Tuesday, February 21, 2023

How Two US Supreme Court Cases Could Completely Change the Internet

Solcyre Burga
Sun, February 19, 2023 

On a laptop screen you can see the logo of Youtube.

The future of the federal law that protects online platforms from liability for content uploaded on their site is up in the air as the Supreme Court is set to hear two cases that could change the internet this week.

The first case, Gonzalez v. Google, which is set to be heard on Tuesday, argues that YouTube’s algorithm helped ISIS post videos and recruit members —making online platforms directly and secondarily liable for the 2015 Paris attacks that killed 130 people, including 23-year-old American college student Nohemi Gonzalez. Gonzalez’s parents and other deceased victims’ families are seeking damages related to the Anti-Terrorism Act.

Oral arguments for Twitter v. Taamneh—a case that makes similar arguments against Google, Twitter, and Facebook—centers around another ISIS terrorist attack that killed 29 people in Istanbul, Turkey, will be heard on Wednesday.

The cases will decide whether online platforms can be held liable for the targeted advertisements or algorithmic content spread on their platforms.

Tech companies argue that Section 230 protects them from these types of lawsuits because it grants them legal immunity from liability over third-party content that is posted on their platform. The case will decide whether platforms can be held liable for spreading harmful content to users through their algorithm.

Here’s what to know about Section 230.

What is Section 230?


Section 230, which passed in 1996, is a part of the Communications Decency Act.


The law explicitly states, “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider,” meaning online platforms are not responsible for the content a user may post.

The law allows tech companies to moderate or remove content that is considered egregious. Section 230, however, does not protect sites that violate federal criminal law, or intellectual property law. It also does not protect platforms that create illegal or harmful content.

Because popular sites like Facebook, Twitter and YouTube rely on user-generated content, many people have credited Section 230 for the creation of the internet we now know and love.

As the scale of online platforms has drastically increased over time, with up to 368 million monthly active users on Twitter alone, experts argue that Section 230 helps protect companies that struggle to keep up with the amount of content posted on their platforms from being sued over what users say or do.

What are these cases about?

The Gonzalez family first filed a suit in 2016, alleging that because Google, which owns YouTube, matches and suggests content to users based on their views, the platform recommended ISIS’s content to users, and enabled them to find other videos and accounts owned by ISIS.

Plaintiffs also argued that Google placed paid advertisements on ISIS videos, which meant they shared ad revenue with the terrorist organization. The lawsuit argues that this means that Google has not taken enough action to ensure ISIS remains off the platform. Because of this, the plaintiffs allege that these tech companies are directly liable for “committing acts of international terrorism” and secondarily liable for “conspiring with, and aiding and abetting, ISIS’s acts of international terrorism.”

A federal district court in California dismissed the complaint, saying that Google could not be held responsible for content that was produced by ISIS. The U.S. Court of Appeals for the 9th circuit sided with the district court, but in October, the Supreme Court agreed to hear the case.

In an opposition brief filed to the Supreme Court, Google maintained that a review of the case was not warranted because websites like YouTube could not be held liable as the “publisher or speaker” of the content users created. They add that Google does not have the capacity to screen “all third-party content for illegal or tortious material” and that the company was concerned that “the threat of liability could prompt sweeping restrictions on online activity.”

Major tech companies like Twitter and Meta, which have expressed their support for Google in the case, say that recommendations based on their algorithms allow them to “organize, rank, and display” user content in a way that enhances a user’s experience on the platforms and called the ability to do so “indispensable.”

What is the future of Section 230?

If the court decides in Gonzalez’s favor, the lawsuit will set a precedent for holding tech companies liable for targeted ads or recommendations.

The effects this could have on the internet are not entirely known, though many warn that tech companies would face a host of lawsuits. Corporate giants like Yelp, Reddit, Microsoft, Craigslist, Twitter and Facebook, say that searches for jobs and restaurants could be restricted if platforms can be sued over what users post, according to the Associated Press. And other review sites could even be held liable for defamation if a particular restaurant received bad ratings.

Even dating sites, like Tinder and Match, called Section 230 essential to user experience on the app as they hope to continue providing match recommendations “without having to fear overwhelming litigation,” according to CBS.

How do legislators feel about Section 230?

Conservatives have long criticized Section 230, alleging that it allows social media platforms to censor right-leaning content.

This scrutiny was applied towards platforms like Twitter, which came under fire after it removed a story by the New York Post about Hunter Biden’s laptop. Twitter executives later called the action a mistake in a House committee hearing, but many conservatives have claimed this as evidence of bias. Lawmakers also criticized social platforms ban of conspiracy theorist Alex Jones’ Infowars page from their sites in 2018.

Former President Donald Trump made calls to repeal the law, even prompting the Justice Department to release proposed amendments to Section 230 in 2020.

“I’ll just cut to the chase, Big Tech is out to get conservatives,” said Rep. Jim Jordan in a House Judiciary Committee hearing in July 2020. “That’s not a hunch, that’s not a suspicion, that’s a fact.”

Democrats have similarly argued against Section 230, saying that it prevents platforms from being held liable for hate speech and misinformation spread on their sites.

In July 2021, Senators Amy Klobuchar and Ben Ray Lujan introduced a bill that would remove tech companies’ immunity from lawsuits if their algorithms promoted health misinformation.

The White House later called on Congress to revoke Section 230 during a September “listening session” about tech companies’ accountability. And in January, President Joe Biden released an Op-Ed in the Wall Street Journal, asking for bipartisan legislation that would hold tech companies accountable.

“The American tech industry is the most innovative in the world…But like many Americans, I’m concerned about how some in the industry collect, share and exploit our most personal data, deepen extremism and polarization in our country, tilt our economy’s playing field, violate the civil rights of women and minorities, and even put our children at risk,” Biden wrote.

Justices — From Alito to Jackson — Are ‘Confused’ by Internet Legal Shield Case



Emily Birnbaum
Tue, February 21, 2023 

(Bloomberg) -- US Supreme Court justices across the political spectrum — from Samuel Alito to Ketanji Brown Jackson — uttered the words “I’m confused” during the early part of arguments over upending the internet’s foundational law.

The justices are “not the nine greatest experts on the internet,” said Justice Elena Kagan on Tuesday during oral arguments in Gonzalez v. Google, a case that centers on whether YouTube should be held liable for the videos that its algorithms recommend to users.

Kagan’s remarks, which were met with laughter, came as she expressed skepticism about the arguments from Eric Schnapper, the lawyer representing the family of a US citizen killed by Islamic State in a 2015 Paris attack, which contends Alphabet Inc.’s Google should be held liable for software algorithms that recommended terrorist videos to YouTube users.

