Daily Archives: May 4, 2017

Imagination Technologies opens dispute with Apple over iPhone chip – Telegraph.co.uk

Posted: May 4, 2017 at 3:10 pm

Imagination, which relies on the iPhone maker for half of its revenues, said it did not believe Applewas able to do so without using Imagination's technology in some form, and said it hoped to reach an amicable agreement going forward.

On Thursday, it said it had "been unable to make satisfactory progress with Apple to date regarding alternative commercial agreements" and hoped to reach a deal "through a more structured process".

The dispute does not involve legal action but is the formal process for reaching an agreement under the contract between the two companies.

"Imagination has been unable to make satisfactory progress with Apple to date regarding alternative commercial arrangements for the current licence and royalty agreement," it said.

"Imagination has therefore commenced the dispute resolution procedure under the licence agreement with a view to reaching an agreement through a more structured process. Imagination has reserved all its rights in respect of Apples unauthorised use of Imaginations confidential information and Imaginations intellectual property rights."

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OTC Commentary: How digital technology is transforming oil – FuelFix (blog)

Posted: at 3:10 pm

By Ahmed Hashmi

Fourteen years ago, at its 2003 annual energy conference here in Houston, Cambridge Energy Research Associates (CERA) presented a bold vision of how digital technology might transform the world of oil and gas production. The industry, it declared, is standing on the crest of the digital oil field of the future, which will enable petroprofessionals and field workers to benefit from total asset awareness (i.e., the ability to monitor and manage all operational activities in real time or near real time, regardless of location).

At the time, the vision was compelling. Today, this vision is a reality.

Indeed, the oil and gas industry now uses data and high-speed telecommunications to help increase production, grow reserves more rapidly and make cost and capital inputs more efficient. My company, BP, has long been at the forefront of digital oilfield technology, thanks to a program known as Field of the Future. Many of the digital technology building blocks needed for a Field of the Future did not exist in 2003, which meant we had to create custom-built systems and solutions.

In the years that followed, BP invested heavily in infrastructure and capability. In fact, since the 2003 CERA conference we have installed more than 1,200 miles of fiber optic cable on seafloors in the Gulf of Mexico, the North Sea and the Caspian Sea. We also have built high-end collaboration and monitoring centers linking onshore and offshore teams, while launching a number of strategic partnerships aimed at boosting our digital capability. Thanks to these efforts, BP has grown our high-performance computing capacity by a factor of 1,000.

In recent years, we have pioneered a number of digital technologies that have enabled us to build out a massive data lake, which provides our engineers and technicians with real-time visualization and analytics of all our wells and plant data.

For example, our BP Well Advisor program integrates data from wells with predictive tools, to help operators improve decision-making. Not only has this made our operations safer, but it also has made them far more efficient, saving hundreds of millions of dollars by reducing unproductive drilling time.

Meanwhile, BP has discovered several hundred million barrels of resources by using advanced seismic imaging algorithms devised at our Center for High-Performance Computing. In addition, production optimization technologies have helped us increase our daily oil and gas production by thousands of barrels.

In short: Since the term digital oilfield was first introduced, BP and other companies have tested and successfully deployed a wide range of new technologies. We have learned first-hand how to overcome the cultural and process challenges of introducing digital technologies to safety-critical, performance-driven offshore environments.

Looking ahead, as computing power increases and sensor technology becomes more sophisticated, there will be further possibilities for a digital transformation everywhere in the upstream from subsurface imaging, project engineering and operations, to finance, supply chains and logistics.

This is the kind of transformation that excited me in 2003 and continues to drive me today.

Waves of digital technology will keep coming at us. Pervasive sensing, high-end analytics and visualization, digital twins of equipment and facilities, automation, remote operations, cognitive computing all of these offer intriguing possibilities and have been exciting subjects to explore at this weeks Offshore Technology Conference here in Houston.

Ahmed Hashmi is BP head of upstream technology.

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Why this company’s scanning technology is a smugglers’ nightmare … – The San Diego Union-Tribune

Posted: at 3:10 pm

At Decision Sciences International Corp.s Poway headquarters, a 20-foot shipping container sits beneath a car-wash size scanner.

After about a minute, images of the containers contents pop up on a nearby TV screen, complete with a color-coded identification of the objects based on how they interact with naturally occurring subatomic particles.

Its not a pretty picture. Theres ammunition, firearms, TNT, alcohol and currency inside. If shielded nuclear material were in the container, the companys technology would identify it, too, said Chief Executive Dwight Johnson.

If youre (a customs) officer and you had a manifest that said its all furniture, youd stop right now, said Johnson. Its not all furniture.

