Bieber urges crackdown on paparazzi after photographer's death









Justin Bieber and his collection of exotic cars have been tantalizing targets for celebrity photographers ever since the young singer got his driver's license.


A video captured the paparazzi chasing Bieber through Westside traffic in November. When Bieber's white Ferrari stops at an intersection, the video shows the singer turning to one of the photographers and asking: "How do your parents feel about what you do?"


A few months earlier, he was at the wheel of his Fisker sports car when a California Highway Patrol officer pulled him over for driving at high speeds while trying to outrun a paparazzo.





This pursuit for the perfect shot took a fatal turn Tuesday when a photographer was hit by an SUV on Sepulveda Boulevard after taking photos of Bieber's Ferrari. And the singer now finds himself at the center of the familiar debate about free speech and the aggressive tactics of the paparazzi.


Since Princess Diana's fatal accident in Paris in 1997 while being pursued by photographers, California politicians have tried crafting laws that curb paparazzi behavior. But some of those laws are rarely used, and attorneys have challenged the constitutionality of others.


On Wednesday, Bieber went on the offensive, calling on lawmakers to crack down.


"Hopefully this tragedy will finally inspire meaningful legislation and whatever other necessary steps to protect the lives and safety of celebrities, police officers, innocent public bystanders and the photographers themselves," he said in a statement.


It remained unclear if any legislators would take up his call. But Bieber did get some support from another paparazzi target, singer Miley Cyrus.


She wrote on Twitter that she hoped the accident "brings on some changes in '13 Paparazzi are dangerous!"


Last year, a Los Angeles County Superior Court judge threw out charges related to a first-of-its-kind anti-paparazzi law in a case involving Bieber being chased on the 101 Freeway by photographer Paul Raef. Passed in 2010, the law created punishments for paparazzi who drove dangerously to obtain images.


But the judge said the law violated 1st Amendment protections by overreaching and potentially affecting such people as wedding photographers or photographers speeding to a location where a celebrity was present.


The L.A. city attorney's office is now appealing that decision.


Raef's attorney, Dmitry Gorin, said new anti-paparazzi laws are unnecessary.


"There are plenty of other laws on the books to deal with these issues. There is always a rush to create a new paparazzi law every time something happens," he said. "Any new law on the paparazzi is going to run smack into the 1st Amendment. Truth is, most conduct is covered by existing laws. A lot of this is done for publicity."


Coroner's officials have not identified the photographer because they have not reached the next of kin. However, his girlfriend, Frances Merto, and another photographer identified him as Chris Guerra.


The incident took place on Sepulveda Boulevard near Getty Center Drive shortly before 6 p.m. Tuesday. A friend of Bieber was driving the sports car when it was pulled over on the 405 Freeway by the California Highway Patrol. The photographer arrived near the scene on Sepulveda, left his car and crossed the street to take photos. Sources familiar with the investigation said the CHP told him to leave the area. As he was returning to his vehicle, he was hit by the SUV.


Law enforcement sources said Wednesday that it was unlikely charges would be filed against the driver of the SUV that hit the photographer.


Veteran paparazzo Frank Griffin took issue with the criticism being directed at the photographer as well as other paparazzi.


"What's the difference between our guy who got killed under those circumstances and the war photographer who steps on a land mine in Afghanistan and blows himself to pieces because he wanted the photograph on the other side of road?" said Griffin, who co-owns the photo agency Griffin-Bauer.


"The only difference is the subject matter. One is a celebrity and the other is a battle. Both young men have left behind mothers and fathers grieving and there's no greater sadness in this world than parents who have to bury their children."


Others, however, said the death focuses attention on the safety issues involving paparazzi


"The paparazzi are increasingly reckless and dangerous. The greater the demand, the greater the incentive to do whatever it takes to get the image," said Blair Berk, a Los Angeles attorney who has represented numerous celebrities. "The issue here isn't vanity and nuisance, it's safety."


richard.winton@latimes.com


andrew.blankstein@latimes.com





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New Mars Meteorite Contains 10 Times More Water Than Previous Finds











Scientists have identified a never-before-seen type of meteorite from Mars that has 10 times more water and far more oxygen in it than any previous Martian sample.


