborn. “You cannot imagine,” she says. “I feel like finally, God sent angel to us to help us.”
The help came in many forms: local church and non-profit groups helped find them a house, helped with the first few months of rent, donated furniture and clothes and appliances.
But even more than the physical support the Yousifs received from various community groups, what may have been more important to their hopes for upward mobility was being tapped in to those groups in the first place. Hendren calls this access to "social capital."
“Social capital you generally can think of that as trust, or measures of civic engagement,” Hendren says. “To what extent do you live in a community as opposed to just a collection of individuals?”
In many cases, research shows that immigrants build special forms of social capital as they connect with other families from their home country, and form cultural and sports and religious organizations together. And all that social capital can help promote upward mobility.
“It could be through role model effects,” Hendren says. “Or through actual connections that a broader community can provide as opposed to just your own parental background.”
Social capital can partly explain why some immigrants are able to climb the economic ladder faster than other low-income people around them. But there's another really important reason why families like the Yousifs have higher rates of economic mobility.
Amira and her husband may have been arrived in Dayton with almost nothing. But the family did have one key thing: education. Amira's husband was trained as an engineer. Amira has a degree in computer programming. At first, that didn't seem to matter in Dayton. After applying for dozens of jobs that matched their qualifications, they both ended up with relatively low-paying jobs in a college cafeteria. The husband worked as a cook. Amira’s job was to wash dishes and wipe tables.
At least at first.
But when I go to visit her at that same cafeteria where she has now worked for five years, her name tag reads “Production Manager.” Partly because she had so many untapped skills, she was quickly promoted.
People often look to immigrant success stories like the Yousifs and ask, if they can climb out of poverty so quickly, why can't anyone?
But Hendren says their story of upward mobility — like those of many immigrants who arrived in the U.S. through legal channels — comes with caveats.
“You do not necessarily want to compare them to the next below-income family,” Hendren says. “There’s a lot of things that are potentially different. They have a very highly educated background.”
All that aside, for Amira Yousif and her family, coming to this country was like coming to a place where, she says, “your dream becomes real.”
With good grades and a college scholarship, their oldest son could have a pretty good shot at becoming a doctor. And once she finishes the night classes she's taking, Amira might be able to start teaching again.
As this week comes to an end, we have a consensus that the fed will not raise the cost of borrowing in June anymore. But then came some inflation data today. For more on that, we consult Christopher Low, chief economist at FTN Financial in New York.
Next, Yale University's med school is weighing its next move failing to win accreditation for an online version of its Master's program for physician assistants.
Finally, Coachella is wrapping up in Southern California this weekend. The shows are about having a good time listening to music, but it's also about what people are wearing, and it's a big business.
If you’re not watching HBO's "Silicon Valley," it may be because you think it’s a weekly half hour of puerile, sexist drivel about a bunch of nerds blundering their way up the most elitist food chain on earth. And you may be right about that. But if you’re not watching, you’re missing one of the most vivid, granular and entertaining explainers out there of the way venture capital works.
Take episode one of season two, which just aired last week. The boys of hot startup Pied Piper are doing a tour of venture capitalists, to get funding for their first round. Early stage companies raise the money they need in several chunks. After entrepreneurs have maxed out their credit cards, raided their 401(k)s and drained their parents’ bank accounts, the first place they go is the “angel round,” which Pied Piper secured last season. Angel investment are kids’ stuff in the startup world: it’s literally like wee Janie on your block getting fifty bucks from her parents’ work colleagues to buy lemons and a Sodastream and open a lemonade stand. The “first round” is more serious. In this phase of the money-raising process, the wannabe CEO has to go to begging, or pitching, to a real institution – a venture capital fund.
And "Silicon Valley" nails this process. For one thing, the dress codes are dead on. The startup guys are dressed in grubby jeans, nerdy T-shirts and, of course, hoodies. The VCs are all wearing half-zip lightweight sweaters, or golf shirts adorned with crocodiles or ponies. And we all know what that means.
Next, the money: Pied Piper’s tour of the Valley VCs shows how hot and sweaty the startup scene is right now. VCs are literally throwing money at startups, valuing them at crazy prices. The valuations Pied Piper gets are ludicrous, but no more ludicrous than those bestowed upon real early stage companies. In the past, startups valued at $1 billion by the VC market before they go public were called unicorns, because they were so rare. Today there are herds of them.
