The Cambridge Analytica-Facebook Scandal and the Coming Data Bust

From today’s New York Times:

The queasy truth at the heart of Facebook’s Cambridge Analytica scandal, which is so far the company’s defining disgrace of 2018, is that its genesis became scandalous only in retrospect. The series of events that now implicate Facebook began in 2014, in plain view, with a listing on Amazon’s Mechanical Turk service, where users can complete small tasks for commensurately modest sums of cash. In exchange for installing a Facebook app and completing a survey — in the process granting the app access to parts of your Facebook profile — you would get around a dollar. Maybe two.

This was a great deal, at least by the standards of the time. Facebook users were then accustomed to granting apps permission to see their personal data in exchange for much less. It was the tail end of a Facebook era defined by connected apps: games like FarmVille, Candy Crush and Words With Friends; apps that broadcast your extra-Facebook activities, like Spotify and Pinterest; and apps that were almost explicitly about gathering as much useful data as possible from users, like TripAdvisor’s Cities I’ve Visited app, which let you share a digital pushpin map with your friends.

Most of these apps, when installed, demanded permission to access “your profile info,” which could include things like your activity, birthday, relationship status, interests, religious and political views, likes, education and work history. They could also collect information about users’ friends, multiplying their reach. In providing a marketplace for such apps, Facebook made it easy for users to extend their extraordinarily intimate relationship with the site to thousands of third-party developers. One of them turned out to be connected to Cambridge Analytica, which was using the data for right-wing political campaigns — a fact that was lucidly and widely reported as early as 2015 but promptly lost in the roiling insanity of primary season. (As of Facebook’s most recent admission, data was collected on as many as 87 million users.)

Not that more exposure in the news cycle would have mattered much back then. It was self-evidently absurd to grant a virtual-farming game access to your religious views, but that’s just how the platform worked at the time, and so we got used to it, much in the same way we got used to conducting our private lives on any other corporate platform. (When Gmail first started in 2004, the fact that it placed ads based on the contents of users’ emails was considered invasive. That feeling passed; Google continued scanning consumer email until 2017, and Gmail now has more than a billion users.) Still, these individually trivial decisions never gave us cause to confront just how much we had come to trust Facebook.

Read the complete article here.

Better Your Chance For Equal Pay – What You Need To Know Now

From today’s Forbes Magazine:

The gender pay gap is the most entrenched barrier to equality women face. It seems so simple: equal pay for equal work. But the formula is complicated in many companies because men outnumber women in C-suites, in leadership and management, in the most lucrative industries like banking, and in the higher-risk, higher-reward jobs – all of which skews the data and creates a rationale that is used to justify the pay gap.

The fact is, there is no valid reason for paying women less for equal performance, and doing so hamstrings the growth of our economy. A 2017 report by the Institute for Women’s Researchdemonstrates how equal pay for women could increase the U.S. economy by an incredible $512.6 billion.

Meanwhile, a confluence of factors continues to inhibit a woman’s ability to earn her worth, though many of them can be changes. Here are four things all women need to know to better their chances for equal pay:

1.Where you live and work dramatically impacts your potential for equal pay.

Smart Asset researched the pay gap in 507 metro areas around the country and found that nationally, women make an average 70% of what men do in the same jobs. However, there are 51 Metro areas where the gap closes to 80% or better. Cities like LA, Las Vegas, Flagstaff, Arizona; Jefferson City, Missouri; and Bangor, Maine all have narrower pay gaps than average. But the title goes to Rochester, Minnesota as the top place for working women for the second year in a row. Women in that metro earn the highest income in the nation, after deducting housing costs.

If you live in a state capitol, you have an even better chance of equal pay: nearly half of the top 12 metros were around capitals.

The women who live in Tallahassee, Florida’s state capital, will be relieved to know that they enjoy one of smallest pay gaps in the nation, with the average woman in the metro area earning roughly 94% of what the average man does. Florida, overall, had the most metros in the top 51, with 13 cities outperforming the national average. Gainesville, Tampa, Fort Meyers, and Miami all did better than 80%.

But there’s bad news for the women of Utah. Provo-Orem is the worst-performing metro area in the study. Smart Asset’s data shows that the average woman there earns about 42% of what the average man does.

Read the complete article here.

Breaking News: Kentucky teachers rally at State Capitol over state budget

From today’s LA Times:

Thousands of Kentucky teachers filled the streets near the state Capitol in Frankfort on a cold, overcast Monday to rally for education funding.

Teachers and other school employees gathered outside the Kentucky Education Assn. a couple of blocks from the Capitol chanting, “Stop the war on public education” and holding or posting signs that say, “We’ve Had Enough.”