The meteorite was found in the Sahara Desert in 2011 and has the official name of Northwest Africa 7034. It is a small basaltic rock — nicknamed “Black Beauty” – which means it formed from rapidly cooling lava. The meteorite is about 2.1 billion years old, from a period known as the Martian Amazonian epoch, and provides scientists with their first hands-on glimpse of this era.


Around 110 Martian meteorites have been found on Earth. Most were probably blown off the Red Planet during a large asteroid impact and subsequently crashed on our own world. The majority are relatively young, though the famous Allan Hills 84001, which some scientists believe contains traces of ancient Martian bacteria, is more than 4 billion years old.



Almost all other Mars rocks on Earth fall into a category known as the SNC group (Shergottites, nakhlites, and chassignites). Curiously, most SNC meteorites don’t seem to match up with the current crust composition of Mars, suggesting they came from the deeper interior or somewhere else. The newly discovered meteorite is different in that it has a composition that very closely lines up with the geochemistry seen at Gusev crater by the Spirit rover.


Scientists analyzed the rock through several methods. When the meteorite was heated to high temperature, hydrated minerals inside it released their water. NWA 7034 released an order of magnitude more water than any SNC meteorite, and gave off different isotopes of oxygen, which appeared in a ratio unlike any other Martian rock. One explanation for the oxygen ratio is that Mars once had isolated reservoirs of oxygen in its crust.


In addition to providing information about Mars’ ancient past, NWA 7034 may help scientists better understand the minerals and geology currently being explored by NASA’s Curiosity rover. The findings appeared Jan. 3 in Science.


Image: NASA




Adam is a Wired reporter and freelance journalist. He lives in Oakland, Ca near a lake and enjoys space, physics, and other sciency things.

Read more by Adam Mann

Follow @adamspacemann on Twitter.



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Taylor Swift’s ”Red” holds down top spot on Billboard chart






LOS ANGELES (Reuters) – Country-pop star Taylor Swift‘s “Red” finished 2012 atop the Billboard 200 album chart on Thursday, claiming the No. 1 spot for the fourth consecutive week.


It was the album’s seventh non-consecutive week at No. 1 on the chart as post-holiday digital sales accounted for more than half of its 241,000 units sold, according to figures from Nielsen SoundScan.






Swift, 23, has now topped the Billboard album chart for 24 weeks in her four-album career, tying Adele for the most weeks by a female artist at number one on the chart since Nielsen SoundScan began tracking sales figures for Billboard in 1991.


The soundtrack to the big screen adaptation of Broadway musical “Les Miserables” jumped 31 spots to number two on the album chart. It sold 136,000 units and was buoyed by a full week on the chart and the release of the film in movie theaters on December 25.


British boy band One Direction placed third with “Take Me Home,” while singer Bruno Mars‘ “Unorthodox Jukebox” and rapper T.I.’s “Trouble Man: Heavy Is the Head” round out the top five.


U.S. album sales for last week were up 27 percent compared to the same week in 2011, at 9.77 million units.


The post-Christmas week, in which many cashed in their holiday gift cards, saw a record for digital song downloads in a week as a total of 55.74 million tracks were downloaded, besting the previous record of 47.73 million from the same week in 2008.


(Reporting by Eric Kelsey; Editing by Sandra Maler)


Music News Headlines – Yahoo! News





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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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Biogen Gives Up on Drug for Lou Gehrig’s Disease





A closely watched experimental drug to treat Lou Gehrig’s disease failed to work in a late-stage clinical trial, the drug’s developer, Biogen Idec, said Thursday. The company said it would discontinue further work on the drug.




Biogen said that the drug was not effective in either slowing the loss of muscular function or prolonging the lives of people with the disease, formally known as amyotrophic lateral sclerosis, or A.L.S.


