National News

Wages and benefits see highest bump in six years

Marketplace - American Public Media - Fri, 2015-01-30 12:35

The U.S. Bureau of Labor Statistics Employment Cost Index says wages, salaries and benefits grew at an annual rate of 2.2 percent in 2014.

Economists were happy to see improvements in an index regarded as a key reflection of the labor market. “If I were going to pick one measure to look at, it would be this one,” says Mark Zandi, chief economist at Moody’s Analytics. “This is giving us a pretty definitive read on what’s going on in the labor market with regard to wages and compensation.”

Zandi likes the index because it gives a consistent look at compensation over time. The Bureau of Labor Statistics surveys a rotating slate of firms on their employment costs, and unlike another measure of hourly wages, the index doesn’t get skewed as much by shifts in employment into, say, low-wage industries or occupations.

Employer costs are still growing slower than they were before the Great Recession. But the growth rate last year did outpace inflation, which is clocking in around 1.3 percent.

Workers’ compensation is improving as the unemployment rate falls, the available pool of workers shrinks and employers have to start spending more to get new workers in the door. “We're not all the way back to full-employment yet, but we've been for some time moving in that direction, and if we continue to move in that direction we'll see more upward pressure on wages,” says Alan Krueger, Princeton University economist.

The benefits side of the Employment Cost Index grew faster last year than wages and salaries, which breaks with recent trends, Krueger says. “We had seen health care costs growing so slowly – really exceptionally slowly – compared to the history of health care cost growth; benefits were not growing faster than wages [again] until recently,” he says.

Improvements in the benefit side of the equation will matter less to workers in the short-term, says Till von Wachter, a UCLA economist. He says the wage and salary spikes will have more immediate consequences. “Higher wages could lead to higher spending,” he says.

Wages and benefits see highest bump in 6 years

Marketplace - American Public Media - Fri, 2015-01-30 12:35

The U.S. Bureau of Labor Statistics’ Employment Cost Index says wages, salaries and benefits grew at an annual rate of 2.2 percent in 2014.

Economists were happy to see improvements in an index regarded as a key reflection of the labor market. “If I were going to pick one measure to look at, it would be this one,” says Mark Zandi, chief economist at Moody’s Analytics. “This is giving us a pretty definitive read on what’s going on in the labor market with regard to wages and compensation.”

Zandi likes the index because it gives a consistent look at compensation over time. The BLS surveys a rotating slate of firms on their employment costs, and unlike another measure of hourly wages, the index doesn’t get skewed as much by shifts in employment into, say, low-wage industries or occupations.

Employers costs are still growing slower than they were before the Great Recession. But the growth rate last year did outpace inflation, which is clocking in around 1.3 percent.

Workers’ compensation is improving as the unemployment rate falls, the available pool of workers shrinks and employers have to start spending more to get new workers in the door. “We're not all the way back to full-employment yet, but we've been for some time moving in that direction, and if we continue to move in that direction we'll see more upward pressure on wages,” says Princeton University economist Alan Krueger.

Krueger notes that the benefits side of the Employment Cost Index grew faster last year than wages and salaries. Krueger says that breaks with recent trends, “We had seen health care costs growing so slowly — really exceptionally slowly — compared to the history of health care cost growth; benefits were not growing faster than wages [again] until recently,” he says.

Improvements in the benefit side of the equation will matter less to workers in the short-term, says Till von Wachter, an economist at the University of California Los Angeles. He says the wage and salary spikes will have more immediate consequences. “Higher wages could lead to higher spending,” he says.

Ohio Man's IRS Drama The Plight Of The Living Dead

NPR News - Fri, 2015-01-30 12:34

We explore the case of 94-year-old Siegfried Meinstein. The Internal Revenue Service thinks the Ohio man is dead. They blame the error on the Social Security Administration, but the agency pushes the blame back on the IRS.