Finally, the deal details: I don’t know who the technical advisor is on "Silicon Valley," but he or she sure is doing the business. Episode 1 showcased one of the biggest issues facing startups right now: the down round.
A quick explainer: when you get venture money, the fund gives you a big chunk of cash, but in return takes a huge share of your company. It also takes a number of seats on your board.
But that’s cool! For just 10 percent of your company you’ve snagged $100 million in cash! That makes your company worth a billion dollars! Dude! You’re a unicorn!
Unfortunately, you’re not making money yet, and over the next six months, you a) burn through half your money and b) read in TechCrunch that a class of Singaporean schoolgirls have just built a similar prototype to yours that looks as though it may do the same job in half the time.
Your partners panic. Why? Because they’re worried about a down round. They think that when you go to VCs for your second round of financing, they might say that they want to buy a ten percent stake in your company, but because of this new competition, maybe they’ll only give you $50 million. That would mean that your existing VC investor’s stake would be cut in half. It would also make those investors look kinda stupid. And while VCs don’t like losing money, they really, really hate looking dumb.
In the show "Silicon Valley," we hear what happens to a young entrepreneur called Javeed. His VC investors react to the possibility of his company getting a down round by forcing him into a $200 million acquisition. Remember, VCs get a seat on the board - at least one seat - which gives them a great deal of say in the way the company is run. Javeed would rather not sell his company, but the VCs have panicked, and want to cash out now. They are, in the vernacular, looking for an exit strategy. And because they are on the board, they are in a great position to arm-twist. So they force Javeed to agree to sell his company for $200 million. The VCs get a check, and avoid being embarrassed. Javeed, on the other hand, loses control of his company, and has to accept a reverse-vest, with no triggers. And what the hell does that mean? Well, let’s just say he got screwed.
Oil prices dropped, and jobs had to go. The first ones were at the oil service companies like Halliburton and Schlumberger. "They've quickly moved to reduce their amount of operations in the field, and the first phone call they make is to that service company," Jeff Bush, president of CSI Recruiting, which places workers in oil and gas jobs, says.
Next come layoffs at the major oil companies. And now, Bush says, job cuts are trickling down to the independents—companies that just focus on oil and natural gas extraction.
"It just follows the course of who feels the pain the first," he says.
In Texas, just in the last three weeks, more than 500 workers—from drillers to crane operators— have lost jobs, according to the Texas Workforce Commission. And since November, the unemployment claims keep coming, Lisa Givens, spokeswoman for the commission says.
"We have just over 50,000 claims filed for that time period," Givens says."And then last year for this same time period we saw just over 23,000 claims filed."
Kathleen Somerset-Fields has something she whispers to herself when her hands start to sweat and the doubts crowd in.
I'll be fine. I'll be fine. I'll be fine.
She picked up the habit almost a decade ago, in a GED class. When she was worried about a new challenge, she says her teacher would tell her the same thing: “Go ahead Kathleen, you'll be fine. You'll be fine!”
“Every time, she’s been fine,” said Diane Brogan-Adams, remembering those days back in the GED class she taught.
When student and teacher first met, Somerset-Fields was a struggling young mother, whose own mother was battling drug addiction.
“You get people that look at you and think, ‘She's only 16 with two kids? Oh my god. She's a trouble maker,’” Somerset-Fields says. But “Miss Diane,” as she called her teacher at the time, was different.
“She was welcoming.”
Miss Diane remembers their first meeting well.
“Kathleen pulled up in a station wagon with wood trim and came in with these two children, very confident, I remember later after she filled out paper work and I saw how old she was, I was kind of surprised.”
Brogan-Adams took a special interest in her student. Somerset-Fields remembers that whenever she missed class, her teacher would call to find out what was going on, and when she was coming back.
Eventually, Somerset-Fields did come back and graduated. Then they lost touch, until several years later, when Somerset-Fields walked out of a parenting class she was taking at a community center. Her old teacher was now working at that center. They saw each other in the parking lot.
“Seriously I think god had me walking across that parking lot because he knew I needed guidance at that time,” Somerset-Fields says of that reunion with her teacher. “Honestly she has been my guidance.”
By that point, Somerset-Fields had worked a series of low-paying jobs: nursing aid, quality control at a bacon factory. Eventually Brogan-Adams offered her old student a job at the community center. Today, Somerset-Fields is the Assistant Manager of a youth program there.
