New Spin on a Revolving Door: Pentagon Officials Turned Venture Capitalists (nytimes.com) 25
They represent a new path through the revolving door that has always connected the Defense Department and the military contracting business. Retiring generals and departing top Pentagon officials once migrated regularly to the big established weapons makers like Lockheed Martin and Boeing. Now they are increasingly flocking to venture capital firms that have collectively pumped billions of dollars into Silicon Valley-style startups offering the Pentagon new war-fighting tools like autonomous killer drones, hypersonic jets and space surveillance equipment.
This new route to the private sector is one indicator of the ways in which the United States is trying to become more agile in harnessing technological advances to maintain military superiority over China and other rivals. But the close ties between venture capital firms and Defense Department decision makers have also put a new twist on long-running questions about industry access and influence at a time when the Pentagon is under pressure to rethink how it allocates its huge procurement budget.
US Supreme Court's Roberts Urges 'Caution' as AI Reshapes Legal Field (reuters.com) 65
"I predict that human judges will be around for a while," Roberts wrote. "But with equal confidence I predict that judicial work - particularly at the trial level - will be significantly affected by AI." The chief justice's commentary is his most significant discussion to date of the influence of AI on the law, and coincides with a number of lower courts contending with how best to adapt to a new technology capable of passing the bar exam but also prone to generating fictitious content, known as "hallucinations." Roberts emphasized that "any use of AI requires caution and humility." He mentioned an instance where AI hallucinations had led lawyers to cite non-existent cases in court papers, which the chief justice said is "always a bad idea." Roberts did not elaborate beyond saying the phenomenon "made headlines this year."
Early Mickey Mouse Finally Enters Public Domain (bbc.co.uk) 65
Steamboat Willie, a 1928 short film featuring early non-speaking versions of Mickey and Minnie, is widely seen as the moment that transformed Disney's fortunes and made cinema history.
Their images are now available to the public in the US, after Disney's copyright expired.
It means creatives like cartoonists can now rework and use the earliest versions of Mickey and Minnie.
In fact, anyone can use those versions without permission or cost.
But Disney warned that more modern versions of Mickey are still covered by copyright.
'We will, of course, continue to protect our rights in the more modern versions of Mickey Mouse and other works that remain subject to copyright,' the company said.
US copyright law says the rights to characters can be held for 95 years, which means the characters in Steamboat Willie entered the public domain on Monday, 1 January 2024.
Those works can now legally be shared, performed, reused, repurposed or sampled.
The early versions of Mickey and Minnie are just two of the works entering the public domain in the US on New Year's Day.
Other famous films, books, music and characters from 1928 are now also available to the American public.
They include Charlie Chaplin's silent romantic comedy The Circus; English author AA Milne's book The House at Pooh Corner, which introduced the character Tigger; Virginia Woolf's Orlando; and DH Lawrence's Lady Chatterley's Lover.
Burned Investors Ask 'Where Were the Auditors?' A Court Says 'Who Cares?' (wsj.com) 88
The ruling, by a three-judge panel of the Second U.S. Circuit Court of Appeals, prompted three former SEC officials to tell the court it got the answer wrong. They asked the court to reconsider its decision, noting that the SEC in a previous enforcement case had said that "few matters could be more important to investors" than whether a company's financial statements had been subjected to a properly conducted annual audit. The court responded by inviting the SEC to file a brief expressing its views on the former officials' arguments. The SEC in a court filing said that "the commission has an interest in ensuring its views on this issue are considered by the court." Its brief is due Feb. 16. The court ruling involved a lawsuit by investors over an audit gone wrong. AmTrust Financial Services, an insurance company, had overstated its profit, and BDO USA, its outside accounting firm, had blessed the numbers.
Will 2024 Bring a 'Major Turning Point' in US Health Care? (usatoday.com) 154
In 2023, mental health issues became among the nation's most deadly, costly and pervasive health crises... The dearth of remedies has also paved the way for an unsuspecting class of drugs: psychedelics. MDMA, a party drug commonly known as "ecstasy," could win approval for legal distribution in 2024, as a treatment for post-traumatic stress disorder. Another psychedelic, a ketamine derivative eskatemine, sold as Spravato, was approved in 2019 to treat depression, but it is being treated like a conventional therapy that must be dosed regularly, not like a psychedelic that provides a long-lasting learning experience, said Matthew Johnson, an expert in psychedelics at Johns Hopkins University. MDMA (midomafetamine capsules) would be different, as the first true psychedelic to win FDA approval.