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The accidental origin of the $15 minimum-wage movement

Marketplace - American Public Media - Fri, 2015-01-30 12:02

President Obama wants lawmakers to raise the federal minimum wage from $7.25 to $10.10 an hour.  But Congress hasn't voted to increase the minimum wage since 2007, and there’s little hope it will now.

It’s a different story at the local level.

In just the last year, Seattle and San Francisco both passed measures to gradually increase their minimum wages to $15.  And the Los Angeles City Council is considering a $15.25 wage.

Those cities are following in the footsteps of SeaTac, Washington, a tiny town just outside Seattle, and home to the region’s biggest airport. A year ago, it became the first city in America to have a $15 minimum wage.

“SeaTac will be viewed someday as the vanguard, as the place where the fight started,” union organizer David Rolf, who led SeaTac’s $15 campaign, said in a victory speech in November 2013.

That day is already here, but the funny thing is Rolf never set out to raise SeaTac’s minimum wage, much less start a national movement. His original goal was to unionize workers at Sea-Tac airport.

When employers – led by Alaska Airlines – played hardball, Rolf put a $15 minimum wage proposition on the city ballot as leverage.

It won by just 77 votes.

“Things could have gone very different had the airlines said we’ll bargain a contract,” Rolf says. “Those workers may have had $15, but it might not have been on the ballot. It would have been in the union contract, and it would have just been for those workers.”

As it turns out, because of a court challenge it’s actually those airport workers who are the only ones in SeaTac not making at least $15 an hour. But the $15 minimum wage movement soon spread, to Seattle last June, and to San Francisco in November.

“It was not yet with an eye on being some sort of domino that fell and leveraged similar victories across the country, but I think people are proud that that’s what happening,” Rolf says.

And surprised, says Peter Dreier, a professor of politics at Occidental College.

“A couple years ago the idea of a $15 minimum wage would have been considered outrageous,” Dreier says.

So what changed?

There’s the $15 number itself, nice and round, easy to fit on a bumper sticker. The figure first came to people’s attention in a series of strikes by fast-food workers that started in 2012. The workers didn’t achieve their goal of unionization, but $15 stuck.

There’s also the fact that post-recession, many voters have become more concerned about income inequality, says Paul Sonn, the National Employment Law Project’s general counsel.

“It’s clearly a response to the economy’s tilt to low-wage jobs, which is hitting cities like L.A. hard, which are seeing wages flat or falling but at the same housing and living costs are continuing to rise,” Sonn says.

Unions say they hope the $15 wage can spread to every state, but labor historian Nelson Lichtenstein is skeptical. “I don’t think having high wages in a few cities will mean it will spread to red state America,” Lichtenstein says.

Oklahoma recently banned any city from setting its own minimum wage, joining at least 12 other states with similar laws.

In November, voters in four Republican-leaning states – Alaska, Arkansas, South Dakota, and Nebraska – did approve higher minimum wages, but they weren’t close to $15.

Having a patchwork of local wage standards is bad for workers, Lichtenstein says.

“One of the laws of labor history is that you can’t a strong movement in one place and have the rest of the country hostile to it,” he says. “Eventually the strength of that labor movement will be drained away as employers do in fact move.”

Whether local minimum wages cause businesses to pack up and move somewhere cheaper is hotly debated among economists.

A University of California, Berkeley study predicts small clothing manufactures could leave L.A. if the minimum wage is hiked. But no one really knows, because the $15 wage movement has just gotten started.

The accidental origin of the $15 minimum wage

Marketplace - American Public Media - Fri, 2015-01-30 12:02

President Obama wants lawmakers to raise the federal minimum wage from $7.25 to $10.10 an hour.  But Congress hasn't voted to increase the minimum wage since 2007, and there’s little hope it will now.

It’s a different story at the local level.

In just the last year, Seattle and San Francisco both passed measures to gradually increase their minimum wages to $15.  And Los Angeles’ city council is considering a $15.25 wage.

Those cities are following in the footsteps of SeaTac, Washington, a tiny town just outside Seattle, and home to the region’s biggest airport. A year ago, it became the first city in America to have a $15 minimum wage.