The justices early in the day seemed at times confused and frustrated by Schnapper’s arguments, saying that they were unsure why YouTube in this case would not be protected by Section 230 of the Communications Decency Act, a 1996 statute that allows social media platforms to avoid most lawsuits over the content posted on their platforms. The arguments offered a very early glimpse into where the justices might land, although the court often changes its skeptical tone throughout oral arguments.

The Gonzalez family has argued that YouTube should face lawsuits over whether it aided and abetted terrorism by proactively recommending Islamic State videos.

“I’m afraid I’m completely confused by whatever argument you’re making at the present time,” said Alito.

“I guess I’m thoroughly confused,” Jackson said at another point.

Most of the justices at some point said they did not understand Schnapper’s arguments, contending that the conduct at issue — YouTube recommending videos — is likely protected by Section 230.

Even Justice Clarence Thomas, who has stated previously that he believes it’s time to revisit Section 230, questioned whether it made sense to hold YouTube accountable for its algorithms even though the company applied them “neutrally” to all kinds of videos, ranging from Islamic State videos to videos about cooking.

Schnapper argued that Section 230 does not protect YouTube’s promotion of thumbnails, or clickable videos that feature snapshots from a video that YouTube is recommending.

“Algorithms are endemic to the internet,” said Kagan. “Does your position send us down the road such as 230 really can’t mean anything at all?”

©2023 Bloomberg L.P.

Supreme Court eager to steer clear of sweeping changes to internet in Section 230 dispute

John Fritze, USA TODAY
Tue, February 21, 2023 

WASHINGTON – The Supreme Court seemed hesitant Tuesday to hand down a sweeping ruling that could change the way search engines and other websites recommend content to users but the justices struggled with how to address whether Big Tech can ever be held liable when those recommendations cause harm.

At issue in the case, Gonzalez v. Google, is a controversial law known as Section 230, which has been widely interpreted as shielding websites from lawsuits for user-generated content. The question for the court is whether recommendations – such as a suggestion for the next video to watch on YouTube – are covered under that law.

The family of a 23-year-old American killed in a 2015 terrorist attack in Paris sued Google, which owns YouTube, for promoting videos dealing with the Islamic State group. But several of the justices from both ends of the ideological spectrum seemed concerned about potentially holding companies liable for all such recommendations.

Guide: A look at the key cases pending at the Supreme Court

Background: Breaking down a Supreme Court case on Section 230

Thomas: As Supreme Court takes up Section 230, Thomas has made his thoughts clear

"These are not, like, the nine greatest experts on the internet," Associate Justice Elena Kagan quipped about her colleagues to the family's attorney during nearly three hours of oral argument, underscoring a broader point that such questions might be better left to Congress. "There's a lot of uncertainty about going the way you would have us go, in part just because of the difficulty of drawing lines in this area."

Even Associate Justice Clarence Thomas, who has been one of the most outspoken critics of how broadly lower courts have interpreted Section 230, seemed concerned about the potential implications of holding Big Tech liable for recommendations. If the algorithms are neutral, he said – if they're not attempting to promote radical videos – then how could they be aiding and abetting terrorism?

"If you're interested in cooking, you don't want thumbnails on light jazz. It's neutral in that sense," Thomas said. "I don't understand how a neutral suggestion about something that you've expressed interest in is aiding and abetting."
 

The Supreme Court on Jan. 10, 2023.

If the case blurs the 6-3 conservative-liberal divide on the Supreme Court there may be a good reason for it: The underlying issue itself has shuffled traditional partisan politics. Section 230 has drawn intense criticism from former President Donald Trump over accusations that social media companies throttled conservative views. But Many Democrats agree, for different reasons, that the nearly 30-year-old law needs an update.

Associate Justice Neil Gorsuch repeatedly zeroed in on one element of the decision in favor of Google by the San Francisco-based U.S. Court of Appeals for the 9th Circuit: The idea that a "neutral" algorithm was likely to be within the law's liability shield. Gorsuch argued that test was unworkable and wasn't based in the statute's text and suggested the case could be sent back to the appeals court for further review.

That's one potential off ramp the Supreme Court could take to avoid the larger questions about Section 230. Another deals with a related case the court is scheduled to hear Wednesday: Whether Big Tech can be held liable under the Anti-Terrorism Act for "aiding and abetting" terrorism by promoting the videos at all – putting aside Section 230.

If the court decides online platforms cannot be held liable under that law, it would potentially put off for another casequestions about whether and when Section 230 applies to recommendations.

A decision in the Google case is expected by June.

Contributing: Jessica Guynn



Google tells US Supreme Court it is not legally responsible for internet posts

James Titcomb
Tue, February 21, 2023 




People wait in line outside the US Supreme Court in Washington, DC on February 21, 2023 as the justices hear arguments in two cases that test Section 230, the law that provides tech companies a legal shield over what their users post online.

Google could be forced to take responsibility for videos that YouTube recommends to its users if a landmark legal challenge against the internet giant succeeds in America’s top court.

The company on Tuesday defended itself in a Supreme Court hearing, the culmination of a years-long legal campaign from the family of a victim of the 2015 Paris terrorist attacks who say that YouTube recommended extremist content to users.

Defeat for Google would threaten a legal shield that search engines and social networks have used for 27 years to avoid liability for illegal videos, messages and pictures on their services.

The Section 230 law broadly grants immunity to websites that host and manage content uploaded by users. However, the family of Nohemi Gonzalez, a 23-year-old who was one of 129 people killed in the co-ordinated terrorist attacks in November 2015, argue that this shield is effectively forfeited when sites such as YouTube use algorithms that prioritise some posts and videos over others.

The family argues that Google should be liable for the videos it algorithm recommends to users, and that the site broke anti-terrorism laws by promoting Islamic State recruitment videos.

Since almost all major websites use some form of algorithm to manage the mountains of user-posted material, a ruling against Google could force internet companies to more tightly police their sites for violent or explicit content.

“If they do this indelicately, and say that the moment you promote that content in any way you lose all immunity, then I think this is going to blow up the internet,” said Michael Smith, a professor of information technology at Carnegie Mellon University in Pittsburgh, Pennsylvania.

Google has repeatedly won in lower courts and sought to block the case from going to America’s highest court, but the Supreme Court agreed to hear the case last year.

On Wednesday a similar case is due to be heard against Twitter, brought by the family of Nawras Alassaf, who died in a 2017 terrorist attack in Istanbul.

The longstanding law known as Section 230 has been referred to as the “26 words that created the internet” and has been seen as a potential sticking point in negotiations over a post-Brexit US trade deal, conflicting with UK Government plans for tighter internet regulation.

The Republican-leaning Supreme Court, which last year made a series of controversial rulings on issues such as abortion and gun control, is expected to rule on the cases in the summer. Clarence Thomas, one member of the nine-strong court, has been a vocal critic of how internet companies have used the law to escape liability.


