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Ex-Massey Energy CEO Completes 1-Year Federal Criminal Sentence

Former Massey Energy CEO Don Blankenship, left, walks out of the Robert C. Byrd U.S. Courthouse on Nov. 24, 2015, after the jury deliberated for a fifth full day in his trial in Charleston, W.Va.

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Former Massey Energy CEO Don Blankenship, 67, was convicted in 2015 on a misdemeanor count of conspiring to violate federal mine-safety laws at Massey’s Upper Big Branch Mine in southern West Virginia.

In 2010, 29 workers died there in the deadliest U.S. mine explosion in decades.

NPR’s Howard Berkes reports for our Newscast unit that Blankenship has resumed criticizing his prosecution.

“After a year in federal prison and a halfway house, former Massey Energy CEO Don Blankenship immediately let loose on Twitter, condemning federal mine safety regulators, members of Congress and federal prosecutors.

“He raised again his own theories about the Upper Big Branch mine explosion, blaming federal regulators and nature. Those theories were discredited by four investigations.

“Blankenship was convicted of conspiring to violate mine safety laws.

“His release prompted Democrat Bobby Scott, the ranking member of the House Workforce Committee, to again urge passage of a languishing mine safety bill, which would make violations felonies with more serious jail time.”

Blankenship was acquitted of securities-related felony charges which would have carried a longer sentence.

Blankenship must still serve one year of supervised release.

The Wall Street Journal reports:

“Mr. Blankenship provided a window into his incarceration, saying it was tough but in many ways easier to endure than his impoverished upbringing in West Virginia, where he didn’t have indoor plumbing. He said he spent 10 months at the Taft Correctional Institution outside Bakersfield, Calif., followed by a month at a halfway house in Las Vegas and then one month of home confinement.

“At Taft, he said he had to return to his room several times a day to be counted and couldn’t choose what to watch on TV, and the lights went out at 10 p.m. He could have visitors four days a month.

” ‘Not being able to go anywhere off a 4-acre site is not pleasant, no matter what the conditions,’ he said. ‘It was not horrible.’ “

Former Upper Big Branch miner Tommy Davis, who lost a son, brother and a nephew in the explosion, told The Associated Press that Blankenship should still be in prison.

“He didn’t get what he deserved,” Davis said.

The company that now owns Massey Energy announced in 2012 that the mine would be permanently sealed.

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Havana Now Has A Luxury Mall. But Who Can Afford To Shop There?

A Cuban girl takes a selfie in front of a window of a luxury store at the Manzana de Gomez Kempinski five-star hotel in Havana on Monday. The Manzana de Gomez Kempinski bills itself as Cuba’s first real five-star hotel, and the brand-name shops around it appear designed to reinforce that.

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Ramon Espinosa/AP

Cuba is not an easy place to buy things. Food is rationed, wages are low, and the black market is a way of life.

But now, Cubans can buy shirts with those little alligators on them at Lacoste. Or at L’Occitane en Provence, face cream for $162.40 an ounce. Or watches in the $10,000s.

Cuba’s first luxury mall, Manzana de Gomez, opened up a few weeks ago. And while those items are for sale, the prices are in a different sphere from what most Cubans can afford.

Indeed, the stores’ envisioned clientele seems to be tourists from abroad, rather than locals, and the new mall puts their differing means in high relief.

“A few blocks away, working-class Cubans live in decaying apartments on streets clogged by uncollected trash,” reports the AP:

“This hurts because I can’t buy anything,” said Rodolfo Hernandez Torres, a 71-year-old retired electrical mechanic who lives on a salary of $12.50 a month. “There are people who can come here to buy things but it’s maybe one in 10. Most of the country doesn’t have the money.”

Gaviota, the Cuban military’s tourism company, is the dealmaker behind the mall — and above it, the country’s first five-star hotel, opening in June. European luxury hotel brand Kempinski will operate the hotel, in a management deal with Gaviota. (American companies aren’t allowed to build in Cuba.)