There were also no signs that the drug, dexpramipexole, worked in any subgroup of patients, Biogen said.


“As a physician who has treated people with A.L.S., I hoped with all my heart for a different outcome,'’ Dr. Douglas Kerr, director of neurodegeneration clinical research at Biogen, said in a statement.


A.L.S., which attacks the nerves that control muscles, causes gradual paralysis and typically results in death within a few years of diagnosis. There are about 30,000 Americans with the disease.


There is only one drug approved to treat it, Rilutek, made by Sanofi, which doctors say has only modest effectiveness. Many other drugs have failed in clinical trials, in part because scientists do not understand the cause of A.L.S. and therefore do not know how to treat it.


While expectations had not been that high that dexpramipexole would succeed in its phase 3 trial, they were higher than for many previous A.L.S. drugs, given what some doctors viewed as strong results in a smaller, phase 2 trial.


“I’m more excited about this compound than any compound I’ve ever tested in A.L.S.,'’ Dr. Robert Miller, director of A.L.S. research at the California Pacific Medical Center in San Francisco, said in April on a call with investors hosted by Deutsche Bank. Patients getting the highest dose had an almost a 50 percent slower decline in muscular function than those receiving a placebo.


Biogen had licensed dexpramipexole from Knopp Biosciences, a privately held company in Pittsburgh. Biogen’s trial included 943 patients in 11 countries. The main measurement of success was a composite that took into account both deaths from the disease and the decline of functionality. Patients in the trial were allowed to take Rilutek.


Dr. Jeffrey D. Rothstein, director of the Brain Science Institute at Johns Hopkins University School of Medicine, said the results were disappointing but not surprising.


“We really, really need a new drug,'’ Dr. Rothstein, who was not involved in the phase 3 trial, said by e-mail. He said he thought the phase 2 results for dexpramipexole had been only “marginal,'’ so he was not surprised the latest trial did not succeed.


The reaction on Wall Street was somewhat muted because of the modest expectations for the trial to succeed. Biogen’s shares were down about 4 percent.


“We (and most of the Street) had characterized this trial as a high risk trial,'’ Mark Schoenebaum, an analyst at ISI Group, wrote in a research note Thursday.


Other companies are also developing drugs to treat A.L.S. Neuraltus Pharmaceuticals, a privately held company in Palo Alto, Calif., is preparing to enter the final stage of clinical trials for NP001.


The company announced in late October that its phase 2 trial, which involved 136 patients, failed to show a statistically significant benefit compared with a placebo. But the company said that 27 percent of patients getting the high dose of NP001 had no progression of their disease for six months, two and a half times as many as in the placebo group.


Cytokinetics, of South San Francisco, Calif., is in midstage testing of a compound, tirasemtiv, which might make muscles respond more forcefully to nerve signals.


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Enraged Chris Christie attacks Boehner, House GOP over Sandy aid

New Jersey Gov. Chris Christie delivered a spirited condemnation of Republican House leadership for its reluctance to vote on a relief bill for Hurricane Sandy.









WASHINGTON – Enraged over Congress' failure to approve disaster relief for victims of Superstorm Sandy, Gov. Chris Christie of New Jersey unloaded Wednesday on House Speaker John A. Boehner and Republican lawmakers in Washington for putting "palace intrigue" ahead of their official responsibilities.


Washington politicians "will say whatever they have to say to get through the day," Christie said, adding that, as a governor, he had "actual responsibilities" -- "unlike people in Congress."


Christie, a potential 2016 GOP presidential contender, reserved his most blistering words for the Republican House speaker.  He described Boehner, variously, as selfish, duplicitous and gutless for reversing course at the last minute on Tuesday night and refusing to allow a vote on a $60-billion aid package before the current Congress adjourned.