Last week, Decision Sciences said it received a contract with the Singapore Ministry of Home Affairs to install one of its next-generation cargo scanning systems at its main port.

Though a pilot project, Decision Sciences is betting it will lead to further deployments of its technology, which is licensed from the Los Alamos National Laboratory and has been refined for more than a decade.

In terms of total volume, Singapore is the second-largest port in the world, said Johnson. So this is a very important event for Decision Sciences.

The 70-employee company is one of a handful of firms working on new technology to better scan cargo containers, which became a priority after the Sept. 11, 2001 terrorist attacks.

These new systems aim to push beyond todays passive radiation detection and active high-energy X-ray based scanning which do well uncovering smuggled nuclear material but arent as good at finding narcotics, guns and other conventional contraband.

The way to look at the next generation systems is going from human inspection of a projected image to materials identification, said Robert Ledoux, chief executive of Massachusetts-based Passport Systems, which recently deployed a next-generation scanning system in Boston.

The real bottleneck in the existing systems is if you find an anomaly, your only option without materials identification is to de-van the cargo, and that can take tens of hours and cost a lot of money, he said.

Passport System identifies guns, drugs and other contraband based on their atomic number a measure of their density. But it still uses high-energy X-rays in its scanning process.

Decision Sciences scanning technique is passive. It doesnt use X-rays beams to create three-dimensional images or identify whats in a container.

Instead, it tracks naturally occurring subatomic particles called muons, as well as electrons, to call out a containers contents.

Muons are like electrons but heavier with 200 times the mass. Theyre also very short lived. But when they hit something, they deflect at a particular way, giving clues as to what the material is.

The company says its machine learning software uses this information -- along with the behavior of nearby electrons -- to uncover not only shielded nuclear material but also narcotics, firearms, cigarettes, smuggled people and other contraband.

Its scanner consists of thousands of vacuum-sealed aluminum tubes, each filled with an inert gas mixture and an proprietary electrode. The software creates an image of whats in the container and color codes it based on how these objects react to these naturally occurring subatomic particles.

Each year, more than 11 million maritime containers arrive at U.S. ports. Another 13 million come in via by truck and rail, according to U.S. Customs and Border Protection.

Since 9-11, every container entering the U.S. by sea or land is scanned by radiation detectors over concerns that terrorists might try to smuggle nuclear weapons into the country.

In addition, Customs agents target about 5 percent of ocean-going containers as high risk. Those containers are subject to X-rays to get an image of whats inside. No nuclear materials have ever been found.

Decision Sciences thinks more containers can be scanned faster with its technology.

What I think we have is a platform technology, lets call it charged particle tomography, said Stuart Rabin, head of New York-based Nine Thirty Capital and chairman of Decision Sciences board of directors. If you have a passive product that can be deployed in multiple locations and scan a large percentage of the volume, it opens up all sorts of applications.

It took years to get the technology right, said Johnson. Some of the original patents go back 10 years, but I would say it has been in the last couple of years that the product fundamentally changed.

In 2012, Decision Sciences, at its own cost, installed an early version of the system at a port in the Bahamas to collect data.

Rabin declined to say how much the companys car-wash size scanning systems cost. He also wouldnt reveal how much money has been invested in the company, which Rabin said is mostly privately funded.

Last year, it did receive a contract from the Pentagons Combating Terrorism Technical Support Office with a potential value of $5.2 million.

While the company is focused on cargo containers at ports for now, it sees the potential to expand into other industries, such as sporting event security or protecting critical infrastructure.

Ledoux of Passport Systems called his companys technology more imaged based and comprehensive than Decision Sciences system, but also likely more expensive because it generates an X-ray beam.

Its apples and oranges, but I think the government wants to test both and that is a good thing, he said.

mike.freeman@sduniontribune.com;

Twitter:@TechDiego

760-529-4973

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The US military has a new technology to finally solve the concussion crisis – Quartz

Posted: at 3:10 pm

The frequent use of explosive devices in the Iraq and Afghanistan wars has given birth to a new type of war injury that clinicians are now labeling the invisible wound of war: multiple mild traumatic brain injuries, or mTBI.

Recent research has shown that multiple exposures to explosions, even from a safe distance from flying shrapnel, may damage the brain. But we still have no idea how strong a blast needs to be to cause trauma. Now, researchers are working on advancing new technology that can accurately measure blast strength, and whether or not it causes an mTBI.