 Associate Justice Clarence Thomas joins other members of the Supreme Court as they pose for a new group portrait, at the Supreme Court building in Washington, Oct. 7, 2022. The Republican majority in the Georgia state senate voted on Tuesday, Feb. 14, 2023, to build a statue of Thomas on the state capitol grounds, despite Democratic opposition to honoring the longtime Supreme Court member and Georgia native
AP Photo/J. Scott Applewhite

A group of 17 Republican Congressmen have submitted documents to the court calling for a stricter interpretation of the law, while tech companies have lined up to defend Google and warn that a decision against the company risks mass censorship of the internet.

Damian Collins, a Conservative MP and former chairman of the digital, culture, media and sport committee who has campaigned for stricter internet laws, said: “Whatever happens in America has an impact on the platform policy for companies that affects the whole world.

“If a company is going to be legally responsible, that's hugely significant in terms of recommended content on social media platforms, but potentially has wider implications for the way in which companies develop their products and the care they take to ensure there aren't unintended consequences.”

Mr Collins said efforts by US trade negotiators to impose Section 230-like laws in a trade deal had been “strongly resisted” in the UK.

President Joe Biden has said he wants to see the law reformed to force internet companies to take more responsibility for violent material.

Supreme Court for first time casts doubt on Section 230, the legal shield for Big Tech

David G. Savage
Mon, February 20, 2023

The Supreme Court of the United States in Washington, DC, is seen in October. 
(Kent Nishimura / Los Angeles Times)

Internet giants such as Google, Facebook, YouTube and Twitter owe much of their success to a legal shield erected by Congress in 1996.

Known as Section 230, it has been called the rule that launched Big Tech. Though it drew little attention at the time, the law is now seen as a pillar of the wide-open global internet we know today.

While newspapers and TV stations can be held liable for any false and malicious content they publish or broadcast, internet platforms are treated differently under Section 230.

Congress passed the special free-speech rule to protect the new world of online communication. It said: "No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider."

Law professor and author Jeff Kosseff called Section 230 “the 26 words that created the internet” because it allowed websites to develop freely as platforms for the words, photos and videos of others.

And it went unchallenged in the Supreme Court — until now.

This week, the justices will hear two cases that may finally pierce that legal shield and dramatically alter the rules of the game for the internet.

And they are expected to consider a third case later this year involving the 1st Amendment rights of internet companies amid state efforts to regulate them.

The case to be heard on Tuesday began with a California family's suit against Google and YouTube for allegedly aiding and abetting an act of international terrorism. Their daughter Nohemi Gonzalez was killed in Paris in November 2015 when Islamic State terrorists fired into a restaurant where the 23-year-old student was dining with two friends. It was part of an ISIS rampage in the city that killed 129 people.

Their lawsuit alleged that Google, which owns YouTube, had "knowingly permitted ISIS to post hundreds of radicalizing videos inciting violence and recruiting potential supporters to join the ISIS forces." Further, they alleged that YouTube "affirmatively recommended ISIS videos to users.”

At issue on Tuesday is only their second claim. Can YouTube be sued over the algorithms it created to direct users to similar content — in this case allegedly directing potential terrorists to other ISIS videos? Or does Section 230 protect them against such claims?

More than four dozen tech firms, internet scholars and free-speech advocates have filed friend-of-the-court briefs arguing that the internet companies should not be held liable for using computer programs that direct users to content they might find interesting.

"Recommendation algorithms are what make it possible to find the needles in humanity’s largest haystack," said Washington attorney Lisa S. Blatt, representing Google and YouTube. She warned that opening the door to lawsuits over algorithms "risks upending the modern internet."

A federal judge had dismissed the family's suit based on Section 230, and a divided 9th Circuit Court of Appeals affirmed that decision in 2021.

Until this term, the Supreme Court had refused to hear appeals involving the law. On several occasions, however, Justice Clarence Thomas called for "paring back the sweeping immunity courts have read into Section 230," particularly in cases where websites knew they were posting dangerous lies or criminal schemes.

Some prominent liberals, including Judges Marsha Berzon and Ronald Gould on the 9th Circuit Court, have also called for paring back the scope of Section 230.

They have been joined by advocates — both liberal and conservative — who portray the internet as a cesspool of disinformation and hate speech, a home for stalkers and fraudsters and a contributor to teen suicides and mass shootings. Critics also say social media companies get rich and keep viewers online by amplifying the most extreme claims and the angriest voices.

Google and other tech firms were surprised in October when the high court voted for the first time to hear a direct challenge to Section 230 and decide whether websites such as YouTube can be sued for their use of algorithms and targeted recommendations.

Their alarm grew in December when the Biden administration took the side of the plaintiffs in Gonzalez vs. Google and said YouTube could be sued for algorithms that "recommend" more videos to viewers.

Justice Department attorneys said the 9th Circuit Court made a mistake by throwing out the claim, and they argued for a new understanding of Section 230. They agreed websites are shielded from liability for displaying content provided by others, including ISIS videos, but said they were not shielded for "their own conduct" in recommending further videos for viewing.

"When YouTube presents a user with a video she did not ask to see, it implicitly tells the user that she will be interested in that content based on the video and account information and characteristics," they wrote in their filing.

Many experts in internet law said they were puzzled by the Supreme Court's decision to take up the case and troubled by what it might mean.

"The internet needs curation. We need to be able to find what we're looking for," said Eric Goldman, a law professor at Santa Clara University. If websites cannot sort content based on algorithms, he said, "it would not be a functional internet."

Blatt, Google’s attorney, said, "YouTube does not 'recommend' videos in the sense of endorsing them, any more than Google Search endorses search results. YouTube displays videos that may be most relevant to users."

On Wednesday, the court will hear a related case but one focused only on whether Facebook, Google and Twitter may be sued for allegedly aiding international terrorists.

Congress in 2016 expanded the Antiterrorism Act to authorize lawsuits by victims or their survivors against anyone who "knowingly provided substantial assistance" to a person who committed an act of international terrorism.

The U.S. family of a Jordanian citizen who was killed in an ISIS attack on the Reina nightclub in Istanbul in 2017 sued Facebook, Twitter and YouTube, accusing them of aiding and abetting the murders. They said ISIS openly maintained accounts on all three social media platforms and used them to recruit members.

The 9th Circuit cleared this claim to proceed, but the Justice Department and the social media firms said that was a mistake. They said the suit should be tossed out because the plaintiffs could not show that the internet platforms provided "substantial assistance" to the terrorist who carried out the mass shooting.

It's not entirely clear why the court agreed to hear the second case, Twitter vs. Taamneh, but the justices may have decided they faced two questions: Can a social media site be sued for aiding terrorists? And if so, can it be held liable for directing viewers to ISIS videos?