“We’re madder than hornets, and the hornets are swarming today,” said Claudette Green, a retired teacher and principal.

The rally is happening after hundreds of teachers called in sick Friday to protest last-minute changes to their pension system.

Teacher unrest is not just limited to Kentucky. Educators in Oklahoma were gearing up Monday to march on their state capital as well.

Oklahoma teachers are demanding that lawmakers approve more education funding just days after the Legislature did just that.

Some teachers are saying the legislation signed by Gov. Mary Fallin last week was not enough. The measure increases taxes on cigarettes, fuel and oil and gas production to provide teachers with raises of about $6,100, or 15% to 18%.

Read the complete article here.

Tariffs bad news for American economy, including workers and consumers

From today’s The Hill:

There’s never a good time for tariffs. American workers and consumers will pay dearly for the Trump administration’s short-sighted action to protect an industry that shows no signs of needing any protection—the market values of the five largest steel companies have more than doubled over the past five years. Yet with a major infrastructure spending bill set to come through Congress over the next year, Trump’s tariffs are bad policy with even worse timing.

While a small amount of people will benefit from the proposed tariffs, many more will be harmed. The American steel industry employs roughly 140,000 workers, but industries that rely on steel to create their products—the ones who will suffer directly under the tariffs—employ 6.5 million workers. A recent study by the Trade Partnership found that the direct cost of tariffs on employment would be 18 jobs lost for every one created. On net, 470,000 Americans could lose their jobs.

The Trade Partnership’s study fits with the lessons of recent history. In 2002, President Bush instituted protective tariffs on foreign steel imports. After just a year in which steel prices rose by up to 50 percent, steel production was insufficient to meet demand, 200,000 Americans lost their jobs, and the tariff was dropped. A mere fifteen years later, these lessons have already been forgotten.

Nor will other countries sit idly by as Trump restricts trade. Well over 10 million Americans’ jobs are supported by exports—jobs which would be at risk in the case of a trade war. Already, the European Union has prepared a ten-page hit list of potential targets of retaliatory tariffs should Trump’s steel and aluminum tariffs go into effect.

American consumers will be harmed as well. A combination of new steel tariffs and lumber tariffs imposed last year mean that the cost of new homes is likely to continue rising—nearly half of steel imports go towards construction. Other American staples such as cars and canned beer are also set to see price spikes resulting directly from tariffs.

Read the complete article here.

Deadline Is Today in McDonald’s Labor Case That Could Affect Millions

From today’s New York Times:

The Trump appointee charged with enforcing federal labor rights is scrambling to head off a court ruling in a case against McDonald’s that could redefine the accountability of companies for the labor practices of their franchisees.

The official, the general counsel of the National Labor Relations Board, has been exploring settlement terms with workers at the center of the board’s complaint against McDonald’s, according to lawyers involved in the case. A judge had halted the trial until Monday to give the agency a chance to do so.

If no settlement is reached and the judge were to rule against the company, the decision could have enormous implications for the franchise business model, affecting millions of workers in the fast-food industry and beyond. Corporations could be required to bargain with unionized workers at disparate franchise locations.

The National Labor Relations Board did not respond to a request for comment. A McDonald’s spokeswoman said that “settlement discussions are a normal part of any litigation process.”

The case was brought during the Obama administration, when the board was under Democratic control. Since President Trump’s election, Republican members have regained a majority, steering the board away from a pro-labor orientation.

Read the complete article here.

56 years later, JFK’s call for a consumer bill of rights is forgotten under Trump

From the Los Angeles Times:

On this day in 1962, President Kennedy laid out in a speech to Congress the framework for a consumer bill of rights and the crucial role the federal government must play in protecting those rights.

Kennedy’s call to arms is now marked every March 15 as World Consumer Rights Day, which seeks to advance “guidelines for consumer protection”backed by the United Nations.

Yet over half a century later, the current occupant of the Oval Office, President Trump, a wealthy businessman, is aggressively pursuing policies that undermine each of Kennedy’s declared rights.

So it’s worthwhile asking: Is it too late to change course? Have corporate interests prevailed?

Read the complete article here.

The Tipping Equation: At restaurants in America, servers calculate how far is too far, weighing harassment against wages

From the New York Times:

The balancing act plays out every day in restaurants across America: Servers who rely on tips decide where to draw the line when a customer goes too far.

They ignore comments about their bodies, laugh off proposals for dates and deflect behavior that makes them uncomfortable or angry — all in pursuit of the $2 or $20 tip that will help buy groceries or pay the rent.

There was the young server at a burger joint in Georgia, Emmallie Heard, whose customer held her tip money in his hand and said, “So you gonna give me your number?” She wrote it down, but changed one of the digits.