Since 2010, there have been more than 361,000 service members diagnosed with some form of traumatic brain injury, according to the US Defense Departments Defense and Veterans Brain Injury Center. The three different forms of TBIsevere, moderate, and mildall manifest in different ways ranging from memory loss and extended unconsciousness to a simple headache. Mild TBI tends to go unnoticed. One blast may not cause effects like memory loss or slurred speech, the telltale signs of brain trauma, and, especially while in theatre, theres really no easy way to diagnose the condition, says Alex Balbir, director of Warrior Care Network and Independence Services at the Wounded Warriors Project.

The brain has very interesting ways of responding to these mild traumas, says Balbir. Its only after a few [mTBIs], thats when you start to see the effects of the trauma like memory loss and slurred speech.

In an effort to fill that technology gap, Timothy Bentley, and his team at the Office of Naval Researchs Warfighter Performance Department in Arlington, Virginia, have engineered new sensor technology that could give medics on the battlefield a clearer idea of whether or not an injury actually occurred after a blast. The coin-sized sensors, placed in service members helmets and tactical gear, detect the impact of a blast wavewhich moves faster than the speed of soundand assign it a number, a measure of blast strength. The number is then run through an algorithm that computes how a service member was hit by a blast, which sensors were activated based on their placement, and then tells medics if the service member needs to get off the field immediately or not.

If the algorithm shows a possible mTBI, medics in the field have the service member hold a mouse-sized toolnicknamed the brain gaugethat stimulates the fingertips through eraser-sized vibrators. The brain gauge vibrates each finger for a different length of timeif a service member cant recognize which vibrations last longer, its highly likely he or she has suffered an mTBI.

The combination of the sensors, algorithm, and brain gauge would make for the first-ever medical determinant on whether or not an mTBI occurred.

That would be a huge improvement over the militarys current solution: a precautionary 24-hour stand down policy. Service members who are within 50 meters of any kind of explosion have to go for a medical evaluation that consists of mainly checking vital functions before going back outwith a minimum of 24 hours kept off the field. That policy, some say, doesnt take into consideration former injuries. For example, someone standing beyond the 50-meter threshold who has had multiple mTBIs could be affected worse than someone who has never had an mTBI standing within the threshold.

Its like if you have a big earthquake hit San Francisco, says Charles Marmar, director of the Cohen Veterans Center at New York Universitys Langone Medical Center. The bridge that falls probably wont be the Golden Gateits been fortified. The one that collapses could be the one miles away that is a bit more rickety.

And the policy has also been contested, says Steven Flanagan, chair of rehabilitation medicine at the Langone Medical Center. Theres evidence coming out that shows if you prescribe immediate rest and compare that to someone who wasnt prescribed rest, [the latter] actually got better much quicker, he says. Theres still a great deal to learn here. But generally, though, folks will get better on their own [without rest]. In other words, argues Flanagan, the 24-hour policy has no known benefits.

That means a lot of time squandered, says Bentley. Since service members have to stand down in all blast situations, that could mean even the smallest of explosions can hamper a mission. If youre within 50 meters of a firecracker, thats 24 hours wasted, he says.

The sensors being tested by Bentley could solve for these problems, he says, and inform policy changes grounded in better data. The research, which runs a price tag of $30 million and a five-year lifespan, is currently being tested on animals and at bases using electrical shockwaves. Bentley says that within the year, the technology could start being tested on those who spent (and some who continue to spend) lots of time in close proximity to explosions.

Another goal, Bentley says, is to apply data collected in the military to the civilian world, such as in football where multiple concussions have been recognized to cause severe brain injuries later in life for players. Though there are no current plans to sell the sensors to institutions like the National Football League, Bentley says theyve tested it during football games on military bases, and it seems to work.

Weve tested this on thousands of athletes at this point, and with those athletes you can predict and see what sort of and how severe their injury is and how long their recovery will take, Bentley says. This is a big deal and weve made a lot of progress. Its only a prediction and only statistical, but we now have a personal measure of your exposure.

Experts said its just a matter of time before this technology could be used in the civilian world, which desperately needs it. During a House Committee on Armed Services Hearing, military scientists touted their rates of brain trauma-related death to be far lower than that in the civilian world2% compared to 10%and much of that has to do with the research and funding that has gone into projects like Bentleys. If the sensor, algorithm, and brain-gauge tools prove to be substantially effective over the next three years while in testing, they could make all the difference in any profession that has to deal with the threat of head trauma.

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Slumping oilfield services sector bets on new offshore technology – Reuters

Posted: at 3:10 pm

HOUSTON The oil industry's top equipment and services suppliers this week are hawking vastly cheaper ways of designing and equipping subsea wells, aiming to slash the cost of offshore projects to compete with the faster-moving shale industry.