“SeaTac will be viewed someday as the vanguard, as the place where the fight started,” says union organizer David Rolf, who led SeaTac’s $15 campaign, in a victory speech in November 2013.

That day is already here, but the funny thing is Rolf never set out to raise SeaTac’s minimum wage, much less start a national movement. His original goal was to unionize workers at SeaTac airport.

When employers – led by Alaska Airlines - played hardball, Rolf put a $15 minimum wage proposition on the city ballot as leverage.

It won by just 77 votes.

“Things could have gone very different had the airlines said we’ll bargain a contract,” Rolf says. “Those workers may have had $15, but it might not have been on the ballot. It would have been in the union contract, and it would have just been for those workers.”

As it turns out, because of a court challenge it’s actually those airport workers who are the only ones in SeaTac not making at least $15 an hour. But the $15 minimum wage movement soon spread, to Seattle last June, and to San Francisco in November.

“It was not yet with an eye on being some sort of domino that fell and leveraged similar victories across the country, but I think people are proud that that’s what happening,” Rolf says.

And surprised, says Peter Dreier, a professor of politics at Occidental College.

“A couple years ago the idea of a $15 minimum wage would have been considered outrageous,” Dreier says.

So what changed?

There’s the $15 number itself, nice and round, easy to fit on a bumper sticker. The figure first came to people’s attention in a series of strikes by fast food workers that started in 2012. The workers didn’t achieve their goal of unionization, but fifteen dollars stuck.

There’s also the fact that post-recession, many voters have become more concerned about income inequality, says Paul Sonn, The National Employment Law Project’s General Counsel.

“It’s clearly a response to the economy’s tilt to low-wage jobs which is hitting cities like L.A. hard, which are seeing wages flat or falling but at the same housing and living costs are continuing to rise,” Sonn says.

Unions are hopeful the $15 wage can spread to every state, but labor historian Nelson Lichtenstein is skeptical.

“I don’t think having high wages in a few cities will mean it will spread to red state America,” saysLichtenstein.

Oklahoma recently banned any city from setting its own minimum wage, joining at least 12 other states with similar laws.

In November, voters in four Republican leaning states — Alaska, Arkansas, South Dakota, and Nebraska  - did approve higher minimum wages, but they weren’t close to fifteen dollars.

Lichtenstein says having a patchwork of local wage standards is bad for workers.

“One of the laws of labor history is that you can’t a strong movement in one place and have the rest of the country hostile to it,” he says. “Eventually the strength of that labor movement will be drained away as employers do in fact move.”

Whether local minimum wages cause businesses to pack up and move somewhere cheaper is hotly debated among economists.

A University of California, Berkeley study predicted small clothing manufactures could leave L.A. if the minimum wage is hiked.  But no one really knows, because the $15 wage movement has just gotten started.

NBA Player Flouts A Critic's Guarantee That He Would Be Arrested

NPR News - Fri, 2015-01-30 12:01

In 2010, sportswriter Clay Travis said in a tweet, "There is a 100% chance that DeMarcus Cousins is arrested for something in the next five years."

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Fun fact Friday: How green are thy Super Bowl advertisers

Marketplace - American Public Media - Fri, 2015-01-30 11:47

Fun fact: Sunday’s Super Bowl commercials include 15 first-time advertisers.

Among the newcomers: Avocados From Mexico, the first fresh produce brand to advertise during the Super Bowl, and Always, a brand of feminine hygiene products.

New brands take a chance with Super Bowl ads

Fun fact: You’ve heard of leap year, but soon you will experience a tinier, shorter, more adorable time-adjustment: the leap second.

On June 30, clocks around the world will add one second to their time.

The leap second, deep space and how we keep time

Fun fact: The Federal Communications Commission is ruling on net neutrality in less than a month.

Marketplace’s Paddy Hirsch breaks down everything you need to know about the formally incomprehensible issue with just a few markers, a whiteboard and a delightful Irish accent.

