Depardieu, in tax fight, gets Russian citizenship

MOSCOW (AP) — The Kremlin has cast Gerard Depardieu in one of the most surprising roles of his life — as a new Russian citizen.

The announcement Thursday that President Vladimir Putin has approved Depardieu‘s application for citizenship is almost a real-life analogue to the French actor’s 1990 comedy “Green Card,” in which his character enters into a sham marriage in order to work in the United States.

But in this version, taxes appear to be at the heart of the matter. Depardieu has waged a battle against a proposed super tax on millionaires in his native country.

French President Francois Hollande plans to raise the tax on earned income above €1 million ($ 1.3 million) to 75 percent from the current 41 percent, while Russia has a flat 13-percent tax rate.

A representative for the former Oscar nominee declined to say whether he had accepted the Russian offer.

Thursday was a holiday in Russia and officials from the Federal Tax Service and Federal Migration Service could not be reached for comment on whether the decision would require Depardieu to have a residence in Russia.

But it’s clearly an image buffer for Russia, calling attention to the country’s attractive tax regime and boosting Putin’s efforts to show that the economic chaos of the early post-Soviet period has passed.

“The distinctiveness of our tax system is poorly known about in the West. When they know about it, we can expect a massive migration of rich Europeans to Russia,” Deputy Prime Minister Dmitry Rogozin bragged on Twitter.

Others aren’t so sure.

Political analyst Pavel Svyatenkov told the state news agency RIA Novosti that the move was “very good, very high-quality PR for Russia” but he was didn’t think it would ignite a flood of new residents.

“I don’t expect a massive movement of rich people to here, for the reason that Russia remains a pretty poor country by Western measurements and here there are bigger problems with crime and corruption,” he said.

As Depardieu’s criticism of the proposed tax roiled his country, French Prime Minister Jean-Marc Ayrault called him “pathetic.”

Depardieu responded angrily in an open letter.

“I have never killed anyone, I don’t think I’ve been unworthy, I’ve paid €145 million ($ 190 million) in taxes over 45 years,” the 64-year-old actor wrote. “I will neither complain nor brag, but I refuse to be called ‘pathetic’.”

Depardieu said in the letter that he would surrender his passport and French social security card. In October, the mayor of a small Belgian border town announced that Depardieu had bought a house and set up legal residence there, a move that was slammed by Hollande’s newly-elected Socialist government.

Najat Vallaud-Belkacem, the French government spokeswoman, didn’t comment directly on Depardieu’s tax fight. But she drew a clear distinction between people who have personal or professional reasons to live abroad and “French citizens who proclaim loudly and clearly that they they’re exiling themselves for fiscal reasons.”

She said Putin’s offer “is an exclusive prerogative of the Russian chief of state.”

Depardieu has had increasingly high-profile ties with Russia.

Last October he visited Grozny, the capital of the Russian province of Chechnya, to celebrate the birthday of Chechen President Ramzan Kadyrov. And in 2011, he was in Russia’s Arkhangelsk region to play the lead role in the film “Rasputin.”

He is well known in the country, where he appears in an ad for Sovietsky Bank’s credit card and is prominently featured on the bank’s home page.

“You have to understand that Depardieu is a star in Russia,” Vladimir Fedorovski, a Russian writer living in France, told the Europe 1 network on Thursday. “There are crowds around Depardieu. He’s a symbol of France. He’s a huge ambassador of French culture.”

Depardieu has made more than 150 films and was nominated for an Academy Award for his role as Cyrano de Bergerac in the 1990 film of the same name.

The Kremlin statement gave no information on why Putin made the citizenship grant, but the Russian president had expressed sympathy with the actor in December, days after Depardieu reportedly said he was considering Russian citizenship.

“As we say, artists are easily offended and therefore I understand the feelings of Mr. Depardieu,” Putin said.

Although France’s highest court struck down the new tax on Dec. 29, the government has promised to resubmit the law in a slightly different form. On Wednesday, the French government estimated the court decision to overturn the tax would cost the country €210 million ($ 275 million) in 2013.

In an interview, Depardieu told the Sunday Parisien the court decision made no difference.

France’s debt burden is around 90 percent of national income — not far off levels that have caused problems elsewhere in the 17-country eurozone.

