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Finding affordable apartments is especially tough in Los Angeles, where 52 percent of people are renters, according to a new study.; Credit: Justin Sullivan/Getty Images

You need to earn at least $33 an hour — $68,640 a year — to be able to afford the average apartment in Los Angeles County, according to Matt Schwartz, president and chief executive of the California Housing Partnership, which advocates for affordable housing. 

That's more than double the level of the highest minimum wage being proposed by Mayor Eric Garcetti, which he argued would make it easier for workers to afford to live here. “If we pass this, this will allow more people to live their American Dream here in L.A.," Garcetti proclaimed when he announced his plan to raise the minimum wage to $13.25 by 2017. 

The $33 an hour figure is based on the average L.A. County apartment rental price of $1,716 a month, from USC's 2014 Casden Multifamily Forecast. An apartment is considered affordable when you spend no more than 30 percent of your paycheck on rent.

To earn $33 an hour or more, you'd need to have a Los Angeles job like one of the following occupations: 

• Marketing manager: $66,538 (average in L.A., according to Payscale.com)
• LAUSD teacher: $70,000 (average salary, according to LAUSD)
• Software engineer: $82,669 (average according to Payscale.com)
• Lawyer: $104,249 (average according to Payscale.com)

But many occupations typically earn far below that $33 an hour threshold in L.A. County, according to the California Housing Partnership:

• Secretaries: $36,000 ($17 an hour)
• EMT Paramedics: $25,00 ($12 an hour)
• Preschool teachers: $29,000 ($14 an hour)

That's why L.A. residents wind up spending an average of 47 percent of their income on rent, which is the highest percentage in the nation, according to UCLA's Ziman Center for Real Estate.

Naturally, people who earn the current California minimum wage of $9 an hour ($18,720 a year) would fare even worse in trying to afford an average apartment.

Raising the minimum wage to $13.25 would equal a $27,560 salary; raising it to $15.25 an hour totals $31,720 a year.

What about buying a home?

In order to afford to purchase the median-priced home in Los Angeles, you'd need to earn $96,513 a year, according to HSH.com, a mortgage information website. 

The median home price in Los Angeles is $570,500, according to the real estate website, Trulia.com.

But consider that the median income in Los Angeles is about half that: $49,497, according to census numbers from 2009-2013.

So it's no surprise that Los Angeles has been rated as the most unaffordable city to rent in America by Harvard and UCLA. 

The cost of housing has gone up so much that even raising the minimum wage to $15.25 an hour – as some on the city council have proposed doing by 2019– would not go very far in solving the problem.

“Every little bit helps, but even if you doubled the minimum wage, it wouldn’t help most low-income families find affordable rental housing in Los Angeles,” said Schwartz.

What percentage of your income to you spend on housing in Los Angeles? Let us know in the comments, on our Facebook page or on Twitter (@KPCC). You can see how affordable your neighborhood is with our interactive map.

An earlier version of this story incorrectly calculated the hourly pay rate, based on the estimated $68,640 annual pay needed to afford the average rent in L.A. County. KPCC regrets the error.

This content is from Southern California Public Radio. View the original story at SCPR.org.

For the first time, Uber will guarantee drivers an hourly wage of $20 an hour in Los Angeles, or $26 during peak times.; Credit: David Ramos/Getty Images

To keep demand high during the slower winter months, the ridesharing service, Uber, has cut fares by 20 percent in 48 markets – including Los Angeles and Orange County.

The company says a trip from West Hollywood to downtown will now be around nine dollars, instead of $11.

When Uber lowered prices in the past to muscle out competitors like Lyft and taxi services, passengers loved it but drivers have complained it puts an unfair squeeze on them, complaining their already low take went even lower.

Uber stresses the fact cutting fares actually helps drivers because they get more business. In a blog post, the company points to data from Chicago where fares dropped 23 percent last month compared to December 2013 while drivers' income increased by 12 percent.

But drivers have been skeptical whether volume can make up for the price drop. The company's claim that New York city drivers earn a median of $90,766 a year has been refuted. Slate talked to New York UberX driver Jesus Garay in October:

“They say it doesn’t hurt the pocket of the drivers,” Garay says of the 20 percent fare cuts. “It does. Because it’s impossible with those numbers to be in business.”

The way drivers see it, ride volume can only increase so much in response to lower prices. Garay says that on average, a ride takes him 20 minutes from start to finish: five minutes to reach the pickup location, five to wait for the customer, and 10 to drive to the destination. For a trip of that length, Garay says he’ll make $10 or $11. “So if you’re busy, you’re going to make three rides in an hour,” he explains. 

Newly flush with a $40 billion valuation, Uber is now willing to put its money where its mouth is; For the first time, Uber will guarantee its partners – as it calls them -  an hourly wage of $20 an hour in Los Angeles, or $26 during peak times. (The guarantee comes with a few conditions: Drivers have to accept 90% of trips, average at least one trip per hour, and be online for 50 minutes of every hour worked)

This content is from Southern California Public Radio. View the original story at SCPR.org.

Walter Flores was unemployed for 8 months in 2014 but is now working in sales for Workforce Solutions in Compton; Credit: Brian Watt/KPCC

California's unemployment rate continued its decline in December, ending the year at 7 percent, according to figures released Friday by the state Employment Development Department.

But in Compton, Willowbrook and the Florence-Graham section of Los Angeles County, it remains about double that, data show.

“You might have work this week. But next week, you won’t have work,” said James Hicks, 36, 0f Compton. He's worked in warehouses through staffing agencies, but said the jobs have always been temporary.

Statewide, California has added jobs at a faster rate than the United States for three straight years, according to Robert Kleinhenz, Chief Economist with the Los Angeles County Economic Development Corporation. He pointed out the statewide unemployment rate is now where it was June 2008. 

"All in all, with the recession now five years back in our rearview mirror, we’re finally at the point where we can say that we have shrugged off quite a bit of the pain that occurred back during those times," Kleinhenz said.

The Los Angeles County metro area saw a net gain of almost 71,000 jobs in 2014.  The County's overall unemployment rate has fallen to 7.9 percent from 9.2 percent a year ago.

But Compton's unemployment rate was 13 percent in December.

“I’d rather have a  full-time type of gig, working 40 hours a week, but right now, even if you get 25 hours, it’s a blessing,” said Hicks, the warehouse worker in Compton.

On Thursday, he interviewed to be a guard with a security firm, but was told there weren’t any positions available. He had another security guard job six months ago that he thought might become full time and permanent. 

"It was going all right for about two to three months, until they cut my hours and days," Hicks said. 

Walter Flores lives in La Mirada but currently works as an account executive in the Compton office of Workforce Solutions. He was unemployed for about eight months last year after a car accident.

"Losing what you love to do is a tough one, but I'm back," he said. "2015 is going to be a great year."

Flores said most major warehouse and logistics companies prefer to hire temporary workers through industrial staffing firms like the one where he's working because their needs are sporadic.  

But he said it's still a potential opportunity.

"It doesn't matter that it's a temporary position, as long as you put your foot in the door, and then you let the employer know how much value you are for the company," Flores said.  

Hicks, who's earned a GED, wants to find a program to study physical therapy. But first, he’d like to find a job. 

He said you can't judge Compton’s residents by its unemployment rate.

"Some of us out here who [are] looking for jobs, but sometimes it’s the luck of the draw," he said. "It’s kind of scarce out there.” 

This content is from Southern California Public Radio. View the original story at SCPR.org.

A rendering of he new stadium and complex to be built near the Forum in Inglewood was released by the Hollywood Park Land Company, Kroenke Group and Stockbridge Capital Group earlier this month.; Credit: Courtesy Hollywood Park Land Company

A measure that would allow an 80,000-seat NFL-caliber stadium to be built in Inglewood could be on that city’s ballot by this summer after developers submitted almost three times as many signatures than needed for a voter initiative.

“22,216 signatures were submitted to the city clerk today,” said Gerard McCallum, project manager with the Hollywood Park Land Company. “It was unbelievable. The response was more than we could have ever anticipated.”

Normally, before construction can begin on any project there has to be an environmental review, but that can take a long time and time is something in short supply for St. Louis Rams Owner Stan Kroenke and his plan to move the team to L.A.

“We would be going through another three year project process, and the current construction wouldn’t allow that,” said McCallum, referring to the redevelopment of 238 acres of the old Hollywood Park site that was permitted in 2009.

“If we were going to make any modifications, it would have to be approved this year,” said McCallum.

To speed things up, developers decided to bring the stadium project directly to Inglewood voters, which required 8,000 signatures.

Once the signatures are verified, Inglewood’s City Council will consider the measure, then developers hope a special election would take place before the start of the next NFL season.

McCallum says construction would begin whether the Rams or any other team decides to move here, though on Monday Kroenke made another move suggesting a return of the NFL to Los Angeles could be closer than it has been at any point during the last two decades, though not until after the 2015 season. From The St Louis Post-Dispatch:

Rams management sent a letter to regional officials on Monday afternoon. The letter said the team was converting its 30-year lease to an “annual tenancy,” effective April 1 and, “in the absence of intervening events,” extending through March 31, 2016.

The notice, which has long been expected, does two things:

• It allows owner Stan Kroenke to pull the team out of St. Louis as soon as 2016, because the Rams lease will now expire at the end of every season. The original lease was to expire in 2025.
• It also legally binds the Rams to play at the Edward Jones Dome next fall — a point on which many here were uncertain.

This content is from Southern California Public Radio. View the original story at SCPR.org.

The organized freelancer will make sure the amount here is right.; Credit: Photo by Great Beyond via Flickr Creative Commons

For freelancers, consultants, actors and other self employed people, life gets complicated this time of year. Digging around for the paperwork to fill out tax forms practically qualifies as exercise.

"They have a nightmare trying to find receipts," said accountant Tristan Zier.

Zier founded Zen99 to help freelancers manage their finances, including filing their taxes.  His most important advice to freelancers: keep track expenses and receipts year round rather than pursuing a paper chase as April 15 nears.  

"When they can’t find receipts, they can’t write off their expenses," he said. "And they’re paying more money to the government instead of keeping it for themselves."

Zier and others have come up with a lists of common mistakes freelancers make at tax time. 

Here are seven don't - or, deadly sins, for freelances at tax time:

1. Not knowing what they owe.  Zier says there are 20 different 1099 forms that get sent out to workers to track freelance gigs.  One of them is the 1099-K, which only has to be sent to you by a company in paper form if you make over $20,000. "People think, 'Great, no paper form, no taxes on that," says Zier. "Big mistake there.  You still have to self-report the income."   
2. Not knowing WHEN they owe.  For freelancers who owe more than $1,000 in taxes for a year, tax time comes more often than just April 15.  They have to pay taxes quarterly. But then it's not coming out of paychecks like it does for permanent employees. 