In a late-stage trial of patients with moderate or severe post-traumatic stress disorder, close to 90% showed clinically significant improvements four months after three treatments with MDMA and more than 70% no longer met the criteria for having the disorder, which represented "really impressive results," according to Matthew Johnson, an expert in psychedelics at Johns Hopkins University in Maryland. Psilocybin, known colloquially as "magic mushrooms," is also working its way through the federal approval process, but it likely won't come up before officials for another year, Johnson said. Psychedelics are something to keep an eye on in the future, as they're being used to treat an array of mental health issues: eskatimine for depression, MDMA for PTSD and psilocybin for addiction. Johnson said his research suggests that psychedelics will probably have a generalizable benefit across many mental health challenges in the years to come.
2024 will also be the first year America's drug-makers face new limits on how much they can increase prices for drugs covered by the federal health insurance program Medicare.
The Wealthiest Californians are Leaving the State, Hurting the Economy, Statistics Confirm 221
The reversal, largely in response to the state's high taxes and soaring cost of living, has begun to damage California's overall economy. And, by cutting into tax revenues, has delivered punishing blows to state and local governments. State budget analysts recently projected a record $68 billion deficit in the next fiscal year because of a 25% drop in personal income tax collection in 2023. Some city, county and other local taxing authorities, particularly in the San Francisco Bay Area, have also recorded revenue declines. With investors and high-income taxpayers receiving substantial compensation in the form of stocks, last year's sluggish stock market accounted for a major share of the decline in state income tax revenues. So did layoffs and financial weakness in the tech sector. But rising unemployment in the state and the growing flight of professionals, business operators and others making good salaries were also notable contributors. And those factors will be harder to reverse, at least in the foreseeable future.
"There's a price to pay for the movement of middle- and upper-income people and corporations," said Joel Kotkin, a fellow at Chapman University who has researched the flight from California and the resulting threat to the state's fiscal outlook. "People who are leaving are taking their tax dollars with them."
The accelerating exodus from California in recent years, of both companies and people, has been well documented. The pandemic-induced rise in remote work, inflated housing prices and changing social conditions have spurred more Californians to pull up stakes... Moody's Analytics economist Mark Zandi analyzed moves in and out of California for The Times using Equifax credit data, to zero in on the age of the movers. He found that since the pandemic in early 2020, California has lost residents in every age group, but by a significant margin the biggest net out-migration came from those 35 to 44 years old. "This is probably motivated by the severe housing affordability crisis in California," Zandi said. "It's all but impossible for them to become homeowners in the state."
Eric McGhee, a senior fellow at the Public Policy Institute of California, who has written about demographic trends in migration, thinks the increased loss of higher-educated Californians to other states in recent years can be traced in significant part to the rise of remote work since the pandemic. As more employers call workers back to the office, and the share of fully remote work appears to have settled at around 10% of all employees, McGhee expects the net out-migration from California to slow...
Even if the outflow of residents reverts to pre-pandemic levels, the broader economic climate doesn't bode well for the state's budget and economic outlook, at least in the immediate future. The U.S. economy is slowing, and California's economy is decelerating faster than the nation's, with the state's unemployment rate, most recently at 4.8%, already a full point higher than nationwide.
The article clarifies that "it's not just the sheer numbers of people who have left. What's different is that in each of the prior two years, more than 250,000 Californians with at least a bachelor's degree moved out, while an average of 175,000 college graduates from other states settled in California, according to an analysis of census data by William Frey, a demographer at the Brookings Institution. In prior periods over the last two decades, that balance was about even or slightly in California's favor."
And besides billionaires, "There's been a broader exodus of ordinary Californians in the upper-income spectrum as well. In the tax filing years 2020 and 2021, the average gross income of taxpayers who had moved from California to another state was about $137,000. That was up from $75,000 in 2015 and 2016, according to migration and personal income data from the Internal Revenue Service."
20% of America's Plants and Animals are At Risk of Extinction (usatoday.com) 56
But 1,252 species are still listed as endangered in the U.S. — 486 animals, and 766 plants — with 417 more species categorized as "threatened." The perils of the changing climate add urgency to calls for increased funding and more protection. In North Carolina, for example, the rising sea steadily creeps over a refuge that's home to the sole remaining wild red wolf population. Off New England, warming waters forced changes in the foraging habits of the endangered North Atlantic right whale, putting the massive marine mammals in harm's way more often... One in 5 plant and animal species in the nation remain at risk of extinction, says Susan Holmes, executive director of the Endangered Species Coalition. "Loss of habitat and climate change are absolutely some of the most important threats that we have."
"We are at what I would say is a pivotal moment with the threats of climate change," she said. "We have to act faster than ever in order to ensure that these species are going to thrive."
