France struggled to raise donations last year when Notre Dame was crumbling and in need of repairs. Now, after a devastating fire, hundreds of millions have been pledged to save the cathedral.
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Ever since fire ravaged the Notre Dame Cathedral two days ago, money has been pouring in to rebuild the Paris landmark. The donations already add up to more than a billion dollars. There was much less urgency and less generosity before the fire. Supporters of the cathedral struggled in recent months to raise money to make basic repairs to the crumbling eight-century-old structure. NPR’s Scott Horsley reports.
SCOTT HORSLEY, BYLINE: In the last 48 hours, friends of Notre Dame have been raising luxury suitcases full of money. The billionaire businessman behind Louis Vuitton pledged 200 million euros. The cosmetic moguls at L’Oreal did the same. With wealthy benefactors writing big checks like that, ordinary people might be expected to put their pocketbooks away, assuming the need’s already been met. But Lisa Vesterlund says in the case of Notre Dame, people have done just the opposite.
LISA VESTERLUND: If the owners of L’Oreal think that it’s important to give 200 million euros, then they’re saying this is a really important effort; we need to very quickly raise the money so that we can rebuild this amazing cathedral that we all love and enjoy.
HORSLEY: Vesterlund’s an economist at the University of Pittsburgh who studies charitable giving. She was intrigued by the big role philanthropy plays in the United States compared to her native Denmark where more is left up to the government.
VESTERLUND: Oftentimes we’re sort of puzzled by why people give. I actually find it more puzzling why we don’t give more because the need is so big.
HORSLEY: Researchers say some charitable giving is purely altruistic. But some delivers a personal reward, what economists have uncharacteristically labeled a warm glow. Would-be donors apparently weren’t feeling much of that glow before Monday, and fundraising for the cathedral lagged. But Bob Kissane, who heads a consulting firm called CCS Fundraising, says the fire changed all that, that many people now contributing to Notre Dame are getting an immediate sense of community, belonging and purpose.
BOB KISSANE: Isn’t it interesting how obvious it’s become that Notre Dame is so many different things? It’s a symbol of faith. It’s an architectural masterpiece. It’s a cultural place. It’s a tourist attraction. It’s so many things.
HORSLEY: Researchers also know people are more likely to give to charity when they’re asked.
ANYA SAMEK: News reports are the biggest type of ask. We see all over the news that Notre Dame Cathedral needs help, and then we give.
HORSLEY: Economist Anya Samek of USC says high-profile disasters often trigger an outpouring of contributions. In some cases, donations overwhelm the actual need while other less-camera-friendly charities go wanting.
SAMEK: We also see that after the news coverage has died down, disasters often still continue needing help. But yet people forget about it and are on to the next thing.
HORSLEY: One of the biggest challenges is raising money for mundane renovation projects like the one that was underway at Notre Dame. The budget for that project was only about a tenth of what’s been raised since Monday. But before the fire, funds were hard to come by. Some even suggested charging admission to the cathedral, an idea that was quickly rejected by French bishops.
Todd Stern, whose company U3 Advisors works with nonprofits, says while Notre Dame might be unique, there are countless aging churches and other buildings that play a vital role in their community and that need both physical and financial support.
TODD STERN: It’s not that you’re fixing the walls. It’s that you are preserving the sanctity of an institution that has a much higher purpose. And I think it’s really important to connect to that.
HORSLEY: The challenge is selling that message to would-be contributors before the fire starts. Scott Horsley, NPR News, Washington.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Tremaine Smalls attaches parts to an engine at Volvo’s plant in Ridgeville, S.C. The automaker has shifted its exports to Europe as the result of the U.S. trade war with China.
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Volvo is a Chinese-owned Swedish company making cars in the U.S. When it decided to set up a plant in South Carolina to build cars to ship around the world, it was following a long tradition.
With its port, Charleston, S.C., has been a shipping hub for centuries. And the state has been home to international manufacturers for decades — BMW, Michelin and Bosch are among the many global firms with footholds there.
But before the plant opened last year, President Trump transformed America’s approach to trade policy.
Trump’s trade war with China has stretched for more than a year, and trade tensions remain high with Europe as well. Tariffs on steel and aluminum are pinching auto suppliers in the U.S., who face higher costs for raw materials to make parts. Meanwhile, tariffs on imported parts can cut into the budgets of automakers, who rely on thousands of different components from around the world to build each vehicle.
Volvo, owned by the Chinese firm Geely, intended to export many cars from the plant near Charleston to China, but the tit-for-tat tariffs between Beijing and Washington threw a wrench into those finely tuned plans. U.S.-made Volvos aren’t being sent to China after all.
“It’s kind of a disappointment, but we’re going to work through it,” says Trey Yonce, a supervisor at the plant, as he watches line workers assemble cars. “It wasn’t what we wanted to hear.”
But as Yonce notes, Volvo is adapting, not cutting back.
Analysts compare imposing tariffs to squeezing on a balloon. Put pressure in one spot and the global economy will shift to work around it.