3.  Not tracking and writing off the right types of business expenses. Zier says many freelancers fail to realize they can write off part of their cell phone bill as a business expense.  Expenses vary by the type of work.  "A rideshare driver's biggest expense will be related to their car, while a web developer's biggest expense might be their home office," Zier says. "Figuring out what expenses are important to your type of work is important is maximizing your tax savings."

4. Writing off personal expenses.  This goes back to that cell phone.  If you use the same phone for personal and business purposes, don't be tempted to write the whole bill off. Estimate the amount you use it for your work. The same goes for your vehicle. Don't go trying to write off miles driven to the beach. 

5. The Double No-No: counting expenses twice.  Speaking of vehicles, Zier says most people use the Standard Mileage Rate ($0.56/mile for 2014), which factors in gas, repairs and maintenance and other costs like insurance and depreciation. But if you use this rate, you can't also expense your gas receipts and repair bills.  

6. Employee AND employer.  At lifeofthefreelancer.com, financial consultant Brendon Reimer reminds freelancers they play both roles. For regular employees, Federal, State, and payroll taxes are withheld from a paycheck, and distributed on the employee’s behalf. It's how Social Security and Medicare are funded. The IRS mandates that the employer must pay half of every employee’s payroll tax, and the employee is responsible for the other half.  Independent contractors have to handle both halves.  "The IRS does give you a small benefit by letting you deduct the half that you pay yourself as a business expense," Reimer writes. Zier said the freelancer's sin here is believing he or she pays more taxes than the regular working stiff.  

7. Not keeping adequate records. The IRS requires you to keep proof of all business receipts, mileage, etc.  If you can't show these, the IRS  could refute the expense and force you to pay back taxes. Zier says the good news is there are other ways to prove expenses if you've lost the receipt. A bank or credit card statement with the date and location might do the trick. "The IRS is surprisingly accommodating if you are doing your best," Zier says. "If you're being a headache, they're going to be a headache as well." 

In separate reports, Zen99 and the consumer finance web site nerdwallet ranked Los Angeles the best city for freelancers.

Each considered housing and health care costs, the percentage of freelancers in an area as factors. Zier said even before the sharing economy began to take off, the entertainment industry and growing tech scene were already strong sources of freelance gigs in L.A.

"Even back in 2012, L.A. had twelve percent of people report themselves as self-employed on the Census," Ziers said.   "You know your Ubers and companies like that  are really bringing a lot of attention to the contractor market, but it was a very robust community before."

This content is from Southern California Public Radio. View the original story at SCPR.org.

Tesoro says it’s been planning for a strike and will continue operating two of the effected refineries, including one in Carson.; Credit: Getty Images

More than 800 workers walked off the job early Sunday at an oil refinery in Carson because of a labor dispute, joining workers at eight other refineries around the country. 

National strikes have been rare in the refining business. The last one happened in 1980, and it took three months to resolve. If this dispute lasts that long, analysts say gas prices could rise.

“It’s very possible we may have seen the last of two dollar gasoline in the near term,” said Carl Larry director of oil and gas at consulting firm Frost & Sullivan. “Without production from these refineries, we’re going to see tighter supply and higher prices."

Making matters worse, many refineries are switching over to summer blend gas, which is cleaner burning, but also more expensive.

Jim Burkhard, Managing Director at IHS Cambridge Energy Research Associates, cautions that it is too soon to know what the effect of the strike will be, and even though the steelworkers have 64 percent of U.S. oil output in their hands, there’s still a lot of other supply.

 “Remember the oil market overall is very well supplied right now,” said Burkhard. "There's plenty of refining capacity around the world, you would just have some modification of trade flows."

The Carson refinery processes 363,000 barrels per day at peak capacity and employs 1,450 workers. Tesoro Corporation, which operates the plant, says it’s been planning for a strike and will continue operations.

"Tesoro is confident that the Company can continue to safely operate the refineries and meet customer commitments until resolution is reached with the [United Steel Workers]," Tesoro said in a written statement.

The USW represents workers at 65 U.S. refineries. It says the facilities where workers have not walked out will continue operating under a rolling 24-hour contract extension. 

“This work stoppage is about onerous overtime; unsafe staffing levels; dangerous conditions the industry continues to ignore; the daily occurrences of fires, emissions, leaks and explosions that threaten local communities without the industry doing much about it; the industry’s refusal to make opportunities for workers in the trade crafts; the flagrant contracting out that impacts health and safety on the job; and the erosion of our workplace, where qualified and experienced union workers are replaced by contractors when they leave or retire,” USW International Vice President Gary Beevers said in a written statement.

This content is from Southern California Public Radio. View the original story at SCPR.org.

The LAEDC helped Huy Fong Foods reach a compromise to keep operating its Sriracha factory in Irwindale ; Credit: Maya Sugarman/KPCC

Even as California loses manufacturing jobs, a program run by the Los Angeles County Economic Development Corporation has fought to save some. 

When a company is considering relocating to take advantage of lower costs or an easier business climate, the LAEDC’s business assistance program steps in.  

It did so in the well-publicized case of Huy Fung Foods last year.  

When the city of Irwindale filed a lawsuit against the Sriracha sauce-maker because of bad smells, politicians from other states - most notably Texas - began to circle, offering the company a new home.  

Fighting against those suitors is a  familiar dance for the nonprofit Los Angeles County Economic Development Corporation. Many states and municipalities have similar agencies, whose job it is to try to attract and keep employers.

In the Sriracha case, the LAEDC prepared an economic impact analysis, met with the company and the South Coast Air Quality Management District and negotiated a compromise that kept the hot sauce manufacturer here, according to Carrie Rogers, Vice President of Business Assistance and Development with LAEDC.

"We all love Sriracha," she said, adding that she was happy to keep the "180 jobs and really to thwart the efforts of Governor Perry from Texas to try to lure our company away to their state."

The LAEDC estimates its business assistance program has played a role in keeping or luring 200,000 jobs since 1996, when it was formed. It's being recognized by the County Board of Supervisors for those efforts today.

But plenty of jobs still leave.

In a study published in July, the LAEDC said between 1990 and 2012, California lost about 40 percent of its manufacturing jobs – 842,180. 

"We compete internationally so a lot of our competitors have gone to Mexico," said Jeff Hynes, CEO of Covina-based Composites Horizons Incorporated, which makes ceramic structures for jet engines. "A week doesn’t go by that I don’t get a call from an economic development corp out of Texas or the South."

He scored a big contract recently and needed to expand fast to begin fulfilling orders. 

"Los Angeles  - in our particular industry - has a very good supplier base with materials and equipment," he said "but certainly facility costs are lower in other areas of the state and country."  

He said the LAEDC helped him get the permits quickly to buy and modify another building on its street and they decided to stay put. 

Composites Horizons currently employs 200 people but plans to add 50 employees this year and another 50 next year, he said. 

Rogers, of the LAEDC, said that may not seem like much, but it's important to support businesses like this one.

"When you take a step back and think about it, here’s a company that’s growing when many businesses aren’t," she said. "We know there are suppliers that feed into Composites Horizons. So when they get millions of dollars worth of contracts, we know that many more companies and employees around the county will be employed doing work directly for this company."

This content is from Southern California Public Radio. View the original story at SCPR.org.

People using a coworking space.; Credit: Cross Campus

In a sign of increased desire of professionals to work remotely, the successful Santa Monica shared workspace Cross Campus is opening a second location in Pasadena later this month, and the company hopes to open eight others in Southern California and beyond in the next two years. 

Dubbed by one user as  the “nerve center” of the Silicon Beach tech scene, Cross Campus opened its membership-based workspace facility in Santa Monica in 2012.   

But co-founder Ronen Olshansky said the shared workspace phenomenon isn't limited to coders. 

"Fewer and fewer people are making the traditional drive into the corporate office," Olshansky said. "They're working remotely as professionals, going off on their own as freelancers, or they're starting their own companies as entrepreneurs."  

A forecast from Forrester Research says that 43 percent of workers will telecommute by 2016, compared to estimates of about a quarter of the workforce telecommuting last year. 

Olshansky said that, for many people, working from home or in a coffee shop isn't productive. 

That's led shared workspaces to pop up in Los Angeles, Culver City and Santa Monica. Among them: Maker City L.A., WeWork, NextSpace, Coloft and Hub LA.  

Los Angeles-based tech investor David Waxman said these kind of shared spaces are crucial for the early stages of tech ventures.

"When you’re just starting out, and capital is very scarce, having not to commit to an entire office but having part of an office is very important," Waxman said.  “There comes a collective energy when a bunch of entrepreneurs get together in the same space, even if they’re not working on the same project."

And he said Pasadena is a good choice for a shared workspace.

"It is the home of Caltech, the Arts Center, and IdeaLab — probably the world’s first tech incubator — started there," he said.

But he said the need isn't limited to Pasadena.

"In Silver Lake, in South Pasadena, in Glendale, you see a lot of little pockets of  people getting together, and as soon as there’s a critical mass, we’ll see co-working spaces like Cross Campus come into being," said Waxman, who named his investment firm TenOneTen after the two freeways that connect Santa Monica and the Westside to Pasadena. 

Alex Maleki of IdeaLab in Pasadena is happy a well-known company is opening up in his city. 

"Anything that helps attract talent and capital to the region," Maleki said, "is absolutely fantastic."

This content is from Southern California Public Radio. View the original story at SCPR.org.

In this Jan. 14, 2015, photo, shipping containers are stacked up waiting for truck transport at the Port of Los Angeles.; Credit: Damian Dovarganes/AP

The Ports of Los Angeles and Long Beach reopened Monday after ship loading and unloading was suspended this weekend because of a long-running labor dispute, which caused the worst delays the ports have seen in more than a decade.

The stoppage led to a queue of 31 ships, according to Kip Louttit, Executive Director of the Marine Exchange of Southern California, the agency that manages ship traffic.

“It’s quite unusual,” said Louttit.

There was a 10-day lockout at the ports in 2002, and an eight-day strike by port clerks in 2012, but even during those standoffs, the queue never exceeded 30 vessels.

The last time that happened was in 2004, because of staffing shortages at the Union Pacific Railroad. Some 65 ships were anchored, "backed up halfway down to San Diego, like 50 miles down the coast," Art Wong, spokesperson for the Port of Long Beach, told JOC.com, a container shipping and international supply chain industry website.

By Monday afternoon, the situation had improved some: 24 vessels were waiting to dock.

Louttit says all those ships waiting at sea means cargo is not getting where it needs to be.

“We had an automaker from the Midwest stop by, trying to get an idea of what the flow would be, because their plants are running out of parts to make cars,” he said.

Los Angeles Councilman Joe Buscaino, who supports the dockworkers union, called on both sides to reach an agreement quickly. To underscore the delays the dispute is having, he travelled a mile and a half out to sea Monday morning to count the number of anchored ships for himself. He posted a video of his trip on Youtube:

This content is from Southern California Public Radio. View the original story at SCPR.org.

Video of the B9 robot from "Lost In Space" and his most famous catchphrases.; Credit: timtomp (via YouTube)

Robert Kinoshita, the Los Angeles native who designed the iconic robots from "Lost in Space" and "Forbidden Planet," has passed away. He was 100 years old.