How Electric Cars are Already Upending America (msn.com) 472
All of these EVs are genuinely great for the planet, spewing zero carbon from their tailpipes, but that's only a small part of what makes them different. In the EV age, cars are no longer just cars. They are computers... The million-plus new EVs on the road are ushering in a fundamental, maybe existential, change in how to even think about cars — no longer as machines, but as gadgets that plug in and charge like all the others in our life. The wonderful things about computers are coming to cars, and so are the terrible ones: apps that crash. Subscription hell. Cyberattacks... If cars are gadgets now, then carmakers are also now tech companies. An industry that has spent a century perfecting the internal combustion engine must now manufacture lithium-ion batteries and write the code to govern them. Imagine if a dentist had to pivot from filling cavities to performing open-heart surgery, and that's roughly what's going on here.
"The transition to EVs is completely changing everything," Loren McDonald, an EV consultant, told me. "It's changing the people that automotive companies have to hire and their skills. It's changing their suppliers, their factories, how they assemble and build them. And lots of automakers are struggling with that...." Job cuts are already happening, and more may come — even after the massive autoworker strike this year that largely hinged on electrification. Such a big financial investment is needed to electrify the car industry that from July to September, Ford lost $60,000 for every EV it sold. Or peel back one more onion layer to car dealerships: Tesla, Rivian, and other EV companies are selling directly to consumers, cutting them out. EVs also require little service compared with gas vehicles, a reality that has upset many dealers, who could lose their biggest source of profit.
None of this is the future. It is happening right now.
Is 'Work From Home' Here to Stay After 2023? (usatoday.com) 163
Though a number of companies issued return-to-work mandates this year, most are allowing employees to work from home at least part of the week. That makes 2024 the year for employers to figure out the hybrid model. "We're never going to go back to a five-days-in-the-office policy," said Stephan Meier, professor of business at Columbia University. "Some employers are going to force people to come back, but I think over the next year, more and more firms will actually figure out how to manage hybrid well." Thirty-eight percent of companies require full-time in-office work, down from 39% one quarter ago and 49% at the start of the year, according to software firm Scoop Technologies...
[Stanford economics professor] Bloom called remote-work numbers in 2023 "pancake-flat." Yes, large companies like Meta and Zoom made headlines by ordering workers back to the office. But, Bloom said, just as many other companies were quietly reducing office attendance to cut costs.
Bloom thinks holograms and VR devices are possible within five years. "In the long run, the thing that really matters is technology."
One paper estimates that currently 37% of America's jobs can be done entirely at home, according to the article, and ZipRecruiter's chief economist seems to agree, predicting as much as 33% America's work days will eventually be completed from home. "I think the numbers will gradually go up as this becomes more of an accepted norm as future generations grow up with it being so widely available, and as the technology for for doing it gets better."
And the article notes that the ZipRecruiter economist sees another factor fueling the trend. "Reluctant leaders aging out of the workforce will help, too, she said."
Chemicals of 'Concern' Found In Philips Breathing Machines (propublica.org) 43
"Though Philips has said the machines are safe, ProPublica and the Pittsburgh Post-Gazette obtained test results and other internal records that reveal for the first time how scientists working for the company grew increasingly alarmed and how infighting broke out as the new threat reached the highest levels of the Pittsburgh operation. The findings also underscore an unchecked pattern of corporate secrecy that began long before Philips decided to use the new foam." From the report: The company had previously failed to disclose complaints about the original foam in its profitable breathing machines, a polyester-based polyurethane material that was found to degrade in heat and humidity. Former patients and others have described hundreds of deaths and thousands of cases of cancer in government reports. After the introduction of the new foam in 2021, this one made of silicone, the company again held back details about the problem from the public even as it sent out replacement machines with the new material to customers around the world.
One of the devices was the DreamStation 2, a newly released continuous positive airway pressure, or CPAP, machine promoted as one of the company's primary replacements. Federal regulators were alerted to the concern more than two years ago but said in a news release at the time that the company was carrying out additional tests on the foam and that patients should keep using their replacements until more details were available. The Food and Drug Administration has not provided new information on the test results since then, and it is still unclear whether the material is safe. That leaves millions of people in the United States alone caught in the middle, including those with sleep apnea, which causes breathing to stop and start through the night and can lead to heart attacks, strokes and sudden death.
The new foam isn't the only problem: An internal investigation at Philips launched in the months after the recall found that water was condensing in the circuitry of the DreamStation 2, creating a new series of safety risks. "Loss of therapy, thermal events, and shock hazards," the investigation concluded. The FDA issued an alert about overheating last month, warning that the devices could produce "fire, smoke, burns, and other signs of overheating" and advising patients to keep the machines away from carpet, fabric and "other flammable materials." Philips has said that customers could continue using the devices if they followed safety instructions. ...