It's unclear whether the justices will split along the usual ideological lines when it comes to the Section 230 debate, which has liberals and conservatives on both sides.

Still pending before the court may be an even larger question: Can the states regulate the internet and penalize social media companies for what they post or remove from their sites?

That clash began on a sharply partisan note. Republican leaders in Texas and Florida adopted laws two years ago that authorized fines and damage claims against Facebook, Twitter and other large social media sites if they "censor" or discriminate against conservatives. Upon signing the measure, Florida Gov. Ron DeSantis said the law was intended as "protection against the Silicon Valley elites."

Before the laws could take effect, they were challenged on free speech grounds and put on hold based on the 1st Amendment, not Section 230.

The justices are almost certain to grant review of one or both laws because appellate court judges, both appointed by President Trump, were divided on a major constitutional question.

Judge Kevin Newsom of the 11th Circuit Court in Atlanta blocked most of the Florida law from taking effect. The 1st Amendment "constrains government actors and protects private actors," he said. Social media sites are private companies, and "put simply, with minor exceptions, the government can't tell a private person or entity what to say or how to say it."

Shortly afterward, Judge Andrew Oldham of the 5th Circuit Court in New Orleans upheld the Texas law because the state sought to protect the free speech rights of Texans. A former counsel to Texas Gov. Greg Abbott and law clerk to Justice Samuel A. Alito Jr., Oldham said it is a "rather odd inversion of the 1st Amendment" to say the social media platforms have a "right to muzzle speech. ... We reject the idea that corporations have a freewheeling 1st Amendment right to censor what people say."

Last month, the Supreme Court asked the Justice Department to weigh in on the issue, and that will put off the cases until the fall.

If, as expected, the U.S. solicitor general's office submits its view on the issue by June, the justices are likely to schedule one or both cases for a hearing in the fall.

This story originally appeared in Los Angeles Times.
Nike, Adidas shoe supplier Pou Chen to slash 6,000 jobs in Vietnam -sources

Mon, February 20, 2023 

HANOI (Reuters) -Taiwan's Pou Chen Corp, the world's largest maker of branded sports footwear, plans to cut around 6,000 jobs at its Ho Chi Minh City plant in Vietnam due to weak demand, two local officials familiar with the company's plans said on Tuesday.

The firm's Pouyuen Vietnam factory will cut 3,000 jobs this month and not extend labour contracts for another 3,000 workers later this year, the officials said, declining to be identified because they were not authorised to speak to media.

The Pouyen Vietnam factory supplies global companies such as Nike Inc. and Adidas AG and is one the biggest employers in Ho Chi Minh City, with 50,500 workers.

Pou Chen said the Vietnam factory planned to cut no more than 3,000 staff in the latest round of layoffs amid uncertainty over the macroeconomic outlook, and the impact on operations would be limited.

"The company will prudently respond to the dynamic changes in the business environment," Pou Chen said in a filing to the Taiwan bourse.

Pou Chen shares fell 1.2% in early afternoon trade in Taiwan in a broader market that was down just 0.1%.

Telephone calls to a factory labour union official were not answered.

The plan to cut jobs marks a reversal for the company that in 2021 faced a labour shortage and manufacturing disruption in Vietnam due to the coronavirus pandemic.

The Southeast Asian country is a global hub for manufacturing, and its economy in 2022 grew at the fastest pace in decades, but economists have warned of headwinds, with weakening global demand starting to impact trade shipments.

Vietnam's exports in January fell 26% from a year earlier, while imports were down 24%. A decline in imports may indicate a future contraction in industrial production as firms cut purchases of materials and equipment for production.

(Reporting by Khanh Vu and Donny Kwok in Hong Kong Editing by Ed Davies and Sonali Paul)
Gas stoves are a health hazard — and induction stoves just work better



Brady Seals
Mon, February 20, 2023 

The debate over gas stoves is raging these days, and there’s a lot of conflicting information and polarized opinions. It can be hard to sort through.

Yet in matters of public health and climate science alike, long-term, evidence-based scientific research is the gold standard to help sort fact from fiction. In the case of gas stoves, the risks to both health and the climate are increasingly clear. New peer-reviewed research from RMI, the University of Sydney and the Albert Einstein College of Medicine, which I co-authored with two epidemiologists and a colleague, estimated that nearly 13 percent of childhood asthma cases in the United States can be linked to having a gas stove in the home. This finding is an important addition to the growing body of scientific evidence and medical studies showing that children living in a house with a gas stove are at increased risk of having asthma. (Canary Media is an independent affiliate of RMI.)

For policymakers and consumers alike, understanding both the health and climate effects associated with gas stoves is an essential step to guide everything from public policy about building codes to decisions about what stove to buy in the next kitchen renovation.

Here we will share six simple truths to clarify the conversation about gas stoves, your health and our planet’s climate.

Gas stoves pose risks to human health

Scientific studies documenting the health risks associated with gas stove use date back decades. Gas stoves emit numerous pollutants, several of which (such as nitrogen dioxide and carbon monoxide) are known to damage our lungs and exacerbate respiratory issues.

It is also well established that the health effects of pollution disproportionately hit vulnerable populations, including children and the elderly, as well as low-income households and communities of color. Affirming a 1992 summary study on childhood respiratory illnesses, a 2013 peer-reviewed summary report in the International Journal of Epidemiology found that children living in a home with a gas stove have a 42 percent increased risk of experiencing asthma symptoms.

Emerging research also shows that the gas delivered to stoves contains air toxins and chemicals such as benzene, a known carcinogen with no safe exposure level.
Venting is not an adequate solution

While increased airflow is preferable to cooking without ventilation, it’s only a partial solution to the adverse health effects of gas stove pollution. This is due to several factors, starting with the reality that many kitchens simply lack ventilation. And for those that do have it:

Many exhaust hoods are recirculating, meaning they shift pollutants around the home, rather than moving them outdoors.

Ventilation hoods on the market today aren’t always strong enough to reduce pollution to healthy levels.

Surveys show most people don’t use ventilation even if they have it.

Gas stoves contribute to climate change


Burning fossil fuels (mainly gas) in U.S. homes and businesses accounts for roughly one-tenth of the country’s carbon emissions. Cutting this climate pollution is essential for the United States to meet its climate targets and to prevent the worst consequences of climate change. Gas cooking produces over 25 million tons of carbon pollution each year in the United States, according to RMI analysis of Energy Information Administration data. Furthermore, recent research from Stanford University found that gas stoves leak methane, a super-potent greenhouse gas, and other pollutants, even when the stoves are off.

There are no health-based safety standards for gas stoves

Due to the known pollution risks, building codes dictate that many common household gas appliances — such as furnaces and water heaters — must be vented outdoors. Yet there is no similar universal requirement for gas stoves — they are not currently required to meet any voluntary or mandatory safety or performance standards. And while gas stoves routinely produce levels of nitrogen dioxide that would be deemed illegal outdoors, the United States currently does not have any indoor air-pollution standards or guidelines.