Net neutrality: Whole lot of drama in those two words

Fun fact: Havard University raised $1.16 billion last year.

Yes, that’s a record.

Schools rake in record donations ... unequally

Fun fact: For the first time, the Sundance Film festival showed a film made with the help of virtual reality technology.

A consumer version may be around the corner, according to Brendan Iribe, CEO of Oculus VR.

The movie (literally) in my mind

Tech IRL: The trouble with bubbles? They pop.

Marketplace - American Public Media - Fri, 2015-01-30 11:22

Are we in a bubble, or are we not in a bubble? That is the question — at least if we're talking tech stocks. Recently, tech startups are getting valuations of epic proportions, which could cause individual investors to question if his or her 401k and pension funds are safe.

Katie Benner, a tech columnist with Bloomberg View, says that if you're one of those individual investors, you probably shouldn't worry.

"Most of it is not happening in the public stock markets. It's happening in the private company markets," she says.

Companies that are experiencing an influx of money from investors, like Airbnb, Uber and Square, aren't publicly traded.

Here's partial list of recent startup valuations, courtesy of the Wall Street Journal:

  • Xiaomi: $46 billion
  • Uber: $41.2 billion
  • Snapchat: $10 billion
  • Airbnb: $10 billion
  • Dropbox: $10 billion
  • Square: $6 billion
  • Pinterest: $5 billion
  • Spotify: $4 billion

Tech IRL: The problem with tech bubbles? They pop

Marketplace - American Public Media - Fri, 2015-01-30 11:22

Are we in a bubble, or are we not in a bubble? That is the question ... at least if we're talking tech stocks. 

Recently, tech startups are getting valuations of epic proportions, which could cause individual investors to question if his of her 401k and pension funds are safe.

Katie Benner, a tech columnist with Bloomberg View, says that if you're one of those individual investors, you probably shouldn't worry.

"Most of it is not happening in the public stock markets. It's happening in the private company markets," she says.

Companies that are experiencing an influx of money from investors, like Airbnb, Uber and Square, aren't publicly traded.

Here's partial list of recent startup valuations, courtesy of the Wall Street Journal:

Xiaomi: $46 billion

Uber: $41.2 billion

Snapchat: $10 billion

Airbnb: $10 billion

Dropbox: $10 billion

Square: $6 billion

Pinterest: $5 billion

Spotify: $4 billion

WATCH: Forget Crop Circles, This Farmer Is Making Art With His Cows

NPR News - Fri, 2015-01-30 10:03

Derek Klingenberg in Kansas put a drone over his farm, then he used his tractor to drop some feed in strategic places for a happy result.

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Hidden homeless left out of the economic recovery

Marketplace - American Public Media - Fri, 2015-01-30 09:34

The economy looks like it's rebounding. Stocks are up, corporate earnings are rising, but not everyone feels the effects. 

The Department of Housing and Urban Development says the most common length of time that someone is homeless is one or two days, and half of the people who enter a homeless shelter will leave within 30 days, never to return. 

Patrick Markee, deputy executive director of advocacy for the Coalition for the Homeless, says while the federal government reports 600,000 people sleep on the streets every night, they know the actual number is bigger than that. "The problem is big and by all accounts getting worse," he says. "Homelessness has always been incredibly difficult to measure accurately, for kind of obvious reasons." 

Darlene Bel Grayson, who was temporarily homeless, says she never expected to find herself in a situation without housing, especially with her careful planning and savings. “I’m not the homeless person you see and think is homeless," she says. 

Click play above to hear more from this story

Hidden homeless left out of the count

Marketplace - American Public Media - Fri, 2015-01-30 09:34

The economy is on the mend: stocks are up, corporate profits are up. But not for everyone.

A number of people have crashed through the safety net, and are out on the streets.

The Department of Housing and Urban Development says the most common length of time that someone is homeless is one or two days, and half of the people who enter a homeless shelter will leave within 30 days, never to return. But that impression may not be shared by everyone.

