Business
Column: Voters are finally noticing that Bidenomics is working
The turning point in Americans’ perception of the economy — that despite months of doom-colored predictions of a looming recession — may have occurred on Jan. 25.
That was the day that Fox Business economic commentator Larry Kudlow, a former official in the Trump White House and consistent dispenser of grim economic predictions during President Biden’s term, went on Fox’s “America Reports” telecast and acknowledged that the Biden economy was, you know, good.
That day, government figures had been released showing a 3.3% annual increase in the gross domestic product for the fourth quarter of 2023, on top of a 4.9% growth rate for the third quarter.
Instead of contracting, the economy has continued to grow….Inflation has come down significantly. …The labor market is healthy.
— Treasury Secretary Janet Yellen
Candidly, if a bit glumly, Kudlow stated, “It was a good quarter, don’t get me wrong, and the last quarter was a good quarter, 4.9.” Biden, he said, “gets his due. If I were he, I’d be out slinging that hash too, no problem.” Asked by the host if this meant that the economy was not as bad as he had been saying, he answered, “I would say, probably, I would agree.”
Fox being Fox, Kudlow couldn’t resist sticking the shiv in: “Wages are rising more slowly than prices,” he said, which doesn’t happen to be true: Wages and benefits for rank-and-file workers have grown faster than prices throughout the post-pandemic period.
The bottom line, however, is that if the bad-economy camp has lost even Larry Kudlow, they’re on the wrong side of the argument.
The truth is that the Biden economy (“Bidenomics,” if you prefer) has been chugging along for some time. The fundamental question that has circulated about his record is not about the economy’s strength, but about why he hasn’t gotten credit for it.
Sentiment may now finally be shifting. In January, the University of Michigan saw the largest two-month jump in its consumer sentiment index since the end of the Gulf War in 1991. News coverage, which throughout 2023 relentlessly forecast a recession, now touts the prospect of a “soft landing” — that is, a successful battle against inflation without an increase in the unemployment rate or a general economic slowdown.
As it happens, some news outlets seem reluctant to give up on the old theme. “A soft landing, for now,” was Politico’s headline on a mid-December roundup of economic statistics including unemployment below 4% and inflation having been brought down to 3%.
But even White House aides, who last year were reported to be uneasy at trumpeting the term “Bidenomics” in the president’s reelection campaign, are now reported to be hoping that “a strong economy will sell itself to Americans,” according to NBC News.
Administration officials have been trying to spread the word. “Instead of contracting, the economy has continued to grow,” Treasury Secretary Janet Yellen told the Economic Club of Chicago on Jan. 25. “It now produces far more goods and services than it did before the pandemic. … Inflation has come down significantly. … The labor market is healthy.” The unemployment rate, she noted, “has been below 4% for 23 months now, a stretch that has not been seen during the last 50 years.”
Moreover, Yellen said, the current recovery has been “the fairest recovery on record,” with wage and employment gains for the middle class and demographic groups such as Black and Hispanic workers. And the U.S. recovery from the pandemic has outstripped those of other developed countries: “The increase in real wages is unique to our country’s recovery: in other economies, real wages have declined since 2019.”
Hourly earnings growth for rank-and-file workers (blue line) has exceeded inflation (red line) since the onset of the pandemic in March 2020. Gray stripe signifies a recession.
(Bureau of Labor Statistics)
Unionized workers have been among the leading beneficiaries of economic growth, achieving strong improvements in wages and working conditions at unionized auto plants and United Parcel Service.
Some economic commentators have been perplexed at Americans’ failure to recognize the good news about the Biden economy. “Something weird is happening in America,” John Burn-Murdoch of the Financial Times observed on Dec. 1.
Even though GDP growth for the third quarter had just been pegged at higher than 4.9% and job growth remained strong, Burn-Murdoch wrote, “the public is up in arms about economic conditions, with consumer confidence dropping to a six-month low. There really is no pleasing some people.”
The disconnect should not have been so mysterious, however. As I’ve noted in the past, changes in economic conditions, especially improvements, often take time — even many months — to filter into public awareness. People will typically think that a recession is still in full cry long after a recovery is underway.
This happens partly because the news media keep projecting gloom, because bad news always sells better than good news and no reporters want to get caught out as Pollyannas if conditions worsen again.
Marketers of economic nostrums such as cryptocurrency and gold investments flood the airwaves with come-ons, and they don’t win customers by proclaiming that sunny days lie ahead. Opposition politicians don’t win votes by praising incumbents for implementing effective economic policies.