Depardieu is not the only high-profile Frenchman to object to the super tax. Bernard Arnault — chief of the luxury goods and fashion giant LVMH and worth an estimated $ 41 billion — has said he would leave for Belgium.

____

Hinnant contributed from Paris. Silvie Corbet also contributed from Paris.

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Skin Deep: Questions Surround Iris Implant Procedure – Skin Deep

ANITA ADAMS was born with one green eye and one brown eye. While differently colored irises, a condition otherwise known as heterochromia, may look exotic on David Bowie and Kate Bosworth, Ms. Adams did not like them on herself.

“I wanted my irises to match,” said Ms. Adams, 41, who works as a caretaker for at-risk adolescents in Grand Junction, Colo.

In mid-2008, she began looking online to see if there was any solution other than colored contact lenses (which comprised about 20 percent of the $7.8 billion global contact lens market in 2011, according to a January 2012 report published by BCC Market Research). She found a company, New Color Iris, marketing a device invented by a Panamanian ophthalmologist, Dr. Alberto Delray Kahn, that could apparently implant an artificial or prosthetic iris over her natural one.

The device was not approved by the Food and Drug Administration, nor were there any clinical studies or peer-reviewed publications about it. But Ms. Adams found Facebook posts and YouTube testimonials from patients whose eyes had gone from drab brown to an icy blue and were thrilled with the results. On his Web site, Kahnmedical.com, Dr. Kahn wrote that he supported “programs for the prevention of blindness in the Kuma and Embera Indians of Panama,” who have high rates of ocular albinism, which makes them sensitive to light. 

Ms. Adams was impressed. At the company’s request, she went for routine tests to her ophthalmologist, who told her he had never heard of the procedure and advised against it. She didn’t listen. “I went, ‘Oh, whatever,’ ” she said. “I don’t think anything was going to convince me not to do it. At that point my mind was made up.”

Ms. Adams is not alone in her quest for symmetry, whatever the risk.

Dr. Gregory J. Pamel, a corneal and refractive surgeon in Manhattan and a clinical assistant professor of ophthalmology at New York University, said that for the last two years he has received about three inquiries a month from patients who have learned from his Web site that he implants artificial irises for medical reasons. “They’d want to enroll in the clinical trial, and I would say, ‘There’s nothing available in the U.S.,’ ” he said. “There are no approved devices in the U.S. to change the eye color cosmetically. There are no clinical trials to date that are looking into this. There’s nothing on the horizon.”

There are, however, iris implants for patients with serious conditions like aniridia, a rare hereditary absence or partial absence of the iris, that are available under a special “compassionate use” F.D.A. provision. The provision allows patients with serious or life-threatening medical conditions to be treated with devices that have not been approved by the F.D.A., but “we can only use it for people with trauma,” Dr. Pamel said. “I would be very hesitant and skeptical about any technology that purports to change the iris color for cosmetic reasons.” 

Dr. Kenneth Steinsapir, an oculofacial surgeon and ophthalmologist in Los Angeles, also received calls from patients wanting their eye color changed, so he began investigating New Color Iris. He found no positive reports, but he did find a number of studies reporting serious complications. In July 2010, he blogged about it on his Web site, lidlift.com. “The colored disk that is put in the eye has been shown to cause harm,” he wrote.  “If you are not albino and missing iris pigment or have part of the iris missing either from a birth defect or from trauma, then there is no compelling medical reason for this surgery.” 

But Ms. Adams was determined to fix her perceived imperfection. In September 2008, she wired nearly $2,000 to New Color Iris, and a month later flew with her mother (paying their airfare) to Panama. She was told the surgery would present no complications other than a slight risk of glaucoma. She signed a consent form, paid an additional $5,000 and underwent the 15-minute procedure.

For two days, Ms. Adams’s vision was blurry, which she was told was normal. By the third day, she could see well enough to tour around the city. “I was happy with the experience at the time,” she said.

She appeared on “Inside Edition” to talk about how delighted she was, for which she said New Color Iris paid her $500, promising an additional $500 for every future media appearance she did. She also allowed the company to use her likeness on its Web site and on YouTube.

Ms. Adams was pleased with her matching irises for about two years. But in fall 2010, she said, her vision grew “spotty,” and she was “scared to death I was going blind.” She repeatedly tried to contact Dr. Kahn as well as the company in New York, but said she received no response. She started a Facebook page (now dismantled) highlighting her negative experience, noticing that other people had shared similar stories.