Konishita died Dec. 9 at a Torrance nursing home, according to the Hollywood Reporter, citing family friend Mike Clark. His creations included "Forbidden Planet's" Robby the Robot, the B9 robot from "Lost in Space," Tobor from "Tobor the Great" and more. Kinoshita also created "Lost in Space's" iconic flying-saucer-shaped Jupiter 2 spaceship.

Kinoshita built the original miniature prototype of Robby the Robot out of wood and plastic by combining several different concepts, according to the Reporter; the Rafu Shimpo reported that he struggled with the design.

"I thought, what the hell. We’re wasting so much time designing and drawing one sketch after another. I said to myself, I’m going to make a model," Kinoshita told the Rafu Shimpo in a 2004 interview. "Then one day, the art director sees the model. He says, ‘Give me that thing.’ He grabbed it and ran. ... Ten minutes later, he comes running back and puts the model back on my desk and says, ‘Draw it!’"

Watch Kinoshita and his colleagues talking about the construction of Robby the Robot:

Robby the Robot's construction

The 1956 classic sci-fi movie "Forbidden Planet" — based on Shakespeare's "The Tempest" — went on to be nominated for a special effects Oscar.

Kinoshita later served as art director on the 1960s sci-fi TV series "Lost in Space," creating the arm-flailing robot — named B9 — who delivered the classic line "Danger! Danger, Will Robinson!" That robot received as much fan mail as the actual humans on the show, according to the Reporter.

Watch the robot's feud with "Lost in Space's" Dr. Smith:

The robot vs. Dr. Smith

The "Lost in Space" robot even inspired a B9 Robot Builders Club, featured in Forbes. Kinoshita sent a message in 2000 to the club, thanking them for their support for the robot he originally nicknamed "Blinky."

"I'm truly flabbergasted and honored by your support for 'Blinky!' It's a well-designed little beauty," Kinoshita wrote. "Your thoughtful remembrance is something we designers seldom are lucky enough to receive."

Kinoshita described the thought process behind its design in a 1998 interview.

"You're laying in bed, and something comes to you," he said. "Until, finally, you get to a point where you say, 'This could work,' 'OK, let's see what the boss man says.' And you present it to him."

He told the Rafu Shimpo that he tried to create his robots to disguise the fact that there was a person inside. "I tried to camouflage it enough so you’d wonder where the hell the human was," he said.

Both the Japanese-American Kinoshita and his wife, Lillian, were sent to an Arizona internment camp during World War II, though they were able to get out before the end of the war and moved to Wisconsin, according to the Reporter.

While in Wisconsin, Kinoshita learned industrial design and plastic fabrication, designing washing machines for the Army and Air Force before returning to California, according to the Rafu Shimpo.

Kinoshita said that he had to overcome racial prejudice to break into working in Hollywood.

Kinoshita attributed his long life to clean living — along with daily doses of apple cider vinegar, family friend Clark told the Reporter.

Kinoshita also worked as a designer and art director on numerous classic TV shows, including "Kojak," "Barnaby Jones," "Hawaii Five-O," "Bat Masterson," "Sea Hunt," "Tombstone Territory," "Star Trek" creator Gene Roddenberry's "Planet Earth" and more, according to his IMDB. His last TV show was 1984's "Cover Up."

Kinoshita grew up in Boyle Heights, according to the Reporter, attending Maryknoll Japanese Catholic School, Roosevelt High School and USC's School of Architecture. His career began with work on 1937's "100 Men and a Girl." Kinoshita graduated cum laude from USC, according to the Rafu Shimpo.

Watch Kinoshita speak at his 95th birthday gathering with the B9 Robot Builders Club. He said he hoped to make it to 100, and he ended up doing so.

Kinoshita's 95th birthday speech

This content is from Southern California Public Radio. View the original story at SCPR.org.

The covers to the last issues of the current runs of "Avengers" and "New Avengers," leading into "Secret Wars."; Credit: Marvel

Marvel Comics held a press conference this week announcing details about "Secret Wars," a company-wide comic book crossover that they promise will change everything.

Promises of change in comics often don't amount to much, but here's why this one just might, with Marvel teasing that it will produce a whole new world for its characters.

"We see this as putting an endcap to decades of stories and starting a new era," said Marvel Editor-in-Chief Axel Alonso. "And when you see the scope of the event, you see what we're doing, what we're willing to do, this is a place where we're going to be bringing new pieces onto the board and taking old pieces off. You guys will be yelling and screaming, you'll be loving, hating, and in equal measure."

Reboot history

Rival DC Comics has always been quick to have stories designed to streamline their history, with the "Crisis on Infinite Earths" being the most famous one — a story that destroyed the DC Comics universe of the time, birthing a new timeline that gave us the versions of DC's heroes we know today. Several minor and major reboots followed, with the biggest since then being 2011's New 52 (and a tease of another one with this April's "Convergence").

Meanwhile, Marvel still refers back to stories from their early days, beginning with the first issue of "Marvel Comics" in 1939, and more so since the launch of "Fantastic Four" and the interlinked Marvel Universe in the 1960s, led by Stan Lee and Jack Kirby.

Marvel previously launched a line of comics meant to offer a fresh vision of the Marvel characters called Ultimate Comics, but now the worlds of those characters and the traditional Marvel universe are getting combined thanks to "Secret Wars."

"The Ultimate Universe, the Marvel Universe, they're going to smash together," said Alonso. "This is the Marvel Universe moving forward."

"We've never done anything like this, ever," said Marvel senior vice president and executive editor Tom Brevoort. "And what we're going to do to top it, I don't know. Hopefully that will be somebody else's problem."

The stories leading to "Secret Wars," and what is Battleworld?

The story that's been built up so far has to do with different universes colliding into each other — and in the first issue of "Secret Wars," the Marvel and Ultimate Earths collide, with the heroes of those worlds unable to stop it. What's left behind is what Marvel is calling "Battleworld," a patchwork planet with different parts of it inhabited by the characters from different famous Marvel crossovers of the past (you can see some of those past titles in the slideshow above).

Marvel released this video to help you visualize what exactly Battleworld is:

Battleworld video

See a map of Battleworld here, showing the different worlds made up of old storylines to be explored in "Secret Wars" (and click to enlarge):

Brevoort described Battleworld as "The little melting pot in which the new Marvel Universe will be created" after the Marvel and Ultimate versions of Earth are destroyed. He said that Battleworld is what Marvel is going to be "during, through and after" the beginning of "Secret Wars."

"Once you hit 'Secret Wars' 1, there is no Marvel Universe. There is no Ultimate Universe. All there is is Battleworld, and a whole lot of empty void," Brevoort said.

"Every single piece of this world is a building block for the Marvel Universe moving forward," Alonso said. "None of these stories are Elseworlds, or What Ifs, or alternative reality stories. They aren't set in the past or the future. They're not set in an alternate reality. They're set in the reality of the Marvel Universe."

It's also a story that uses an old name — the original "Secret Wars" involved an alien taking heroes from Earth and forcing them into battle for the fate of the universe. It remains unclear if the villain from that crossover will play a role here.

Why is Marvel rebooting?

Observers were quick to speculate on some of the behind-the-scenes reasons for the change. Combining the Ultimate Universe with the traditional Marvel Universe would let them incorporate the half-black, half-Latino Spider-Man from the Ultimate line that grabbed headlines a few years ago. It would let them do something different with characters like the X-Men and the Fantastic Four, who have been a flashpoint for controversy due to Fox retaining rights in perpetuity to any films based on those characters.

It also opens the door to a longtime comic book trope: Bringing back to life the dead.

"If we were to want to resurrect Gwen Stacy, this would be the place to do it, wouldn't it?" Alonso said.

What do creators and fans think about "Secret Wars"?

Speaking of the death of Gwen Stacy, the writer who pulled the trigger on killing her, Gerry Conway, tells Newsarama that he's on board.

"I think like with any idea, the execution will matter more than the idea itself. The idea of a reset is, by itself, not a bad idea," Conway said.

One who's less on board with it: longtime Spider-Man artist John Romita.

"My guess is new fans will be okay with it, and old fans will grumble," Romita told Newsarama. "I’m not a businessman, but I do know that comic companies, for almost 100 years now, do whatever they can for shock value. They grab attention. Personally, I hate all the goofy things they do. When I was there, I used to fight stuff like this. But you can’t stop them."

Current Marvel writers have been sworn to secrecy about what happens once "Secret Wars" is done:

Dan Slott tweet

The lack of certainty about what this all means has led fans to wildly speculate, as well as poke fun at what might happen:

Fan tweet 1

Fan tweet 2

It's a story that's been years in the making.

"Every single time we've done an event, we've always had to be mindful of 'Secret Wars,' and we've had to make decisions based on the fact that we knew that 'Secret Wars' was headed our way," Alonso said.

Brevoort said that Hickman proposed a version of "Secret Wars" years ago, but that vision has since become significantly larger.

"It sounds like typical Stan lee hyperbole — and there's nothing wrong with typical Stan Lee hyperbole — but it is difficult to imagine something that would be larger in scope, in scale, than what we are doing with 'Secret Wars,'" Brevoort said.

That father of the modern Marvel comics world, Stan Lee, tells Newsarama that the reboot is "probably good."

"Anything they do that’s unexpected and different usually captures the attention of the fans," Lee said. "It sounds intriguing to me."

Lee also tells Newsarama that if he were to do it all again, he'd do it basically the same, describing what he did as "the right way to go, and maybe sometimes, even the perfect way to go."

"I liked making the Fantastic Four superheroes without a secret identity. I liked the tragedy of Spider-Man’s origin, the ‘with great power, there must also come great responsibility.’ I thought it was the right way of doing things at the time. And I still like what I’ve done," Lee said. "I can’t think, off the top of my head, of anything I’d really want to change."

What does "Secret Wars" mean for fans?

More details are promised in the weeks to come, with a free preview issue being released on Free Comic Book Day, May 2. While fans wait, they may want to heed the wait-and-see approach advocated by Conway and famed "Thor" artist Walt Simonson.

"Maybe this is coming back out of my old geology days, but I try not to have instant reactions to things and say, ‘Oh my God! That’s terrible!’" Simonson told Newsarama. "My basic reaction is usually ‘let’s see the evidence in the field.’ Let’s come back in a year and see what we’ve got. That will tell the story.”

And for those who say that Marvel is ruining their childhood by messing with the history of their favorite characters, Conway tells Newsarama:

"I would say to them, no, your childhood is still your childhood. There’s a point to be made, and it’s a universal one: We have to see that there’s a difference between what people do today, and what they did yesterday. Yesterday still exists, those stories still exist. Now someone else is getting a chance at a new childhood. And that’s nice."

Watch the full "Secret Wars" live press conference below:

Secret Wars press conference video

This content is from Southern California Public Radio. View the original story at SCPR.org.