Volvo’s new $1.1 billion plant in Ridgeville employs 1,500 people and is currently running at a fraction of its capacity
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Volvo’s new $1.1 billion plant in Ridgeville, S.C., employs 1,500 people. It’s currently running at a fraction of its capacity, manufacturing the S60, a luxury sedan. But Volvo has certainly not stopped production because of tariffs. In fact, the company is still planning to add an SUV to the plant in the next few years.
And half the cars made in the facility are still being exported — just not to China. A batch recently went to Belgium, for distribution across Europe. In coming months, Volvo says, it will ship cars to countries in the Middle East, Africa, Oceania and the Asia Pacific region — excluding China, of course.
The plant was designed to be flexible, handling gas engines, hybrids and eventually electric vehicles on the same line. Volvo has had to be flexible about where it builds cars and for which markets, too.
“We need to be able to change our manufacturing capabilities very fast,” says Anders Gustafsson, Volvo Cars’ vice president for the Americas and the CEO of Volvo Car USA. “We are fast, but it’s not easy.”
But he takes the long view.
“To run a plant or run a company, it’s a long-term decision,” Gustafsson says. “So you lose and you win.”
Across the entire industry, automakers are stuck waiting to see how the trade conflicts will pan out, says labor and manufacturing expert Kristin Dziczek of the Center for Automotive Research.
“Essential investments are getting made,” she says. “Strategic investments are waiting to find out what the rules of the game [are] going to be.”
And it’s not just the car industry grappling with the unpredictable nature of these trade talks.
“I think that every industry has got some some skin in the game or some things that get messed up when trade becomes uncertain,” she says.
Jim Newsome, the CEO of the South Carolina Ports Authority, notes that his state depends heavily on global trade. “We ought to be trying to lower tariffs, not raise tariffs,” he says. “The global automotive industry could benefit from zero tariffs.”
Ah, April 15. The day most Americans come together as a nation and file their taxes. Maybe this year you used TurboTax? Or hired a tax preparer or some other service? Or you did them entirely by yourself the old-fashioned way?
One thing’s for sure – if Congress passes the so-called Taxpayer First Act, you won’t be able to file using free software via the Internal Revenue Service (IRS). The bipartisan bill would prevent the IRS from creating its own tax filing service.
Experts have long argued that the IRS has failed to make filing taxes as easy and cheap as it could be. In addition to a free system of online tax preparation and filing, the agency could provide people with pre-filled tax forms containing the salary data the agency already has, as ProPublica first reported on in 2013.
And tax policy is one of the main ways in which Americans directly interact with President Donald Trump’s policies.
That’s because one of President Trump’s signature pieces of legislation was the tax bill, passed on December 22, 2017.
While The Washington Post notes that this bill did not live up to the often-promised claim that your taxes would fit on a postcard, “the vast majority” of Americans did get a tax cut as a result of the law.
We also get into the nitty-gritty of filing. If you’re a person who needs to know about withholding or standard deductions or the six-month extension – fear not. We have experts on hand.
NPR’s Michel Martin speaks with Kim Masters, editor-at-large for The Hollywood Reporter, about the ongoing dispute between writers and agents.
MICHEL MARTIN, HOST:
And now we turn to Hollywood to check in on the dispute between writers and talent agents. After groups representing both parties failed to reach an employment agreement, the Writers Guild instructed members to cut ties with their agents. That group represents thousands of writers, and the dispute could stall production of scripted TV shows and movies. Here to tell us what this means is Kim Masters. She’s an editor at large at The Hollywood Reporter.
Kim Masters, welcome back. Thanks so much for joining us once again.
KIM MASTERS: My pleasure.
MARTIN: Can you just tell us as briefly as you can how we got to this point?
MASTERS: There has been a process called packaging that goes back more than 40 years. It’s become an institution in this industry. And packaging means – this is primarily a thing now with television writers – when an agency puts together elements of a show and sells it to a studio, the studio pays the agency a fee directly. And this has various effects that the writers are now completely fed up with. They argue that the agents who are getting paid by the studios have a conflict because their job is to represent the writer and not make deals for themselves with the studios.
And they say that this causes writers to be underpaid. Oftentimes, writers don’t even know that they’re part of a package. They say that if you’re developing a TV show, these fees that the studio is paying the agencies can cut the budget for your own TV show, diminishing your chances for success, because you can’t necessarily hire the actor you want or get the location you want.
MARTIN: I think people could see their point. For example, if you were in a real estate transaction, and if you hired somebody to represent you, to then find out that that person was actually the person selling the house, for example – you would experience that as a conflict. So what do the agents say about that? What has their position been about that?
MASTERS: Well, what the agents give up in this scenario of packaging is you normally would pay a 10 percent commission to your agent for getting you a job, and you don’t pay if the packaging fee is involved. So the agents are saying this helps lower-level writers because they can make more money. But the writers argue that this is more than offset by the potential conflicts that these agents have collecting fees from the studios.
And they point out and argue that their compensation has gone down in recent years overall. One of the writers said how he had walked through an art gallery at his agency. These agencies have all of this wealth and accoutrements and try to look very, very successful. But at this point, the writers are looking at all of those signs of success and saying, wasn’t some of that money supposed to be mine?