And when she returned to the New Color Iris Web site, she was redirected to another site, Brightocular.com, which was marketing another implant to cosmetically change eye color and offering more glowing testimonials.

Ms. Adams said she contacted it using a fake name and was told that the procedure was being offered in Istanbul and soon “in all of Europe” and that the company was not affiliated with New Color Iris. Convinced this was untrue, she contacted Dr. Steinsapir in February 2011, and he began blogging about a possible relationship between the two companies. On Aug. 16, 2011, Dr. Steinsapir received a certified letter from Kevin J. Abruzzese, a lawyer in Mineola, N.Y., representing Stellar Devices, which owns the trademark for Brightocular, that denied that any association existed between the two companies. The letter also asserted that Stellar Devices was working with Minnesota Eye Consultants, in Minneapolis, to obtain “F.D.A. compassionate approval for a patient with aniridia,” and ordered  the doctor to remove “any and all defamatory content” about Brightocular.

Still skeptical, Dr. Steinsapir found a registered trademark for Brightocular, originally filed March 18, 2010 and granted registration on April 19, 2011.

But the company to which the trademark was registered was not Stellar Devices, but New Color Iris. What’s more, New Color Iris and Stellar Devices shared the same Midtown Manhattan address. Dr. Steinsapir later published his findings. He said he also arranged surgery for people who had iris color surgery and needed urgent help.

Alain Delaquérière contributed research.

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Bank Lending in Euro Zone Slumped in November, Data Show

FRANKFURT — Bank lending to companies in the euro zone continued to slump in November, according to official data published Thursday that could encourage expectations of an interest rate cut as early as next week by the European Central Bank.

In its monthly report on lending, the E.C.B. said Thursday that loans to companies, not including banks, in the 17-nation currency zone fell at an annual rate of 1.8 percent in November, the same rate of decline as in October.

That is a sign that E.C.B. measures have not yet succeeded in restoring the flow of credit to troubled countries like Spain. Credit is a prerequisite for economic growth, and the E.C.B. closely watches data on lending in deciding the level of the official interest rate.

During the last year the E.C.B. has gone to ever greater lengths to encourage lending. It has cut the benchmark interest rate to a record low of 0.75 percent and allowed banks to effectively borrow as much money as they want at that rate.

The E.C.B. has also promised to buy the bonds of countries like Spain to hold down their borrowing costs, a policy designed to help businesses and consumers in the countries hardest hit by recession.

The interest rate that a government pays often acts as a floor on the market rates paid by the country’s companies and consumers.

But the E.C.B.’s efforts have been thwarted by continued reluctance by banks, many of which are already burdened by bad loans and are trying to reduce risk. In some countries there may also be a lack of demand for loans, because corporate managers are not confident enough to resume investing in their businesses.

“Today’s euro zone bank lending figures are a timely reminder that the economic situation in the 17-country region remains very fragile,” Martin van Vliet, an analyst at ING Bank, wrote in a note to clients Thursday.

Meanwhile, lending to euro zone households continued to register only weak growth, rising at an annual rate of 0.4 percent in November, the same rate as in October, the E.C.B. said.

The latest data could reinforce expectations that the E.C.B. will cut the benchmark rate early this year, perhaps as soon as the monthly monetary policy meeting next Thursday.

But a rate cut would very likely face opposition from some members of the E.C.B. governing council, including Jens Weidmann, president of the Bundesbank, the German central bank. Mr. Weidmann and others might argue that lower rates would increase the risk of inflation, without doing much to encourage lending in the countries that need it most.

In interviews and other public statements, Mr. Weidmann has continued to warn about inflation even though most economists see little risk.

Inflation in the euro area fell to an annual rate of 2.2 percent in November from 2.5 percent in October, according to the most recent official figures. The E.C.B. aims to keep inflation at about 2 percent.

The E.C.B. report on monetary conditions did contain some good news. Mr. van Vliet pointed out that bank deposits in Spain and Greece rose in November, a sign that people are no longer pulling money out of those two countries.

“This confirms that fears of a (partial) euro zone breakup are gradually receding,” Mr. van Vliet wrote.

And while the German economy has slowed in recent months, unemployment numbers released Thursday suggested that it remained resilient. The unemployment rate rose to 6.7 percent from 6.5 percent, the German Federal Employment Agency said. Adjusting for seasonal fluctuations, however, the unemployment rate was unchanged at 6.9 percent. About 2.9 million people in Germany are jobless.