“Gaviota is among the state-run companies under the umbrella of GAESA, a sprawling conglomerate run by the Cuban military,” the Miami Heraldexplained in February. “As a Cuban tourism enterprise, Gaviota’s portfolio includes 64 hotels and villas with more than 27,000 rooms in the 3, 4 and 5 star categories, marinas, a tour company and Transgaviota, a transportation services company.”

Cuba’s first luxury mall is in Old Havana’s Manzana de Gómez building, built between 1894 and 1917 as the country’s first European-style shopping arcade.

Kempinski Hotels

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Kempinski Hotels

Despite the company’s state ownership, a press release about the forthcoming hotel doesn’t sound like a socialist tract.

“With its impeccable 120-year history, European-style luxury and extraordinary quality, Europe’s oldest luxury hotel group Kempinski is a perfect fit with the Manzana de Gómez,” says Carlos M. Latuff, executive president of Grupo de Turismo Gaviota, according to the statement. “Constructed at the beginning of the 20th century, as Cuba’s first European-style shopping arcade, it is an iconic building in an important historical area. Together with Kempinski we will make this jewel the city’s leading luxury hotel.”

Last summer, well before the luxury watches and face creams were for sale, the project’s construction brought its own controversy. In July, Reuters reported that Bouygues, the French construction group building the hotel, had hired 100 Indian laborers to work on the project, “breaking a taboo in the Communist-run country on hiring foreign labor.” The wire service reported that it was the first time a firm had hired foreign workers en masse, seemingly to finish the hotel faster in order to meet increased tourism demands:

“[F]oreign firms are required to partner with state-run construction companies that have strict limits on how much they can pay Cubans. They can pay foreign workers more, however.

‘The Cuban workers are not paid well so there is little motivation,’ a western diplomat familiar with the pay differential said, requesting anonymity due to diplomatic protocol. ‘The Indian workers are being paid around 1,500 Euros a month, more than 10 times what their Cuban counterparts receive.’ “

The Cuban government bars foreign firms from hiring local workers directly, the Heraldexplained in August, and instead forces them to hire through state labor agencies. The newspaper says that Cubans hired for construction work through a labor agency receive $25 to $30 a month.

As Cuba tries to grow its tourism industry, the AP reports that it’s “under pressure to change its state-run hotels’ reputation for charging exorbitant prices for rooms and food far below international standards.”

Airlines jockeyed for routes from the U.S. to Havana after President Obama began opening up relations with the country in December 2014. But as Bloomberg reported in February, U.S. demand hasn’t been as strong as many expected, and some airlines have started cutting flights.

In Old Havana, Cubans have been exploring the new mall, taking photos amidst goods that would perhaps take a lifetime to buy.

Just 90 miles away in America, nine U.S. retail chains have filed for Chapter 11 bankruptcy this year, in a country with 23 square feet of shopping center space for each person, the highest of anywhere in the world.

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Austrian Court Rules Facebook Must Delete Hate Speech

An Austrian court ruled on Friday that the “hate postings” against an Austrian politician must be deleted from Facebook worldwide. The case concerns posts insulting Eva Glawischnig, the leader of the Austrian Green party. Above, a poster featuring Glawischnig before legislative elections in September 2013.

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In a decision that could have global consequences, an Austrian court ruled on Friday that Facebook must delete postings deemed to be hate speech.

“[T]he Viennese appeals court ruled on Friday that Facebook must remove the postings against Greens leader Eva Glawischnig as well as any verbatim repostings, and said merely blocking them in Austria without deleting them for users abroad was not sufficient,” Reuters reports, adding that Facebook’s lawyers in Vienna declined to comment on the ruling, but that a court spokesman confirmed it.

The case was brought by Austria’s Green party after its leader, Eva Glawischnig, was insulted on Facebook by posts from someone who didn’t use their real name. According to the Austrian newspaper Die Presse, the posts called Glawischnig “miese Volksverräterin” and “korrupten Trampel,” which translate roughly as “lousy traitor” and “corrupt bumpkin.”