MARTIN: So the Writers Guild leadership wrote to members saying that they are about to enter unchartered waters. What are some of the repercussions of this that we might see? Recognizing I’m asking you to speculate here since – as by definition, it’s uncharted – what do you think might happen? What are people concerned about?
MASTERS: Well, guild members as of now are expected to fire their agents. It is pilot season, so the shows are staffing up right now. And what the writers are trying to do is figure out alternate means to communicate about what jobs are available and help people find jobs without involving agents.
MARTIN: Is there any entity or group working to resolve this?
MASTERS: Right now, we are looking at what seems like impasse. These are very divergent interests right now. The agents feel they must produce. They certainly don’t want to give up these very, very lucrative packaging fees. Sometimes they make more than the writers from TV shows created by the writers. So this is really kind of an existential struggle, and I’m not sure how I see the way out.
MARTIN: That’s Kim Masters, editor at large for The Hollywood Reporter.
Kim, thank you so much for joining us.
MASTERS: Oh, thank you for having me.
(SOUNDBITE OF THE VERVE’S “BITTER SWEET SYMPHONY”)
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Writers Guild of America West President David Goodman speaks in Los Angeles at the 2019 union award ceremony. The WGA instructed is writers to fire their agents on Friday.
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Thousands of Hollywood writers have been told by the Writers Guild of America to fire their agents — a drastic move that could impinge the production of new TV shows and films.
The abrupt directive on Friday followed a breakdown in negotiations over proposed changes to the agreement that has guided the basic business relationship between writers and agents for the past 43 years.
With talks stalled ahead of a midnight deadline, the WGA sent its 13,000 writers an email with instructions to notify their agents in writing that they cannot represent them until signing a new code of conduct.
“We know that, together, we are about to enter uncharted waters,” the message stated. “Life that deviates from the current system might be various degrees of disorienting. But it has become clear that a big change is necessary.”
It was a bold move for a group accustomed to writing its own scripts. “I guess the idea of taking on our agents is something people never thought we would do,” said David Goodman, the president of the Writers Guild of America West, in an interview with NPR.
“Studios and networks still need writers to do the work so until agents figure out that they need us more than we need them, we will carry this out,” said Goodman.
At the center of the conflict is a complaint among writers that their agents are not just drastically out-earning them, but preventing them from receiving better pay. The dispute threatens to hinder production at a time when the major broadcast networks are typically staffing up for their fall lineups. It could also lead to job losses in the industry.
“This whole fight is really about the fact that in a period of unprecedented profits and growth of our business … writers themselves are actually earning less,” said Goodman.
A main point of contention involves what are known as packaging fees, the money that agents get from a studio when they provide a roster of talent for a film or TV project. Traditionally, agents would earn a 10 percent commission for the work their clients receive from a studio. But with packaging fees, they are compensated by the studios directly. “They are not incentivized to increase the income of those writers,” Goodman said.
Writers are also protesting a shift in the business model in recent years at some of Hollywood’s largest talent agencies. Agents have increasingly entered the film and TV businesses as producers, and writers contend that such a dual-hat arrangement represents a conflict of interest.
Goodman said that in order to break the impasse, the industry needs to return “to the traditional agent-writer relationship” where an agent takes 10 percent of a writer’s income.
On Saturday, some writers posted images of the letters they had signed and sent to their agents, showing solidarity if not total support.
“I have an amazing agency that represents me,” screenwriter, actor and comedian Patton Oswalt said on Twitter. “But I have an even better guild which stands for me.”
“Dammit,” wrote David Simon, a Baltimore-based author and television writer best known for The Wire. “Just realized that the [agency agreement] midnight deadline is PST. So I have to stay up another three hours and one minute to send a pic of my naked a** to [the Creative Artists Agency].”
The Association of Talent Agents, which represents the agencies, has promised more transparency when agencies are involved in the production of a film or TV show. The association committed to reopening talks on the issue after two years if the Writers Guild determines that members aren’t benefiting.
The association also offered concessions leading up to Friday’s breakdown, including a chance to share 80 percent of “a percentage” of their profits when packaging fees for a television series are involved.
The guild said that based on the offer they received from agents, that “percentage” amounted to 0.8 percent of the money agents make from packaging fees.
ATA also said agencies would spend $6 million over six years to foster a more inclusive environment and insisted they “are, and always have been, on the side of the writer.”
In a statement, Karen Stuart, the executive director of the ATA, said Friday’s failure “was driven by the Guild’s predetermined course for chaos.” She said it would ultimately harm artists.
“The WGA is mandating a ‘Code of Conduct’ that will hurt all artists, delivering an especially painful blow to mid-level and emerging writers, while dictating how agencies of all sizes should function.”
Goodman said writers are already hurt. He called the proposal “a ridiculous offer given the fact that the writers are the reason that any television show succeeds.”
Until the impasse is solved, members of the guild have told writers they could turn to managers or lawyers to handle their business affairs.
Lawyers for the ATA threatened to sue the guild, contending that the union was violating California and New York licensing laws. As part of its argument, it said in a letter that the union “cannot ‘delegate’ authority it does not have.”