At the Offshore Technology Conference, the industry's annual gathering of floating rig and subsea well suppliers, sales pitches this year are all about cost savings and faster time to first production. With U.S. crude priced CLc1 under $50 a barrel, offshore projects with their typically high costs and long-lead times are now borrowing from leaner shale in the competition for oil company investment.

Low oil prices have soured new exploration in the U.S. Gulf of Mexico, for instance, but production volumes there have remained strong due to the long lead times of these projects. Gulf of Mexico producers are expected to add 190,000 barrels per day this year to output now running about 1.76 million bpd.

Tool and services companies are offering new technologies that can do several jobs, taking the place of multiple devices or highly-paid consultants.

National Oilwell Varco Inc (NOV.N) is exhibiting software it touts as performing much like a drilling expert, sorting through vast amounts of data to find ways to speed production and reduce downtime.

The new software "takes actions a person would do and runs them automatically. It's low cost and it's simple" said David Reid, National Oilwell Varco's chief marketing officer.

Baker Hughes Inc (BHI.N) is showing a new tool called DeepFrac that it said eliminates several steps now required to complete underwater wells. That saving pares the price of a well by up to 40 percent, speeding first production and lowering the break-even cost for producers.

"This helps sharply cut some of the risk of drilling an offshore oil well and, we believe, sharply reduces costs for our customers," said Jim Sessions, a vice president of technology at Baker Hughes.

Graham Hill, an executive vice president at KBR Inc (KBR.N), detailed the construction company's plan for a cheaper floating production vessel, saying the new vessel fits producers' tight budgets. KBR can hope to earn more by selling extra features.

"This is like ordering a Ford," he said. "There's a base package, and you can add extras."

Richard Morrison, president of BP plc (BP.L)'s Gulf of Mexico region, said the industry has accepted that crude prices will probably stay low, meaning oil producers like BP must work with services providers to reduce the multibillion dollar cost of offshore projects.

"That break even point can't come back to $80 a barrel, so I've got to figure out ways to work with my supplier over the long-term to keep that in check," he said during a presentation.

Morrison touted BP's use of new seismic imaging technology that helped identify 1 billion additional barrels of "possible resources" at four of its U.S. Gulf of Mexico offshore fields. The technology enhances existing seismic images to find oil hidden beneath salt structures deep underground.

Just weeks away is a coming Vienna meeting of the Organization of the Petroleum Exporting Countries where OPEC and other oil producers are to decide whether to continue production curbs past June.

If OPEC fails to continue the curbs, oil prices could fall again, making a difficult market worse, said Charles Cherington, a co-founder of Intervale Capital, a private equity investor in oilfield services.

Assuming OPEC continues the existing curbs, Cherington said the best the industry can hope for this year is crude "gets to the low to mid $50s (a barrel)" or half what it fetched at this time three years ago.

Few oilfield suppliers are generating steady profits, he said, and "in the short run, we don't see the market getting much better," he added.

Marc Gerard Rex Edwards, chief executive of rig provider Diamond Offshore Drilling (DO.N), on Monday reported its first quarter earnings declined on revenue down 25 percent from a year ago.

"I think we're beginning to see the signs of a bottom," he told Wall Street analysts, adding: "But I'm not exactly calling a bottom in the market at this particular moment in time."

(Reporting by Jessica Resnick-Ault, Liz Hampton and Ernest Scheyder, Writing by Gary McWilliams; Editing by David Gregorio)

NEW YORK As rapid growth in U.S. shale production grabs headlines and threatens to upend attempts by OPEC to balance oil markets, a more unsung sector of the U.S. industry is also hitting new output highs - the offshore Gulf of Mexico.

LAUNCESTON, Australia The heat came out of China's iron ore imports in April, with vessel-tracking and port data suggesting a decline of several million tonnes from the near-record levels recorded in March.

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Extreme offers glimpse of integrated Avaya, Brocade technology future – Network World

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By Michael Cooney

Online News Editor, Network World | May 4, 2017 9:18 AM PT

In detailing its third quarter 2017 financial discussion Extreme CEO Ed Meyercord said the company was locked and loaded as it worked toward combining and integrating the two companies Avaya and Brocade it is in the process of purchasing.

Extreme a lot of work ahead as it combines Brocade's data center business and the network technology of Avaya Holdings which is in Chapter 11 bankruptcy both of which it said it would acquire in March. Extreme added that it has now integrated another buy it made, Zebra wireless with great success. Extreme said that in the third quarter alone four of its top 10 deals came from the Zebra side.

+More on Network World: Juniper takes a swipe at Extremes network buying spree, plans+

In the end, Extreme said it expects the Avaya and Brocade deals to push its revenues to over $1 billion for its Fiscal 2018 year which begins July 1.