PHOTOS: Scenes from the fiscal cliff


Christie said that as a result of "the speaker’s irresponsible action," there will be further delay in federal disaster aid to New Jersey, New York, Connecticut and other areas hit by the October storm. He pointed out that it had been 66 days since the storm hit and that areas struck by other hurricanes in recent years had received relief packages in far less time. 


However, as outrage continued to pour in from elected officials in the affected area, Boehner agreed to hold a vote Friday to direct needed resources to the National Flood Insurance Program. And on Jan. 15, the first full legislative day of the 113th Congress, the House will consider the remaining supplemental request for the victims of Hurricane Sandy.


But that came after Christie dished out his cold outrage on members of his own party. 


"Shame on you. Shame on Congress," Christie said at a news conference in Trenton, the state capital. "It's absolutely disgraceful, and I have to tell you, this used to be something that was not political. Disaster relief was something you didn't play games with." But "in this current atmosphere, [it's] a potential piece of bait for the political game.  It is why the American people hate Congress."


At another point, he said of Republicans in Congress: "We've got people down there who use the citizens of this country like pawns on a chessboard."


PHOTOS: 2016 presidential possibilities


"My party was responsible for this," Christie said, charging "one set of Republicans was trying to prove something to another set," and that Boehner was trying to "prove something. I hope he accomplished it."


Christie, whose disaster-relief-themed efforts to reach across partisan lines to President Obama in the days leading up to the election angered many Republicans, said he did not think that was a factor in Boehner's decision. 


But the governor, who delivered the keynote address at last summer's Republican National Convention and has helped raise money in recent years for fellow members of the party, did not rule out retaliating against his enemies in Washington.


"We'll see. Primaries are an ugly thing," he said.


[For the Record, 1:46 p.m. PST  Jan. 2: This post has been updated to include the House's new plan to vote on Sandy aid.]


Follow Politics Now on Twitter and Facebook


paul.west@latimes.com


twitter.com/@paulwestdc





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Why the Zipcar-Avis Deal Means You'll Finally Be Able to Give Up Your Car



While Zipcar investors count their cash from today’s half-billion-dollar acquisition by Avis, the rest of us can start counting the days until we can say good riddance to one of the least rewarding aspects of city life: car ownership.


Zipcar said Tuesday that Avis had agreed to purchase the Cambridge, Mass.-based company for $12.25 per share, or about $500 million. The deal brings Avis the most prominent brand name in what Zipcar describes as the $400 million car-sharing market. The question is, will the added muscle of Avis be enough to take car-sharing mainstream?


Though Americans prize individual car ownership as a birthright, the reality is that owning a car in the big city can be more hassle than help. In cities, insurance costs more. Gas and parking tickets cost more. Traffic stinks. New Yorkers pay more for parking spaces than other people pay in rent. The too-short gaps between San Francisco driveways taunt visitors who want to park at all.


A dozen years ago, Zipcar launched in Boston with the idea that many urban dwellers could get by without owning a car. Instead, we could just rent a car by the hour every now and then when we needed it. In the meantime, Zipcar takes care of insurance, maintenance and all the other headaches that accompany ownership.


While that might sound ideal to those of us who like oil changes about as much as root canals, the promise so far hasn’t panned out.


San Francisco, for example, has dozens of Zipcar pickup locations, many with multiple vehicles. But it’s still not enough to make last-minute car booking easy. You need to plan ahead. And most of the cars are stationed downtown, not located around the city’s farther reaches, where driving is more of a necessity.


For many of us, achieving the dream of not owning a car would necessitate near guaranteed access when we did need one. Zipcar, or a service like it, would have to approximate the “magic rental store” described by Kevin Kelly in his essay “Better Than Owning”:


Why own, when you get the same utility from renting, leasing, licensing, sharing? But more importantly why even possess it? Why take charge of it at all if you have instant, constant, durable, full access to it? If you lived inside of the world’s largest rental store, why would you own anything? If you can borrow anything you needed without possessing it, you gain the same benefits with fewer disadvantages. If this was a magic rental store, where most of the gear was stored “downstairs” in a virtual basement, then whenever you summoned an item or service it would appear at your command.