Facebook has argued that it is governed by the laws of California (site of its headquarters) or Ireland, the base of its European operations, Die Pressereported. But the court ruled that simply blocking the hate posts in Austria was not enough — they must be deleted across the platform.

The court said it was easy for Facebook to automate the process of deleting verbatim repetitions of the hate posts, according to Reuters. “It said, however, that Facebook could not be expected to trawl through content to find posts that are similar, rather than identical, to ones already identified as hate speech.”

“Facebook must put up with the accusation that it is the world’s biggest platform for hate and that it is doing nothing against this,” said Green spokesman Dieter Brosz, Reuters reports.

The Washington Postreported in December:

“The insults directed at Glawischnig appeared to have been spread via the same fake profile that was used to circulate false rumors during the run-up to Austria’s presidential vote this month, including that Alexander van der Bellen — who eventually won the election — was suffering from cancer and dementia. In what seemed like an echo of the U.S. presidential race, Van der Bellen, who is close to the Green Party, was forced to publish his health records to dispel the rumors.”

Facebook is facing increased pressure in Europe to respond more quickly to fake news. Last month, Germany moved forward with legislation that would fine social networks as much as $53 million “if they fail to give users the option to complain about hate speech and fake news or refuse to remove illegal content,” Bloomberg reported.

“Chancellor Angela Merkel’s cabinet on Wednesday backed a bill that would also force the companies to purge content flagged as child pornography or inciting terrorism — two categories added to the original draft. Corporate officials responsible would risk separate fines of as much as 5 million euros. If passed by parliament, the measures would be the toughest regulation Facebook faces in any country where it operates. …

“Facebook … expressed concern that the measure ‘would force private companies instead of courts to decide which content is illegal in Germany.’ “

Last week, after a number of violent incidents appeared in videos on its network, Facebook announced that it would hire 3,000 employees worldwide to review violent or hateful content.

Facebook pays NPR and other leading news organizations to produce live video streams that run on the site.

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Kushner's Sister Suggests Family Can Help Chinese Get U.S. Visas In Business Exchange

Washington Post‘sWilliam Wan talks to NPR’s Lakshmi Singh about accusations that Nicole Meyer, sister to senior White House adviser Jared Kushner, used her family ties to peddle business in Beijing.

LAKSHMI SINGH, HOST:

There’s new scrutiny being directed towards senior Trump adviser Jared Kushner and his family’s business interests overseas. The story flared up because of something that happened in Beijing yesterday. Chinese investors filled a ballroom to listen to Kushner’s sister, Nicole Kushner Meyer. She was asking investors to help finance a real estate project in New Jersey and suggested, in return, investors could get American green cards. We wanted to hear more about the story and what it means, so we called William Wan. He’s a correspondent for The Washington Post, and he’s been reporting on this whole issue stateside.

William, thanks for joining us.

WILLIAM WAN: Great to be with you.

SINGH: So first of all, tell us about this event that got so much attention. I understand journalists were booted from it. What did they hear before they were promptly asked to leave?

WAN: Right. So we had a journalist there from The Washington Post. There was one from The New York Times. The both of them were forced to leave. They got to witness Jared Kushner’s sister, who was kind of the main event, give her pitch for investing into their company in return for a chance to apply for a visa. They also saw some of the promotional materials, for example, the brochure. The tagline for it was invest 500,000 and immigrate to the United States.

SINGH: Now, this all has to do – or all of it’s related to the EB-5 immigrant investor visa program, is that right?

WAN: Yeah, the EB-5 program. It’s this unique kind of program where if you have a lot of money, you’re a foreigner and you want a visa, you just plunk down $500,000. And it gives you a chance to apply for one of these visas outside of the normal kind of visa line.

SINGH: And how big of an issue is this for critics of the Trump administration who’ve long protested conflicts of interest with the Trump White House?

WAN: I tried to ask a few watchdog groups. It’s hard to put in context because so much of the ethics rules, to their mind, are just kind of being thrown out the window. And so to kind of gauge this with all the other ones is hard. But one kind of former ethics lawyer under the George W. Bush administration called it highly inappropriate. I think the exact words he used were incredibly stupid and highly inappropriate.