There was the waitress in Portland, Ore., Whitney Edmunds, who swallowed her anger when a man patted his lap and beckoned her to sit, saying, “I’m a great tipper.”

And at a steakhouse in Gonzales, La., Jaime Brittain stammered and walked away when a group of men offered a $30 tip if she’d answer a question about her pubic hair. She returned and provided a “snappy answer” that earned her the tip, but acknowledges having mixed feelings about the episode.

“Literally every time it happens, I will have this inner monologue with myself: ‘Is this worth saying something, or is it not?’” said Ashley Maina-Lowe, a longtime server and bartender in Tucson. “Most of the time I say, ‘No, it’s not worth it.’”

Read the complete article here.

Will Trump’s Tariffs Help or Hurt American Workers? Contrasting Views

From the New York Times:

The Case for Trump’s Tariffs and ‘America First’ Economics

Some Dems ready to loosen tough bank regulations passed after financial crisis

From today’s LA Times:

Before the 2008 financial crisis, BAC Community Bank in Stockton made about 100 mortgage loans a year. Now, after new regulations mandated in the Dodd-Frank Wall Street Reform and Consumer Protection Act, the figure is down to about two dozen.

“We were never a big mortgage lender, but we did quite a bit more before Dodd-Frank,” said Bill Trezza, the bank’s chief executive. “It basically pushed us out of that to the point where we will do mortgages only for our customers if they request it.”

He and other small bankers hope that’s about to change. And a political shift is making that possible.

Nearly a decade after the financial crisis, some Democrats are ready to go along with a Republican push to significantly loosen the landmark law enacted to try to prevent the next one.

Senate legislation focused on easing new mortgage and other rules for small and mid-sized and regional banks has been co-sponsored by a dozen Democrats, several of them moderates up for re-election this year in states won by President Trump in the 2016 campaign.

The bipartisan support has the bill on track to be approved as soon as this week in what would be the first major overhaul of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

The House, which has approved more extensive financial deregulation, is likely to go along with the Senate’s more modest changes. Trump, who has called Dodd-Frank “a very negative force” in the economy and vowed during the campaign to dismantle it, would be expected to sign any bill that reduces its authority.

“The tone has shifted in D.C. from where regulation was necessary to protect the economy to the concern where regulation has gone too far and might be a drag on the economy,” said Ed Mills, a Washington policy analyst for financial services firm Raymond James. “Where that shift has occurred, it gave an opening to the smaller and medium-size banks to pursue these changes.”

But while there’s broad support for easing unintentional burdens in the law for small banks, many liberal Democrats are fighting the bill from Senate Banking Committee Chairman Mike Crapo (R-Idaho). They say it goes too far by also providing significant benefits for some larger financial institutions.

The legislation would exempt about 30 banks and other firms from the stricter oversight put in place by Dodd-Frank after the 2008 financial crisis. That 2010 law was an attempt to prevent a repeat of the bailouts and damage to the economy.

Read the complete article here.

Striking teachers descend on West Virginia’s Capitol to demand pay raises

From ABC News:

Thousands of striking teachers descended on the West Virginia Capitol on Monday, forcing officials to briefly cut off access to the building six days after Gov. Jim Justice and unions representing the teachers reached an agreement on a 5 percent pay raise that was subsequently rejected by the state Senate.

The Capitol – closed after 5,000 people had entered early Monday , posing security concerns – was reopened an hour later, but teachers continued to vent their frustration over the lack of progress in agreement over a pay raise. Their strike, in one of the poorest states in the country, has disrupted education, forced working parents to scramble for child care and put children who rely on meals at school at risk of going hungry.

The strike entered a new week Monday with teachers waiting for state lawmakers to agree on a pay raise; House and Senate negotiators scheduled a Monday afternoon meeting to try to resolve their differences. The statewide strike has kept public schools shut for 277,000 students and 35,000 employees for a week.

In a state with a 17.9 percent poverty rate, teachers, bus drivers and other volunteers are collecting food and helping to distribute it to students who rely on free breakfasts and lunches at school. Teachers were sharing stories about how they’ve donated their time, their own money or their own food for that cause. At least two GoFundMe pages have been launched in support of the walkout.

“It does make you feel good because we are helping them,” said Ann Osburn, a special education teacher at Buckhannon Academy. “I think we’re reaching as many as we can. We’re getting as much help out there as we can for those kids.”

Rachel Stringer, as a stay-at-home mom from Cross Lanes, hasn’t had to struggle to find care for her five children, but numerous friends are in a bind. She said her biggest challenge has been making sure her children don’t forget what they’ve learned this school year. Despite the long layoff, Stringer is supportive of the teachers.

“They deserve to be paid,” she said. “They deserve to be able to have insurance.”

Read the complete article here.