The stable German labor market, despite poor weather that would normally suppress hiring, is a sign that “most firms do not expect the currently weak economic environment to persist for much longer,” Thomas Harjes, an analyst at Barclays, wrote in a note.

According to the methodology used by the International Labor Organization, which uses a narrower definition of joblessness, Germany’s unemployment rate was only 5.3 percent.

A report by the Bank of England Thursday indicated that the British central bank is having better luck restoring credit to the economy than the E.C.B. Lending to both businesses and consumers rose significantly, the Bank of England said in its quarterly credit conditions survey.

Britain is not a member of the euro zone, and the Bank of England undoubtedly faces a less complex task than the E.C.B., which must try to craft a monetary policy for 17 countries.

The Bank of England attributed the improvement to its Funding for Lending Scheme, which rewards banks that increase the amount of credit they provide. Banks that lend more can borrow more from the central bank at lower rates than banks that decrease lending.

“The Funding for Lending Scheme was widely cited as contributing towards the increase in secured and corporate credit availability,” the Bank of England said in a statement.

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White House eases path to residency for some illegal immigrants

WASHINGTON — The Obama administration eased the way Wednesday for illegal immigrants who are immediate relatives of American citizens to apply for permanent residency, a change that could affect as many as 1 million of the estimated 11 million immigrants unlawfully in the U.S.

A new rule issued by the Department of Homeland Security aims to reduce the time illegal immigrants are separated from their American families while seeking legal status, immigration officials said.

Beginning March 4, when the changes go into effect, illegal immigrants who can demonstrate that time apart from an American spouse, child or parent would create “extreme hardship,” can start the application process for a legal visa without leaving the U.S. 

Once approved, applicants would be required to leave the U.S. briefly in order to return to their native country and pick up their visa.

PHOTOS: Notable moments of the 2012 presidential election

The change is the latest move by the administration to use its executive powers to revise immigration procedures without Congress passing a law. In August, the Obama administration launched a program to halt the deportation of young people brought to the U.S. unlawfully as children.

The new procedures could reduce a family's time apart to one week in some cases, officials said. In recent years a few relatives of U.S. citizens have been killed in foreign countries while waiting for their applications to be resolved.

“The law is designed to avoid extreme hardship to U.S. citizens, which is precisely what this rule achieves,” said Alejandro Mayorkas, director of U.S. Citizenship and Immigration Services, in a statement. “The change will have a significant impact on American families by greatly reducing the time family members are separated from those they rely upon,” he said.

Until now, many immigrants who might seek legal status do not pursue it out of fear they will not receive a "hardship waiver" of strict U.S. immigration laws: An illegal immigrant who has overstayed a visa for more than six months is barred from reentering the U.S. for three years; those who overstay more than a year are barred for 10 years.

The new rule allows those relatives to apply for the waiver without first leaving the U.S.

PHOTOS: Scenes from the 'fiscal cliff'

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brian.bennett@latimes.com

Twitter: @ByBrianBennett

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6 States Bar Employers From Demanding Facebook Passwords

California and Illinois on Tuesday joined four others in becoming the union’s only states barring employers from demanding that employees fork over their social-media passwords.

Congress unsurprisingly couldn’t muster the wherewithal to approve the Password Protection Act of 2012, so a handful of states have taken it upon themselves.

The new laws come amid reports nationwide that employers were demanding access to their employees’ or potential employees’ personal, non-public data on Facebook, Twitter and other social-media accounts.

Facebook, too, said in March that it noticed an increase in complaints about employers demanding “inappropriate access” to Facebook accounts.

California’s and Illinois’ laws took force Tuesday, the first day of the year. Michigan’s and New Jersey’s became active last month and Maryland’s, in October. Delaware’s measure became law in July.

California Assemblywoman Nora Campos, a Democrat from San Jose, said when the Golden State’s measure unanimously passed the California Assembly in May, that AB 1844 would protect Californians from snooping employers.

“Our social-media accounts offer views into our personal lives and expose information that would be inappropriate to discuss during a job interview due to the inherent risk of creating biases in the minds of employers,” Campos said. “In order to continue to minimize the threat of bias and discrimination in the workplace and the hiring process, California must continue to evolve its privacy protections to keep pace with advancing technology.”