The company is now working on a technology integration roadmap which it could talk about as soon as June 2 when it holds an investor conference in New York.

We will benefit from the newly refreshed platform releases for both Avaya and Brocade with VOS and SLX platforms and advanced fabric technologies that bring security, visibility, automation, resiliency and flexibility into the data center and campus networks at any scale, Meyercord said.Each of our companies has been driving independently toward a bright-box model, a common technology base where we support simple form factors built on merchant silicon and a common Linux base. Our collective vision is to provide the industry's first fully customizable networking platforms powered by a set of services and functions access through a cloud -- a common cloud library of features.

+More on Network World: Avaya wants out of S.F. stadium suite, not too impressed with 49ers on field performance either+

A few other key updates gleaned from the financial call include:

A full transcript of Extremes third quarter conference call is available from Seeking Alphas website here.

Cooney is an Online News Editor at Network World and the author of the Layer 8 blog, Network World's daily home for the not-just-networking news. He has been working with Network World since 1992.

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The Upton Amendment to the ACA Repeal Bill Will Have Almost No Effect – Center For American Progress

Posted: at 3:09 pm

House Republicans are proposing to invest additional money in bad policy. Moderate members have been offered $8 billion more in the American Health Care Act, or AHCA, that could help fund high-risk pools for people with pre-existing conditions, a policy that has failed to provide adequate health coverage in the past. With the deal, up to $138 billion could go to high-risk pools under the AHCA, but that additional $8 billion would subsidize just 76,000 more people.

The high-risk pool plan is an attempt to cover up for another provision in the bill, via an amendment by New Jersey Rep. Tom MacArthur (R), that would allow states to easily waive protections for Americans with pre-existing conditions in the individual market if they experienced a gap in coverage.

The Center for American Progress found that the $130 billion of funding already in the AHCA would be insufficient to sustain even a small high-risk pool. Supposing the size of the pool was about 5 percent of the small-group and individual markets, the AHCA would need to provide a total of $327 billion to offer moderately subsidized high-risk pool coverage for those 1.5 million people. The current version of the AHCA falls $200 billion short of that, and the $8 billion promised to House Republican moderates would fill in just 4 percent of the funding gap.

Suppose that the high-risk pools enrollees would receive Affordable Care Act-like benefits, including limits on out-of-pocket costs, no rating based on health status, coverage of essential health services, no annual or lifetime limits, and a subsidy that covers 68 percent of the average premium. We start our calculations by assuming that the average high-cost enrollee has annual claims of $32,108, the average in the Affordable Care Acts transitional Pre-Existing Condition Insurance Plan. We then subtract the consumers share of medical costs from the total claims cost and add health insurance companies administrative overhead. The resulting premium for the AHCA high-risk pool would be $31,000 per year. A 68 percent subsidy would be $21,000hardly generous considering that the consumers share of the premium would be $10,000.

Two moderate Republicans, Rep. Fred Upton (R-MI) and Rep. Billy Long (R-MO), have reportedly been promised that the AHCA will put an additional $8 billion toward high-risk pools over five years, for an average of $1.6 billion in funding per year. The money could be limited to states that choose to waive pre-existing condition protections. Assuming moderately generous premium subsidies of $21,000 per year for high-cost coverage, the Upton amendment could help cover 76,000 enrolleesa tiny fraction of the 130 million Americans with pre-existing conditions.

The full $138 billion would subsidize about 700,000 people annually, including the 76,000 from the Upton amendment, in a high-risk pool. But if roughly 5 percent of current individual market and small-group enrollees needed coverage through the high-risk pools, more than 800,000 people with high-cost health conditions would still be left without protection or affordable coverage. We show estimates by state in the table below. We assumed that states which outlawed health-based rating in the individual market would not waive pre-existing condition protections under the AHCA and would therefore be ineligible for Upton amendment funds.

Note that our estimates have made generous assumptions about the maximum funding available for the AHCA high-risk pool. For a full $138 billion toward the risk pool, money would need to be redirected away from other AHCA programs, including promotion of preventive services; the federal invisible risk-sharing program; and maternity care, newborn care, mental health care, and substance use disorders. The entirety of the bills Patient and State Stability Fund would need to be dedicated solely to the third option in its list of possible purposes: reducing the cost for providing health insurance coverage in the individual market and small group market to individuals who have, or are projected to have, a high rate of utilization of health services.

House Republican leaders have been presenting the latest ACHA plan as a deal: In exchange for moderate Republicans in the House backing the MacArthur amendment, they sink more money into high-risk pools. But as often happens in trade-offs, there would be winners and losers. Even if the Upton amendment wins votes, the staggeringly large funding gap could leave many Americans with pre-existing conditions stranded outside the high-risk pool without affordable options for coverage.