Nor are opinion polls the best way to gauge people’s feelings about the economy; polls consistently show Americans to be discontented with economic policies, but their spending shows them to be profoundly optimistic. That said, the public’s feelings about the economy are often tempered by the fear that things could turn down again in the blink of an eye.
One source of confusion about economic affairs is that public perceptions of the economy are generally snapshots of longer-term trends, and are therefore inevitably distorting. Professionals aren’t immune from the same error.
Federal Reserve and Treasury officials have been consistently pilloried for wrongly predicting that the inflation that emerged in late 2020 would be “transitory.” Indeed, the Fed, smarting from this criticism, arguably has kept interest rates high for longer than has been warranted.
Yet, viewing things in a rearview mirror, team transitory was right. As Kevin Drum has observed, the painful inflationary era of the 1970s and 1980s — which peaked at an annualized 12% in 1974 — actually began in the late 1960s, when the annual rate first exceeded 5%, and persisted into the 1990s, when the rate fell below 3%. That’s more than two decades. (The measure at issue is personal consumption expenditures excluding food and energy, the Fed’s preferred metric of overall inflation.)
By contrast, the recent bout of inflation that supposedly is a black mark against the Biden administration began in mid-2020 (under Trump), peaked at an annualized 6% at the beginning of 2022, and has now fallen to 2%. The period of high inflation lasted less than three years, and never came close to the 1970s peak. In other words, it was the definition of “transitory.” Yet people remember it as a long stretch of relentless price increases.
People also imagine inflation today to be as high as it was in 2022, yielding persistently high prices. But they may not yet have fully recognized the extent to which overall inflation has moderated or that some prices are coming down.
The average gasoline price nationwide is $3.15 per gallon of regular, down from the peak of $4.54 reached in mid-June 2022, according to the AAA; across the Midwest, average prices have fallen below $3 per gallon. Prices of staple foods, many proteins and vegetables are falling.
In political terms, the economy is a moving target. There is always something for naysayers and pessimists to point at to make the case that all is not well. The generally good news in job growth, with the blowout report of 353,000 new jobs in January and months of gains in manufacturing, is confounded by employment bloodbaths among tech and media firms.
But there’s certainly a case to be made that Biden has been an effective steward of the U.S. economy — and one who has succeeded in pushing to favor ordinary Americans through initiatives such as infrastructure spending. That’s a big change from Trump, whose most significant economic achievement was an enormous tax cut for corporations and the wealthy.
Despite all that, opinion polls show that Biden still gets low marks for his management of the economy. But recognition of the truth may soon come his way.
Business
Labubu maker Pop Mart is opening U.S. headquarters in Culver City
Pop Mart, the Chinese toymaker known for its collectible Labubu dolls, reportedly plans to open a new office building in Culver City as it seeks to expand its North American presence.
The 22,000-square-foot office will serve as Pop Mart’s new U.S. headquarters, according to real estate data provider CoStar, which earlier reported the deal.
Pop Mart, founded in 2010 in Beijing, is credited with fueling the frenzy over “blind boxes” — small, collectible toys sold in packaging that keeps the exact figure inside a surprise until it is unsealed.
The toymaker, which is publicly traded on the Hong Kong Stock Exchange, has nearly 600 physical stores across 18 countries, according to its September 2025 half-year financial report.
Much of its recent growth has concentrated in the U.S. In the first half of last year, the company opened 40 new stores, including 19 in the Americas. In Southern California, it now has stores in Westfield Century City, Glendale Galleria, and Westfield UTC Mall in La Jolla.
The office building Pop Mart is moving into, named “Slash,” features leaning glass windows and a distinguishable jagged design. The 1999 building was designed by the Los Angeles architect Eric Owen Moss.
Pop Mart’s decision to root itself in L.A.’s Westside comes amid Culver City’s transformation from a sleepy suburb known for being the home to Sony Pictures Studios — to an urban hub, driven, in part, by the Expo Line station that opened in 2012.
Ikea recently announced plans to open a 40,000-square-foot store in Culver City’s historic Helms Bakery complex — its first in L.A.’s Westside — later this spring.
Big tech has played an important role in Culver City’s recent evolution. Recent additions include Apple, which has opened a studio and has been building a larger office campus; Amazon, which in 2022 unveiled a massive virtual production stage, and Tiktok, which in 2020 opened a five-floor office featuring a content creation studio. Pinterest has a new office in Culver City as of last month, according to the company’s LinkedIn account.
Business
After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect
With Paramount Skydance’s acquisition of Warner Bros. expected to saddle the combined company with $79 billion in debt, Paramount executives are looking to do away with redundant assets including real estate — and there is a lot of that.
