Business
Opinion: Southern Californians shaped the nation's biggest political problems. We can solve them too
Voters rank the economy and inflation as the most important issues facing the country, and in spite of good news on both fronts, discontent over pocketbook issues remains steady. There’s one stretch of Southern California where, one could say, that all began: Los Angeles’ harbor and coast.
As the center for U.S. Pacific trade and an archetype for exuberant housing markets everywhere, the region’s waterfront clarifies why so many Americans feel frustrated and under pressure — and just how challenging it may be to fix this, no matter who becomes the next president.
Stretching back to the mid-19th century, when the United States annexed Southern California from the Mexican Republic, Americans looked to Pacific trade and westward settlement to stabilize their nation. That’s why our local ports were developed.
In the 1850s, a federal agency, then called the U.S. Coast Survey, identified San Pedro Bay as a focal point for shipping efforts. Since the 1910s, this has been home to the Port of Los Angeles and the Port of Long Beach, collectively the busiest shipping hub in the Western Hemisphere, making the region prominent in global supply chains and transpacific trade.
Officials believed Pacific trade and settlement to be a safety valve for turmoil back East, that over slavery most of all. The results proved them wrong. Commerce and settlers intensified political conflict, both in Washington and in California, by increasing the stakes. Land speculators — in most places pushing out Indigenous people and Mexicans — looked to grab former rancho claims near California’s prospective harbors, in Southern California’s enviable climate. It was a rush for beachfront property like the region had never seen. Their actions set Los Angeles’ property lines and the basis for today’s real estate markets from Malibu to Newport Bay.
This history was invisible to me as I grew up around L.A., but its effects were and are all around, continuing to reshape Southern California during my lifetime. By the early 2000s, container ships, larger than before, accumulated in the outer waters as the ports were sometimes overwhelmed. Semitrucks crowded the 110 and 710 freeways. At the same time, the coastal real estate market boomed yet again. My parents — new arrivals to the region — found it full of opportunity. They purchased their first and only home, in a subdivision on former rancho lands, and they paid it off as valuations exploded around them and their nest egg grew. The region’s economy was a dynamo, a safe harbor in more ways than one.
Shipping and competitive real estate — two legacies of 1850s Southern California — remain with us. Moreover, they are part of an ongoing story of Los Angeles and its place in American life. Today’s voters’ sense of their economic well-being is based on the prices of household necessities, mostly imported goods, and about one-third enter the U.S. through the ports of Los Angeles and Long Beach. Historically, the ships and containers that crowd San Pedro Bay have expanded affordability, but the COVID-19 pandemic and international crises disrupted their flow. Suddenly transpacific trade was blamed for soaring costs, not credited with making household items affordable. Even after the disruption abated, high prices and memories of scarcity have lingered. Nationally, politicians and the public have come to doubt the virtues of globalization. The clash between high hopes for Los Angeles’ harbors and the realities of global trade contribute once more to Americans’ sense of an uncertain world, and once again the high stakes linked to Southern California’s economy feed into tensions nationwide.
Sure investments, meanwhile, no longer offset troubled times. Americans’ primary investment — triumphant in the post-World War II era — is the single-family home. However, the nation’s high-priced real estate has unsettled this convention. Rather than absorbing newcomers and providing a path to financial security, it has multiplied voters’ sense of distress by locking many out of homeownership. The exhilarating prices and low interest rates of recent decades — profit and security to prior home purchasers — now put inflationary pressure on renters and prospective buyers, and on middle-income, low-income or young voters especially. This is most true around coastal Los Angeles, west and south of the 405 Freeway. It is true as well in markets farther afield, such as Phoenix and Las Vegas, long shaped by Southern California migrants and money.
The Southland’s residents and visitors were drawn to the promise of Pacific waters, just as generations before have been. And while many in all eras have benefited from the region’s industries and real estate appreciation, many others have always been left behind. Remembering such connections with history can clarify uncertain times. Recent polarization in U.S. politics has been compared to the Civil War era, but there is perhaps a more apt parallel between today and the 1860s: the economic ideas of trade and land investment, intended to calm political passions and to distribute prosperity, fell short in both moments.
The consequences will play out in the months ahead as pocketbook issues quite likely decide the presidential election. But regardless of the election’s outcome, we should understand that Southern California is never a place apart from U.S. politics and its dilemmas. Instead, these have deep roots in the region. And today, the region continues to invest in imports and real estate as vehicles for prosperity — even as the adverse costs accumulate in national politics.
That makes Southern California the opportune place to resolve these dilemmas of history and to lead the U.S. forward, whether by policy experimentation or new principles for how wealth might be built, sustained and shared. Shaping the nation’s better future will involve tough choices. It certainly will take visionaries and daring. Yet that, too, is a legacy of Southern California’s past, one ready to be reclaimed.
James Tejani, an associate professor of history at Cal Poly San Luis Obispo, is the author of “A Machine to Move Ocean and Earth: The Making of the Port of Los Angeles and America.”
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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