Emily Gee is a Health Economist at the Center for American Progress. Topher Spiro is the Vice President for Health Policy and a Senior Fellow at the Center for American Progress.

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Automation Kills Jobs and Brings Mass Poverty. Call That Progress? – Newsweek

Posted: at 3:09 pm

Throughout America's small towns and suburbs, you can see the ominous markers of a coming sea change. Empty storefronts. Gutted strip malls. Vacant shopping complexes.

Indeed, nothing captures America's perverse economic picture better than the transformation happening in the retail sector. Brick-and-mortar retailers are hemorrhaging jobs: 90,000 since last October. That's 15,000 lost jobs per month.

Meanwhile, Jeff Bezos, the founder of online retailer Amazon, has become the nation's second richest manand a virtual lock to be No. 1 within a few years, if not months. Bezos's wealth has tripled in just over two years, a tidy $50 billion increase. That's over $1.5 billion per month.

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The connection between those two trends is indisputable. Every month, the same forces that destroy the jobs and turn upside down the lives of 15,000 Americans drive $1.5 billion into the pocket of the second-wealthiest American.

It's the real-life embodiment of a Tom Tomorrow cartoon I saw years ago:the One Rich Guy Who Owns Everything. "Over the years, income inequality continued to rise," the comic begins, "until finally, one rich guy owned as much as the rest of the planet combined."

The strip was meant to be an extrapolation of wealth inequality to its most absurdly concentrated point. It was satire. But the more absurd thing is that we're actually trending in that direction.

Consider the trend since the inaugural appearance of the Forbes 400 list 35 years ago. In 1982, the wealthiest 400 Americans had a combined net worth of slightly less than 1 percent of the nations aggregate wealth. Today, according to the Bloomberg Billionaires Index, the 20 wealthiest Americans enjoy that same slice.

Related: The automation revolution: Or how to stop worrying and learn to love robots

Reflect on that. The size of the group of wealthy Americans accounting for 1 percent of the country's wealth has been trimmed by 95 percent in just 35 years, from 400 to 20. If that group were reduced by the same amount over the next 35 years, what would we have?

In three words: One Rich Guy.

The St. Nicholas Breaker, seen in a state of demolition, was once the world's largest coal breaker but closed in 1972 in Manahoy City, Pennsylvania. Most of the nearby coal mines have also closed, and 17.4 percent of the town's population now exists below the poverty line, with a median household income of $24,347. Robert Lord writes that the transformation were witnessing in the retail sector will repeat itself when online retailers enter the grocery business, electronic tablets replace servers at restaurants, hamburger-making robots replace fast-food workers and driverless vehicles replace everyone who currently drives a vehicle for a living. Those transformations are all underway. Mark Makela/Getty

Obviously, "One Rich Guy"is hyperbole. But the idea that one guy, or even 20 guys, could control a full 1 percent of the wealth in a country of over 300 million should alarm our leaders. Instead, they're concerned that the contenders to be the country's One Rich Guy are being taxed unfairly. ("Why do you want to punish his success?" asks a lawmaker in Tom Tomorrow's dystopian cartoon, in front of a dilapidated Capitol building.)

Could the trend of the past 35 years continue? Actually, it could accelerate.

Consider the transformation we're witnessing in the retail sector repeating itself when online retailers enter the grocery business, electronic tablets replace servers at restaurants, hamburger-making robots replace fast-food workers and driverless vehicles replace everyone who currently drives a vehicle for a living. Those transformations are all underway.

If nothing else changes, each will destroy millions of livelihoods while making a handful of Americans fantastically wealthy.

It's as if the fears of the Luddites weren't wrong, just premature.

The Fruits of Progress

Should technological progress be something we fear? Of course not. But the British science fiction writer Arthur C. Clarke had a point when he proclaimed,"The goal of the future is full unemployment, so we can play."

Yet instead of creating more leisurely lives for the masses, today's technical progress instead threatens to impoverish themwhile driving the bulk of the country's wealth into the hands of a group so small it couldn't fill a basketball arena.

Historically, American workers shared proportionallyin our productivity gains, which translated into both increased worker income and reduced hoursin other words, more time for play and more money to play with. But that trend toward the utopia Clarke envisioned came to a grinding halt about 35 years ago.

Despite continued productivity increases, deliberate policy choices have led to worker wages stagnatingeven while corporate profits have soared.

Unfortunately, what's happened over the past 35 years may not be the worst of it. Until now, increases in the demand for goods and services have more or less kept pace with productivity increases, which has allowed the hours available per worker to stay relatively constant.