None of the measures prohibit employers from reviewing what their employees or potential hires publicly post to social-media accounts.

Homepage Photo: SimonQ / Flickr

David Kravets is a senior staff writer for Wired.com and founder of the fake news site TheYellowDailyNews.com. He's a dad of two boys and has been a reporter since the manual typewriter days.

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A Minute With: Singer Trey Songz on new movie “Texas Chainsaw 3D”

LOS ANGELES, January2 (Reuters) – R&B and hip-hop artists have appeared in horror films before, but 28-year old singer Trey Songz tackles a brand new incarnation of the “Texas Chainsaw Massacre” franchise with “Texas Chainsaw 3D.”

The film, which opens in U.S. theaters on Friday, follows a young woman who inherits a lavish, isolated mansion. When she visits it for the first time with her three friends, one of whom is played by Songz, they realize there is horror awaiting them in the basement.

Songz, a Grammy-nominated artist with hits like “Say Aah,” “Can’t Be Friends” and “Bottoms Up,” took a break from his world tour to talk to Reuters about his first movie role as a lead actor.

Q: Is acting something you’ve had your eye on?

A: “It’s something I’ve always wanted to do, but music comes first. I wanted to make sure when I did choose a role, I had time to really get in to it. (Director) John (Luessenhop) came to the studio to meet me for the first time and I told him to give me 24 hours to figure it out. I had just come off tour, I was recording an album and the four weeks I was set to have for vacation would be the four weeks I’d be shooting the film.”

Q: What did you think about during that 24-hour period?

A: “Making sure I wouldn’t be carrying the weight of the film. My name means so much in the music world that I was worried I’d have to carry the film, but I think the franchise carries the weight of the film. Luckily, (my character) Ryan is a likeable guy. There wasn’t too much stress on me mentally and it didn’t take too much away from me as a person in order to be him … I couldn’t ask for a better stepping-stone as a first-time actor.”

Q: You’ve stated that you are the first black actor in the “Texas Chainsaw” franchise. What does that mean to you?

A: “I think it means something not only to me, but to the franchise. Ryan was originally envisioned as a white male. The fact that the studio, the producers and the director went out on a limb and put a black man in such a strong part in a classic movie first made in the 70s, when things were so different, speaks volumes too.”

Q: Your single “Heart Attack,” off your fifth and current album “Chapter V,” was nominated for a best R&B song Grammy, making it your third nomination. What would a win mean?

A: “Right now I feel like I’m in the Grammy club, but not in the V.I.P. I’m just looking at the V.I.P. going, ‘I got to drink. I want a bottle, just let me in the V.I.P. please!’ But all jokes aside, the Grammy is the most elite award you can win as a musician so it would mean so much.”

Q: You moved around a lot as child, partly because you had a stepfather who worked in the military and partly because of your mother’s work opportunities. What was that like?

A: “When you’re a young, single mother, you’re dependent on welfare. Your mother is struggling and we would move around a lot – Virginia, Florida, Kansas, New Jersey, Baltimore … I went to eight different schools before ninth grade.”

Q: How does that impact you today?

A: “I’ve never really been settled. I don’t think I’ve ever known what it was like to be a person that was used to sitting still. I think it’s given me the ability to detach from any situation. It’s so easy to remove myself from the closest of situations just because I’ve had to do it my whole life.”

Q: Do you ever want to know what it feels like to be settled?

A: “I do. I don’t know when it will happen. I don’t even know how to. When I sit still for a couple of days, I get fidgety. I don’t know what I’m supposed to do.”

Q: I suppose acting is another way to keep yourself from sitting still. Will there be more acting in store for you?

A: “I’ve set a goal for myself to land a couple of films a year. Recently, I shot a movie starring Paula Patton entitled ‘Baggage Claim.” It’s an urban film where I get to be comedic as well as sexy.”

Q: Comedic and sexy – it’s great that you see yourself that way. What confidence!

A: Some things just are what they are!

(Reporting by Zorianna Kit; Editing by Patricia Reaney and Jackie Frank)

Music News Headlines – Yahoo! News

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Safed Journal: New Insights on Marijuana in Israel, Where It’s Illegal

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Tikkun Olam, a medical marijuana farm in Israel, blends the high-tech and the spiritual.