Chief in the public’s imagination are their historic studios in Burbank and Hollywood, where legendary films and television show have been made for generations and continue to operate year-round.
“Both of these studios are in the core [30-mile zone,] the inner circle of where Hollywood talent wants to be,” entertainment property broker Nicole Mihalka of CBRE said. “It’s very prime real estate.”
When Sony and Apollo were bidding for Paramount in early 2024, their plan was to sell the Paramount property, but there is no indication that Paramount would part with its namesake lot.
For now, Paramount’s plan is to keep both studios operating with each studio releasing about 15 films a year, but the goal is to eventually consolidate most of the studio operations around the Warner Bros. lot in Burbank in order to to eliminate redundancies with the Paramount lot on Melrose Avenue, people close to Chief Executive David Ellison said.
A view of the Warner Bros. Studios water tower Feb. 23, 2026, in Burbank.
(Eric Thayer / Los Angeles Times)
Paramount would not look to raze its celebrated studio lot — the oldest operating film studio in Los Angeles — because of various restrictions on historic buildings there. Paramount also has a relatively new post-production facility on site and will likely need to the studio space.
Instead, the plan would be to lease out space for film productions, including those from combined Paramount-HBO streaming operations. Ellison also is considering plans to develop other parts of the 65-acre site for possible retail use, as well as renting space for commercial offices.
The studios’ combined property holdings are vast, and real estate data provider CoStar estimates they have about 12 million square feet of overlapping uses, including their studio campuses, offices and long-term leases in such film centers as Burbank, Hollywood and New York.
Century-old Paramount Pictures Studios is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in “Sunset Boulevard,” and other classics such as “The Godfather,” “Titanic” and “Breakfast at Tiffany’s.”
The lot, however, is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20th century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.
Warner Bros. occupies 11 million square feet and owns 14 properties totaling 9.5 million square feet, largely in the United States and United Kingdom, CoStar said. About 3 million square feet of that commercial property is in the Los Angeles area.
The firm’s portfolio also includes the sprawling Warner Bros. Studios Leavesden complex in the U.K. and Turner Broadcasting System headquarters in Atlanta.
Paramount Skydance occupies 8 million square feet and owns 14 properties totaling 2.1 million square feet, according to CoStar. In addition to its Hollywood campus, Paramount’s holdings include prominent buildings in New York such as the Ed Sullivan Theater and CBS Broadcast Center.
Warner Bros. operates a 3-million-square-foot lot in Burbank with more than 30 soundstages — along with space for building sets and backlot areas — where famous movies including “Casablanca” and television shows such as “Friends” were filmed. Paramount’s 1.2-million-square-foot Melrose campus anchors a broader network of owned and leased production space, CoStar said.
Paramount’s lot is already cleared for more development. More than a decade ago, Paramount secured city approval to add 1.4 million square feet to its headquarters and some adjacent properties owned by the company.
The redevelopment plan, valued at $700 million in 2016, underwent years of environmental review and public outreach with neighbors and local business owners.
The plan would allow for construction of up to 1.9 million square feet of new stage, production office, support, office, and retail uses, and the removal of up to 537,600 square feet of existing stage, production office, support, office, and retail uses, for a net increase of nearly 1.4 million square feet.
The proposal preserves elements of the past by focusing future development on specific portions of the lot along Melrose and limited areas in the production core, architecture firm Rios said.
The Warner Bros. and Paramount lots “are two of the most prime pieces of real estate in the country,” Mihalka said. “These are legacy assets with a lot of potential to be [tourist] attractions in addition to working studios.”
Hollywood is still reeling from previous mergers, in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.
Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.
The benefits have been slow to materialize, but Mihalka predicts that the tax credits and desirability of working close to home will lead to more studio use in the Los Angeles area, including at Warner Bros. and Paramount.
“These are such prime locations that we’ll see show runners and talent push back on having shows located out of state and insist on being here,” she said. “I think you’re going to see more positive movement here.”
Times staff writer Meg James contributed to this report.
Business
How our AI bots are ignoring their programming and giving hackers superpowers
Welcome to the age of AI hacking, in which the right prompts make amateurs into master hackers.
A group of cybercriminals recently used off-the-shelf artificial intelligence chatbots to steal data on nearly 200 million taxpayers. The bots provided the code and ready-to-execute plans to bypass firewalls.
Although they were explicitly programmed to refuse to help hackers, the bots were duped into abetting the cybercrime.
According to a recent report from Israeli cybersecurity firm Gambit Security, hackers last month used Claude, the chatbot from Anthropic, to steal 150 gigabytes of data from Mexican government agencies.