Reaching this point requires a ubiquity that Zipcar’s 10,000-vehicle fleet, spread out across more than 150 cities worldwide, simply doesn’t provide. In its press release announcing the Avis deal, Zipcar says that its new parent company’s bigger fleet will give it more cars to meet demand and, in the company’s words, “accelerate the revolution we began in personal mobility.”


Maybe seeing its rival take such a leap will goad Enterprise and Hertz into bulking up their own tepid offerings in rent-by-the-hour car-sharing. And maybe services like RelayRides that let individuals rent out their own cars by the hour will start to take off. In that scenario, the number of cars available to drive without having to own them grows. The magic rental store becomes less magical and more real.


The only thing better for the car-averse like myself will be the day that a Google-powered car shows up at my door ready to whisk me away to fulfill some minor errand or even better, transport me to some major party. Not only do I not own it, but neither me — nor anyone else — ever has to drive it at all.


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From “Les Misérables” to “The Hobbit,” holiday movies are getting longer






LOS ANGELES (TheWrap.com) – Moviegoers rushing out to catch “Django Unchained” or “The Hobbit” over New Year’s should consider packing an overnight bag.


The average length of a holiday movie has been larded up by nearly 10 minutes since 2011, according to a survey of the running times of the top 10 box office films of the final weekend of the year. They ran well over two hours.






Moreover, the top 10 grossing holiday movies of 2012 were nearly 25 minutes longer than they were just two years ago.


Of the five top earners last weekend, only one film, the family flick “Parental Guidance,” clocks in at under two hours. In contrast, three of those movies, “Django Unchained,” “The Hobbit: An Unexpected Journey” and “Les Misérables,” eat up roughly 160 minutes of ticket-buyers’ time.


And that group doesn’t even take into account hits like “Skyfall” (143 minutes), “The Avengers” (143 minutes) and “The Dark Knight Rises” (165 minutes) or limited release films such as “Zero Dark Thirty” (160 minutes), all of which boast the kind of languorous pacing usually reserved for a David Lean epic.


The capacious running times are testing moviegoers’ patience, as well as bladders. In the Los Angeles Times Monday, Steven Zeitchik bemoaned the series of false endings in films like “Lincoln” and “Life of Pi.” He argued that several accomplished filmmakers are piling on the climaxes and prolonging the ending credits in a way that undermines the emotional impact of their word.


Hollywood films are struggling to find the exit,” Zeitchik wrote. “Stories that seem to end, end again, and then end once more. Climactic scenes wind down, then wind up. Movies that appear headed for a satisfying resolution turn away, then try to stumble back.”


Also crying out for a bloodier approach in the editing suite was Variety’s Josh Dickey. The swollen run times aren’t just artistically necessary, he noted – they actually damage a film’s box-office take.


“It turns out that a long runtime causes no positive or negative reaction during a film’s marketing period,” Dickey wrote. “And for really big event movies, viewers sometimes feel a longer movie gave them their money’s worth (call it the TGI Friday’s portion-size effect). But once a film gets playing, social response suggests long length can stall its word-of-mouth momentum, usually emerging as secondary complaint – but a persistent one.”


It’s certainly true that exhibitors favor shorter running times for films, because it allows them to cram in more showings on a given day. Despite Dickey’s fears, however, the expansive lengths of movies like “Lincoln” (145 minutes) and “Les Misérables” (157 minutes) haven’t scared off moviegoers.


Both movies will likely gross more than $ 100 million domestically.


Overall, the domestic box office is poised to shatter records with $ 10.8 billion in revenue. Attendance will also likely be up 6 percent by the time 2012 wraps up.


Admittedly, surveying the top 10 grossing films of a particular calendar weekend is a small sample size, but it does appear that audiences and critics are noticing that they are checking their watches more frequently as they follow Bilbo’s adventures in Middle-Earth or Jean Valjean’s travails.