SAFED, Israel — Among the rows of plants growing at a government-approved medical marijuana farm in the Galilee hills in northern Israel, one strain is said to have the strongest psychoactive effect of any cannabis in the world. Another, rich in anti-inflammatory properties, will not get you high at all.

Marijuana is illegal in Israel, but farms like this one, at a secret location near the city of Safed, are at the cutting edge of the debate on the legality, benefits and risks of medicinal cannabis. Its staff members wear white lab coats, its growing facilities are fitted with state-of-the-art equipment for controlling light and humidity, and its grounds are protected by security cameras and guards.

But in addition to the high-tech atmosphere, there is a spiritual one. The plantation, Israel’s largest and most established medical marijuana farm — and now a thriving commercial enterprise — is imbued with a higher sense of purpose, reflected by the aura of Safed, an age-old center of Jewish mysticism, as well as by its name, Tikkun Olam, a reference to the Jewish concept of repairing or healing the world.

There is an on-site synagogue in a trailer, a sweet aroma of freshly harvested cannabis that infuses the atmosphere and, halfway up a wooded hillside overlooking the farm, a blue-domed tomb of a rabbinic sage and his wife.

In the United States, medical marijuana programs exist in 18 states but remain illegal under federal law. In Israel, the law defines marijuana as an illegal and dangerous drug, and there is still no legislation regulating its use for medicinal purposes.

Yet Israel’s Ministry of Health issues special licenses that allow thousands of patients to receive medical marijuana, and some government officials are now promoting the country’s advances in the field as an example of its pioneering and innovation.

“I hope we will overcome the legal obstacles for Tikkun Olam and other companies,” Yuli Edelstein, the minister of public diplomacy and diaspora affairs, told journalists during a recent government-sponsored tour of the farm, part of Israel’s effort to brand itself as something beyond a conflict zone. In addition to helping the sick, he said, the effort “could be helpful for explaining what we are about in this country.”

Israelis have been at the vanguard of research into the medicinal properties of cannabis for decades.

In the 1960s, Prof. Raphael Mechoulam and his colleague Yechiel Gaoni at the Weizmann Institute of Science isolated, analyzed and synthesized the main psychoactive ingredient in the cannabis plant, tetrahydrocannabinol, or THC. Later, Professor Mechoulam deciphered the cannabinoids native to the brain. Ruth Gallily, a professor emerita of immunology at the Hebrew University of Jerusalem, has studied another main constituent of cannabis — cannabidiol, or CBD — considered a powerful anti-inflammatory and anti-anxiety agent.

When Zach Klein, a former filmmaker, made a documentary on medical marijuana that was broadcast on Israeli television in 2009, about 400 Israelis were licensed to receive the substance. Today, the number has risen to about 11,000.

Mr. Klein became devoted to the subject and went to work for Tikkun Olam in research and development. “Cannabis was used as medicine for centuries,” he said. “Now science is telling us how it works.”

Israeli researchers say cannabis can be beneficial for a variety of illnesses and conditions, from helping cancer patients relieve pain and ease loss of appetite to improving the quality of life for people with post-traumatic stress disorder and neuropsychological conditions. The natural ingredients in the plant, they say, can help with digestive function, infections and recovery after a heart attack.

The marijuana harvest, from plants that can grow over six feet tall, is processed into bags of flowers and ready-rolled cigarettes. There are also cannabis-laced cakes, cookies, candy, gum, honey, ointments and oil drops. The strain known as Eran Almog, which has the highest concentration of THC, is recommended for severe pain. Avidekel, a strain rich in CBD and with hardly any psychoactive ingredient, allows patients to benefit from the drug while being able to drive and to function at work.

Working with Hebrew University researchers, the farm has also developed a version in capsule form, which would make exporting the drug more practical, should the law allow it.

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It's the Economy: What Will the Economy’s New ‘Normal’ Look Like in 2013?

Illustration by Jasper Rietman

Back in the mid-2000s, the U.S. consumer economy was undergoing a serious change. After decades of favoring low prices (even when they promised low quality), consumers began paying more for all sorts of premium features like single-serve packaging and pretty much anything “green” or “organic.” Then came the financial crisis and the drop in consumer demand.

Deep thoughts this week:

1. Consumption is back.

2. But many buying habits are changing.

3. Regardless, the habits of the U.S. middle class are becoming less important.

It’s the Economy

Adam Davidson translates often confusing and sometimes terrifying economic and financial news.