Gas stoves also pose the risk of carbon monoxide poisoning, especially if they are installed incorrectly and are not properly vented or maintained. In January 2023, nearly 30,000 gas stoves were recalled because they could emit dangerous levels of carbon monoxide while in use. Other products that could pose a similar risk to consumers, like generators, come with warning labels and increasingly have mandatory safety shut-offs.

Electric induction stoves are more efficient

Where a gas stove uses three units of energy to boil a quart of water, an induction stove needs just one. That energy savings translates into cost savings for American families. The Environmental Protection Agency estimated that if every stove sold in 2021 had been induction, the energy savings alone would have exceeded $125 million. The potential for households to save money on their energy bills is essential now that the cheap natural gas prices of the 2010s have given way to sharp increases in customer bills.
Electric induction cooktops compete with gas-range performance

In addition to being cleaner, healthier and highly energy-efficient, today’s induction cooktops perform leaps and bounds better than old-fashioned electric coil stoves. Induction stoves can boil water in seconds and cook food precisely, and their surfaces remain cool to the touch — a bonus for anyone with children. Many renowned chefs have switched from gas to induction because of the latter's speed, control and precision, as well as the ability to avoid cooking with gas, which can create hot and uncomfortable conditions in the kitchen.

Climate solutions are health solutions

Climate solutions are health solutions — a key link between the two is air quality. Focusing on the air we breathe in our homes is critical because that is where we spend most of our time. By addressing gas stove pollution, we can improve indoor air quality and benefit health, while helping the climate.
Bernie Sanders jabs Joe Biden for not replying when asked to fulfill his promise to halt federal contracts for anti-union employers

Nicole Gaudiano
Tue, February 21, 2023

Bernie Sanders and Joe BidenShannon Stapleton/Reuters

Sanders liked Biden's campaign promise to halt federal contracts for anti-union employers.


Sanders criticizes Biden for not responding to his request that he follow through on the promise.


"As I write these words some months later, he has not replied," Sanders writes in his new book.


Sen. Bernie Sanders liked President Joe Biden's campaign promise to halt federal contracts for anti-union employers. Now he wants Biden to follow through.

In his new book, the Vermont independent criticizes Biden for not responding to his April 2022 letter urging him to sign an executive order to ban companies like Amazon from receiving taxpayer-funded contracts after he says they "violated labor laws."

"As I write these words some months later, he has not replied," Sanders writes in "It's OK To Be Angry About Capitalism."

A White House spokesperson did not immediately respond to a request for comment.

Biden has pledged to be "the most pro-union president you've ever seen" and says his infrastructure and manufacturing policies are designed to create union jobs. He tweeted a video message supporting Amazon workers hoping to unionize in Alabama.

Sanders, in his April 26, 2020, letter to Biden, wrote that he was "delighted" to hear Biden's pro-union intentions. He reminded Biden of his campaign promise to "institute a multi-year federal debarment" for employers illegally opposing unions and ensuring federal contracts only go to employers who agree to not run anti-union campaigns.

"That campaign promise was exactly right. Today, I am asking you to fulfill that promise," wrote Sanders, who also held a hearing on the subject when serving as Budget Committee chairman last year. He called Amazon the "poster child as to why this anti-union busting Executive Order is needed now more than ever."

In his book, Sanders doubles down against Amazon and its executive chairman Jeff Bezos, calling him "the embodiment of the extreme corporate greed that shapes our times. While he becomes richer, his employees struggle to get by."
Bernie Sanders says he agrees with Bill Gates that the government should 'tax the robots' replacing workers

Nicole Gaudiano
Tue, February 21, 2023 

Sen. Bernie Sanders, left, and Microsoft's Bill Gates
.Anna Moneymaker/Getty Images, left, and Getty Images

Bernie Sanders says government should "tax the robots" that replace workers.


In his new book, Sanders references Microsoft's Bill Gates' ideas on this issue.


"We're going to need to adapt tax and regulatory policies" to address robots, Sanders write.


You've heard Sen. Bernie Sanders say — and probably shout — that he wants to tax billionaires. He also wants to tax robots.

In his new book, the Vermont independent writes that he supports establishing a robot tax to account for the impact of automation on workers.

"If workers are going to be replaced by robots, as will be the case in many industries, we're going to need to adapt tax and regulatory policies to assure that the change does not simply become an excuse for race-to-the-bottom profiteering by multinational corporations," he wrote in "It's OK To Be Angry About Capitalism," to be released on February 21.

The general idea behind a robot tax, levied on firms that replace humans with robots, is to disincentivize the practice and to cover the loss of revenue from payroll taxes when robots are used, according to a report by Robert Seamans for Brookings.

Seamans argues that these taxes "may be well-intentioned" but are "a misguided idea that would have negative consequences for firms, their workers and ultimately the economy." That's because the idea that robots are taking jobs is "not well founded" and it would lead to less economic growth, he wrote.

But Sanders isn't alone in this thinking that robots should be taxed. His book references policy ideas from other proponents, including Microsoft's Bill Gates, a billionaire who Sanders notes is "not someone I regularly agree with."

Gates has said that the tax could help finance jobs requiring "human empathy and understanding," such as elder care, having smaller class sizes or helping children with special needs.

Sanders also points to other ideas from other sources, as well, that would require companies to pay a portion of payroll taxes into a retraining fund for displaced workers or that would prevent automation from reducing tax revenue.



Sen. Bernie Sanders is embracing his anger. A new book details what he's angry about

Updated February 21, 2023
Heard on Morning Edition
STEVE INSKEEP
JOJO MACALUSO
Download

Transcript




Sen. Bernie Sanders walks into NPR Headquarters in Washington D.C.Elizabeth Gillis/NPR

Senator Bernie Sanders is embracing his anger.

He's shown a lot of it during three decades in Congress. In 1992, he attacked both parties for defense spending, claiming they were "hoping and praying that maybe we'll have another war."

During his first presidential run, he spoke sarcastically of people who fear his identification as a socialist. "I don't want to get people nervous falling off their chairs, but Social Security is a socialist program," Sanders told NPR in 2015.

POLITICS
Bernie Sanders On Being Jewish And A Democratic Socialist

It's no surprise that the Vermont senator spoke harshly of President Donald Trump, vowing: "You're damn right we're going to hold him accountable" at the time.

But he also bristled when social justice activists insisted that Democrats use the phrase "Black Lives Matter."

"It's too easy for 'liberals,' to be saying, well, let's use this phrase. What are we going to do about 51 percent of young African Americans unemployed?" Sanders said.