File: (L-R) "The Sarah Silverman Program" writer Harris Wittels, comedian Sarah Silverman, executive producer/head writer Dan Sterling and actress Laura Silverman, arrive at Comedy Central's Emmy Awards party at the STK restaurant Sept. 21, 2008 in Los Angeles.; Credit: Ethan Miller/Getty Images

Harris Wittels, a comedy writer who worked on "Parks & Recreation," has died at 30, the Los Angeles Police Department's Jane Kim tells KPCC.

Wittels was discovered by his assistant around 12 p.m., Kim said, and was already dead. Kim said that Wittels' death was a possible overdose, but that the Coroner's Office would determine the cause of death. Wittels had attended drug rehab twice.

Comedy Central, where Wittels worked on "The Sarah Silverman Program" and "Secret Girlfriend," confirmed Wittels' death, as did the comedy show he appeared at Wednesday night.

Comedy Central tweet

Meltdown Show tweet

Wittels was also well known for his @Humblebrag Twitter account and later book, helping to popularize the idea online of the false modesty of bragging while trying not to look like you're bragging.

Wittels had spoken about his struggles with addiction in places including Pete Holmes's podcast "You Made It Weird" in a November episode.

"I just really stopped caring about my life," Wittels said on "You Made It Weird," explaining how he got into doing drugs. "I just really started to think, well, if I'm only here for 80 years, then who cares if I spend it high or not?"

Wittels received his first big break when Sarah Silverman saw him performing comedy and gave him a job writing for her Comedy Central show.

Wittels also wrote for HBO's "Eastbound & Down," several MTV awards shows and the American Music Awards. He had a recurring role on "Parks & Recreation" and was a regular guest on the "Comedy Bang Bang" podcast.

Comedians, actors and fans mourned Wittels' death online.

Harris Wittels Storify

See Wittels in a scene from "Parks & Recreation":

Wittels on Parks & Recreation

Listen to Wittels on "Comedy Bang Bang":

Wittels on Comedy Bang Bang

This story has been updated.

This content is from Southern California Public Radio. View the original story at SCPR.org.

A Nintendo Entertainment System.; Credit: Mark Ramsay/Flickr Creative Commons

There have been plenty of video game movies over the years, but there have been far fewer actually good ones. "Ready Player One," based on the 2011 video game-inspired novel, has the chance to be a great one thanks to the announcement that Steven Spielberg has signed on to direct.

That book was inspired by classic video games, and was written using classic video game cheats to play parts of classic games and write them into his book, author Ernest Cline said in a recent talk. That got us thinking about the classic video game cheats and secrets that stuck with us from our younger days playing classic video games — here's our top 11.

1. The Konami Code

Up up down down left right left right B A start! This code became such a part of video game culture that it got its own name. It was popularized in various games made by Konami, particularly Contra, leading to it also being known as the "Contra Code" for its ability to give you 30 lives in the game. Before the Internet, it was spread through gaming magazines and word of mouth — it was so influential that there are still developers who put it in their games. (There's even an entire Wikipedia page of games, both from Konami and others, that use the Konami Code. It's even been used on some websites.)

What is the Konami Code

2. Street Figher II Turbo's turbo

The game that I actually used a code for the most as a kid, the Super Nintendo code down, R, up, L, Y, B on the second controller didn't give you any advantages — it just kicked the speed up. By default, you had a few selections for how fast the game would be, but you could multiple that several-fold with this code, letting you and your friends battle at what at the time felt unbelievably fast.

3. Super Mario Bros.'s Minus World

This one doesn't involve a code, but players managed to discover what was deemed a glitch in the game that put you into a messed up version of another level, dubbed by fans the Minus World due to just "-1" instead of a full level number appearing at the top of the screen. There was no way to escape the glitched level, no matter how hard you might try, sending you to play it over and over again until your time ran out or you were killed by enemies. Still, modern players have found that you can go on thanks to various computer emulators and the like; see some of the worlds beyond below:

Minus World video

4. Metroid and Justin Bailey

Fans early on discovered that the password JUSTIN BAILEY allowed you to start with all of the available weapons along with plenty of life and ammo. Fans didn't know whether Justin Bailey was a reference to an actual person, just a code coincidence or something else, but that didn't stop them from eagerly playing through with this code. It also removed lead character Samus Aran from her armor, allowing players to discover that the game's star was an early female lead character, even if her armor didn't clue players in before the end of the game without the code.

Justin Bailey video

5. Doom's God mode

By typing the letters iddqd in PC game Doom, players could enable God mode, making them essentially invincible and letting them power through the early first-person shooter. The code had been available in developer id's earlier game Wolfenstein, but hadn't been quite as easily accessible. So, if you ever need a power boost when you're fighting on Mars, Doom has the answer. (Unfortunately, we don't believe this provides any extra protection for NASA's Mars rovers.)

6. Mortal Kombat's Reptile

The developers of Mortal Kombat made a battle against Reptile unbelievably hard for Mortal Kombat fans, including putting some randomness into whether doing what you were supposed to do to unlock the character would even work. Still, players happily pumped in extra quarters for the chance to face off against Reptile, a character with a look that mirrored that of characters Sub-Zero and Scorpion, just with a different color. Players had to achieve a Double Flawless victory on the Pit level, finish the match using their fatality move, and there also had to be a silhouette flying past the moon in the background — which only happened every sixth game.

Mortal Kombat: Reptile

7. The Legend of Zelda's Second Quest

The Legend of Zelda was a pretty challenging early adventure game, one of the first releases for the Nintendo home video game console. When you beat the game, you were given the option to go on a "Second Quest," which was a tweaked version of the game you just played except waaaaay harder. However, if you thought you were the coolest kid on the block and were so awesome you didn't need a warmup, you could name your character "ZELDA" (in one of the more obvious cheats in video game history) and skip ahead to that Second Quest from the start. You would then likely cry from how hard it was and start another new game with a different name.

8. NBA Jam's celebrity secret characters

A variety of celebrities from sports, music, and even politics were available by putting in various initials combined with buttons on the controller. These included then-President Bill Clinton, Al Gore, Warren Moon and more. That tradition has been continued in more recent NBA Jam games, with President Obama and others available for your video gaming pleasure.

9. GoldenEye's extra modes

There were a wide variety of cheat codes for GoldenEye, widely considered one of the all-time great first-person shooters. Sure, you could use codes to unlock different levels, but the reason these codes are remembered is because it gave you all sorts of new ways to play against your friends. The game also had an actual cheat menu that would appear if you accomplished one of a variety of goals, and from that menu you could cheat extra hard by using your controller to unlock things like a paintball mode, turbo mode, modes with both giant heads and teeny-tiny James Bonds and more.

10. Sonic The Hedgehog 2's Debug Mode

The Sonic debug mode is the perfect example of why so many games included cheats back in the day: They were often for the developers to be able to more easily play the games while looking for bugs and doing other testing. Sonic 2 let you get to an actual debug mode by playing various sounds from the level select screen (1, 9, 9, 2, 1, 1, 2, 4, for your reference), then pressing start and holding the A button. Developers later put them in for fun and intended them for the players to discover, but some of the early cheat codes were just meant for developers — but players proved more intrepid than they may have anticipated.

Sonic debug mode

11. Mike Tyson's Punch-Out: Go straight to Mike Tyson

There was actually a password mode in this game — before games had the option to save, plenty of games gave you codes that let you get back to where you were before. This is one of the examples from that darker time, where whether you played through opponents like Glass Joe and Bald Bull or not, you could try your changes against Lightning Mike (at least until the video game's license ran out and he was replaced in future editions with the way less exciting "Mr. Dream"). You better have had a pen and paper ready when your friend started yelling at you 007 373 5963 for you to use on your own copy of the game — no sharing. The game is hard enough that even Mike Tyson had some trouble fighting himself:

Mike Tyson vs. Mike Tyson

Let us know in the comments the classic video games — and the classic cheat codes and secrets — that inspired you.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Jerry "The King" Lawler with Jim Ross.; Credit: WWE

Jim Ross is the most famous pro wrestling play-by play commentator of all time. He's a native Californian, but grew up in Oklahoma and took his trademark drawl into doing commentary. He's worked in wrestling for more than 40 years, calling matches on shows seen by millions of people around the world.

This weekend, he's in the Bay Area for Wrestlemania weekend (the first Wrestlemania in Northern California, and the first in California in 10 years). Ross no longer commentates for WWE, but he's still a storyteller, online and in person. He hosts regular live storytelling shows with stories from his decades-long career and a bit of comedy, along with a live guest, and he also has a huge online presence including a podcast that went to number one in sports its first week out.

Ross has been watching wrestling since he was a kid.

"My dad wasn't a big fan of it. He missed the point. The point is not whether it's real or if it's staged. The point is, are you entertained by it, or not? And I was," Ross said.

He's been at ringside for numerous historic matches, helping the wrestlers to tell their stories ever since he got his first job in wrestling out of college at 22.

"The greater the star, the easier it is to tell their story," Ross said. "Those participants make music. They make different kinds of music, and the announcers, the broadcasters, have to be able to provide the adequate lyric to the competitors' music."

Ross's voice is so powerful that it's become a meme online to pair his voice with another dramatic footage, from sports and beyond — you can even find it paired with dramatic moments from shows like "Breaking Bad" and "Game of Thrones." Ross says that the first time he saw someone do that was with a hit by Michigan running back Jadaveon Clowney, a video which went viral and sparked others to do likewise.

The JR Treatment

"I get sent these memes all the time. 'Hey JR, check this one out.' Or people will say, somebody will make a great dunk at an NBA game, and somebody will say 'I can't wait to see this get the JR treatment.' And now there are major sports websites that will send out a tweet, 'Here's a great play from Sunday's 49er-Charger game that's got the JR treatment.' So now it's got a name. 'The JR Treatment.'"

Those viral videos have even helped him land new commentating roles since leaving WWE. He did a call of a fight between NASCAR drivers for the Daytona 500 for a special pre-show video, and it's led to him having opportunities in traditional sports.

"It's been done in boxing, and MMA. Believe it or not, I've gotten feelers that we're entertaining now from a variety of combat sports entities that actually heard what my call would sound like doing their product," Ross said. "It had my tone, had my inflection, had my level of enthusiasm."

Ross also played a huge role behind the scenes, working as WWE's executive vice president of talent and signing future stars like the Rock, Mick Foley and more. He says that Mick Foley's match against the Undertaker in 1998's Hell in a Cell match was his most memorable to call.

"I have people walk up to me and start quoting my commentary when Undertaker threw Foley off the Hell in a Cell, this massive cage with a roof on it, that was about 17 feet high from the roof to the floor," Ross said. "It looked like no human being, quite honestly, could survive that fall. You don't practice falls like that in wrestling school."

Ross has managed to stay relevant with the help of a popular podcast and 1.3 million followers on Twitter, where he regularly dispenses his thoughts on wrestling and beyond. He started doing that podcast after being lobbied to do it by "Stone Cold" Steve Austin, and continues to try new things.