His point was that there’s the appearance of the Kushners implying that if you invest with us, we’ll make sure to get you a visa because of our connections with the Trump administration. And that, on the face of it, seems pretty inappropriate and a use of the family connection to enrich yourself.

SINGH: And, again, we should note, the Kushners did not explicitly say that they would use their influence in the White House to get these investors green cards. But what do you think the Chinese investors took from this particular meeting?

WAN: Well, in China, you don’t have to spell out any of this. There’s a cultural tradition there where in the modern China, everything is tied together, the rich and the powerful and the ones in charge of the Communist Party. They’re all the same family. So for them, seeing the Kushners come, seeing the Kushners connection to the Trump White House, it’s a very natural association. There’s even a name for a second generation, rich, connected political elites. It’s called (foreign language spoken), the second generation rich. And so, you know, Ivanka and Jared Kushner, in their minds, can fall very squarely into that princeling realm.

SINGH: That is William Wan, a reporter for The Washington Post. Thank you, William.

WAN: Thanks for having me.

SINGH: We should note that Jared Kushner’s lawyer tells NPR that Kushner is not involved in the building project that was discussed, and he is recusing himself from matters involving the EB-5 visa program.

Copyright © 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

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.

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The 'Oracle of Omaha' Condemns Republican Health Care Bill At Berkshire Meeting

Berkshire Hathaway Chairman and CEO Warren Buffett visits the exhibit floor in Omaha, Neb., Saturday, where company subsidiaries display their products during the annual shareholders meeting.

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Nati Harnik/AP

Billionaire investor Warren Buffett fielded questions at the annual shareholders meeting for his company Berkshire Hathaway. He offered thoughts and insights on everything from Republicans voting to repeal Obamacare, to the Wells Fargo scandal, to how artificial intelligence and technology might reshape America. Here are some highlights:

Repealing Obamacare Is “A Huge Tax Cut For Guys Like Me”

When asked about the bill Republicans in Congress just voted to pass to repeal and replace Obamacare, Buffett signaled his distaste for a tax cut provision. Obamacare pays for health care for Americans in part by taxing wealthier people. The Republican bill scraps that tax on the wealthy.

And Buffett has apparently done the math here. If the Republican bill had been law last year, he said, “my federal taxes would have gone down 17 percent last year, so it’s a huge tax cut for guys like me.”

“That is in the law that was passed a couple days ago,” he added. “Anybody with $250,000 a year of adjusted gross income and a lot of investment income is going to have a huge tax cut.”

In the past, Buffett has bristled at tax policy that he sees as favoring the wealthy — famously saying it’s not fair that he pays taxes at a lower rate than his secretary.

The Medical Cost “Tapeworm”

Buffett said at the meeting that health care costs have become a bigger issue for American businesses than taxes.

He said if you go back to about 1960, corporate taxes were about 4 percent of GDP and now they’re about 2 percent of GDP. At that time, healthcare was 5 percent of GDP and now it’s 17 percent of GDP. “So when American business talks about taxes strangling our competitiveness,” he said, “they’re talking about something that as a percentage of GDP has gone down from 4 to 2.” Meanwhile, medical costs have exploded. “So medical costs are the tapeworm of American economic competitiveness,” he said.

He argued against the tax system crippling competitiveness “or anything of the sort.” He also noted that other developed countries appear to have found better ways to contain medical costs.

Wells Fargo’s “Big Mistake” In Its Banking Scandal
Wells Fargo had a sales structure that clearly led employees to do bad things, according to Buffet. “But the main problem was that they didn’t act when they learned about it,” he said. “It’s bad enough having a bad system, but they didn’t act.”]

Former Wells Fargo workers have told NPR that they called the bank’s ethics line and the bank did nothing. Buffett’s company ethics line is actively used by workers, he says, so he’s sure that Wells Fargo got reports of wrongdoing. He said it’s true that an ounce of prevention is worth a pound of cure, but “a pound of cure promptly applied is worth a ton of cure that’s delayed. Problems don’t go away.”