Enlarge this image


Sen. Sanders' latest book, 'It's Ok to Be Angry About Capitalism.'Elizabeth Gillis/NPR

The Senator is preoccupied with America's economic divides; and his new book about his recent campaigns and legislation is titled It's Okay to be Angry About Capitalism.

"They say the older you get, the more conservative you become," he writes. "That's not me. The older I get, the angrier I become about the uber-capitalist system."
Sponsor Message




IT'S ALL POLITICS
Sanders: 'My Goal Right Now Is To Win This Election'

He says his anger grows in part out of his youth in a struggling family in Brooklyn in the 1940s and 1950s. He dedicates the book, in part, to his older brother Larry, who introduced him to authors ranging from psychoanalysis founder Sigmund Freud to political theorist Karl Marx, who, along with Friedrich Engels, established the far-left ideology known as Marxism.

"We didn't have a lot of books in the house, and my brother brought books into the house and talked with me about politics, talked to me about history, talked to me about psychology," Sanders told NPR.

"And kind of intellectually opened up my eyes to the world that we're living in."

Today Larry Sanders is a Green Party politician in the United Kingdom.

And Bernie Sanders, after two presidential campaigns, now chairs the Senate Health, Education, Labor, and Pensions Committee. For all his anger and demands for systemic change, the senator told NPR he is working within a divided Congress to make more modest changes that he thinks are possible.

This interview has been edited for length and clarity.



Interview highlights

On his anger at some Democrats in Congress


I was bitterly disappointed [at the failure of giant social legislation known as] Build Back Better... What many of us said is... Let's deal with the structural crises facing America. Our child care system is a disaster. Our healthcare system is dysfunctional. Kids can't afford to go to college. Let's deal with the existential threat of climate change. Let's deal with income and wealth inequality. We came within two votes of bringing forth legislation which would have been transformative for the working families.
Sponsor Message

SI: Senators Joe Manchin and Kyrsten Sinema, who would be described as more moderate or more conservative, and represent more conservative states–

Corporate Democrats would be the term.

SI: Corporate Democrats?

These are folks who've got a whole lot of money from wealthy people and large corporations and they do their bidding.

SI: I was going to ask if you're still angry at someone like Joe Manchin. It sounds like you are. From his perspective, he's representing a very conservative state that votes for Republicans for president hugely and needs to bring them something that they can believe in. Do you sympathize with his political situation?

In 2016 when I was running for president, I won a landslide victory in West Virginia.

SI: In the Democratic primary.

In the Democratic primary.

SI: But there's a general election.

I understand... In my view, politicians do well when they stand up and fight for working people.



On the power of the working-class vote


SI: You write about the working class: "You can't win elections without the overwhelming support of the working class." It seems that many Republicans now agree with you and openly court the working class and get a lot of working class votes. Why do you think that is?

Well, that is an enormously important political issue. That is the most important political question of our time. [It's] not that working class people agree with Republican views... But what I think has happened over the years, and this is no great secret as a result of a lot of corporate contributions, the Democratic Party has kind of turned its back on the needs of working class people. And then you have a gap there where you have people like Trump coming along and say, "You know what the problem is? It's immigrants, it's gays, it's transgender people." And you get people angry around those issues rather than Democrats saying, I'll tell you what the problem is. The problem is the wealthy are getting richer. Corporations have enormous power. We're going to take them on to create a nation that works for you.
Sponsor Message

On what Sanders thinks he can accomplish in a divided Congress


What I want to see, a Medicare-for-all system, ain't going to happen. No Republicans support it. Half the Democrats won't support it. But this is what we can do: We can expand primary health care and community health centers to every region of the country...We now have 30 million people accessing community health centers [and can do more]... You walk into a community health center, you get affordable health care, dental care... mental health counseling and low cost prescription drugs. Republicans understand that in red states it is very hard often for people to access a doctor.

On his pragmatism

SI: Even though you say it's okay to be angry about capitalism, there's a place for capitalism in the world as you envision it.

Yes, there is. Yes, there is.

SI: If you made all the rules, there would still be large corporations.

Well, I don't know about that. But look, there's nothing in that book to suggest that it is bad for people to go out and start a business, to come up with innovation. That's great. That's good. What is bad is when a handful of corporations control sector after sector.

The audio version of this interview was produced by Milton Guevara and Nina Kravinsky, and edited by Olivia Hampton.







Senators Sanders and Warren Introduce Social Security Expansion Act


The bill, proposed this week, aims to make Social Security solvent for 75 years and to increase benefits, especially for lower-income workers and retirees.

Reported by PAUL MULHOLLAND



The Social Security Expansion Act, introduced earlier this week by Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, aims to make Social Security solvent through the end of the 21st century, while also enhancing benefits.

The bill would create a tax of 12.4% on investment income for individuals making $200,000 or more and married couples making $250,000 or more, matching the combined employee and employer payroll rates.

The bill would also make all income greater than $250,000 subject to the full Social Security payroll tax rate; currently, income greater than $160,200 is not subject to the full payroll tax rate. Under the bill, income between $160,200 and $250,000 would not be taxed differently at first, but the $160,200 threshold would be allowed to rise normally until it reaches $250,000, projected to happen in 2035. At that point, all income would be subject to the full payroll rate. Additionally, any income greater than $250,000 would not be counted for benefit calculation purposes.

Since the bill would raise taxes, it must be formally introduced first in the House of Representatives. Sponsored in the House by Representatives Jan Schakowsky, D-Illinois, the bill was referred to the House Committee on Ways and Means on Tuesday. The bill has 26 co-sponsors in the House, as of today, all of whom are Democrats. Republicans control the House, and the Committee on Ways and Means is chaired by Representative Jason Smith, R-Missouri.

A statement from Sanders’ office said the bill would make Social Security solvent for at least the next 75 years, based on a study conducted by Stephen Goss, the chief actuary at the Social Security Administration.

Goss’ report explained that the bill would change the cost-of-living index used to calculate Social Security benefit increases from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for the Elderly (CPI-E). The report estimated that the cost-of-living adjustment would increase by “0.2 percentage points per year on average” as a result.

According to the Bureau of Labor Statistics, the CPI-E is a statistic which weighs inflation to account for the spending patterns of those aged 62 and older, such as their higher proportional spending on health care. The Bureau warned that this statistic has certain limitations, such as a smaller sample population, and currently has no official usage.

According to a factsheet for the bill, it would also increase the Special Minimum Benefit to 125% of the poverty line, “or over $18,000 for a single worker who had worked their full career.”

The bill would also increase the first income-percentage “bend point” from 90% to 95%. This means that, going forward, 95% of the first $1,115 in monthly wages (for 2023, indexed to inflation) would count toward Social Security benefits, up from 90%. This has the effect of frontloading benefit increases such that low-income workers benefit proportionally more from them.