“Kathleen is like one of my children,” Brogan-Adams says of her former student. “She just adds a lot to my life.”
The networks of support and community that Somerset-Fields found when she met “Miss Diane” teacher long ago at that GED class, and that she passes on now to a new generation of kids at the youth program—they are key parts of what economists call social capital. And research shows that places high in social capital have better rates of upward mobility for kids born in to poverty.
Here's the big news so far from the Coachella music festival. Madonna made out with Drake and Justin Bieber was reportedly escorted out in a headlock.
For many festival-goers though, what's more important than the gossip or the music, is what everyone is wearing.
Coachella draws hundreds of thousands of people into the desert east of Los Angeles for two weekends. Sure there are big names in music like AC/DC, Jack White, and Ryan Adams. But as Pret-a-Reporter fashion writer Kathryn Romeyn puts it, the fans are as concerned about their image as hearing the bands.
“They want to Instagram good pictures of themselves,” Romeyn says.
In other words, selfies.
Yes, the festival is chock-full of teens and twenty-somethings, many from LA. Picture this—a hoard of impressionable minds with disposable incomes and social media followers, all transported to the blank desert landscape for two weekends of pop-music-infused, millenial partying. It's a marketing opportunity that makes the fashion industry salivate.
Coachella has become big business, says PR-firm-owner Lori Riviere, and fashion brands have jumped on the bandwagon.
The handbag giant, Coach, hosts backstage performances. Cosmetics colossus Sephora brings a tent for beauty touch-ups. Need eyewear? Glasses.com is there too.
Sarah Call is Glasses.com's director of content. She says the festival is part of the company's brand relaunch strategy.
“We felt it was sort of the perfect place to celebrate self-expression,” she says.
Fashion companies see dollar signs in the festival's free-spirit-Woodstockian vibe. H&M now has its own Coachella clothing line. The festival style is a hippie-LA-Boho mishmash. Think fringe shirts, big sun glasses, and lots of skin.
Music festivals are a great place to see and be seen says Jim Andrews of sponsorship consultant IEG.
“There's lots of downtime,” he says. “Lots of walking around time.”
Andrews says festivals are better than say a sporting event—where fans could get distracted by actually watching the game. At festivals “there's a lot more time for quality interaction,” Andrews says.
Everyone is cashing in. Celebrities and musicians get paid to wear clothes. Fashion magazines stuff their pages with glossy Coachella photos and articles about how to preserve your beauty in the hot desert. Nobody wants to be sweaty and gross. It's not Woodstock.
Music critic Jim Farber says the audience doesn't seem to care that festivals have gotten super corporate.
“If they are offended by it they generally are pretty quiet about it,” he says, “or else they enjoy it.”
It hasn't always been this way. Farber remembers when he want to the first Lollapalooza music festival back in 1991. There was just a bunch of bands and one guy with a falafel stand.
It's time for Silicon Tally! How well have you kept up with the week in tech news?
This week, we're joined by Annalee Newitz, Editor-In-Chief of Gizmodo, and author of Scatter, Adapt, and Remember: How Humans Will Survive a Mass Extinction.
Click on the multimedia player above to hear more.
That's how much bond sales got postponed due to a failure in Bloomberg Terminal. The British Treasury delayed 3 billion pounds, or about $4.46 billion, in short-term debt. In our digital era, where data and money are intricately weaved, the loss of a data feed has consequences. And in this case, billion-dollar consequences. Thomson Reuters produce a competing product but not all investors have access to both.4.9 percent
That's the chances a person will reach the top-fifth of earners in Dayton, Ohio when starting from the bottom fifth, making Dayton among the worst cities for economic mobility in the U.S. On Thursday's show, we took a looked at Dayton's history, its racial and economic segregation, and its relationship with the American dream. On Friday, we'll examine the role education and relationships play in empowering the people in Dayton and cities like it to pull themselves out of poverty.11,000
That's how many jobs the largest oil-field company plans to cut from its ranks. The company Schlumberger profit fell 39 percent for the first quarter amid a slowdown in the oil and gas industry, according to the Wall Street Journal.Three Days
That's how long the International Monetary Fund and World Bank are expected to meet this weekend. The two institutions are expected to focus on a cool down in the European Union and strong U.S. economic figures. However, the Fed rate hike and a strong dollar still contribute to global instability, especially in developing economies. Another important topic is the China-lead Asia investment bank that combines Chinese capital with Beijing's political clout.173,132
That's how many leaked emails from Sony Pictures Entertainment were posted on Wikileaks Thursday. The emails stem from a massive data breach last winter that had largely wound down after the release of "The Interview," but they had previously only been available to a small group, mostly in the media. Now the contents of the damaging leak are fully searchable, CNET reported, embarrassing emails and sensitive information and all.86 percent
That's how far prices for Etsy shares jumped in their first day of trading Thursday, ending the day at $30. Now Etsy's worth about $3.5 billion, Techcrunch reported, and that puts the company at risk of alienating its devoted, crafty audience, who may have gone to Etsy to avoid big companies in the first place. For his part, Etsy CEO Chad Dickerson kept things authentic, wearing an all-Etsy outfit for the occasion.