Wells Fargo responded to Buffett’s remarks before the end of the day’s meeting, saying in a statement that the bank has taken “decisive action to fix the problems.” Wells Fargo also said it’s created a new “Office of Ethics, Oversight and Integrity to centralize the handling of internal investigations, complaints oversight, and sales practices oversight.”

Why Geckos Don’t Like Driverless Cars
In response to a question about the impact of driverless cars, trucks and trains, Buffett said they’d not only be a threat to trucking and railroad businesses, but the insurance industry too.

“If driverless cars became pervasive, it would only be because they were safer and that would mean that the overall economic cost of auto-related losses had gone down and that would drive down the premium income of Geico,” Buffet said referring to the auto insurance company owned by Berkshire.

“Autonomous vehicles widespread would hurt us.” But, he added, “I think they may be a long way off.”

Life Lessons

When asked about reflections and lessons learned in his long life, Warren Buffett referenced Charlie Munger, the 93-year-old vice chairman of Berkshire Hathaway, who says, “All I want to know is where I’m going to die so I’ll never go there.”

But on a more serious note, Buffett says he’s gotten a lot of joy in life out of teaching other people things. So, he said, if people remembered him as being a good teacher, he would be OK with that.

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Episode 769: Speed Dating For Economists

Economists have a yearly job market that works a little bit like speed dating.

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Gary Waters/Getty Images/Ikon Images

About 1,800 economics graduate students converged on the chilly Chicago streets in early January. Some of them ran through those streets, trying to get to the next hotel on time.

They were trying to find a job.

At some point in time, the economics profession decided it was going to create a job market unlike any other. They were going to create a system that is the most efficient job market imaginable.

Every year, universities and companies that want to hire a professional economist converge on Chicago in the dead of winter. They set up shop in hotel rooms across the city. Every young economist who wants their first job shows up, ready for a make or break weekend of intense questioning.

Interviews are squeezed back to back, often conducted in hotel rooms. Sometimes, interviewees have to run to make their next appointment.

And that’s just the start.

Today on the show, finding the perfect job takes a lot of time and a lot of money. And economists hate wasting both of those things. So they created their own hyper-efficient, optimized job market.

Music: “El Gringo,””Desperate Nights” & “Future Satisfaction.” Find us: Twitter/ Facebook.

Subscribe to our show on Apple Podcasts or PocketCast.

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GOP Health Care Bill Would Cut About $765 Billion In Taxes Over 10 Years

The Affordable Care Act took money from the rich to help pay for health insurance for the poor. The repeal bill passed by House Republicans would do the opposite.

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The health care bill passed by the House on Thursday is a win for the wealthy, in terms of taxes.

While the Affordable Care Act raised taxes on the rich to subsidize health insurance for the poor, the repeal-and-replace bill passed by House Republicans would redistribute hundreds of billions of dollars in the opposite direction. It would deliver a sizable tax cut to the rich, while reducing government subsidies for Medicaid recipients and those buying coverage on the individual market.

Tax hikes reversed

The Affordable Care Act, also known as Obamacare, is funded in part through higher taxes on the rich, including a 3.8 percent tax on investment income and a 0.9 percent payroll tax. Both of these taxes apply only to people earning more than $200,000 (or couples making more than $250,000). The GOP replacement bill would eliminate these taxes, although the latest version leaves the payroll tax in place through 2023.

The House bill would also repeal the tax penalty for those who fail to buy insurance as well as various taxes on insurance companies, drug companies and medical device makers. The GOP bill also delays the so-called “Cadillac tax” on high-end insurance policies from 2020 to 2025.

All told, the bill would cut taxes by about $765 billion over the next decade.

The lion’s share of the tax savings would go to the wealthy and very wealthy. According to the Tax Policy Center, the top 20 percent of earners would receive 64 percent of the savings and the top 1 percent of earners (those making more than $772,000 in 2022) would receive 40 percent of the savings.