Workers as a group, therefore, have been able to tread water (even though some groups, such as today's employees and yesterday's factory workers, have struggled).

But what happens if increases in demand can't match the pace of productivity? If workers no longer have the wages to participate in their productive economy? Eventually, you get One Rich Guyand social ruin.

Related: Trump's promise to bring back jobs is ignorant and cruel

What was Clarke's solution for avoiding this neo-Luddite nightmare? Simple: "We haveto destroy the present politico-economic system,"he opined.

Maybe that sounds like a bit much. But we sure as heck need to change it, and not just at the margins. Which means we don't have room for political leaders who believe the road to mass prosperity is trimming the tax burdens of billionaires while questioning benefits for the masses.

Instead, we need policies that let the fruits of tomorrow's technological progress flow to our society as a whole, not just the luckiest amongus.

Otherwise, we can start taking bets on who will be America's One Rich Guy.

Bob Lord, a tax lawyer and former congressional candidate, is an associate fellow at the Institute for Policy Studies.

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Churchill: Asking questions as Albany thwarts progress – Albany Times Union

Posted: at 3:09 pm

Photo: John Carl D'Annibale

Albany Mayor Kathy Sheehan, shown announcing her candidacy for re-election last month, was against an inclusionary zoning requirement before she was for it. (John Carl D'Annibale / Times Union)

Albany Mayor Kathy Sheehan, shown announcing her candidacy for re-election last month, was against an inclusionary zoning requirement before she was for it. (John Carl D'Annibale / Times Union)

Churchill: Asking questions as Albany thwarts progress

Albany

You can almost count on it. As soon as Albany starts to build momentum, city government will find a way to mess things up.

The latest example: The decision to insert an "inclusionary zoning" provision into the city's ongoing update of its development rules.

What, you ask, is inclusionary zoning?

Excellent question! I'm glad you asked.

Inclusionary zoning is a rule that will require apartment developers to set aside five percent of units for affordable housing.

That probably doesn't seem so unreasonable. Indeed, inclusionary zoning is one of those things like "free tuition" or "Knicks basketball" that sounds wonderful until you look closely.

It's perhaps even true that inclusionary zoning has worked OK in wildly expensive and popular cities where rapid gentrification is pricing out long-term residents.

Albany, alas, is not one of those cities.

Instead, it's a place where developers are nervously sticking their toes in the water and looking for encouragement. The city is just beginning to see significant apartment construction in neighborhoods like the warehouse district.

Come on in, friends! The water won't hurt you!

That's what the city should be saying. But in this (admittedly tortured) analogy, inclusionary zoning is like a sign warning about sharks. It tells developers to scurry back to the bathtub safety of towns like Colonie.

You don't have to take my word for it. Consider the wisdom once uttered by Mayor Kathy Sheehan:

"I'm very concerned that if we were to mandate inclusionary housing, we'd see a huge drop-off in development in the city of Albany," Sheehan said last month to the All Over Albany website. "We have to be realistic about this market."

Nicely put!

Unfortunately, that Kathy Sheehan has vanished like your favorite phone booth. At Monday night's Common Council meeting, the mayor was among those speaking in favor of the last-minute insertion of inclusionary zoning into the long-planned and much-discussed ReZone Albany plan.

Sheehan's office subsequently sent me a statement saying it was "excited to be the first municipality in the Capital Region to implement this."

Of course, there's a reason no other municipality around here has done this. In upstate New York, it doesn't make economic sense.

So how, you ask, do we explain Sheehan's change of heart?

Excellent question! I'm glad you asked.

Well, I suspect the mayor's decision is mostly about the upcoming election. Her opponents in the Democratic primary Frank Commisso Jr. and Carolyn McLaughlin support inclusionary zoning, and she probably didn't want to be painted as a big meanie.

Sheehan isn't a real progressive! She's a tool of developers!

Speaking of developers, I called around to ask a few about the requirement, which applies to projects with more than 50 units and mandates that rents for affordable units can't exceed 30 percent of the city's median household income.

None would speak against it publicly, but they privately used words like "tragic" and "maddening."

"They just don't get it," one said. "They refuse to understand."

The developers said building in high-tax Albany still feels financially risky. The city, they said, should be easing the difficulties of construction, rather than throwing up hurdles that will shift urban investment to Schenectady and Troy.

Let me hit you with some numbers that seem to back that up: The census says the number of housing units in the city has fallen by 4.2 percent from 48,411 to 46,362 since 2010, while its population has inched up.

Anyone who passed Economics 101 can predict the inevitable result: Higher rents.