Friday’s breakdown in negotiations marked just the latest chapter in the Writers Guild’s longstanding aversion to packaging fees. Goodman said the union sought reforms as far back as the 1970s.
“People are saying this is an unprecedented move, but it isn’t in the sense that 43 years ago we tried to get rid of packaging and we failed and now it’s gotten much worse,” Goodman said.
Top government leaders told NPR that federal agencies are years behind where they could have been if Chinese cybertheft had been openly addressed earlier.
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Technology theft and other unfair business practices originating from China are costing the American economy more than $57 billion a year, White House officials believe, and they expect that figure to grow.
Yet an investigation by NPR and the PBS television show Frontline into why three successive administrations failed to stop cyberhacking from China found an unlikely obstacle for the government — the victims themselves.
This story is part of a joint investigation with the PBS series Frontline, which includes an upcoming documentary, Trump’s Trade War, scheduled to air May 7, 2019, on PBS.
In dozens of interviews with U.S. government and business representatives, officials involved in commerce with China said hacking and theft were an open secret for almost two decades, allowed to quietly continue because U.S. companies had too much money at stake to make waves.
Wendy Cutler, who was a veteran negotiator at the Office of the U.S. Trade Representative, says it wasn’t just that U.S. businesses were hesitant to come forward in specific cases. She says businesses didn’t want the trade office to take “any strong action.”
“We are not as effective if we don’t have the U.S. business community supporting us,” she says. “Looking back on it, in retrospect, I think we probably should have been more active and more responsive. We kind of lost the big picture of what was really happening.”
None of the dozens of companies or organizations that NPR reached out to that have been victims of theft or corporate espionage originating from China would go on the record.
And for its part, the Chinese government officially denied to NPR and Frontline that it has been involved in such practices.
Wendy Cutler, a former diplomat and negotiator at the Office of the U.S. Trade Representative, delivers a 2015 speech at the Asia Society in Hong Kong. Cutler told NPR that U.S. businesses wouldn’t let the trade office take direct action on their behalf in Chinese cybertheft cases.
Bruce Yan/South China Morning Post via Getty Images
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Bruce Yan/South China Morning Post via Getty Images
But that’s not what former U.S. Attorney David Hickton found. When he took over in the Western District of Pennsylvania in 2010, he says, he was inundated with calls from companies saying they suspected China might be inside their computer systems.
“I literally received an avalanche of concern and complaints from companies and organizations who said, ‘We are losing our technology — drip, drip, drip,’ ” he says.
Hickton opened an investigation and quickly set his sights on a special unit of the Chinese military — a secretive group known as Unit 61398. Investigators were able to watch as the unit’s officers, sitting in an office building in Shanghai, broke into the computer systems of American companies at night, stopped for an hour break at China’s lunchtime and then continued in the Chinese afternoon.
“They were really using a large rake — think of a rake [like] you rake leaves in the fall,” he says. “They were taking everything … personal information, strategic plans, organizational charts. Then they just figured out later how they were going to use it.”
But when Hickton went to the companies, eager for them to become plaintiffs, he ran into a problem. None of the companies wanted any part of it. Hickton says they had too much money on the line in China.
“What we were tone-deaf to is [that] we seemed to think we could just walk in and wave the flag of the USA,” Hickton says, “and it just didn’t work.”
Even today, five years later, Hickton still won’t name most of the companies involved — and they have never come forward.
Eventually he was able to convince five largely local companies and the steelworkers union to come forward, mostly, he says, because he grew up in Pittsburgh and went to school with a lot of the managers.
David Hickton, former U.S. Attorney for the Western District of Pennsylvania, speaks during a 2014 announcement of indictments against Chinese military hackers, with former Attorney General Eric Holder and former Assistant Attorney General for National Security John Carlin.
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“I knew these people,” Hickton says. “They trusted me. … We couldn’t ask them to be patriotic at the expense of engendering a shareholder case.”
But, he says, he could have included hundreds — or even thousands — more.
“We’ve made a terrible mistake by being so secretive about our cyberwork,” he says. “We have not fairly told the people we represent what the threats are.”
Government and business leaders interviewed by NPR and Frontline said individual companies were making millions of dollars in China over the past decade and a half and didn’t want to hurt short-term profits by coming forward. They demanded secrecy, even in the face of outright theft.
But now the impact of that secrecy is coming to light, they say. Companies are facing hundreds of millions of dollars in future losses from the theft, and U.S. officials say they are years behind trying to tackle the problem.
Michael Wessel, commissioner on the U.S. government’s U.S.-China Economic and Security Review Commission, says it wasn’t supposed to be this way. U.S. officials had high hopes when China officially joined the World Trade Organization in 2001.
“There was a honeymoon period in the first six or seven years, a desire to try [to] make things work,” Wessel says.
But, he says, starting around 2006, businesses began coming to him saying that China had stolen their designs or ideas or had pressured them into partnerships and taken their technology.
Just like with Hickton, Wessel says, they wouldn’t come forward publicly.