The educational technologies sector has become a $13 billion industry, with a growing list of start-ups and big companies vying for school district funds. At the same time, a lot of school districts are having trouble keeping up with fast-moving changes.
This trend may have something to do with news that the Los Angeles Unified School District wants some of its money back, after halting a plan estimated to be worth more than a billion dollars to buy iPads loaded with educational software from Pearson. The LAUSD complains that the combo of Pearson's software and Apple's iPad has simply not delivered on its promise.
While there is a lot of money and growth in the educational technology sector, LAUSD's travails are signs of what education consultant Allison Bailey of Boston Consulting Group calls the "pitfalls" of fast change. Bailey says part of the problem is that while school districts have been spending money on new technologies, many haven't planned for additional resources needed to train teachers and implement technologies in the classroom.
A lot of teachers are tech-savvy, Bailey says, just like many students, but "in order for things to be rolled out and fully implemented, we need all teachers to feel comfortable and to understand practically how to get ... best use out of technology."
There are other hurdles for districts, too. New technologies are often unproven by their very nature, so it also makes it hard for districts to figure out what will be useful for them and how to evaluate a product before purchase, Bailey says.
"Because of the flood of offerings that are emerging in the market," she says, "It's a lot for school districts to actually think through and manage on their own." She says the kind of data that districts will need to make informed decisions will come in the years ahead, as technologies are used and assessed.
Michael Moe, CEO of GSV Capital, says of the $400 million he manages, he's invested about 30 percent into educational technology firms. He describes the current trend as less of a flood, and more of an "explosion."
"Today, increasingly every teacher has a smartphone," he says, "mainly every school in America is connected."
That has created the right conditions for a lot of start-ups to want to enter into the educational technology arena, Moe says. Venture capital firms have been pouring a lot of money into education technology. Moe's firm runs a summit for ed-tech start-ups, which included about 30 firms five years ago. In the latest summit, says Moe, there were nearly 300 companies.
Big firms are also in the game. Google, Microsoft and Apple are all trying to grab a share of the ed-tech market, as are big educational publishers, such as Houghton Mifflin Harcourt and Pearson. Stephen Baker of NDP Group, a market research firm, says two-thirds of Google's 2014 sales of Chromebook notebooks went to organizations, "and the market assumes that almost all of that has been into education."
Baker also uses the "explosion" word to describe the accelerating ed-tech trend. "What we've definitely seen in certainly the last two to three years is a real explosion of personal devices available ... for students in big educational institutions."
The advertising world spends a lot of money trying to make you feel something. They want to make you laugh, cry, feel hungry even...anything to sell their products and build brand loyalty. However, tracking whether or not their commercials are working is hard to do. A company called Affectiva says it can help by using video footage to collect emotional data.
Co-founder and Chief Science Officer Rana El Kaliouby says, “Emotions influence every aspect of our life; from how we connect and communicate with each other and also how we make decisions. We feel that our emotions are missing from the digital world and our digital experiences.” Affectiva is trying to change that.
Their flagship program, Affdex, asks viewers to consent to be monitored, and then users’ facial expressions are captured while they watch advertisements. Affectiva has collected 2.7 million videos in 75 different countries. That data is aggregated to analyze how emotionally engaged users are with a service or ad. The program is able to detect smiles, confusion, brow furrow, even how wrinkles may move around an eye. Affdex is now able to understand smiles better than most people can.