"I was very reluctant to engage in social media, and primarily because we sometimes get set in our ways, especially the older we get," Ross said. "But change, for any of us, in any walk of life, whether it's your diet, it's your relationships, the way you approach your job, or any changes that you need to affect, whether it's on doctor's orders, your significant other's suggestions — change is not always a negative thing. So I got on Twitter, and then Twitter connected me to so many people."

While some may feel that pro wrestling, given its predetermined results, doesn't need real athletes, Ross disagrees and says there are plenty of reasons to want real athletes.

"They're competitive. They don't want to be on the second team. They want to be in the game. And they've been in that mindset since some of them were in little league, or Pop Warner football, or elementary school wrestling, or whatever it may be."

He says they also understand how to be coached and how to play well with others, as well as handling the bumps and bruises that come with the territory and the difficult travel schedule.

"I don't know that anybody in any entity, unless you're the most well-traveled comedian or entertainer, has that. Because the thing about pro wrestling is it doesn't have an off-season, so you don't get a chance to really go recharge your batteries. You've got to maintain that competitive edge to survive."

Ross says there's one match he wishes he had another shot at calling: Ric Flair's retirement match against Shawn Michaels at Wrestlemania 24 in Orlando at the Citrus Bowl. While Ross has traditionally been a play-by-play commentator, that night he was assigned to be a color commentator, which gave him some different challenges.

"I thought I had great stories to tell because of my relationship with Ric — I've known him for 25 years — and I didn't think that I contributed as much to that match from an emotional standpoint as I could. I was obligated to get in soundbites and get in, get out," Ross said. "That's the biggest match at the biggest stage, and I love both those guys, and I really wanted to be extra special that night, and I just don't know in my heart that we got there."

He says California has its own wrestling legacy to be proud of. The California Wrestlemania match that Ross says he'll always remember: Bret Hart versus Shawn Michaels at Wrestlemania 12 in Anaheim, where two now wrestling legends wrestled for more than an hour.

He also thinks the economics of Wrestlemania make a lot of sense for whichever city hosts it, thanks to the travelers it draws in from around the world. Cities now bid to try to bring in Wrestlemania, Ross says. With Los Angeles gearing up to build a new stadium, Ross has a Wrestlemania prediction for that stadium.

"I will bet you money — I will bet you some of my barbecue sauce — if L.A. builds a stadium, that Wrestlemania will be one of the first non-football events in that stadium. And they will sell it out. They'll fill every seat. And it'll be great for the city, and the businesses of Los Angeles.

Ross says that what made him a great broadcaster is the same thing that can make someone a success in wrestling or anywhere else — most importantly, don't talk down to your audience.

"You have to be a fan of the genre, or a fan of the game, and you have to be willing to prepare and be ready for your broadcast," Ross said. "You have to be willing to tell the story that the average fan — not the hardcore fan, but the average, casual fan can understand and relate to. ... You know, we're storytellers, and some people are just natural-born storytellers."

Ross plans to continue telling stories for the foreseeable future, on stage, online, calling matches in the legit sports world and wherever else his life takes him. He's even gotten into acting — you can see him in the new film "What Now."

"I think retirement is overblown. How many days can you go fishing? How many rounds of golf can you play?" Ross said. "I had the idea when I left WWE after 21 years, I'm going to reinvent myself. I'm not going to become a trivia answer. ... I don't think you're going to read anywhere, anytime soon, that Jim Ross has finally retired — until you read my eulogy."

Listen to the audio for the full hour-long interview with Jim Ross, talking his career past, present and future — along with the origins of his signature barbecue sauce.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Brock Lesnar after losing his championship in the main event of Wrestlemania 31.; Credit: WWE

World Wrestling Entertainment held their annual Wrestlemania show last weekend in Northern California, the culmination of another year's worth of spectacle. According to the company, it was their highest grossing event of all-time, drawing $12.6 million, with an official attendance placing it fifth on their list of all-time crowds for the event. The show was headlined by former UFC Heavyweight Champion Brock Lesnar going up against up-and-coming star (and a relative of Dwayne "The Rock" Johnson) Roman Reigns.

WWE Network

It comes at a time when the company has embarked on a new way of making money: their over-the-top online programming provider, the WWE Network, where fans can pay $9.99 a month to see programming including what formerly used to cost $45 for most shows and $60 for Wrestlemania. They're one year in now on gambling that enough fans will want the Network that it will ultimately make them more money in the long-term, despite losing that pay-per-view revenue. Wall Street doesn't appear to be buying it — after announcing the day after Wrestlemania that they'd hit 1.3 million subscribers, WWE's stock took a significant loss.

"The point is not whether it's real or if it's staged. The point is, are you entertained by it, or not?" former WWE announcer Jim Ross told KPCC in an interview. WWE is looking for more fans to be entertained enough to plunk down $9.99 for all the pro wrestling content they want.

NXT

They're also in a transitional period with their audiences. They've launched a new show that's only on the Network called "NXT," turning their minor league into a program targeting hardcore pro wrestling fans with a different style of show than the more family-targeted "Raw" and "Smackdown." It's also where they groom potential future stars, many of whom seem to break the mold of some of the traditional stars on WWE's main roster.

They're signing up talent that's been getting buzz on the independent circuits, trying to create their own underground movement that hopefully spells money, and taking the NXT brand on tour for the first time. On the Raw after Wrestlemania, several NXT stars made their debut on the main roster. That follows a sell-out crowd (albeit at a smaller 5,000 seat venue) on the Friday night before Wrestlemania for a non-televised NXT show.

Give Divas a chance

WWE also faces cultural forces pushing them in new directions, including a difference in how society deals with gender. When WWE executive Stephanie McMahon, daughter of the famed Vince McMahon, tweeted in support of Patricia Arquette's speech calling for greater equality for women at the Academy Awards, one of their own wrestlers, AJ Lee, responded by publicly calling Stephanie McMahon out on Twitter for not promoting the women in her own company equally and paying them less than the male stars.

AJ tweet 1

AJ tweet 2

Of course, the women in the company aren't given the same prominence as the men in part because it's felt that they won't make the company as much money. Still, it forced WWE's hand and Stephanie McMahon and the company as a whole publicly embraced the idea of giving the women (who WWE brands as "divas") a chance with the Give Divas A Chance movement (and accompanying trending hashtag).

What's next

The women have been promoted nearly equal to the men in that underground NXT league, but only time will tell if it continues to trickle upward. Wrestlemania didn't seem to show huge promise of that happening, with the one women's match of the show only getting a few minutes in the ring. However, the show also included a high-profile storyline with UFC female fighter and champion Ronda Rousey alongside the Rock, going up against Stephanie McMahon and Triple H, so there appears to be the room for women in prominent positions when they have the right storyline.

Whether WWE is able to wade through these forces of change to make more money — and perhaps regain some of the cultural currency that they've lost since becoming a monopoly and purchasing their top competition in 2001 — remains to be seen. They've stayed relatively steady despite a challenge from UFC, which many see as being what pro wrestling would be like if WWE didn't present fictional  They'll have to hope that giving new stars, including "divas," a chance will take them to another level.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Aryza Group has expanded its partnership with

Yesterday, we heard about the hyper-loop, a system that could get you from L.A. to San Francisco in about 30 minutes without losing your eyeballs.

Steve Julian: Business analyst Mark Lacter, that might come in handy given how crowded California's air corridor has become...

Mark Lacter: We'll talk about the hyper-loop in a moment, Steve, but yes, the L.A.-to-San Francisco air route is the busiest in the U.S., and it's already the most competitive.  We're talking about more than 50 flights a day, which - if you spread them out between six in the morning and 10:30 at night - there'd be one flight every 20 minutes.  But, Delta obviously thinks there's room for more because it's announced an hourly shuttle between the two cities.  That's another 14 daily flights beginning September 3.  The airline will be using a somewhat smaller jet, and it sounds as if the focus will be on the business traveler, with free newspapers, wine, and beer.

Julian: How much will it cost, do we know?

Lacter: As usual, it's a lot cheaper if you make an advance purchase, but if you're buying your tickets at the last minute - which is what a lot of business travelers do - roundtrip runs a hefty $430.  Actually, this Bay Area shuttle is just the latest effort by Delta to expand out of LAX, which is different from other major airports in that it doesn't have any one airline that dominates (United has a slight edge in market share over American, with Delta about three percentage points behind).  American also has been adding flights out of LAX.

Julian: Sounds like the airline business is improving...

Lacter: That's what happens when you pack planes to the absolute max, which is bad news for travelers being crammed into coach seats.  But it's good news for LAX, which continues to be the airport of choice among airlines looking to add service - matter of fact, domestic passenger traffic was up almost 8 percent in June compared with a year earlier.  Some of those gains might be at the expense of service elsewhere - most especially Ontario Airport, which has seen a big exodus among airlines and passengers.  Ontario city officials have been trying to regain control of the airport, which has been operated by the city of Los Angeles.

Julian: Back to the hyper-loop - is this kind of transport possible?

Lacter: Well, it's the brainchild of billionaire Elon Musk, and you never say never with this guy.  He started the electric car company Tesla and the private space company Space X.  The hyper-loop is a high-speed system of passenger pods that would travel on a cushion of air (think of air hockey table).  The pods would travel at more than 700 miles per hour, but they wouldn't result in sonic booms that severely restricted the Concorde aircraft.  Of course, anything that promises super-speed travel is bound to get people talking - and, from what the physics professors are saying, the Musk idea seems feasible.

Julian: How would its cost compare to the bullet train?

Lacter: He says a lot cheaper.  The price tag on the train is $70 billion at last check; Musk says he can do his for $6 billion.  But, the issue isn't so much the cost or even the technology, but the politics.  As a rule, governments do not think outside the box, and that's what a project like this is all about.  Already, you have bullet train supporters saying that the hyper-loop is impossible, but what they're really saying is we have a lot riding on the train, and we don't want this guy to mess it up.

Julian: But, how much demand is there for high-speed transport?

Lacter: You'd think there would be a lot, but when Boeing came up with a nifty idea for a souped-up plane that would shave almost an hour from L.A. to New York, the airlines said no because it would require more fuel - and that would mean raising fares.  Musk says his system would be a lot cheaper than traveling by plane, which could be a game changer in the attitudes about going places.  But, those attitudes won't change until the thing is actually built, and that can't realistically happen until attitudes change.  That's the ultimate problem.

Julian: Hence, why we're content to squeeze into coach.

Lacter: Yep.

Mark Lacter is a contributing writer for Los Angeles Magazine and writes the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Businesses are cutting back on hours to avoid having to provide health care coverage under the new Affordable Care Act.

Steve Julian: Business analyst Mark Lacter, who's affected here?

Mark Lacter: Thirty hours a week is the magic number for workers to be considered full time under the new law.  If a business has 50 or more full-time employees, health care coverage has to be provided.  Except that a lot business owners say that the additional cost is going to be a financial killer, so instead, some of them have been cutting back hours to below that 30-hour threshold.  More than 200,000 Californians are at risk of losing hours from the health care law - that according to one study.