Sanders’ office estimates that the annual Social Security benefit would increase on average by $2,400 a year.

The Senators propose the bill shortly after President Joe Biden was called a “liar” by Republicans during this State of the Union address for saying they were threatening to cut Social Security and Medicare to reduce the national debt. The risk of future retirees seeing reduced Social Security payments due to lack of funding has been a policy topic for years, with the Congressional Budget Office warning last December that the trust fund payments may be depleted by 2033, resulting in a 23% cut in planned benefit payments in 2034.


Biden declines to veto Apple Watch ban, company says



Karl Evers-Hillstrom
Tue, February 21, 2023 at 9:31 AM MST·2 min read


President Biden has upheld an International Trade Commission (ITC) ruling that could result in an import ban on the Apple Watch, according to AliveCor, a medical device company that has accused Apple of patent infringement.

The California startup said it was informed of Biden’s decision by the Office of the U.S. Trade Representative on Tuesday. It’s the first ITC ruling against Apple to clear presidential review.

The Hill has reached out to the White House and Apple for comment.

Biden’s decision to uphold a potential ban on imports of the tech product sets the stage for a high-stakes legal battle.

The ITC ruled in December that Apple infringed on AliveCor’s wearable electrocardiogram patents. While the commission called for a ban on Apple Watch imports, the order is on hold amid a dispute before the Patent Trial and Appeal Board, which recently ruled that AliveCor’s patents were invalid.

“This decision goes beyond AliveCor and sends a clear message to innovators that the U.S. will protect patents to build and scale new technologies that benefit consumers,” AliveCor CEO Priya Abani said in a statement.

AliveCor hopes to bring all of the legal issues before an appeals court.

Presidents don’t typically veto ITC decisions. But in 2013, then-President Obama vetoed a potential ban on iPhone and iPad imports after the ITC ruled that Apple infringed on Samsung’s patents.

Following the most recent ITC ruling, Apple hired the former chairwoman of the ITC to lobby on its behalf, in an apparent effort to secure a presidential veto. The tech giant, along with its allies in Congress, warned that a ban would undermine public health.

“The patents on which AliveCor’s case rest have been found invalid, and for that reason, we should ultimately prevail in this matter,” Apple said in a December statement.

The dispute dates back to 2018, when Apple launched Apple Watch models with built-in electrocardiogram sensors, forcing AliveCor to cancel sales of its heart monitoring accessory. AliveCor said that it first shared its technology with Apple in 2015 in an effort to secure a partnership.

The Hill.
Qualcomm announces software business around its supply chain chips



Tue, February 21, 2023 
By Stephen Nellis

(Reuters) - Qualcomm Inc on Tuesday said it is launching a paid cloud software service to help companies that use its chips keep tabs on goods as they move through the supply chain.

The San Diego, California company is the world's biggest provider of chips that help smartphones connect to mobile data networks. But Qualcomm has used its wireless communication specialty to enter other markets where devices need to talk to the internet, such as automobiles and factories.

Qualcomm Aware, as the new service is called, works with Qualcomm chips that go into tracking devices for shipping containers, pallets, packages and other parts of supply chains to help companies track where their goods and materials are.

Most of those trackers are made by third parties, but Qualcomm makes a few devices of its own, such as a tilt sensor that can be attached to utility poles to report whether they have toppled over during storms.

Qualcomm has already shipped hundreds of millions of the chips involved, which typically cost less than $10 each, Jeff Torrance, senior vice president and general manager of Qualcomm's smart connected systems business, told Reuters in an interview.

The software service announced Tuesday aims to let Qualcomm customers program their chips from one central spot, with updates sent to the chips over the air.

The service also aims to make better use of the data from the chips.

Torrance said Qualcomm's software will connect to other cloud-based such as Microsoft Corp's Dynamics 365 service, which corporations use to keep tabs on their inventory and supplies.

Companies could use the two systems to build things like virtual dashboards that show where all of a firm's inventory is at a given moment.

Qualcomm did not publicly announce pricing for the new service, but it represents a push to make more money off its chips by charging when the chip is sold then for cloud-based services using the chip afterward.

"We believe there's value in the chip and in the cloud service," Torrance told Reuters.

(Reporting by Stephen Nellis in San Francisco; Editing by Marguerita Choy)
Tech companies spoiled workers for decades. Now layoffs are bringing them down to Earth.

Asia Martin
Mon, February 20, 2023

Tech companies spoiled workers with perks for decades, adding to a feeling of tech exceptionalism. Now that tech companies are laying off workers, that shine is fading.
iStock; Robyn Phelps/Insider

The tech sector has already cut nearly 100,000 jobs this year.

(POSITIONS OR FULL TIME EQUIVALENCY(FTE) NOT REAL JOBS OR EVEN WORKERS NECESSARILY)

Those who have identified with their big-name companies and high salaries are taking it hard.

Industry insiders have said workers are being brought down to Earth.

Layoffs at Big Tech companies have caused an identity crisis for many affected workers.


"If you've identified yourself with your salary, which a lot of people do, and if you identify yourself with working for a glamorous company like a Microsoft or Google or Meta, then your identity is taking a hit," Laurie Swanson, a career coach and a recruiter at InspiHER Tech, said.

The root of it all lies in the notion of tech exceptionalism: As companies like Google, Facebook, and Salesforce grew into the giants they are today, they seemed to defy gravity — making money hand-over-fist, even as they pampered their employees with perks that seemed too good to be true, such as massages, Ping-Pong tables, and free food.

Now, things are changing, and the world of posh perks and eye-popping salaries that zealous investors supported is reining itself in. Companies have let go of around 100,000 employees already this year, more than half of what they shed in 2022, according to Layoffs.fyi, a website that tracks layoffs in the technology sector. Companies like Google, Meta, Microsoft, and Amazon shed over 50,000 jobs in total, with all companies claiming that they over-hired during the height of the pandemic.

From a business-and-investors standpoint, this market correction is likely long overdue. But for tech workers who were sold on the glamorous lifestyle these companies have provided over the last few decades, this is a blow to their self-image. Tech looked like the solution to so many things that it produced a mindset among some employees that it was the exception to capitalism's rules.

"The feeling was that it is so exceptionally, incredibly, out-of-this-world good," Reyhan Ayas, a senior economist at the workforce-intelligence company Revelio Labs, said. "I feel like that's been brought down to earth."

The arms race to give the best perks


Understanding how Silicon Valley culture gave birth to a certain kind of overindulged tech worker starts with a history lesson.


Vijay Govindarajan, a professor at the Tuck School of Business at Dartmouth College, told Insider that as long ago as the 1980s, tech companies aimed for an open, more-informal office culture, the better to spark innovation. Part of that approach involved creating strong social bonds among employees. Open-office floor plans, communal kitchens, and freebies like food and coffee encouraged employees to gather up and share ideas. It effectively turned lunchtime and coffee breaks into working hours.