The program is being used primarily for advertising companies, but they are also working on real time video communication with multiple people in a conversation. It may be used to track engagement in online courses, webinars, business meetings, even job interview videos.
Kaliouby recognizes that there are some applications that blur the line, but Affectiva has stayed away from anything without a clear opt in. “We’re more focused on the ones where we feel we can bridge a communication gap,” says Kaliouby.
Kaliouby’s background is in computer science. She says, “I spent many many hours with my computer and it really bugged me that it was very oblivious to my emotional state and that kind of inspired and motivated me to build an emotionally intelligent computer.”
Watch Kai test out Affdex below:
File this story under "practicing what you preach."
More to the point, though: Etsy CEO Chad Dickerson told Business Insider that everything he was wearing to celebrate the IPO — all the way down to his socks — was bought on the site.
When we had Dickerson on the show about a year ago, he told us his favorite thing he bought on the site: a computer bag made from a French army tent, a leather bomber jacket and a Navy kit bag.
File this story under "practicing what you preach."
More to the point though: Etsy CEO Chad Dickerson told Business Insider that everything he was wearing to celebrate the IPO — all the way down to his socks — was bought on the site.
When we had Dickerson on the show about a year ago, he told us his favorite thing he bought on the site: a computer bag made from a French army tent, a leather bomber jacket and a Navy kit bag.
A federal bankruptcy judge has ruled that General Motors is shielded from potential liability related to defective ignition switches that occurred before the company's 2009 bankruptcy.
The ruling, from Judge Robert Gerber, is a huge victory for GM as it walks a fine line between accepting responsibility for a safety crisis that has been linked to the deaths of 84 people, and trying to position the post-bankruptcy organization for success going forward.
John Pottow is a law professor at the University of Michigan. He says the ruling is great for GM.
“It’s a big deal because what they were trying to do is bulletproof their bankruptcy reorganization plan,” Pottow says.
The ruling establishes a clear legal separation between the “Old GM”, and the new post-bankruptcy GM.
Still, the legal cases in this matter are far from resolved. Pottow said the fact that the “New GM” knew about the defective switches, but did not bring up the issue during bankruptcy, could end up helping the plaintiffs.
"The law takes notice incredibly seriously and if someone figures out they did something wrong they have to send out notice right away, particularly if they've discharged something in bankruptcy,” Pottow said.
“So, that could be another hook they're trying to grab on to, to say we still have a second bite at the apple."
Steve Berman, a partner with Seattle-based Hagens-Berman, is co-counsel in the suit against General Motors. He said they will appeal Judge Gerber’s ruling.
Even factoring out the cars that are shielded from liability, GM could still be on the hook for economic losses for people who bought cars after the bankruptcy.
“Let’s just say conservatively there's still 10 million cars left and the average value of diminution was $700—that's $7 Billion,” Berman said.
In addition to ongoing lawsuits for economic loses, the company also faces legal action from people who were insured in crashes.
In a statement, GM praised the decision and stated that any future claims not barred by the ruling must still be proven in court.
[Ed note: In honor of Etsy's IPO, our December 2013 interview with Etsy CEO Chad Dickerson]
When you think about the really big names in online retailing just a couple of companies probably come to mind: Amazon, eBay, maybe Apple. But there's another name that can arguably be added to that list. Just 8 years after it started, Etsy does almost a billion dollars a year in annual transactions. Chad Dickerson is the guy who's been running Etsy for the past five years, and we popped into the company's corporate headquarters in Brooklyn to pay him a visit. Etsy's business has doubled under Dickerson's lead, and he says as Etsy grows, so goes its sellers.
"One of our sellers who was doing Etsy as an escape from nursing school, she started to achieve success and some exposure. Fast-forwarding she was noticed buy Nordstrom and did a deal with Nordstrom and now not only has she quit her job but her husband quit his finance job to help her. In this particular case this is literally a mom and pop. Etsy is really about making a life not just a living so we're just giving them the ability to grow and really change their lives."
Dickerson says the growth is just the start of the mark Etsy strives to make. He says the company hopes it won't just give other online retailers a run for the money, they'll change the whole marketplace.
"What I see Etsy doing is changing the way things are made. I think the ethos of Etsy, this idea that buying and selling should be all about people will start extending into areas like manufacturing and distribution and all of these things. When I think about what Etsy can do over the next 10 or 20 years it's really humanizing the whole supply chain."