Julian: What kinds of businesses are doing this?

Lacter: Restaurant chains have received much of the attention, but the city of Long Beach, as an example, is going to reduce hours for a couple of hundred of its workers.  And, last week came word that the L.A.-based clothing chain Forever 21 will cut some of its full-time employees to a maximum 29-and-a-half hours a week, and classify them as part time.  That touched off an outcry on the Internet - people were saying that Forever 21 was being unfair and greedy - though the company says that only a small number of employees are affected, and that its decision has nothing to do with the Affordable Care Act.  There's really no way to know - Forever 21 is a private company, which means it's not obligated to disclose a whole lot.  What we do know is that those people will be losing their health care coverage.

Julian: And, the ultimate impact on businesses and workers?

Lacter: Steve, you're looking at several years before the picture becomes clear.  Here in California, workers not eligible for health care through their employer can get their own individual coverage, and if their income levels are not over a certain amount, they'd be eligible for Medicaid.  And, let's not forget many businesses already provide coverage for their employees.  So, lots of rhetoric - but, not many conclusions to draw from, which does make you wonder why so many business owners are unwilling to at least give this thing a chance.  Just doesn't seem to be much generosity of spirit for their workers, not to mention any recognition that if people can go to a doctor instead of an emergency room we'd probably all be better off.

Julian: Health care is far from the only controversy for Forever 21, true?

Lacter: In some ways, it's one of the biggest Southern California success stories.  Don Chang emigrated here in 1981 from Korea at the age of 18, opened his first store in Highland Park three years later (it was called Fashion 21), and he never looked back.  Today, revenues are approaching $4 billion.  But, the guy must have some pretty hefty legal bills because his company has been accused of all kinds of workplace violations.  The lawsuits alleged that workers preparing items for the Forever 21 stores didn't receive overtime, that they didn't get required work breaks, that they received substandard wages, and that they worked in dirty and unsafe conditions - sweatshop conditions, essentially.

Julian: Are most of their claims settled out of court?  You don't hear much about them.

Lacter: They are, which means there's usually a minimal amount of media coverage.  If a privately held company decides to keep quiet by not releasing financial results or other operational information, there's not likely to be much of a story - unlike what happens with a company like Apple, which is always under scrutiny.  Sometimes, plaintiffs will try to organize class-action suits, but that's extremely tough when you're dealing with low-wage workers who are often very reluctant to get involved because of their legal status.  And, let's not forget that Forever 21 - like any low-cost retailer - is simply catering to the demand for cheap, stylish clothes that are made as quickly as possible.

Julian: I guess you can't make that happen when wages and benefits are appreciably higher than your competition.

Lacter: The next time you walk into a Forever 21 store and wonder how prices can be so reasonable, that's how.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

When you look at fast growing private companies in the U.S., you need look no further than a small city next to Los Angeles International Airport.

Steve Julian: Business analyst Mark Lacter, tell us about the company that's based in El Segundo.

Mark Lacter: It's called Fuhu, Steve - that might ring a bell with some parents because Fuhu is the maker of the Nabi.  The Nabi is an Android tablet for kids, and it's a very cool device that mimics a lot of the capabilities of regular tablet, including the ability to play games and get onto the Web (with controls that parents are able to set up).  Last year, they sold 1.2 million Nabis, and that helped push the El Segundo company to the very top of Inc. magazine's list of fastest-growing businesses.  That's number one on a list of 5,000 companies, with a three-year growth rate of 42,148 percent.  Or, to put it another way, company revenue was $279,000 in 2009; it was almost $118 million in 2012.  Now, by the standards of an Apple or a Samsung, those are still not huge numbers -

Julian: - and maybe that explains why there's been relatively little media coverage of this company.

Lacter: It might also explain why local tech companies in general get short shrift.  Many of them are quite successful, but they're often on the small side, and they're also privately held as opposed to publicly-traded on a stock exchange.  That's one big difference from Silicon Valley, which has so many huge public corporations: Apple, Intel, HP.  L.A. County has only six Fortune 500 companies, and not a single one devoted solely to technology.  In Silicon Valley, there are 22 in the Fortune 500.

Julian: And yet, the L.A. economy has more than held its own without those large corporations.

Lacter: Matter of fact, the accounting firm PriceWaterhouse studied more than two dozen cities around the world to determine where it was easiest to do business (that's based on factors like access to labor), and what they found - somewhat surprisingly - was that L.A. ranked ahead of both San Francisco and Tokyo.  And, you can see evidence of that with the increase in venture capital money coming into all parts of L.A.  Now, it's important to keep an eye on all these up-and-coming companies because these businesses are helping generate higher-wage jobs.  And, for an area with a still-high unemployment rate - still over 10 percent in some places -- that's a big deal.

Julian: Speaking of companies, does anyone want to buy the L.A. Times?

Lacter: The answer is yes - most recently, the controlling owner of the Dodgers, Mark Walter, said he was interested in both the Times and the Chicago Tribune (though there's no way to know whether there are actual discussions taking place).  You also have several local groups, including one that involves billionaire Eli Broad, that have been interested to one degree or another.  But what was thought would be a fairly straightforward auction process has turned enormously complicated.  It's now to the point where the Tribune board has decided spin off the papers into a separate business, and that process will take until next year to complete and could preclude any sales for quite some time after that.

Julian: So, it's Limbo-land for the Times for who knows how long.

Lacter: Steve, it's not that Tribune really wants to keep the newspapers.  But, selling them off presents huge tax implications.  Also, there are assets that the potential buyers thought would be part of the package - assets that include real estate - that Tribune wants to hold onto.  So, what's left to sell are just the newspapers themselves, and frankly, they're among the least valuable properties.

Julian: Now, last week came word that the billionaire Koch brothers, who were believed to be interested in the Tribune properties, decided not to pursue a deal...

Lacter: ...that's right, they don't consider the Times or the other dailies to be economically viable.  You might recall a bit of an outcry over the prospect of having the Kochs, who are staunch conservatives, becoming the owners of these papers.  So, they're out of the picture.  But for the L.A. Times, it's really the worst of all worlds: no new owner and no vision for recasting the paper, at least in the near term.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Now that we have a deal between Time Warner Cable and CBS, we can turn our Hollywood focus back on the movie industry.

Steve Julian: Business analyst Mark Lacter, would you agree it's been an up and down summer at the box office?

Mark Lacter: It's been a flaky summer for Hollywood, Steve.  On the plus side, ticket revenue was up more than 10 percent, and attendance increased around six-and-a-half percent compared with last year (this covers the first week of May through Labor Day weekend).  The problem is that the studios and their investors spent huge amounts of money to make a lot of these movies, and they had to compete in a very crowded market - 23 big-budget films came out this summer, which is way higher than normal, and some of them never had a chance.

Julian: Some examples?

Lacter: Probably the biggest clunker was "The Lone Ranger," which could end up losing close to $200 million for Disney.  Another big disappointment was "White House Down," which was distributed by Sony and brought in only $140 million, which for a big-budget action film is really bad.  Even a film like "Pacific Rim," which did well at the box office, might still end up in the red because the production and marketing costs were so high.

Julian: And summer, of course, is the time when studios want to bring out these monster releases -

Lacter: - right, what they call "tent poles" - and in that category, the biggest winner was Disney's "Iron Man," which took in $1.2 billion.  Also having a great summer was "Monsters University" from Pixar, with $700 million.  You also had "Despicable Me 2" and "Fast and Furious 6," which might not be our cup of tea (speak for yourself, it takes me back to my police car days!), but did very well for Universal.  Eight of the top 12 films this summer were sequels - and yet, sequels were no guarantee of success (a number of them really struggled).  And, some non-blockbuster films found considerable success: "Now You See Me" from Lionsgate only cost $75 million to make.

Julian: So, in some ways, Hollywood was its usual unpredictable self.

Lacter: That's right - and don't expect any big changes in strategy when it comes to big-budget films.  The prospect of having huge success with one of these blockbusters is just too great, but perhaps more important is the fact that many of these films are financed by multiple groups of investors, and so the risk is spread around.  It's not like the old days when a studio bankrolled the whole thing.

Julian: Though, sounds like it's bad news for the city of Los Angeles: the "Man of Steel" sequel is going to be shot in Michigan?

Lacter: Mayor Garcetti has actually declared a state of emergency because the city keeps losing business to other states that offer big tax incentives to films - what's known as runaway production.  The truth is that business has been lost over the years, but L.A. is hardly in any danger of losing its spot as the center of entertainment.  And, you can see that with the L.A. County Board of Supervisors signing off on Disney's plan for a TV and movie production facility near Santa Clarita that will add more than a half-million square feet of studio space.

Julian: And, Universal's expanding, too.

Lacter: Earlier this year, Universal was given the approval to build more production facilities, and Paramount is planning an expansion, as well.  Now, these are all very ambitious projects - not the sort of investments that would be made if these studios were looking elsewhere to make movies and TV shows.  And, of course, they mean jobs - actually, employment levels in the entertainment industry have remained fairly steady going back the last decade.

Julian: Are there states that are pulling back their incentives?

Lacter: Yes, the state of North Carolina, which has been especially aggressive in using tax incentives to draw in movies and television going back to the 80s, is phasing out the giveaways because legislators have decided that the economic benefits aren't worth the tax revenues being lost.  And, other states with tax incentive programs are pulling back as well - they're finding that the payback is very difficult to measure.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Across the country, the sale of electric cars is sluggish.

Susanne Whatley: But business analyst Mark Lacter, that's not quite the case in California...

Mark Lacter: Well, comparatively speaking, Susanne.  L.A. and San Francisco alone made up 35 percent of the electric cars sold in the entire U.S. during the first half of the year - 35 percent!  Keep in mind that statewide just 9,700 electric cars were sold in that six-month period, which translates to a little over 1 percent of all car sales in California.  So, they're not exactly lining up around the block, even in a region that's known for its early adopters.  Of course, electric cars were always going to be a tough sell -

Whatley: I've been driving one for about half a year now... and I absolutely love it.  But they ARE expensive, and I'm sure that's a factor.

Lacter: - and that's even after a federal tax credit, but they also require drivers to learn about recharging the battery - sometimes in not-very-convenient places - and, from a design standpoint, most of them don't stand out (one of the automakers that's now out of business had been selling what was a basically plain vanilla Mitsubishi sedan).  Now, the one notable exception is the Tesla - so long as you have at least $90,000 to shell out, and are willing to wait a while to get your car delivered.  In affluent sections of L.A., this is truly the hot car - just 600 or so Teslas have been sold in Southern California during the first seven months of the year.  It's also received rave reviews from all the big automotive publications.

Whatley: And perhaps most surprising of all, Tesla has been making money…

Lacter: That's right, although the stock price is ridiculously overvalued at around $20 billion (that's one-third the market value of General Motors, even though Tesla cranks out all of 21,000 vehicles a year while GM sells almost 5 million).  People seem to love this car almost in spite of it being battery powered, which gets us back to the challenges in trying to sell these things.  Elon Musk, who founded the company (he's also behind SpaceX and he co-founded PayPal), has managed to win over customers because the car itself is so much fun to drive.  The other makers of electric cars - not so much.