Boeing Urges Airlines To Inspect 787 Max Planes For Possible Loose Bolts (thehill.com) 38
First New US Nuclear Reactor Since 2016 is Now in Operation (eia.gov) 161
Georgia Power expects another similar-sized fourth reactor, Vogtle Unit 4, to begin operation sometime between November 2023 and March 2024. The two new reactors will make Plant Vogtle the largest nuclear power plant in the country, surpassing the 4,210 MW Palo Verde plant in Arizona. Construction at the two new reactor sites began in 2009. Originally expected to cost $14 billion and begin commercial operation in 2016 (Vogtle 3) and 2017 (Vogtle 4), the project ran into significant construction delays and cost overruns. The total cost of the project is now estimated at more than $30 billion.
40% of US Electricity Is Now Emissions-Free (arstechnica.com) 129
At this point last year, coal had produced nearly 20 percent of the electricity in the US. This year, it's down to 16.2 percent, and only accounts for 15.5 percent of October's production. Wind and solar combined are presently at 16 percent of year-to-date production, meaning they're likely to be in a dead heat with coal this year and easily surpass it next year. Year-to-date, wind is largely unchanged since 2022, accounting for about 10 percent of total generation, and it's up to over 11 percent in the October data, so that's unlikely to change much by the end of the year. Solar has seen a significant change, going from five to six percent of the total electricity production (this figure includes both utility-scale generation and the EIA's estimate of residential production). And it's largely unchanged in October alone, suggesting that new construction is offsetting some of the seasonal decline.
Hydroelectric production has dropped by about six percent since last year, causing it to slip from 6.1 percent to 5.8 percent of the total production. Depending on the next couple of months, that may allow solar to pass hydro on the list of renewables. Combined, the three major renewables account for about 22 percent of year-to-date electricity generation, up about 0.5 percent since last year. They're up by even more in the October data, placing them well ahead of both nuclear and coal. Nuclear itself is largely unchanged, allowing it to pass coal thanks to the latter's decline. Its output has been boosted by a new, 1.1 Gigawatt reactor that come online this year (a second at the same site, Vogtle in Georgia, is set to start commercial production at any moment). But that's likely to be the end of new nuclear capacity for this decade; the challenge will be keeping existing plants open despite their age and high costs. If we combine nuclear and renewables under the umbrella of carbon-free generation, then that's up by nearly 1 percent since 2022 and is likely to surpass 40 percent for the first time. "The only thing that's keeping carbon-free power from growing faster is natural gas, which is the fastest-growing source of generation at the moment, going from 40 percent of the year-to-date total in 2022 to 43.3 percent this year," notes Ars.
"Outside of natural gas, however, all the trends in US generation are good, especially considering that the rise of renewable production would have seemed like an impossibility a decade ago. Unfortunately, the pace is currently too slow for the US to have a net-zero electric grid by the end of the decade."
New US Immigration Rules Spur More Visa Approvals For STEM Workers (science.org) 102
President Joe Biden has long sought to make it easier for foreign-born STEM workers to remain in the country and use their talent to spur the U.S. economy. But under the terms of a 1990 law, only 140,000 employment-based green cards may be issued annually, and no more than 7% of those can go to citizens of any one country. The ceiling is well below the demand. And the country quotas have created decades-long queues for scientists and high-tech entrepreneurs born in India and China. The 2022 guidance doesn't alter those limits on employment-based green cards but clarifies the visa process for foreign-born scientists pending any significant changes to the 1990 law. The O-1A work visa, which can be renewed indefinitely, was designed to accelerate the path to a green card for foreign-born high-tech entrepreneurs.
Although there is no cap on the number of O-1A visas awarded, foreign-born scientists have largely ignored this option because it wasn't clear what metrics USCIS would use to assess their application. The 2022 guidance on O-1As removed that uncertainty by listing eight criteria -- including awards, peer-reviewed publications, and reviewing the work of other scientistsâ"and stipulating that applicants need to satisfy at least three of them. The second visa policy change affects those with advanced STEM degrees seeking the national interest waiver for an EB-2. Under the normal process of obtaining such a visa, the Department of Labor requires employers to first satisfy rules meant to protect U.S. workers from foreign competition, for example, by showing that the company has failed to find a qualified domestic worker and that the job will pay the prevailing wage. That time-consuming exercise can be waived if visa applicants can prove they are doing "exceptional" work of "substantial merit and national importance." But once again, the standard for determining whether the labor-force requirements can be waived was vague, so relatively few STEM workers chose that route. The 2022 USCIS guidance not only specifies criteria, which closely track those for the nonimmigrant, O-1A visa, but also allows scientists to sponsor themselves.