Whether it's going from the proverbial rags to the proverbial riches, or just doing a little better than your parents, stories of upward mobility have long been a part of how we define the American dream. But how possible is that dream today? A group of economists at Harvard and UC Berkeley have been looking in to that question recently. It turns out the answer varies widely depending on geography.
Part of the researchers’ theory is that by looking at places with especially bad rates of upward mobility, to see what those places have in common and what they’re missing, we can learn something about how to optimize chances for upward mobility everywhere.
Which is what brought me to Dayton, Ohio, recently. The Dayton metro area has one of the worst rates of economic mobility in the country. Other areas with poor rates include Atlanta and Charlotte, North Carolina.
In Dayton, 40 percent of children born poor, stay poor. Just five percent make it to the top fifth of earners by the time they're adults. Before we get to some of the things that may drive those statistics, it's worth pointing out that Dayton used to have a very different reputation.
For much of the early 20th century, Dayton was known for innovation, opportunity and upward mobility. The area was full of people from humble backgrounds who “made it.” The story of the Wright Brothers and their airplane is one of the best known. But there is also the story of their high school classmate, the poet Paul Laurence Dunbar.
Dunbar was born in Dayton, in 1872, to parents who'd been born in to slavery. After graduating high school, he was too poor to afford college. He worked as an elevator operator. To support his writing, he sold copies of his poems for a dollar to people who rode on his elevator.
A decade later, Dunbar had catapulted himself in to a different life. He was the first African American poet to become internationally famous. He met the Queen of England and Teddy Roosevelt. He was a major inspiration for poets in the Harlem Renaissance and throughout the twentieth century, including Maya Angelou. Her poem "Caged Bird" is a direct reference to Dunbar’s poem "Sympathy.”
I know why the caged bird sings, ah me,
When his wing is bruised and his bosom sore,—
When he beats his bars and he would be free;
It is not a carol of joy or glee,
But a prayer that he sends from his heart’s deep core,
But a plea, that upward to Heaven he flings—
I know why the caged bird sings!
In early twentieth century Dayton, Dunbar could turn his literary success in to economic success. That fact is still evident today on what is now called Paul Laurence Dunbar Street, where a stately Italianate-style two-story home stands. Dunbar bought the building in 1904 at the height of his fame.
“He really wanted to purchase the finest home that he could afford,” says Alex Heckman, who gives tours of the home for the group Dayton History. “It was a lovely middle class neighborhood when he was living here.”
But the neighborhood has changed since Dunbar's time. Dilapidated and boarded up homes now surround the Dunbar House. Heckman says he worries about bringing visitors here. In just the last few years, three violent felonies have taken place on the property, or right next to it.
“There was a homicide victim whose body was dumped and set on fire literally feet from the visitor's center entrance. There was a prostitute shot in the alley behind this historic barn. And a few doors down, a young man was shot,” Heckman says. “The last half century of disinvestment in neighborhoods like this one... it’s tragic.”
The Paul Laurence Dunbar Home is now a stately historic landmark, in the middle of an impoverished neighborhood.Krissy Clark/Marketplace
How does a place that celebrates a man who so famously achieved the proverbial American dream become a place full of such nightmares?
That is of course not something the handful of paragraphs that make up this article can fully answer. But the fact that Dunbar’s former neighborhood and many others like it in cities across the country, have become so disinvested and so economically isolated — that fact in itself has become a key focal point of economic research on upward mobility.
“Areas where there's more concentrated poverty — more economic segregation — tend to have lower rates of upward mobility,” says Harvard economist Nathan Hendren.
Hendren is part of a team of researchers at Harvard and UC Berkeley who have combed through decades of Internal Revenue Service data to track the earnings of children born into poor families as they reach adulthood. The team wanted to figure out which places have the best rates of upward mobility, which have the worst, and why.
They have looked at all kinds of possible factors that might be at play: the health of a region’s overall labor market, its median income, tax policies, percentage of immigrants, even the number of bowling alleys per capita (the theory is bowling alleys might be a sign of broader community engagement).
Among all the factors the team analyzed, a few patterns rose to the top. Areas with the worst rates of economic mobility tend to have worse schools and less stable families, which isn’t all that surprising. Perhaps less obvious was the fact that areas with poor economic mobility also tended to have more income inequality and economic segregation.