Whatley: So, for the folks still on the fence... might it be better to wait until driverless cars become available?

Lacter: That's going to be quite a wait, although all the automakers are working on their versions of self-driving cars.  The Mercedes people just announced plans to launch in 2020 - the same year that Nissan wants to bring out its car - and Google, which has had self-driving cars tooling around California for several years, is looking at 2017.  So, what we're seeing is real, but the question is what sort of real it'll turn out to be.  Certainly, the possibilities are nothing short of revolutionary - you're looking at, potentially, faster commute times because cars will be able to travel closer to one other (reaction times would be faster than with a human behind the wheel); in addition, fewer accidents and injuries (also a function of reaction times).  But, how well the vehicles work once they get beyond the testing phase is anyone's guess.  California does allow self-driving prototypes car for testing purposes, but that's far different than full-scale authorization.

Whatley: What if something goes wrong?

Lacter: That's one of the big concerns - liability, but the real issue is public acceptance.  Already, surveys are finding reluctance to buying a driverless car, or even having them on the road.  That's not a huge surprise considering how novel the concept still is - and all it takes are a few mishaps to affirm the skeptics.  All of which points to a lengthy transition period - not unlike the early days of the passenger plane, when most folks couldn't imagine getting into a flying machine.  Eventually, they got used to them, but it took time.

Whatley: And finally, some thoughts on Cal Worthington?

Lacter: Certainly one of the great showmen in the annals of L.A. broadcasting - Cal Worthington wasn't the first auto dealer to discover the benefits of commercials, but he lasted longer than anyone else, selling more than a million cars (that according to his count), and grossing billions of dollars.  The Worthington ads are sometimes considered the first infomercials - that might be a stretch, but three factors really made it all come together: Southern California's appetite for the automobile, the ease by which Cal could deliver his schtick (remember when he was strapped to the wing of a biplane?), and the fact that there was so much available air time to sell in L.A.. Definitely a legend in his own time.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

When talk turns to the economy, it's clear that LA brings out the best and the worst.

Steve Julian: Business analyst Mark Lacter, where do you see the best of it here?

Mark Lacter: You see the best of the economy, Steve, with all kinds of startup activity - much of it tech-related - and you also see the large number of auto sales, the improved housing market, and the record number of people visiting Southern California - all indications of a growing economy.  But then, you have the other L.A. economy, with large numbers of families struggling to make ends meet, and seeing very little sign of recovery.  You know, the government has been releasing income data covering the last few years, and what you see is that the disparity between the richest 1 percent and the other 99 percent is at its widest point since the 1920s.  You especially see that kind of bifurcated economy in Southern California, which has some of the wealthiest people in the country, and also some of the poorest.

Julian: Now, the split between rich and poor has been happening for a good long time, hasn't it?

Lacter: Yes, but L.A. is in a special class because there are so many immigrants with limited job skills - in fact, a new study by the UCLA Anderson Forecast says it's a much higher percentage than immigrants living in Miami, San Francisco, and New York.  What's interesting is that 20 years ago the job skills among immigrants were significantly higher in L.A.  Limited job skills mean there's very little opportunity to move up the income ladder.  That factors into buying homes, sending your kids to college - really becoming part of the middle class.

Julian: I imagine that's particularly true for factory work…

Lacter: Yes, some of the same jobs that newly-arrived immigrants in previous generations would gravitate to.  Today, many of those jobs are gone, and they're being replaced by positions that require greater skill that's borne out of greater education.  And that, of course, is another problem: a sizable percentage of recently-arrived immigrants never finished high school, much less college, and that makes it even less likely that they'll be able to move up.

Julian: Related, or unrelated, to the recession?

Lacter: Actually, L.A. had serious income inequality in December of 2006, before the recession, when the county's unemployment rate was just 4.3 percent - a stunningly low rate when you consider that as of July, the jobless rate was almost 10 percent.  This points out that the division of haves and have-nots can happen even when the economy is doing well.

Julian: And it seems the last C-17 to be built for Air Force is a reminder of wage gap.

Lacter: That's right - it'll be up to foreign customers to keep the program in Long Beach alive.  Boeing currently has an order from India for 10 of the cargo planes, which will keep the line moving through the third quarter of next year.  Frankly, the only reason the C-17 has lasted this long is heavy political pressure by congressional lawmakers whose districts have an economic stake in the program.  At one time, as many as 16,000 people may have worked on the C-17 in Long Beach, but that number has fallen sharply over the years.

Julian: Still, this is the last airplane manufacturing plant in Southern California.

Lacter: And that, of course, speaks volumes about the state of the aerospace business, which had been one of the main economic drivers back in the days leading up to World War II.  Aerospace continued to be very important until the end of the Cold War, when you had a huge industry consolidation that resulted in the loss of tens of thousands of local jobs throughout the 1990s.  There's still quite a bit of aerospace activity locally that involves missiles, satellites, and electronics - both for the major defense contractors like Boeing and Northrop, and for smaller contractors and sub-subcontractors that still get a piece of the military pie.

Julian: But most of them require high skill levels…

Lacter: Yes, and that gets us back to the folks who are stuck in low-paying jobs with little prospect for moving up.  This is what the L.A. economy is all about, the good and the bad.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

We've been reporting on the city of Los Angeles approving major developments without seismic studies attached.

Steve Julian: Business analyst Mark Lacter, why is this?

Mark Lacter: Steve, this is a real gotcha moment for the L.A. Planning Department, the City Council, and everyone else at City Hall who signed off on these projects.  The latest revelation, which was reported by the L.A. Times, shows that a planned 39-story residential tower in Century City is just 300 feet from the active Santa Monica fault.  And, we're only learning about this because the Metropolitan Transportation Authority did its own seismic testing near the site when it was looking for potential subway stops, and officials decided that it was too close to the fault.  This also comes after three large-scale projects in Hollywood were found to be located quite close to the active Hollywood fault.

Julian: The concern is that if any faults were to rupture, the foundation of a building could be split apart.

Lacter: Kind of an inconvenient truth both for the developers, who have millions of dollars riding on these projects, and for L.A. city officials who are betting on a future that will include many more high rises.  And, we should note that more than two-dozen high rises are either in the process of going up, or are at least on the drawing board.  In case you're wondering why there aren't regulations that monitor this sort of thing, the answer is that there are regulations.  California has a law that requires state geologists to map active earthquake faults, and then set zones on either side of the fault line.

Julian: Has the state done this?

Lacter: The state says it hasn't had the time nor the money to map areas within the city of L.A., though the faults have been known to be in the general vicinity of these projects - and so, you'd think the city would want them tested extensively.  Of course, that would mean more delays, which the developers wouldn't be happy with.

Julian: Of course, seismic studies are not always definitive.

Lacter: They're not - and it's possible that different geologists would come up with different findings.  But so far, most of the information seems to be coming from the developers, and you have to wonder whether it's a great idea to rely on folks who have a financial interest in a project to tell us what's safe and what isn't.  Probably not.

Julian: Your article in the new issue of Los Angeles Magazine raises a broader point about the city's business climate.

Lacter: Steve, for many years, L.A. has been branded as a terrible place to do business because of government interference, but that's largely a myth.  If anything, city officials have been too accommodating.  Frankly, the anti-business rap never made much sense when you consider the thousands of companies that start up here each year.  A study by the accounting firm PricewaterhouseCoopers ranks L.A. particularly high when it comes to ease of doing business, which runs counter to the conventional wisdom.

Julian: You're not saying it's truly easy, are you?

Lacter: Easy, no.  There certainly are plenty of reasons for business owners to pull out their hair.  And those hassles, along with an unemployment rate that remains quite high, has given developers and others the leverage to ask for various giveaways.  All they have to do is say that their projects will generate more jobs, and city officials tend to respond favorably - no matter how questionable those proposals might be.  And, by the way, job creation doesn't always determine economic growth, certainly not in the short term.

Julian: We all remember during the mayoral campaign, candidates were talking about how their policies would lead to lower unemployment...

Lacter: ...right, almost like they could pick up jobs at Ralphs.  Well, it doesn't work that way.  Thing is, the city of L.A. doesn't need to cut so many deals - the local economy is rich enough and broad enough to keep prospering.  Which is why city officials would be much better off laying off the incentives, and focusing on the basics - public safety, transportation, the parks, and libraries.  Do that right, and the business climate will take care of itself.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

The partial federal government shutdown is one week old, but economists are still saying that its impact in Southern California and elsewhere will be limited.

Susanne Whatley: Business analyst Mark Lacter, why is that?

Mark Lacter: If you look back on the history of these things, Susanne, you see that the disputes are resolved before too much damage gets done.  As for Southern California, I notice that KPCC's Alice Walton was asking around over the weekend about the shutdown, and most folks gave it a shrug.  The regional economy is just too diversified - and not especially tied to federal employment.  You have about 46,000 federal workers employed in L.A. County in one capacity or another - that's out of a workforce of nearly 5 million.  And, now it appears as if the federal employees who have been furloughed are going to receive their back wages whenever the shutdown finally ends.

Whatley: That still might make things dicey when it comes time to pay the monthly mortgage...

Lacter: ...but at least money will be available before most folks run into serious liquidity issues.  That's what the shutdown really comes down to - inconvenience rather than dislocation.  And, you see this with the various government services affected: the E-Verify website is down - that lets business owners know whether the people they're wanting to hire can work legally in the U.S., which obviously is important.  The Small Business Administration has stopped processing loan applications, and the Federal Housing Administration is reporting delays in its loan processing, which could mean a home buyer might not complete his or her paperwork all that quickly.

Whatley: But, what if this were to go on for months?

Lacter: Well, then it would create problems, but nobody really thinks that's going to happen.  The real issue, not just nationally and regionally - but globally - is the refusal by Congress to raise the debt ceiling.  The deadline is a week from Thursday, and - of course - there's been all sorts of debate about what this would mean for the economy.

Whatley: All right, so what would this mean for the economy?

Lacter: Well, no one knows exactly.  But, then again, no one knows exactly what would happen if you fell out of a airplane without a parachute.  I just wouldn't want to test it out.  And, of course, let's keep in mind that these are manufactured crises - not reflective of anything that's going on with the real economy.  It's certainly not reflective of anything that's going on in L.A., which saw a big jump in payroll jobs for 2012 - actually it was the sharpest increase since 2005, and nearly double the national rate (that's despite an unemployment rate that remains very high in certain parts of Los Angeles).

Whatley: What about some of the big locally based companies?

Lacter: Well, if your company is publicly traded, there's a good chance your shares took a dip these past few days.  Going back to September 18, the Dow has lost almost 700 points, which - percentage-wise - is not very much, but it is reflective of how uneasy Wall Street has become.  Public companies based in the L.A. area are taking it on the chin - Disney, Amgen, Mattel, DirecTV - their stock prices are all down going back to the middle of September.