“The business community wanted the administration to come in hard without anyone’s fingerprints being on the reasoning behind it,” he says. “They wanted the profits, but they also didn’t want the possible retribution.”
Wessel says that was never going to work. While nothing in the original trade agreements specifically mentions cybertheft, the U.S. could have brought criminal cases forward, enacted sanctions or opened investigations under rules set up by the World Trade Organization — if a company would let it.
Court cases and documents from recent years offer a clue into what experts believe has really been going on. The Chinese government has been accused of stealing everything from vacuum cleaner designs to solar panel technology to the blueprints of Boeing’s C-17 aircraft.
Hackers from China, often with ties to the government, have been accused of breaking into gas companies, steel companies and chemical companies. Not long ago, Chinese government companies were indicted for stealing the secret chemical makeup of the color white from DuPont. China developed its J-20 fighter plane, a plane similar to Lockheed Martin’s F-22 Raptor, shortly after a Chinese national was indicted for stealing technical data from Lockheed Martin, including the plans for the Raptor.
Chinese hacking made occasional headlines, but none really grabbed Americans’ attention. There was one exception.
In 2010, Google went public in announcing that it had been hacked by the Chinese government. Thirty-four other American companies that were also part of the hack stayed silent. Most have kept it a secret to this day.
A man places flowers outside Google’s Chinese headquarters in Beijing, on Jan. 15, 2010. The tech giant’s accusation that year that it had been hacked by China cast light on a problem few companies discuss: the pervasive threat from China-based cybertheft.
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NPR tracked down 11 of the total 35 companies. All of them either did not respond to NPR’s request or declined to comment.
A former top Google official who was closely involved in managing the hack told NPR that Google was “infuriated” that no other company would come forward, leaving Google to challenge China alone.
“[We] wanted to out all of the companies by name,” said the official, who spoke on the condition their name not be used because they did not have permission from Google to speak about the incident. “One of the companies we called, said ‘Oh, yeah, we’ve been tracking this for months.’ It was unbelievable. The legal department talked us out of it.”
“We felt like we stood up and did the right thing,” the former official said. “It felt like Helm’s Deep, the battle from The Lord of the Rings in which you’re impossibly surrounded and severely outnumbered.”
James McGregor, a former chairman of the American Chamber of Commerce in China, who was there at the time, says the companies kept even business organizations like his from speaking out.
“What they should have done is held a press conference and say, ‘We 35 businesses have been hacked,’ and you would have put it right back on China,” says McGregor. “Instead, they just all hid under a rock and pretended it didn’t happen.”
McGregor says their silence left little room for punishment, and worse, he says, it hid the extent of the problem.
Across the ocean, cybersleuth Dmitri Alperovitch was sitting at his desk at a security company in Atlanta when Google called looking for backup. He says when he took a look, he was stunned.
“I knew pretty much right away this is something very different,” says Alperovitch, who is co-founder of the cybersecurity firm CrowdStrike. “For the first time we were facing a nation-state and intelligence service that was breaking into companies — not governments, not militaries, but private sector organizations.”
But, he says, U.S. government officials were nowhere to be seen.
“They did not even publicly concur with the attributions that Google had made at the time,” he says.
Dmitri Alperovitch, co-founder of the cybersecurity firm CrowdStrike, speaks during the Milken Institute Global Conference in California on May 1, 2017. Alperovitch said he was stunned after Google announced it was hacked by China.
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Patrick T. Fallon/Bloomberg via Getty Images
Obama administration officials say they did not turn a blind eye to the Google hack or cybertheft from China.
The administration was struggling with other important priorities, such as North Korea, Iran, the economy and climate change, says Evan Medeiros, Obama’s top China specialist and then a staffer at the National Security Council.
“Direct confrontation with China does not usually result in lasting solutions,” Medeiros says, noting that President Obama secured an agreement with Chinese President Xi Jinping to halt the attacks and put together a regional trade agreement — the Trans-Pacific Partnership — to add pressure.
But neither measure lasted.
“Hindsight is always 20/20,” he says. “I wish that we had spent more time … finding creative ways to punish them for creating a nonlevel playing field.”
Without those punishments, the attacks continued.
In the year after the Google hack, Alperovitch uncovered two more serious intrusions that, he says, involved thousands of American companies.
In the fall of 2011, he went to the White House to warn officials about what he had found. He sat down in the Situation Room with a half-dozen top administration leaders.
“The most surprising thing to me was the lack of surprise,” Alperovitch says. “I got the distinct impression that none of this was news. When I pressed them on why they were not taking stronger action against China, their response was, ‘We have a multifaceted relationship with China.’ ”
Chinese President Xi Jinping shakes hands with U.S. President Barack Obama following a news conference in Washington, D.C., on Sept. 25, 2015. During the visit, the two leaders announced an agreement to halt cyberattacks.
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Pete Marovich/Bloomberg via Getty Images
Alperovitch says White House officials told him that some of the same companies that were being victimized by China also wanted to continue doing business in China.
“They didn’t want to take any action that would jeopardize that billions of dollars of trade we were doing at the time,” he says.