A map of Dayton, Ohio census data from 2010 color-coded by race. Blue dots represent white residents, green dots represent black residents. Click for a zoom-able, interactive version.
A map of Dayton, Ohio census data from 2010 color-coded by race. Blue dots represent white residents, green dots represent black residents. Click for a zoom-able, interactive version.Courtesy: Weldon Cooper Center for Public Service
“It’s really about the extent to which the poor at the bottom of the income distribution are geographically segregated from the middle class and the upper class,” Hendren says. “Are people from disadvantaged backgrounds economically integrated in to the local area?”
In other words, a crucial part of economic mobility seems to be whether rich and poor and middle class people are bumping in to each other, and interacting on a daily basis.
For Kathleen Somerset-Fields, who grew up in Dayton in the 1990s and 2000s, the answer to that question was a distinct “No.”
As a child, Somerset-Fields lived in a public housing project not far from Paul Laurence Dunbar's home, but long after he died, once the area was known for concentrated poverty and extreme racial segregation. It’s a part of Dayton known the "West Side.” Somerset-Fields says stereotypes about West Dayton are so ingrained that she tries to avoid saying that's where she grew up during job interviews.
“When you put that down in your resume, it's like ‘Oh, the West Side of Dayton, here we go,’” she says. “I don't want to be looked at like that. I'm not the West.”
Growing up, Somerset-Fields faced an overwhelming tangle of struggles. Her mom and step-father battled with drug addiction. Somerset-Fields and her siblings were moved in to foster care for a time. At 13, she had her first child and was basically the mother to her six younger siblings—paying bills, and managing the food stamps and government assistance they survived on.
“It was hard — but I'm grateful for it,” she says, her voice getting lower. “I would say it empowered me. It really did. To strive for better. To want better. To do better.”
And somehow, Somerset-Fields seems to be beating the odds working against those born in to poor families in Dayton and places like it. Today, she is the assistant manager of a youth program at a community center in Dayton. She says she is definitely not rich, but she is not poor either.
“I consider myself surviving. Is that a category?” she laughs. “Surviving on the good end.”
Of course, it's impossible to say exactly why Somerset-Fields found a way to climb out of poverty when forty percent of her peers in Dayton have not. But when I ask her what she thinks, she immediately points to one relationship in her life, with a teacher she met in a GED class when she was 16 named Diane Brogan-Adams.
On Friday, we look at the two women's relationship and the support it provided, which researchers think may be a key ingredient for economic mobility.
First Lady, Senator from New York, presidential candidate, Secretary of State. Hillary Clinton has a long history in politics, which Marco Rubio was quick to use against her as he launched a bid for the Republican nomination earlier this week.
“Now just yesterday, a leader from yesterday began a campaign for president by promising to take us back to yesterday,” he said.
How does Clinton avoid this “yesterday” role with voters? How does she get people to listen again and listen anew, perhaps even change their minds? Getting voters or consumers to take a second look at a candidate, a company, a product — something they already think they know — is tough work, says Scott Davis, the chief growth officer at Prophet, a brand strategy firm.
“One of the most important things in this campaign process is that there’s a lot that people think they know, and a lot they don’t know, about Hillary Clinton," says Karen Finney, a Clinton campaign spokesperson. That’s why Clinton is starting small and slow, touring in a van she calls "Scooby," having one-on-one conversations with potential voters.
It’s important Clinton be authentic and very clear about her purpose, Davis says. It helps if she can give other people the tools to advocate on her behalf. She may also need to plan something big, bold or innovative to shake people from their preconceived ideas.
Howard Belk, co-CEO and chief creative officer at Siegel+Gale, says Clinton might reference something about her history in a way that won’t alienate her supporters, but with fresh ideas and programs. After her supporters, Belk says the second group Clinton should be targeting is the "switchers." In brand terms, they're the people who may open the product, even if they don’t use it. But he advises against trying to pander to a third category, detractors. They’re a lost cause.
The New York Times recently reported that the Clinton campaign has hired Kristina Schake, former communications chief to Michelle Obama, who was in charge of the current First Lady's image and appearances on"Late Night with Jimmy Fallon" and the Oscars.
But Clinton is only one of many prominent politicians who have undergone a rebranding. We called up a couple of political scientists to ask them about other notable political reinventions, and how successful they were.