It became a recruiting tool, too. When companies wanted to lure and keep parents, they began offering maternity perks, on-site childcare, and lactation rooms. To recruit young professionals who were fresh out of college, companies tried to mirror college dormitories, Michael Malone, a tech historian and author who recalled seeing Pilates balls and video games at the former search-engine giant Yahoo, said.

"Your private life and your work life began to slide into each other. That was kind of cynical by these companies in the sense that 'We expect you to kind of live here,'" Malone said.

Office designs and perks eventually turned into an arms race as companies competed for not only the most talented people, but also for those who wouldn't mind logging a lot of hours. If one company is providing free food, then the other must up the ante, Govindarajan said.

Google became famous for its commuter buses, rock-climbing wall, on-site gym, and in-house massage therapists or massage chairs, depending on the campus. Microsoft paid for its employees' healthcare. Apple started holding Beer Bashes where the company treated employees to free beer, food, and concerts by popular artists such as Maroon 5. Meta installed on-site dental and healthcare, along with dry-cleaning services, and a bike-repair shop. And both Apple and Meta pay a portion of their employees' egg-freezing costs to win over prospective mothers.

Those perks came with a bump in salary expectations, too.

Young people were graduating with desires of becoming the next Mark Zuckerberg as they watched "The Social Network" in 2010, watched his company pull in $1.5 billion in venture capital in 2011, and then watched it achieve IPO in 2012.

Google raised the salary of entry-level positions by as much as $20,000, The New York Times reported, to keep its college-to-company pipeline going. Across the industry, companies went from offering restricted-stock units in less than half of all compensation packages to the units being a top employee perk.

Pandemic fueled the frenzy before the crash to Earth

Recent tech layoffs came after a robust hiring period that occurred during the pandemic-induced shift to digital working in 2020 and 2021. The industry and its eager investors were convinced that the stay-at-home orders had accelerated the country and the world into its digital future.

Tech professionals benefited because it boosted demand for their skills and boosted their compensation. The Great Resignation, where people quit in droves in favor of better-paying opportunities elsewhere, also bolstered the thought that there was job security in the sector.

Young tech workers took to TikTok to show off their offices, perks, and the lifestyles they afforded on high entry-level or junior salaries. The videos attracted hundreds of thousands, if not millions, of views and further pushed the narrative that tech was the "it" industry.

Reality sets in for the tech industry
















Then, reality set in as the economy started to sour.

"It went from negotiating salary like crazy and complaining that they had to work past 4 p.m. or whatever, to realizing that working in tech doesn't make them that exceptional and they're also at the mercy of potential layoffs," Ayas said of the rupture point.

Spending so many years in the comforting embrace of tech, and then the harsh wake-up call of reality, disoriented and upset many regardless of whether it affected them.

An ex-Googler who was handed a virtual pink slip told Insider she "mourned" the loss of her job and that the layoff felt "un-Googley." A laid-off recruiter from Meta said she felt "hurt." Those who are still on payroll have been left with feelings of survivor's guilt and anxiety around whether they are next.

It's unfortunate, Govindarajan said, but he added that these tech companies have disrupted other industries like photography, automobiles, and department stores.

"There are many industries the tech sector disrupted where people got laid off. But now it's the turn of the tech sector itself," he told Insider.

Amazon staff might get paid 50% less than what they were expecting because shares in the online giant have fallen so much



Eleanor Pringle
Tue, February 21, 2023 

When the going’s good at Amazon, employees certainly get their cut. But when shares slump—and Amazon’s have fallen by around 35% in the past year—staff incomes can take a hit.

According to a report from the Wall Street Journal, corporate staff at Amazon get a chunk of their wages from restricted stock units. Yet because Amazon’s share price was so underwhelming in 2022—down almost 50%—pay packets may sink anywhere between 15% and 50% below compensation targets, according to sources familiar with the matter.

This drop comes after CEO Andy Jassy issued a rallying cry to his remaining workforce following the January announcement of 18,000 layoffs. According to leaked audio heard by Insider, Jassy said turning the company around will take “many months” and moves will likely be “misunderstood” by the market.

In his speech Jassy also encouraged staff to think like “owners” of the business, a sentiment echoed by a spokesperson who responded to Fortune’s request for comment.

“Our compensation model is intended to encourage employees to think like owners, which is why it connects total compensation to the company’s long-term performance,” the Amazon spokesperson said in a statement to Fortune. “That model comes with some year-to-year upside and risk because the stock price can fluctuate, but historically at Amazon, it’s had a history of working out very well for people who’ve taken a long-term view.”

report published last week also dubbed Jassy as one of the most “overpaid” CEOs in the U.S. after it was revealed he took home a total of $212.7 million, while the median Amazon worker receives $32,855. His “excess pay” component accounted for $197.3 million of the total, according to the report from shareholder advocacy organization As You Sow published Thursday.

Unlike its Big Tech peers Google and AppleAmazon reportedly offers lower salaries but makes up a competitive offer through stock options. It also seems as if relative veterans at the organization could be hit worse by the share depreciation, with employees saying that the longer they stay at the company the more their compensation is dependent on stock awards. For those who have been with the online behemoth the longest, up to 50% of their total income is balanced on market outcomes.

Materials viewed by the Wall Street Journal also reveal Amazon’s HR team has been getting in touch with managers and issuing documentation on how to handle conversations around the effective pay cut.

People added that the compensation scheme is based on the assumption that share value will appreciate 15% every year. In the past that has rung true. In 2015 shares rose 117%, 11% in 2016, 56% in 2017, 28% in 2018, 23% in 2019 and 76% in 2020, according to research platform Macrotrends.


The past two years have not been as rosy for Amazon’s stock price. It fell 2.3% in 2021 and a whopping 49.5% last year.

Not all bad news


The good news for employees is that Amazon has rallied in 2023—up just over 13% at the time of writing. Experts are convinced it’s a trend set to continue: “I struggle to see a company like Amazon not bouncing back from a decline of this magnitude,” Craig Erlam, a senior market analyst for Oanda, told Fox Business.

He added: “Sentiment towards tech stocks takes a little longer to settle, but things should become much clearer over the next few months in respect to the economy and interest rates, at which point attitude towards tech could be very different.”

The so-called war for talent pushed Amazon to reexamine its cash offering in 2022, seeing it raise the component cap within salaries from $160,000 to $350,000. Some of those interviewed by the Wall Street Journal added that this year the company is considering further raises of between 1% and 4% as inflation pressures continue to mount.

However, they added, the shortcoming in share income won’t be offset in further restricted stocks being given to staff.

This story was originally featured on Fortune.com