Ask McGregor, the American business representative, how companies can complain about China’s behavior to the U.S. government while simultaneously preventing the government from taking strong action, and his answer is blunt.
“Companies were afraid of China,” he says. “American business companies’ incentives are to make money.”
McGregor today advises dozens of American companies in China, and he says they are confronting a new reality. China is no longer an up-and-comer — it’s a true competitor and quickly closing in on America’s high-tech sector. McGregor says company leaders are beginning to ask whether years of theft and hacking have given China an edge that the United States will no longer be able to stay in front of.
And U.S. government officials are asking whether federal agencies will be able to catch up on enforcement.
Top government leaders told NPR that federal agencies are years behind where they could have been if the theft had been openly addressed.
Even at the Defense Department, as late as 2014, cybertheft from China was not one of the Pentagon’s top priorities.
“Our intelligence agencies were looking at the Middle East, at the Russians,” says Air Force Brig. Gen. Robert Spalding, a China expert who worked for the Joint Chiefs of Staff and the National Security Council.
He says he had never given the issue of Chinese cybertheft much thought. But then, in the fall of 2014, he loaded a confidential briefing into his computer. It was case after case in which the Chinese government had stolen the product designs from almost a dozen high-tech American companies, in a couple of cases almost putting them out of business.
“It immediately changed my conception, my view of the world,” he says. “I realized I did not know how the world worked.”
U.S. President Donald Trump and Chinese President Xi Jinping leave an event in Beijing on November 9, 2017. The Trump administration, and the Obama administration before that, have brought concerns regarding cybertheft to the Chinese directly.
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Nicolas Asfouri/AFP/Getty Images
Spalding says he made it his mission to get the word out to other government agencies. But even in 2015, he says, he was met mostly with a shrug.
He says he went to the departments of Commerce and the Treasury, as well as the U.S. Trade Representative and the U.S. State Department.
“The two responses we got were, ‘Oh my gosh, this is really, really bad.’ And the second one is, ‘That’s not my job,'” Spalding says. “That was almost the universal answer we got every time we went to a senior leader. Bad problem but not my problem.”
Spalding, who retired from the Air Force last year, says in the final years under Obama and now under President Trump, agencies are finally starting to take some action. The Justice Department is bringing criminal cases, the trade representative’s office is investigating China’s dealings and both administrations have brought concerns to the Chinese directly.
But, Spalding says, it may have come 10 years too late.
“We all missed it,” he says. “We have to understand the problem and get to work on it.”
The hazelnut business is in a bind. Demand is rising, supply is tight, and a deadly fungal disease is constraining production. But one man may have found a solution.
AILSA CHANG, HOST:
Demand for hazelnuts is on the rise globally. That’s due in no small part to the popularity of products like Nutella. But the U.S. has remained a relatively small player in the global hazelnut industry. Darius Rafieyan and Stacey Vanek Smith of the podcast The Indicator From Planet Money brings us this story of one man’s decades-long quest to change that.
DARIUS RAFIEYAN, BYLINE: I first met biologist Tom Molnar in his office at the Rutgers University Ornamental Field Lab. He was surrounded by these big plastic bins just filled with thousands upon thousands of hazelnuts.
TOM MOLNAR: For example, here’s one that has ridges and lumps. And to me, that’s kind of an ugly looking hazelnut.
STACEY VANEK SMITH, BYLINE: Hazelnuts have a problem. More than 70 percent of the world’s hazelnuts come from one place – come from Turkey. And that, of course, leaves Nutella lovers everywhere very vulnerable.
RAFIEYAN: The United States does have a small hazelnut industry in Oregon, but that doesn’t come close to meeting global demand. The East Coast would be perfect for growing these trees, but there’s one big problem.
MOLNAR: We would have had a hazelnut industry in the northeast if it wasn’t for Eastern filbert blight.
RAFIEYAN: Eastern filbert blight – it’s a fungal disease. It’s native to North America. And it grows beneath the bark of hazelnut trees.
MOLNAR: So as we look down in here, you’ll see that there’s little pustules. So those are like little mushrooms. Those are the fruiting bodies, where the spores will actually be ejected from and spread to other trees.
RAFIEYAN: This fungus has been Tom’s sworn nemesis for 23 years.
VANEK SMITH: Hazelnuts are this kind of miracle crop. They can grow without irrigation, without chemical fertilizers or pesticides. The only problem they needed to solve was Eastern filbert blight.
RAFIEYAN: And so Tom figured that somewhere out there the gene for disease resistance that he needed was hiding. So he set out to find that gene. For seven years, Tom traveled all over the native hazelnut range collecting specimens. And this was not your typical horticultural fieldwork. Once, while crossing into Ukraine with 80 pounds of nuts in his suitcase, he even got shaken down by the local police.
MOLNAR: They start screaming at me. They have guns. And this is silly, but at the same time, I had a suitcase full of all the nuts that I so desperately did not want to lose.
RAFIEYAN: But you were more worried about the nuts than the money.
MOLNAR: I was very nervous about the nuts. Those were my babies.