Despite a worse-than-expected holiday season, the Federal Reserve forecast that G.D.P. growth would approach the historic average of about 3 percent in 2013. The economy may be coming back, but the question for many businesses is what the new “normal” looks like. Will shoppers spend as they did in the credit-bubble years? Or has the Great Recession scared them into prolonged stinginess? Early evidence suggests a mix. What is clear is that the big changes are just beginning.

Waste More, Want More

From the 1970s through the 1990s, the dominant retail trend was toward cheap and big: shoppers drove long distances to buy large boxes of everything they needed in bulk. Starting in the last decade, though, this began to change. And the success of products like Tide Pods (premeasured balls of detergent that made Procter & Gamble an estimated $500 million last year) suggest that the era of premium conveniences isn’t going anywhere.

Somewhat counterintuitively, this trend is directly related to the downturn, says John N. Frank, an analyst at Mintel, a market-research firm. Fearful of losing their jobs, millions of workers coped with the crisis by putting in more time at the office — “doing at least two people’s jobs,” Frank says — even if it meant less time to shop for deals. Dollar General saw tremendous growth as a more convenient alternative to Sam’s Club. Duane Reade, now owned by Walgreen, is proving that no block in Manhattan should be without a drugstore that also carries basic grocery items at an upcharge. Frank says he expects that anxious, overtired workers will drive this trend well into this decade, too.

Housing Is Back

Now that at least one million households are looking to move somewhere better, investors are looking to buy houses on the cheap — not to flip, but to rent. (The Blackstone Group, the private-equity colossus, has spent more than $1 billion this year buying up thousands of single-family homes around the country.) New residential construction starts also came back strong last year, and much of the growth was from multiunit apartment buildings designed, yes, for renting.

Despite the fact that homeownership has been promoted as a universal economic good since the Depression, the trend toward rentals might be a good one. Renters are more able to follow the job market. Renting, as the housing bubble revealed, benefits the overall recovery, because fewer people have their money tied up in one asset.

Not Your Father’s Oldsmobile

In 2012, the average life of a car in the United States reached a historic high of 11.2 years. This was tied to the collapse of new-car sales during the recession, but it was also driven by several long-term shifts. After steady increases for decades, Americans are driving less. Total miles driven in the United States hit 3 trillion for the first time in 2006. It went up even further in 2007 but has generally fallen since.

For the first time in nine decades, according to census data, walkable cities are growing faster than suburbs. And wherever people happen to move, they are buying smaller, more fuel-efficient cars. Large- and some luxury-car segments are falling, says Tom Libby, an automotive research analyst at Polk, and the cheaper subcompact and emerging sub-subcompact classes are growing. All this means that autos — one of the biggest industries in the United States — will not soon regain the explosive growth of the early 2000s.

Debt and Taxes

In 2008, Americans owed a collective $12.7 trillion. Today, thanks in part to mortgage defaults, we are down to $11.3 trillion, which is about 95 percent of our disposable income. That’s progress, but it’s still higher than the 88 percent we owed 10 years ago.

Additional reporting by Jacob Goldstein

Adam Davidson is co-founder of NPR’s “Planet Money,” a podcast and blog.

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Ruling over bumper-car injury supports amusement park

SAN FRANCISCO — The California Supreme Court, protecting providers of risky recreational activities from lawsuits, decided Monday that bumper car riders may not sue amusement parks over injuries stemming from the inherent nature of the attraction.

The 6-1 decision may be cited to curb liability for a wide variety of activities — such as jet skiing, ice skating and even participating in a fitness class, lawyers in the case said.

"This is a victory for anyone who likes fun and risk activities," said Jeffrey M. Lenkov, an attorney for Great America, which won the case.

But Mark D. Rosenberg, who represented a woman injured in a bumper car at the Bay Area amusement park, said the decision was bad for consumers.

"Patrons are less safe today than they were yesterday," Rosenberg said.

The ruling came in a lawsuit by Smriti Nalwa, who fractured her wrist in 2005 while riding in a bumper car with her 9-year-old son and being involved in a head-on collision. Rosenberg said Great America had told ride operators not to allow head-on collisions, but failed to ask patrons to avoid them.