Help for the poor reduced

Over time, the GOP bill would limit the federal contribution to Medicaid, while shifting control of the program to states. Depending on what happens to costs, states may be forced to provide skimpier coverage, reduce their Medicaid rolls, or both. The Congressional Budget Office estimated that an earlier version of the bill would leave about 14 million fewer people covered by Medicaid by 2026. (The House voted on the current bill without an updated CBO report.)

CBO also anticipated fewer people would buy insurance through the individual market. With no tax penalty for going without coverage, some people would voluntarily stop buying insurance. Others would find coverage prohibitively expensive, as a result of changing rules governing insurance pricing and subsidies.

The GOP bill would allow insurance companies to charge older customers up to five times more than younger customers — up from a maximum 3-to-1 ratio under the current health law. The maximum subsidy for older customers in the GOP plan, however, is only twice what is offered to the young.

The bill also allows insurance companies to offer more bare-bones policies. As a result, young, healthy people could find more affordable coverage options. But older, sicker people would likely have to pay more.

In addition, because the subsidies offered in the Republican plan don’t vary with local insurance prices the way subsidies do in Obamacare, residents of high-cost, rural areas would also suffer. That could include a large number of Trump voters.

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The Daredevils Without Landlines — And Why Health Experts Are Tracking Them

For the first time in history, federal researchers report that a majority of U.S. homes rely only on cellphones for a telephone connection, without a landline.

The number of cellphone-only households predictably has been climbing over the years, surpassing the households with both a landline and a mobile phone and now reaching almost 51 percent. And it’s tracked by — of all agencies — the Centers for Disease Control and Prevention.

The CDC’s National Center for Health Statistics records all kinds of trends about the state of Americans’ health. One of its surveys traces the decline of landlines and what kinds of health habits are common to mobile-only homes. (Hint: the drinking and smoking kind.)

As a note, the CDC’s definition of a landline does account for Internet-connected phones — also known as Voice-over-IP or VoIP phones — because the question that is asked in the survey is, “Do you have a telephone in your home that is currently working and is not a cellphone?”

How did the CDC become the expert on the rise of cellphone use? In 2015, I spoke with Stephen Blumberg, who’s been leading this research. The interview below originally ran on Dec. 3, 2015, and had been edited for length and clarity.

So you’re the guy who’s basically monitoring the slow death of the landline.

Stephen Blumberg, associate director for science in the division of Health Interview Statistics at the CDC’s National Center for Health Statistics

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Centers for Disease Control and Prevention

I guess I am.

Why does the CDC study this?

You’re definitely not the first one to ask that. Back in 2003, we recognized that the telephone-based surveys conducted by the CDC would be missing an ever-growing segment of the population (that didn’t have a landline phone). We looked to find a survey that would answer the questions about who this population is and what their health characteristics are.

The National Health Interview Survey is an in-person survey with more than 40,000 households annually. And because it’s conducted face-to-face by Census Bureau interviewers, it contacts landline households, wireless-only households, households that have no service at all. That made it an ideal vehicle for tracking the prevalence of the characteristics of the wireless-only population.

Since then, all of the major telephone surveys that CDC conducts now include cellphone numbers … but we’re the one survey in the federal statistical system that is tracking this estimate, and so we continue to do so.

In effect it started out of your own necessity?

That’s correct. For telephone surveys, at first we were able to make adjustments for the exclusion of the individuals, or what’s known as coverage bias — because we knew that they were younger, they were more likely to live in rented housing, they were more likely to be low-income. And so we could make adjustments.

What we started to recognize, however, fairly quickly, is that, in fact, their health characteristics were different, even when you controlled for all of those demographic differences. People who are wireless-only are more likely to smoke, they’re more likely to binge drink, they’re more likely to be uninsured. In effect, they are more likely to engage in risky behaviors.

(Editor’s Note: The latest report from May 2017 does, however, say that compared to adults in households with landlines, wireless-only adults were “more likely to have their health status described as excellent or very good.”)