Claude initially refused to cooperate with the hacking attempts and even denied requests to cover the hackers’ digital tracks, the experts who discovered the breach said. The group pummelled the bot with more than 1,000 prompts to bypass the safeguards and convince Claude they were allowed to test the system for vulnerabilities.
AI companies have been trying to create unbreakable chains on their AI models to restrain them from helping do things such as generating child sexual content or aiding in sourcing and creating weapons. They hire entire teams to try to break their own chatbots before someone else does.
But in this case, hackers continuously prompted Claude in creative ways and were able to “jailbreak” the chatbot to assist them. When they encountered problems with Claude, the hackers used OpenAI’s ChatGPT for data analysis and to learn which credentials were required to move through the system undetected.
The group used AI to find and exploit vulnerabilities, bypass defences, create backdoors and analyze data along the way to gain control of the systems before they stole 195 million identities from nine Mexican government systems, including tax records, vehicle registration as well as birth and property details.
AI “doesn’t sleep,” Curtis Simpson, chief executive of Gambit Security, said in a blog post. “It collapses the cost of sophistication to near zero.”
“No amount of prevention investment would have made this attack impossible,” he said.
Anthropic did not respond to a request for comment. It told Bloomberg that it had banned the accounts involved and disrupted their activity after an investigation.
OpenAI said it is aware of the attack campaign carried out using Anthropic’s models against the Mexican government agencies.
“We also identified other attempts by the adversary to use our models for activities that violate our usage policies; our models refused to comply with these attempts,” an OpenAI spokesperson said in a statement. “We have banned the accounts used by this adversary and value the outreach from Gambit Security.”
Instances of generative AI-assisted hacking are on the rise, and the threat of cyberattacks from bots acting on their own is no longer science fiction. With AI doing their bidding, novices can cause damage in moments, while experienced hackers can launch many more sophisticated attacks with much less effort.
Earlier this year, Amazon discovered that a low-skilled hacker used commercially available AI to breach 600 firewalls. Another took control of thousands of DJI robot vacuums with help from Claude, and was able to access live video feed, audio and floor plans of strangers.
“The kinds of things we’re seeing today are only the early signs of the kinds of things that AIs will be able to do in a few years,” said Nikola Jurkovic, an expert working on reducing risks from advanced AI. “So we need to urgently prepare.”
Late last year, Anthropic warned that society has reached an “inflection point” in AI use in cybersecurity after disrupting what the company said was a Chinese state-sponsored espionage campaign that used Claude to infiltrate 30 global targets, including financial institutions and government agencies.
Generative AI also has been used to extort companies, create realistic online profiles by North Korean operatives to secure jobs in U.S. Fortune 500 companies, run romance scams and operate a network of Russian propaganda accounts.
Over the last few years, AI models have gone from being able to manage tasks lasting only a few seconds to today’s AI agents working autonomously for many hours. AI’s capability to complete long tasks is doubling every seven months.
“We just don’t actually know what is the upper limit of AI’s capability, because no one’s made benchmarks that are difficult enough so the AI can’t do them,” said Jurkovic, who works at METR, a nonprofit that measures AI system capabilities to cause catastrophic harm to society.
So far, the most common use of AI for hacking has been social engineering. Large language models are used to write convincing emails to dupe people out of their money, causing an eight-fold increase in complaints from older Americans as they lost $4.9 billion in online fraud in 2025.
“The messages used to elicit a click from the target can now be generated on a per-user basis more efficiently and with fewer tell-tale signs of phishing,” such as grammatical and spelling errors, said Cliff Neuman, an associate professor of computer science at USC.
AI companies have been responding using AI to detect attacks, audit code and patch vulnerabilities.
“Ultimately, the big imbalance stems from the need of the good-actors to be secure all the time, and of the bad-actors to be right only once,” Neuman said.
The stakes around AI are rising as it infiltrates every aspect of the economy. Many are concerned that there is insufficient understanding of how to ensure it cannot be misused by bad actors or nudged to go rogue.
Even those at the top of the industry have warned users about the potential misuse of AI.
Dario Amodei, the CEO of Anthropic, has long advocated that the AI systems being built are unpredictable and difficult to control. These AIs have shown behaviors as varied as deception and blackmail, to scheming and cheating by hacking software.
Still, major AI companies — OpenAI, Anthropic, xAI, and Google — signed contracts with the U.S. government to use their AIs in military operations.
This last week, the Pentagon directed federal agencies to phase out Claude after the company refused to back down on its demand that it wouldn’t allow its AI to be used for mass domestic surveillance and fully autonomous weapons.
“The AI systems of today are nowhere near reliable enough to make fully autonomous weapons,” Amodei told CBS News.
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