Nvidia Slowed RTX 4090 GPU By 11 Percent, To Make It 100 Percent Legal For Export In China (theregister.com) 22
As we reported at the time, the RTX 4090 was the only consumer graphics card barred from sale in the Middle Kingdom following the October publication of the Biden Administration's most restrictive set of export controls. The problem was the card narrowly exceeded the performance limits on consumer cards with a total processing performance (TPP) of more than 4,800. That number is calculated by doubling the max number of dense tera-operations per second -- floating point or integer -- and multiplying by the bit length of the operation.
The original 4090 clocked a TPP of 5,285 performance, which meant Nvidia needed a US government-issued license to sell the popular gaming card in China. Note, consumer cards aren't subject to the performance density metric that restricts the sale of much less powerful datacenter cards like the Nvidia L4. As it happens, cutting performance by 10.94 percent is enough to bring the card under the metrics that trigger the requirement for the USA's Bureau of Industry and Security (BIS) to consider an export license. Nvidia notes that the 4090D can be overclocked by end users, effectively allowing customers to recover some performance lost by the lower core count. "In 4K gaming with ray tracing and deep-learning super sampling (DLSS), the GeForce RTX 4090D is about five percent slower than the GeForce RTX 4090 and it operates like every other GeForce GPU, which can be overclocked by end users," an Nvidia spokesperson said in an email.
FDA Warns Amazon Over Supplements With Undeclared and Potentially Harmful Ingredients (fda.gov) 49
Furthermore, the products are misbranded drugs under section 502 of the FD&C Act, 21 U.S.C. 352. As explained further below, introducing or delivering these products for introduction into interstate commerce is prohibited under sections 301(a), 301(d), and 505(a) of the FD&C Act, 21 U.S.C. 331(a), 331(d), and 355(a). Your firm is also responsible for introducing or delivering for introduction into interstate commerce a food that is prohibited under section 301(ll) of the FD&C Act, 21 U.S.C. 331(ll). [...]
US Engine Maker Will Pay $1.6 Billion To Settle Claims of Emissions Cheating (nytimes.com) 100
The Justice Department has accused the company of installing defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pickup truck engines. The company is also alleged to have secretly installed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines. "Violations of our environmental laws have a tangible impact. They inflict real harm on people in communities across the country," Attorney General Merrick Garland said in a statement. "This historic agreement should make clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people's health and safety."
In a statement, Cummins said that it had "seen no evidence that anyone acted in bad faith and does not admit wrongdoing." The company said it has "cooperated fully with the relevant regulators, already addressed many of the issues involved, and looks forward to obtaining certainty as it concludes this lengthy matter. Cummins conducted an extensive internal review and worked collaboratively with the regulators for more than four years." Stellantis, the company that makes the trucks, has already recalled the model year 2019 trucks and has initiated a recall of the model year 2013 to 2018 trucks. The software in those trucks will be recalibrated to ensure that they are fully compliant with federal emissions law, said Jon Mills, a spokesman for Cummins. Mr. Mills said that "next steps are unclear" on the model year 2020 through 2023, but that the company "continues to work collaboratively with regulators" to resolve the issue. The Justice Department partnered with the Environmental Protection Agency in its investigation of the case.
Joe Biden Plans To Ban Logging in US Old-Growth Forests in 2025 (theguardian.com) 181
The US Forest Service oversees 193m acres of forests and grasslands, 144m of which are forests. In its inventory conducted after Biden's executive order, the agency found that the vast majority of forests it oversees, about 80%, are either old-growth or mature forests. It found more than 32m acres of old-growth forests and 80m acres of mature forests on federal land. The land management bureau defines old-growth forests as those with trees that are in later stages of stand development, which typically means at least 120 years of growth, depending on species. The giant sequoias in California, for example, are old-growth trees. Mature forests, meanwhile, have trees that are in the development stage immediately before old growth.
Apple Watch Import Ban Takes Effect After Biden Administration Passes on Veto (reuters.com) 122
Apple can appeal the ban to the U.S. Court of Appeals for the Federal Circuit. The company has paused the sales of its Series 9 and Ultra 2 smartwatches in the United States since last week. The ban does not affect Apple Watch SE, a less expensive model, which will continue to be sold. Previously sold watches will not be affected by the ban. Masimo has accused Apple of hiring away its employees, stealing its pulse oximetry technology and incorporating it into the popular Apple Watch.