The court said Nalwa's injury was caused by a collision with another bumper car, a normal part of the ride. To reduce all risk of injury, the ride would have to be scrapped or completely reconfigured, the court said.

"A small degree of risk inevitably accompanies the thrill of speeding through curves and loops, defying gravity or, in bumper cars, engaging in the mock violence of low-speed collisions," Justice Kathryn Mickle Werdegar wrote for the majority. "Those who voluntarily join in these activities also voluntarily take on their minor inherent risks."

Monday's decision extended a legal doctrine that has limited liability for risky sports, such as football, to now include recreational activities.

"Where the doctrine applies to a recreational activity," Werdegar wrote, "operators, instructors and participants …owe other participants only the duty not to act so as to increase the risk of injury over that inherent in the activity."

Amusement parks will continue to be required to use the utmost care on thrill rides such as roller coasters, where riders surrender control to the operator. But on attractions where riders have some control, the parks can be held liable only if their conduct unreasonably raised the dangers.

"Low-speed collisions between the padded, independently operated cars are inherent in — are the whole point of — a bumper car ride," Werdegar wrote.

Parks that fail to provide routine safety measures such as seat belts, adequate bumpers and speed controls might be held liable for an injury, but operators should not be expected to restrict where a bumper car is bumped, the court said.

The justices noted that the state inspected the Great America rides annually, and the maintenance and safety staff checked on the bumper cars the day Nalwa broke her wrist. The ride was functioning normally.

Reports showed that bumper car riders at the park suffered 55 injuries — including bruises, cuts, scrapes and strains — in 2004 and 2005, but Nalwa's injury was the only fracture. Nalwa said her wrist snapped when she tried to brace herself by putting her hand on the dashboard.

Rosenberg said the injury stemmed from the head-on collision. He said the company had configured bumper rides in other parks to avoid such collisions and made the Santa Clara ride uni-directional after the lawsuit was filed.

Justice Joyce L. Kennard dissented, complaining that the decision would saddle trial judges "with the unenviable task of determining the risks of harm that are inherent in a particular recreational activity."

"Whether the plaintiff knowingly assumed the risk of injury no longer matters," Kennard said.

maura.dolan@latimes.com

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The Future Is Now: What We Imagined for 2013 — 10 Years Ago

Predicting the future is hard, but that doesn’t stop us from trying. We’re Wired, after all.

Ten years ago, we boldly declared that we’d be living with phones on our wrists, data-driven goggles on our eyes and gadgets that would safety-test our food for us. Turns out, a lot of the things Sonia Zjawinski conceptualized in our “Living in 2013” feature way back in 2003 were remarkably close to what we’ve seen. We even got the iPhone right (sort of).

And so, as we look back on life in 2013 circa 2003, we’re going to spin it forward once again to tell you what life will be like in 2023.

Predicted for 2003 (above):

Apple redefined the desktop, laptop, and MP3 player. The next insanely great thing: an LCD arm cuff that includes a PDA, wireless Internet, a mini iPod, and, of course, a phone. The iPhone bracelet's motion sensor allows you to scroll through apps and files with the flick of a wrist, its clasp holds a digicam for use during video calls, and its wireless ear clip lets you listen and speak to callers. And everything can be done via voice recognition or touchscreen. Talk about the right call. Illustration: Kenn Brown.

Delivered in 2013:

Hey, it turns out, Apple gave us an iPhone after all! We got the name right, and even seemed to know about FaceTime. But the form factor details? Not so much. While you can wear an iPod nano as a watch, or make a call with your iPhone, if you want the watch-plus-phone combination that we teased you with 10 years ago, for now you'll need to pick up a secondary gadget that can transmit to your phone, like this Pebble. Photo: Ariel Zambelich/Wired.

Looking ahead to 2023:

Here's the thing, the screen on a watch is simply too small to display lots of data. And as an input device? Forget it. Yet keeping your phone out of sight means you often can't interact with your data on the go. The obvious answer is a variable size display. Samsung has already demonstrated a pretty convincing foldable OLED display prototype. Given 10 more years, we can easily see one screen serving multiple purposes by taking on multiple form factors, depending on whether you wanted to simply glance at it to read a message, or unfold it to write your reply. Illustration: Simon Lutrin/Wired

Mat Honan is a senior writer for Wired's Gadget Lab and the co-founder of the Knight-Batten award-winning Longshot magazine.

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