RAFIEYAN: After years of collecting all this genetic material, he came back to New Jersey, and he got to work breeding.
VANEK SMITH: Eventually, after years of failures, Tom did it. He created a tree strong enough to resist the blight.
RAFIEYAN: Does he have a name?
MOLNAR: Seven twenty-five (laughter). This is H3RZP25. So we call him 725.
VANEK SMITH: Tom sees this as the start of a whole new industry on the East Coast.
RAFIEYAN: If it takes off, that could make Tom a very, very rich man. But, you know, he says he didn’t spend 20 years of his life sifting through hazelnuts just for the money.
MOLNAR: Ever since I was young, I wanted to do something that had a positive impact beyond just my individual life. And I think that’s what drew me to tree breeding. Plants can sort of live on forever. So if you select the right variety, that could be around way after you’re gone. But maybe your grandchildren can grow that in your yard and think about that, you know, their grandfather actually selected that plant.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Host Ailsa Chang speaks to NPR’s David Folkenflik about the news that American Media intends to sell its tabloids, including National Enquirer.
AILSA CHANG, HOST:
This evening, the parent company of the National Enquirer announced its intention to sell the tabloid and several of its sister tabloids. This comes after a series of scandals and controversies that involved the Enquirer’s ties to President Trump. NPR media correspondent David Folkenflik joins me now. Welcome.
DAVID FOLKENFLIK, BYLINE: Hey, Ailsa.
CHANG: Hey. So what’s the company saying about why they’re interested in selling all of a sudden? Are they in financial trouble?
FOLKENFLIK: Well, if you believe the official line, they say they’re exploring and intend to sell the Enquirer, a couple of the sister tabloids because they want to focus on some of their more upscale lifestyle magazines. In the last year and a half or so, they acquired US Weekly and Men’s Journal from Jann Wenner’s media outfit. There is a financial cloud hovering over AMI, American Media Inc, the parent company of the National Enquirer. It declared bankruptcy in 2010. It’s got a lot of debt. But it’s impossible to think about this intended sale without thinking about all the scandals and controversies that have just wrapped themselves around this publication.
CHANG: Yeah. Can you take a moment to walk us through some of those controversies?
FOLKENFLIK: Yeah. And they’re pretty intense. Think back to what we learned over recent months from federal investigators about the Enquirer’s role in the 2016 campaign of Donald Trump. You know, if you looked on the covers, you saw all these stories damaging Hillary Clinton badly, helping Trump, portraying him in tight light. What we didn’t know during the campaign was that they had engaged by their own concession in an effort to pay a former Playboy model $150,000. She had said that she had had a significant romantic involvement with President Trump, and they did what they called catch and kill. They promised her a contract to print a column by her in Men’s Journal. But actually it was an effort to keep her story of her involvement with President Trump out of the public, particularly before the election. And that was a big one. The editor and the CEO, David Pecker, collaborated with federal prosecutors in order to avoid prosecution themselves for crimes.
CHANG: And then most recently the Enquirer tangled with Jeff Bezos, who owns both Amazon and The Washington Post.
FOLKENFLIK: That’s right. He’s the controlling owner and one of the richest people on the globe. He is the personal owner of The Washington Post. And that’s an important element. The National Enquirer had been intently going over his personal life intending to reveal elements of his extramarital involvement with his girlfriend. And he took to Medium and posted a long thing saying that actually National Enquirer was trying to blackmail him into making a statement saying that they weren’t acting in any way out of political motivation and that he felt that they were.
And his people have suggested – he suggested that in fact they were acting on behest of Saudi Arabian interests, an interesting note to strike in part because it appeared as though there was some possible financial involvement of some Saudi investors in American media even if that didn’t fully play out. So one of the elements of this of course is Jeff Bezos’ Washington Post is one of the chief media antagonists of President Trump.
CHANG: Right.
FOLKENFLIK: It’s really attacked the Post for its reporting. And so there seems to be that element at play there as well. The Washington Post is reporting that the hedge fund manager who essentially controls the parent company got fed up with all the scandal after the Jeff Bezos story.
CHANG: So what’s next? Are there any potential buyers circling the Enquirer already?
FOLKENFLIK: Well, you know, it’s an incredible brand. It’s survived a lot of controversies in the past. In order to talk to you this evening, I ducked out of a Broadway show about Rupert Murdoch and The Sun, a British tabloid. It’s had a lot of controversies in the past. It survived. I’d be surprised if the Enquirer didn’t live to see another day.
CHANG: That’s NPR’s media correspondent David Folkenflik. Thanks, David.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Federal prosecutors late Tuesday charged British drug maker Indivior with felony fraud and conspiracy for its marketing of opioid products including Suboxone. The company allegedly created a “nationwide scheme” in the U.S. designed to convince doctors and government insurance providers their patented opioid medications are safer and less prone to abuse than cheaper generic alternatives.
“The indictment alleges that, rather than marketing its opioid-addiction drug responsibly, Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse,” said Assistant Attorney General Jody Hunt in a statement.