Whatley: Even so, hasn't this been a good year for the stock market?

Lacter: It has - those local companies are up anywhere from 13 percent 30 percent year to date, and the Dow is up 14 percent year to date.  Of course, the stock price of a company doesn't always match the amount of money it makes, and this year, even before worries about the debt ceiling, the numbers haven't been as good as they should be at this stage of a recovery.  And, that's why there's particular concern about next week.  You do have to wonder whether a default could have ripple effects involving trade, consumer spending, the dollar - who knows what?  Now, it's still a pretty good bet that saner heads will prevail, although there are no guarantees - and again, if worse came to worse, do you really want to be jumping out of that plane?  Guess we'll find out.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

It's late October, which means  more and more stores are decorating for Christmas. 

Steve Julian:  Business analyst Mark Lacter, whatever happened to "better late than never?" 

Mark Lacter: Steve, retailers never want to sell late because it often means having to reduce the price. They're looking to start out as soon as possible - these last three months represent their biggest payday of the year. And here in California people do seem to be buying stuff - consumer spending has been up for 14 consecutive quarters, going back to the spring of 2009, and taxable sales are up almost 5 percent from the peak levels before the recession. Another good sign is Chapman University's index of consumer sentiment, which is at its highest level since the beginning of the recession in late 2007. All these indicators explain why the state economy is generally outpacing the rest of the nation.

Julian: There has to be a "but" in here someplace…

 Lacter: The "but" is that only 60 percent of the jobs lost during the downturn have been recovered, and the unemployment rate in many parts of the state, including L.A. County, is still at or above 10 percent, which isn't what you'd call a healthy economy. And that's why holiday shopping this year could end up being sort of hit and miss. Folks who have well-paying jobs and a bunch of their money in the stock market - and Southern California has its share of both - those folks will probably be spending good amounts. 

Julian: Are there geographic tell-tale signs?

Lacter: The closer to the coast you go, the more spending there's likely to be. But it's a different story if you're feeling vulnerable about your job or in the amount of savings you have in the bank. So you have retailers once again coming up with ways of reaching as many budget-conscious folks as possible, as early as possible. The most obvious move is opening their stores on Thanksgiving night - Macy's is the latest of the chains to get a head start on Black Friday (Target, Kohl's, Walmart and J.C. Penney will also be open). Another strategy is matching your prices with the prices on Amazon and other online retailers - also, retailers will use mobile apps and arrange in-store pickup of online purchases. All told, expect holiday sales to run 3 percent ahead of last year, with the L.A. area likely to be a bit higher. Decent, but not great.

 Julian: What's the message to consumers now: buy or not buy?

 Lacter: Well, we'll start with the good news - gasoline prices are at their lowest level since the beginning of the year, with an average gallon of regular in the L.A. area running $3.75, according to the Auto Club. And barring any refinery fires or international catastrophes, the numbers might keep falling into November and December, which could incentivize consumers to buy a little more at the shopping malls. Here's some more good news - the L.A. area has seen a huge drop in the number of homeowners who are underwater, which happens when the value of a property is less than the amount that's owed on the property. This of course was a big problem during the recession, but over the last year the median home values have gone up between 20 percent and 30 percent. 

 Julian: And if your equity is positive instead of negative, you'll probably feel more confident about spending. 

 Lacter: That's right. But there are also deterrents to spending - as has been reported, a few hundred thousand Californians lose their individual health care policies by the end of the year because their plans don't meet the requirements of the Affordable Care Act. Policyholders will be stuck in many cases with a premium increase, possibly a big increase. Now it's possible that in the long run these folks will be better off with a more inclusive plan that results in lower out-of-pocket expenses. But it'a hard to ignore the sticker shock of having to shell out, say, $250 a month instead of $100.

 Julian: There goes the holiday list...

 Lacter: For those folks, yes. And even though L.A. consumers do a good job of separating their feelings about Washington with their desire to spend, the economy is bound to slow down a little. So Steve, just don't count on that $9,000 fur vest I was going to get you for Christmas. Sorry about that…

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Police say TSA agent Gerardo Hernandez was shot and killed last Friday at the base of the escalators of LAX Terminal 3, and not at the checkpoint gates.  Paul Ciancia is accused of killing Hernandez and wounding several others.  Ciancia remains hospitalized in critical condition.

Steve Julian: Business analyst Mark Lacter, how did the airlines respond to shooting and its aftermath?

Mark Lacter: Generally pretty well, Steve, considering that the airport was effectively closed for several hours on Friday, and most of Terminal 3 was out of commission until Saturday afternoon.  You know, there's always this precarious balance in operating airlines and airports, even in the best of circumstances.  Just so many flights coming in and going out, and so many thousands people using the facility at any given time - and it really doesn't take much to upset the balance.  So, when you have something horrific take place and you see all those travelers stranded outside the terminals, the ripple effects are enormous - not just at LAX but all over the country.

Julian: More than a thousand flights were either canceled or delayed on Friday.

Lacter: And, there was a further complication because the airlines flying out of Terminal 3 are not the legacy carriers like United, American, and Delta that have all kinds of resources, but smaller operations with less flexibility.  It's not like there's an empty aircraft just sitting in a hangar waiting to take passengers wherever they want to go.  Actually, the airlines have gotten better at arranging re-bookings when there's a snowstorm or some other emergency that gives them advance warning.  But obviously, there was no advance warning last Friday, so the carriers needed to improvise in handling passengers whose flights were cancelled.

Julian: What did they do?

Lacter: One step was waiving the fees normally charged to re-book flights (and that's gotten to be a pretty penny).  Another was waiving the difference in the price of the original ticket and the re-booked ticket.  But, the policies varied according to the airline, and we heard about travelers not receiving hotel or food vouchers, or having to buy a brand new ticket on another airline if they wanted to avoid the wait - and that can be expensive.  Which raises another issue: planes tend to be completely full these days because airlines have been cutting back on the number of flights.  And that can be a problem if you're taking a route that doesn't have too many flights in the first place.  So, it gets really complicated.

Julian: Why do you think we haven't we heard more horror stories from passengers?

Lacter: Well, look at the cities that the airlines in Terminal 3 fly to - New York, San Francisco, Seattle, Dallas.  They're all served by several other carriers.  L.A. to New York, in particular, is one of the busiest routes in the world, which means that it's also one of the most competitive.  So, even if your flight was cancelled, there's a good chance you'd be able to find space by Saturday (which is normally a slower day for air travel).  This is a big reason, in general, why people like LAX.

Julian: Why don't other local airports handle more of the load?

Lacter: You might remember a few years ago local officials were promoting something called "regionalization" - the idea was that as LAX maxed out on the number of passengers it was allowed to handle each year, then other airports would make up the difference - places like Ontario, Bob Hope in Burbank, and John Wayne in Orange County.

Julian: Right, and they talked about easing traffic congestion by spreading around the flights.

Lacter: Well, regionalization never happened because, first of all, passenger levels at L.A. International didn't come close to maxing out.  But, more importantly, because the airlines decided that using LAX was more efficient for everything from handling baggage to arranging international connections.  So, through the first nine months of the year, passenger traffic at LAX is up 4.2 percent from a year earlier, while at Ontario traffic was down 9.3 percent.  And, we've seen that John Wayne, Bob Hope, and Long Beach are all struggling.  Of course, the challenge at a busy place like LAX is making it as safe as possible, and that will no doubt become a priority in the weeks ahead.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Yesterday may have been a holiday on paper, but if you were navigating LA's major freeways, there was no sign people had the day off.

Steve Julian: Business analyst Mark Lacter, is this more evidence that Southern California traffic getting worse?

Mark Lacter: Steve, L.A. continues to be the most clogged-up city in the U.S. - according to something called the TomTom Traffic Index - with commuters caught up in delays, on average, 35 percent of the time.  Or, to put it another way, L.A. commuters are in congestion up to 40 minutes of each hour they're driving.  The worst time of the week to commute is Thursday night; that's when there's congestion more than 80 percent of the time.  Monday morning commutes are the lightest.

Julian: After L.A., where should you not live if congestion bugs you?

Lacter: The next worst cities in the U.S. are San Francisco, Honolulu, Seattle, and San Jose.  Now, the Census Bureau comes up with its own commuting surveys, and if you compare the most recent numbers with those back in 2000, you'll see that things aren't all that different.  Matter of fact, the percentage of commuters driving alone to work actually increased a little over the last decade to 72 percent, while the percentage of those carpooling has declined.

Julian: What about public transit?

Lacter: Well, the numbers are up slightly from 2000, but only to 7.3 percent of all commuters.  So, even assuming that the number inches up in the next couple of years when the Expo Line extends into Santa Monica, it's still a smallish piece of the pie.  And, since many of the other public transit projects being planned are decades away from being completed, those numbers might not change much.  One other thing, Steve: less than 1 percent of all L.A. commuters bike to work, which would throw cold water on the idea that biking in L.A. is becoming a popular way of getting to the office.

Julian: People just prefer commuting by car…

Lacter: It remains the most convenient way of getting around - despite the congestion.  New car sales are up 14 percent through the first nine months of the year in Southern California.  Add to that are generally affordable gas prices (they've been especially low in the last few weeks).  In other parts of the world, congestion is considered a good thing because it means that the economy is doing well.  Which explains that while L.A. is the most congested city in the U.S., it doesn't rank among the 10 around the world.  On that front, Moscow is tops, followed by Istanbul, and Rio de Janeiro.

Julian: What about driverless cars?

Lacter: Well, these vehicles hold the most promise for reducing accidents, lowering travel times, and improving fuel economy - and you don't have to give up your car.  Actually, a lot of the technology is already in place - that includes stuff like radar-based cruise control, and devices that keep you at a safe distance from the car in front of you.  The trick, of course, is taking these individual capabilities and integrating them into an entirely driverless car.  Several car companies say they could be ready to start selling by 2020, with Google saying that its car could be ready even sooner.

Julian: Is that realistic?

Lacter: Who knows?  But even if the dates can be met - and that's a big if, considering how complex these systems are - legislatures will have to determine, among other things, whether vehicles can be fully autonomous (meaning that you can curl up and take a nap while the computer is driving by itself).  Or, whether they will only be semi-autonomous, which would be like an airline crew using automatic pilot, but always prepared to take over the controls.

Julian: Is that a liability issue?

Lacter: Yes - if something does go wrong, who will get the blame?  The owner of the vehicle?  The carmaker?  The suppliers of the car companies?  These questions might take years to get resolved in the courts - and even then, it could be years before the percentage of these vehicles on the road is large enough to truly have an impact.  But, considering that most commuters aren't willing to give up their cars, this would seem to be the most exciting, most desirable idea.  One day.

Mark Lacter writes for Los Angeles Magazine and pens the business blog at LA Observed.com.

This content is from Southern California Public Radio. View the original story at SCPR.org.