All the daredevils are dropping their landlines!

You know, we can’t say for certain; perhaps at that time dropping the landline was in effect risky behavior.

It would make sense for it to be a factor of youth, no?

Well, except when we controlled for age, we still saw these differences. Essentially, if we just looked at young people, we still saw that those young people who were wireless-only were more likely to drink and more likely to smoke than young people who had landlines.

Somebody once suggested that it would be interesting to try to extend preventive health messages to wireless-only individuals and try to target them for health promotion activities, but I don’t know that anybody has actually done that.

So is it related to income?

We know that there’s an income effect; however, part of that, if not all of that, is a function of age and living status. So young adults living in rented housing are more likely to be wireless-only. Those people are also more likely to have lower incomes than older adults who own their home.

We certainly see that lower-income households are more likely to be wireless-only. We think that’s primarily the function of age and household tenure, but we also recognize that it costs money to have both a landline and a wireless phone, and those people who are looking to save money may recognize that a wireless phone gives them more functionality than a landline phone.

Are you still seeing that correlation with risky behavior, or are we maybe approaching a point where only having a cellphone is more of a factor of convenience?

We still see it in the general data, so if you take a look at the report, you can see that 29 percent of wireless-only adults are binge drinkers whereas only 18 percent of adults living in landline households drink heavily.

And what’s the value of this information to the CDC?

It’s a reminder to us that for our telephone surveys we still need to be vigilant to include proper proportions of wireless-only households. That’s the primary benefit at this point.

We continue to track (the information about wireless-only households) because it increases the accuracy of the health data we collect in our survey.

In the years that you’ve studied these households, has something about the data surprised you?

I don’t know that surprise is the word. But we’ve been tracking this for 12 years now. I think we had expected that by now we would see some leveling off in the prevalence of wireless-only households — we don’t see any evidence yet that that’s occurring.

So people are still dropping landlines?

That’s correct.

I would have actually thought that by now, we would only see a small percentage of people even having landlines.

I’m guessing you’re fairly young.

I haven’t had a landline in a very long time. Though I’m talking to you over a landline now.

And yet I’m talking to you on a cellphone!

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As U.S. Retailers Struggle, The End Is Near For Malls

Christopher Leinberger, chair of the Center for Real Estate and Urban Analysis at George Washington University, says America’s malls aren’t just overbuilt, they’re under bulldozed. He explains one model for the how shuttered malls can reinvent themselves, and points to a new model of store as showroom.

ROBERT SIEGEL, HOST:

Here’s a number that gives you a better sense of how much shopping centers in the U.S. are overbuilt. For every person in America, there are 23 square feet of shopping center space. That’s the highest number for anywhere in the world. Runner-up is Canada at 16 square feet. Christopher Leinberger says that’s starting to change.

CHRISTOPHER LEINBERGER: The previous big transformation of retail was from walkable urban in the early 20th century – you know, the main streets – to regional malls. Well, we’re going back now to the 21st century version of main street.

SIEGEL: Leinberger is the chair of the Center for Real Estate and Urban Analysis at George Washington University. When the economy inevitably enters the next recession, he expects 30 percent of shopping malls, both strip malls and regional malls, will shut down.

LEINBERGER: It’s the middle-market malls that are in biggest danger of going dark. The fortress malls – those huge, you know, 1-and-a-half-, 2-million-square-foot malls like the King of Prussia Mall outside of Philadelphia – those are fine. But it’s the ones anchored by JCPenneys and Sears that are and will go increasingly dark.

SIEGEL: I want you to give us an idea of what the next phase in the life cycle of a shopping mall. It could be a mall that goes dark. You have pointed to an example in Colorado, in Denver.

LEINBERGER: The best national model right now is a project called Belmar. And it took the place of a regional mall called Villa Italia built back in the ’60s. And it was a conventional regional mall that was very profitable for 40 years then went dark in the late ’90s. And it was bulldozed in the early 2000s and replaced with a grid of streets that was imposed and a high-density, walkable urban place anchored by a movie theater, lots of great restaurants, housing on top, offices on top, the largest advertising agency west of Chicago located there. It’s a highly successful, high-density, mixed-use place.