Patrick Markee, deputy executive director of advocacy for the Coalition for the Homeless, says while the federal government reports 600,000 people sleep on the streets every night, they know the actual number is bigger than that.

"The problem is big and by all accounts getting worse," he says. "Homelessness has always been incredibly difficult to measure accurately, for kind of obvious reasons."

Darlene Bel Grayson, who was temporarily homeless, says she never expected to find herself in a situation without housing, especially with her careful planning and savings. 

“I’m not the homeless person you see and think is homeless," she says.

For more on this story, listen to the audio player above.

Who is homeless?

Marketplace - American Public Media - Fri, 2015-01-30 09:34

The economy is clearly on the mend, stocks are up, corporate profits are up. But not for everybody.

If you look around it seems like a number of people have crashed through the safety net and are out on the street

The Department of Housing and Urban Development says the most common length of time that someone is homeless is one or two days,

and half the people who enter the homeless shelter system will leave within 30 days, never to return. But that impression may not be shared by everyone.

To find out more about the state of homelessness in 2015, we turn to Patrick Markee, Deputy Executive Director of Advocacy for The Coalition for The Homeless.

Marketplace weekend also speaks with Darlene Bell Grason on what it's like to be temporarily homeless.

Your Wallet: Cheating and Money

Marketplace - American Public Media - Fri, 2015-01-30 09:26

Next week, we're talking about cheating. Have you ever financially cheated? Did you cheat on someone you love? Maybe you cheated yourself in some way. 

We want to hear your stories of cheating and money. How did it change your outlook? 

Tell us your story HERE, on the Marketplace Facebook page, or on Twitter: we're @MarketplaceWKND.

Kerry Fined $50 For Not Shoveling Sidewalk Outside Boston Home

NPR News - Fri, 2015-01-30 09:26

The secretary of state was in Saudi Arabia when the massive snowstorm struck the Northeast this week. His spokesman said he would pay the fine.

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Obama Wants Funding For Research On More Precise Health Care

NPR News - Fri, 2015-01-30 09:23

Doctors and scientists could could learn a lot more about diseases if the were able to to tap into a wide spectrum of information about people who get sick and those who stay healthy.

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What Research Says About The Consequences of P.C. Culture

NPR News - Fri, 2015-01-30 09:18

Jonathan Chait's essay on a pervasive dangerous online culture of political correctness nearly broke the Internet. So does the science back him up?

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My money story: Boom and bust, at the blackjack table

Marketplace - American Public Media - Fri, 2015-01-30 09:16

Josh Axelrad used to be a professional gambler, (illegally) counting cards. Now, he's a writer and a dad. 

Once he stopped playing blackjack professionally, and started playing poker badly, he lost $50,000.

“I thought it was impossible that the 50 Gs I’d succeeded in vaporizing would ever come my way again,” he says.

This is the story of his crash, and how he was made whole again.

You can listen to Josh's crash story in the audio player above. To hear a longer version, visit The Moth.

Money Story: Crash and recovery at the blackjack table

Marketplace - American Public Media - Fri, 2015-01-30 09:16

Josh Axelrad used to be a professional gambler (a card counter), now he's a writer and dad.

He told Marketplace Weekend about what happened when he stopped playing blackjack professionally and started playing poker badly...he lost $50,000. This is the story of his crash, and how he was made whole again.

You can listen to Josh's crash story in the audio player above. To hear a longer version, visit The Moth.

Global crashes in an interconnected economy

Marketplace - American Public Media - Fri, 2015-01-30 08:59

People crash. So do companies. And stock markets. And, occasionally, entire countries.

We live in an increasingly interconnected world, which means that when one country crashes financially, there's a genuine risk that we could end up with a regional, or even a world-wide pileup.

We wanted to find out how likely a crash of epic proportions is, so we turned Paddy Hirsch, Senior Editor and resident explainer at Marketplace. He spoke with Marketplace Weekend about the global economy. So is it really all that fragile?

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