Anyone with basic supply-and-demand knowledge would know that increasing the number of units is one way to address the problem. But instead of encouraging new construction, Albany is choosing an opposite path that could slow development and further decrease supply.

I mentioned these concerns to Kelly Kimbrough, who represents North Albany on the Common Council and has been among the strongest supporters of inclusionary zoning.

"If we don't do anything, the developers aren't going to do the right thing," Kimbrough said. "I'm speaking for the people I represent. My focus is on making sure they have affordable places to live."

I believe Kimbrough's heart is in the right place, but I'll end with a few thoughts on why I think he's misguided on this.

One, the city has nearly 1,000 vacant residential buildings, a staggering number that suggests its housing market isn't robust enough for inclusionary zoning.

Two, since Albany's housing affordability problem is really a poverty problem, you could just as reasonably argue that supermarkets should be required to offer food discounts to poor customers.

But even Albany's misguided city officials wouldn't do that, presumably, because they understand it would discourage grocers from operating in the city.

So why, you ask, should housing be treated any differently?

Excellent question! I'm glad you asked.

cchurchill@timesunion.com 518-454-5442 @chris_churchill

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Jason Industries Makes Progress With Its Slim-Down Efforts — The … – Motley Fool

Posted: at 3:09 pm

The past several years have been favorable to many companies in the U.S. economy, but times have been tough for Jason Industries (NASDAQ:JASN). The maker of seating, finishing, and automotive acoustic products has seen its stock plunge since 2014, and Jason has had to engage in a radical transformation in order to find ways to move forward.

Coming into Thursday's first-quarter financial report, Jason Industries investors were prepared for another decline in revenue and a net loss for the quarter. Jason wasn't able to avoid that fate, but it did manage to cushion the blow with less dramatic deterioration than many had expected, and company executives are hopeful about its restructuring efforts. Let's look more closely at Jason Industries and what its results say about its future.

Image source: Jason Industries.

Jason Industries' first-quarter results weren't strong, but they reflected the company's willingness to fight against tough conditions. Sales dropped 8% to $175.2 million, which was a little less extreme than the consensus forecast among investors for an 11% decline. Net losses narrowed to $1.3 million, and the per-share loss of $0.05 was less than half of what those following the stock had expected to see.

Taking a closer look at the numbers, Jason suffered declines in revenue across the board. The finishing segment fared the best, with sales declining just 2%, and adjusted pre-tax operating income actually rose by roughly a third from year-ago levels. But the components segment took the biggest hit, seeing revenue drop by more than a fifth. Fully 13 percentage points of downward pressure came from the decision to exit certain non-core product lines when Jason decided to close its facility in Buffalo Grove, Illinois. Yet lower rail volumes produced an 8% hit to organic sales, and pre-tax operating profit dropped by about two-fifths.

Elsewhere, Jason's other segments had mixed results. The seating segment suffered a 9% drop in sales, as motorcycle and turf-care related volumes fell. Unfavorable product mixes hit the segment's bottom line, where adjusted pre-tax operating profit fell by a sixth. With acoustics, automotive assembly plant shutdowns contributed to an 8% revenue hit, but pre-tax operating profit inched higher as Jason saw the benefits of productivity gains and cost reductions.

CEO Brian Kobylinski put the results in perspective. "As expected, certain of our end markets remained soft due to inflated levels of channel inventory," Kobylinski said, "and we saw an overall 5% organic sales contraction." However, the CEO also noted that the completion of many cost reduction and margin expansion efforts helped Jason move forward. In particular, the winding down of operations in Brazil was completed, and the company did a sale and leaseback transaction on one of its facilities to generate $5.6 million in cash proceeds. Also, the planned consolidation of components production facilities in Illinois is on track to be done by the end of the year.

Looking forward, Jason seems more optimistic about its future than it has been in previous quarters. In the CEO's words, "We are beginning to see the results of our quality, delivery, portfolio optimization, and cost reduction initiatives reflected in our financial performance and the rate of new business awards received in the quarter." The company plans to push into new markets and come up with new products to drive future demand, and it hopes its sales efforts will find new customers even as Jason continues to make itself leaner and meaner operationally.

Jason reaffirmed its full-year guidance for 2017, reassuring those who might have feared a downward revision. Revenue should still finish the year between $650 million and $670 million, and adjusted pre-tax operating income is expected in the range of $64 million to $67 million.

Jason Industries investors didn't appear to immediately respond to the news, as the stock didn't move in pre-market trading following the announcement. Given how far share prices have already fallen, Jason shareholders can only hope that the company's retrenchment efforts will bring a turnaround that will help bolster its fundamental growth potential in the years to come.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Jason Industries. The Motley Fool has a disclosure policy.

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