Federal prosecutors claim Indivior bilked Medicare, Medicaid and other health care providers out of billions of dollars as they paid for a more expensive version of the drug, believing it to be safer. The criminal charges, filed in the western district of Virginia, stem from a joint investigation that included the U.S. Food and Drug Administration, Virginia’s state attorney general office, and other agencies.
The company issued a statement denying any wrongdoing. “Key allegations made by the Justice Department are contradicted by the government’s own scientific agencies,” Indivior said on Tuesday, adding that the firm “will contest this case vigorously and we look forward to the full facts coming out in court.”
At the heart of the 28-count indictment is Indivior’s effort, beginning in 2007, to popularize a new method of delivering its Suboxone medication, which is used to treat patients suffering from opioid dependency. With a cheaper generic tablet form of the drug expected to go on sale, the company developed a dissolvable film that could be placed under the tongue, describing the new delivery system as “less abusable” with a “lower risk.”
Prosecutors now say the company knew the dissolvable film version of Suboxone was potentially more dangerous, more susceptible to abuse, and included a higher risk that children might be exposed to the drug. The firm also developed a program that allegedly connected opioid-dependent patients with doctors who prescribed Suboxone “in high doses and in suspect circumstances.”
Federal prosecutors say if Indivior is found guilty, the company should forfeit at least $3 billion in penalties. In its response, Indivior said the company acted responsibly and has played a crucial role responding the deadly opioid epidemic. The firm also says it tried to negotiate a settlement before the charges were filed.
“We are extremely disappointed in this action by the Justice Department, which is wholly unsupported by either the facts or the law,” Indivior’s statement said.
This indictment marks an escalation in what has already emerged as a dangerous year for major drugmakers and distributors entangled in the opioid crisis. According to the U.S. Centers for Disease Control and Prevention, prescription opioid overdoses have killed more than 200,000 Americans over the last 20 years.
Companies including Purdue Pharma, Johnson & Johnson and CVS face a wave of civil lawsuits in state courts around the country. They stem from claims that Big Pharma accelerated the opioid crisis by aggressively marketing prescription painkillers and other opioid medications. The next major trial is set to begin next month in Oklahoma.
Federal prosecutors have successfully pursued criminal charges against opioid manufacturers in the past. In 2007, Purdue Pharma and three of its executives pleaded guilty and paid more than $600 million in fines and other charges after the company falsely claimed its Oxycontin medication was less addictive than other opioid painkillers.
A pile of newly minted one-dollar coins honoring former Thomas Jefferson are seen at the unveiling by the U.S. Mint in Washington, D.C., in 2007. In a turnaround, congressional analysts are no longer recommending a phaseout of paper dollars in favor a dollar coin.
Jim Young/Reuters
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Jim Young/Reuters
Who says a dollar doesn’t go as far as it used to?
When it comes to dollar bills, a new report from the federal government says they’re lasting more than twice as long as they were at the beginning of the decade.
And that’s upending an old argument about replacing the dollar bill with a $1 coin.
Analysts have long argued the federal government could save money by making the switch because even though coins cost more to mint, they last much longer than paper money. In 2011, the Government Accountability Office estimated the savings at $5.5 billion over 30 years.
But a second look from the GAO flips that coin argument on its head. Analysts now say the government would lose between $611 million and $2.6 billion over 30 years by phasing out the dollar bill. The economics have shifted because dollar bills are lasting longer.
“When we last looked at this issue in 2011, the paper dollar was only lasting a little bit over three years,” said John Shumann, an assistant director at the GAO. “When we looked at this issue again this year, we found that the paper dollar is now lasting almost eight years long.”
Shumann said that’s partly because of changes in the way the Federal Reserve processes dollar bills. But it’s also a sign that in an increasingly cashless world, paper dollars aren’t getting around like they used to.
“They’re often showing less signs of wear and tear,” Shumann said.
As part of its research, the GAO surveyed lots of industries that might have a stake in the paper-versus-coin contest, and found most are not eagerly embracing the switch to $1 coins.
Even the Coin Laundry Association.
“You know, it’s right in our name,” said CEO Brian Wallace, whose group represents some 30,000 self-service laundries around the country.
Despite the name, only a handful of those businesses currently accept $1 coins. Meanwhile, alternative payment options have proliferated.
“You could still pay with a quarter,” Wallace said. “But you could also pay with a credit card or add value to a card. Or taking the Starbucks approach of just waving the phone at the washer and it starts.”
Other businesses long associated with coins have also moved on.
“Once upon a time, toll roads, along with transit systems and the post office itself were the largest coinage handlers in the country,” said Neil Gray, director of government affairs for the International Bridge, Tunnel and Turnpike Association.
Not anymore. Fewer than one in five toll-road users pay cash today.
“To the extent possible, we’ve had entire toll road systems eliminate cash completely,” Gray said.
Even slot machines have largely done away with coin slots.
(One exception is the gumball machine industry, which told the GAO it could offer higher-quality gum and toys if more people carried $1 coins.)
The new GAO report may discourage congressional efforts to phase out the dollar bill. In any case, $1 coins have proven stubbornly unpopular with the public. That’s why the Fed has more than a billion of the coins sitting unused, in storage.