Like Clinton, Nixon was very much a known commodity when he ran for president in 1968. He was a congressman and a vice president before famously losing to John F. Kennedy in the 1960 presidential election, and he went on to lose the California gubernatorial race in 1962.
Generally, in today's political environment, "if you lose a presidential general election you're done, you don't get a chance to reinvent yourself," says Vincent Hutchings, a professor of political science at the University of Michigan.
Nixon worked on several other campaigns, taking some cues from Barry Goldwater and George Wallace and earning favors, Hutchings says. By the late 1960s Nixon reemerged as a "law and order" candidate. He also made a bid for likability by hiring a joke writer and appearing on "Laugh-In," notes UCLA political science assistant professor Chris Tausanovitch. He finally won the presidency in 1968.
"He wasn't ever going to pull off the same kind of persona as a Kennedy, be that Robert or John F. Kennedy," Hutchings says. "But he seized upon this growing unease in some sectors of the American electorate regarding the progress of the civil rights movement, urban unrest, [and so on]."
Specter changed parties at the beginning and end of his political career — two reinventions in two very different political climates with two very different results.
"Voters don't like it when people appear to be switching their views," UCLA's Tausanovitch says. "In fact, voters like it so little that they would prefer a candidate who sticks to their guns, rather than a candidate who switches their views in a way that [the voter] might even favor."
Specter pulled of a party switch in 1965 and went on to enjoy a 30-year career in the Senate as a moderate Republican. When he ran as a Democrat in 2009, Specter lost in the primary, in part because partisan lines were far more rigid, Tausanovitch says.
"These days the legislative parties are incredibly sorted out. Liberal Republicans are still a lot more conservative than conservative Democrats, which in the '60s was not true," Tausanovitch says. "There were Rockefeller Republicans and Blue Dog Democrats and boll weevils and all of these moderates ... that could fit in either party."
Gore's problem was similar to Hillary Clinton's, Tausanovitch says: he came off as arrogant, stilted, and his plain blue suits were bland.
"[The blue suit] conveys dullness, convention, safety and, ultimately, boredom," the Washington Post wrote in May 1999. "In other words, the Blue Suit-ness of the suit underlines the Al Gore-ness of Al Gore."
Gore was told to loosen up by none other than embattled departing President Bill Clinton. Gore tried brown suits and polo shirts, but just got made fun of.
Instead Gore came into his own after losing to George W. Bush in 2000. Gore became an environmental advocate and appears far more at ease in public, Tausanovitch says, though it doesn't appear his politics have changed much. Instead, it seems getting out of politics gave Gore the re-brand he needed during his campaign.
"It looks like he has come into his own as an authentic and better public speaker, but his problem to begin with was not that he was hiding something," Tausanovitch says. "That's not an experiment that we don't get to run with Hillary Clinton, but it's certainly something that people will speculate about."
Airing on Thursday, April 16, 2015: There's word today that Japan has overtaken China as the number one foreign holder of US treasuries. I'm speaking of Japanese pension funds, the Japanese government and other Japanese investors. We consult Adolfo Laurenti, chief international economist at Mesirow Financial in Chicago on the shift to US debt. Plus, the world's largest car maker by volume, Toyota, is saying it plans to invest $1.4 billion to build two new factories in Mexico and China. The announcement marks an end to three-year freeze on expansions that Toyota imposed on itself. More on that. Electronic payments-through companies like PayPal-are supposed to make it easier and safer to buy things online. But we found that it doesn't always translate when you're trying to make a purchase across borders.
Yale University’s School of Medicine is deciding whether to create an online version of its physician’s assistant master’s program. Its first attempt failed because it couldn't get accreditation. Yale says it’s “reviewing the matter” and may try again.
Yale’s partner in all this is the education technology company 2U, which has plenty of other customers, many of them Ivy League schools.
“There’s a lot of demand for us right now,” says Chip Paucek, CEO of 2U. He says universities want to enroll students online to address shortages of workers in some fields. But online degrees also bring in more tuition dollars.
“A university needs to figure out how to pay its bills and be sustainable," he says. "Just like any enterprise.”
But some degrees lend themselves more to online learning than others.
“So learning statistics or data science online, certainly learning some of the computer sense, skills and knowledge,” says Andrew Kelly, education scholar at the American Enterprise Institute.
Kelly says degrees that require hands-on training, like physician’s assistant’s programs, are more difficult, because universities have to find hospitals where online students can train.