It’s not clear, however, that this is a seasonal anomaly. A decade ago, films like “Gangs of New York” and “The Lord of the Rings: The Two Towers” similarly strained audience’s endurance. The average length of the top 10 films during 2002 was 126.6 minutes, just two minutes shorter than the average this year.


Movies News Headlines – Yahoo! News




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Employers Must Offer Family Health Care, Affordable or Not, Administration Says





WASHINGTON — In a long-awaited interpretation of the new health care law, the Obama administration said Monday that employers must offer health insurance to employees and their children, but will not be subject to any penalties if family coverage is unaffordable to workers.




The requirement for employers to provide health benefits to employees is a cornerstone of the new law, but the new rules proposed by the Internal Revenue Service said that employers’ obligation was to provide affordable insurance to cover their full-time employees. The rules offer no guarantee of affordable insurance for a worker’s children or spouse. To avoid a possible tax penalty, the government said, employers with 50 or more full-time employees must offer affordable coverage to those employees. But, it said, the meaning of “affordable” depends entirely on the cost of individual coverage for the employee, what the worker would pay for “self-only coverage.”


The new rules, to be published in the Federal Register, create a strong incentive for employers to put money into insurance for their employees rather than dependents. It is unclear whether the spouse and children of an employee will be able to obtain federal subsidies to help them buy coverage — separate from the employee — through insurance exchanges being established in every state. The administration explicitly reserved judgment on that question, which could affect millions of people in families with low and moderate incomes.


Many employers provide family coverage to full-time employees, but many do not. Family coverage is much more expensive, and the employee’s share of the premium is typically much larger.


In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. The employee’s share of the premium averaged $951 for individual coverage and more than four times as much, $4,316, for family coverage.


Starting in 2014, most Americans will be required to have health insurance. Low- and middle-income people can get tax credits to help pay their premiums, unless they have access to affordable coverage from an employer.


In its proposal, the Internal Revenue Service said, “Coverage for an employee under an employer-sponsored plan is affordable if the employee’s required contribution for self-only coverage does not exceed 9.5 percent of the employee’s household income.”


The rules, though labeled a proposal, are more significant than most proposed regulations. The Internal Revenue Service said employers could rely on them in making plans for 2014.


In writing the law, members of Congress often conjured up a picture of employees working year-round at full-time jobs. But in drafting the rules, the I.R.S. wrestled with the complex reality of part-time, seasonal and temporary workers.


In addition, the administration expressed concern that some employers might try to evade the new requirements by firing and rehiring employees, manipulating their work hours or using temporary staffing agencies. The rules include several provisions to prevent such abuse.


The law says an employer with 50 or more full-time employees may be subject to a tax penalty if it fails to offer coverage to “its full-time employees (and their dependents).”


Employers asked for guidance, and the Obama administration provided it, saying that a dependent is an employee’s child under the age of 26.


“Dependent does not include the spouse of an employee,” the proposed rules say.


Thus, employers must offer coverage to children of an employee, but do not have to make it affordable. And they do not have to offer coverage at all to the spouse of an employee.


The administration said that the rules — which apply to private businesses, nonprofit organizations and state and local government agencies — would require changes at many work sites.


“A number of employers currently offer coverage only to their employees, and not to dependents,” the I.R.S. said. “For these employers, expanding their health plans to add dependent coverage will require substantial revisions to their plans.”


In view of this challenge, the agency said it would grant a one-time reprieve to employers who fail to offer coverage to dependents of full-time employees, provided they take steps in 2014 to come into compliance. Under the rules, employers must offer coverage to employees in 2014 and must offer coverage to dependents as well, starting in 2015.


The new rules apply to employers that have at least 50 full-time employees or an equivalent combination of full-time and part-time employees. A full-time employee is a person employed on average at least 30 hours a week. And 100 half-time employees are considered equivalent to 50 full-time employees.