SIEGEL: As we think about all of the kinds of retail that have fallen on hard times in recent years, I guess one of the glaring exceptions to that rule would be the story of the Apple Store. What’s so different about the Apple Store?

LEINBERGER: Apple Store demonstrates how retail transitions to the experience economy. That’s the next economy to layer on top of the knowledge economy. In retail, the highest sales per square foot retail category are jewelry stores that sell very small things that are very valuable in a very small space. And they can sell $1,500 per square foot per year as a measure of sales productivity. Apple comes out. They’re now doing on average between $7,000 and $10,000 per square foot.

SIEGEL: But can you imagine anybody else who could make a go of that model in retail?

LEINBERGER: Oh, yes – clothing. More and more, these retail stores like Bonobos – they aren’t selling clothing. They’re displaying clothing, and you go home and order it online. So they don’t have a warehouse connected with a store. It’s just a showroom. People come in. They may try it on. They may just touch the fabric. And then they go home and order. And the sales per square foot of those stores when you combine it with the online sales that they generate are huge. I think they will be approaching the Apple Store. So this is how the experience economy manifests itself in this new walkable, urban world which is the future of our metropolitan growth in this country. And it’s going to be very economically productive.

SIEGEL: That’s Christopher Leinberger of George Washington University. He walked over to the studio at the Brookings Institution where he’s a fellow. Thank you so much.

LEINBERGER: I’m so glad to be here. Thank you, Robert, for all your service.

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Airbnb Settles Suit With San Francisco, Aims To Smooth Host Registration

Airbnb's logo displayed on a computer screen in Paris.

Lionel Bonaventure/AFP/Getty Images

The city of San Francisco has settled with Airbnb and HomeAway, concluding a lawsuit brought by the two short-term home rental companies by agreeing to new registration procedures for prospective hosts. The case, which had been heard in federal court, hinged on how the companies comply with a recently instituted city law.

“This agreement helps protect the city’s precious housing supply by obligating these companies to ensure that all their listings are legal and properly registered,” City Attorney Dennis Herrera said Monday in a statement. “This is a game changer.”

In Airbnb’s federal lawsuit — which the company filed in June last year, and which HomeAway later joined — the companies objected to the steep fines they faced if their hosts failed to register with the city as short-term rentals. The city’s board of directors had decided to introduce those fines as a means of adding teeth to a 2015 law mandating the registration.

Herrera’s office estimates that about 2,100 short-term rental hosts have registered in San Francisco — in other words, only about a quarter of the number of listings for Airbnb in the city.

But with the settlement, both sides have agreed to streamline the registration process, automatically sending new host applicants from the companies’ websites straight to the city’s Office of Short-Term Rentals. The agreement also requires the companies to provide the office with listings on a monthly basis, so that San Francisco officials can compare these listings with its own registration records.

“Similar to other agreements we have established with cities all around world, this agreement puts in place the systems and tools needed to help ensure our community is able to continue to share their homes,” Airbnb spokesman Christopher Nulty said in a statement, according to the San Francisco Chronicle. “Once fully implemented, every host in San Francisco will be registered and compliant with home-sharing rules the city put in place in 2014.”

The paper reports that “within six months, Airbnb and HomeAway will require all new hosts to be registered with San Francisco before they can post a rental listing on either site.”

Yet San Francisco is not the only city with whom Airbnb has shared some friction. TechCrunch notes the other cities the company has sued:

“In Anaheim, Airbnb filed a lawsuit, which has since been dismissed because Anaheim ‘pulled back their law,’ [Airbnb Head of Global Policy Chris] Lehane said. In Miami, a judge ruled last week in Airbnb’s favor and there’s a bit of a grey area in Santa Monica, Lehane said. Last year, Airbnb settled its lawsuit with New York City.”

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