Thus, the government said, an employer will be subject to the new requirement if it has 40 full-time employees working 30 hours a week and 20 half-time employees working 15 hours a week.


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It's the Economy: What Will the Economy’s New ‘Normal’ Look Like in 2013?


Illustration by Jasper Rietman







Back in the mid-2000s, the U.S. consumer economy was undergoing a serious change. After decades of favoring low prices (even when they promised low quality), consumers began paying more for all sorts of premium features like single-serve packaging and pretty much anything “green” or “organic.” Then came the financial crisis and the drop in consumer demand.






Deep thoughts this week:

1. Consumption is back.

2. But many buying habits are changing.

3. Regardless, the habits of the U.S. middle class are becoming less important.





It’s the Economy




Adam Davidson translates often confusing and sometimes terrifying economic and financial news.







Despite a worse-than-expected holiday season, the Federal Reserve forecast that G.D.P. growth would approach the historic average of about 3 percent in 2013. The economy may be coming back, but the question for many businesses is what the new “normal” looks like. Will shoppers spend as they did in the credit-bubble years? Or has the Great Recession scared them into prolonged stinginess? Early evidence suggests a mix. What is clear is that the big changes are just beginning.


Waste More, Want More


From the 1970s through the 1990s, the dominant retail trend was toward cheap and big: shoppers drove long distances to buy large boxes of everything they needed in bulk. Starting in the last decade, though, this began to change. And the success of products like Tide Pods (premeasured balls of detergent that made Procter & Gamble an estimated $500 million last year) suggest that the era of premium conveniences isn’t going anywhere.


Somewhat counterintuitively, this trend is directly related to the downturn, says John N. Frank, an analyst at Mintel, a market-research firm. Fearful of losing their jobs, millions of workers coped with the crisis by putting in more time at the office — “doing at least two people’s jobs,” Frank says — even if it meant less time to shop for deals. Dollar General saw tremendous growth as a more convenient alternative to Sam’s Club. Duane Reade, now owned by Walgreen, is proving that no block in Manhattan should be without a drugstore that also carries basic grocery items at an upcharge. Frank says he expects that anxious, overtired workers will drive this trend well into this decade, too.


Housing Is Back


Now that at least one million households are looking to move somewhere better, investors are looking to buy houses on the cheap — not to flip, but to rent. (The Blackstone Group, the private-equity colossus, has spent more than $1 billion this year buying up thousands of single-family homes around the country.) New residential construction starts also came back strong last year, and much of the growth was from multiunit apartment buildings designed, yes, for renting.


Despite the fact that homeownership has been promoted as a universal economic good since the Depression, the trend toward rentals might be a good one. Renters are more able to follow the job market. Renting, as the housing bubble revealed, benefits the overall recovery, because fewer people have their money tied up in one asset.


Not Your Father’s Oldsmobile


In 2012, the average life of a car in the United States reached a historic high of 11.2 years. This was tied to the collapse of new-car sales during the recession, but it was also driven by several long-term shifts. After steady increases for decades, Americans are driving less. Total miles driven in the United States hit 3 trillion for the first time in 2006. It went up even further in 2007 but has generally fallen since.


For the first time in nine decades, according to census data, walkable cities are growing faster than suburbs. And wherever people happen to move, they are buying smaller, more fuel-efficient cars. Large- and some luxury-car segments are falling, says Tom Libby, an automotive research analyst at Polk, and the cheaper subcompact and emerging sub-subcompact classes are growing. All this means that autos — one of the biggest industries in the United States — will not soon regain the explosive growth of the early 2000s.


Debt and Taxes


In 2008, Americans owed a collective $12.7 trillion. Today, thanks in part to mortgage defaults, we are down to $11.3 trillion, which is about 95 percent of our disposable income. That’s progress, but it’s still higher than the 88 percent we owed 10 years ago.


Additional reporting by Jacob Goldstein


Adam Davidson is co-founder of NPR’s “Planet Money,” a podcast and blog.



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