Abstract of a paper featured on NBER: How has aggregate income and welfare in the United States been affected by globalization and rapid productivity growth in emerging economies? We use the class of constant elasticity trade models to provide quantitative evidence on these questions. We find that reductions in worldwide trade frictions over the period from 1960-2020 reduced the share of the United States in global GDP but raised its aggregate welfare. Similarly, productivity growth in Japan and China led to a decline in the relative income of the United States, but brought aggregate welfare gains from the resulting expansion in global production possibilities. Trade integration and foreign productivity growth have relatively modest effects on domestic income and welfare compared to domestic productivity growth.

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Australian restaurants facing a mounting cost-of-doing-business crisis are turning to automatic service charges as a way to shore up revenue. The practice is legal under Australian consumer law as long as customers are notified beforehand and can opt out, but it risks alienating diners in a country where tipping has traditionally been optional. Wes Lambert, chief executive of the Australian Cafe and Restaurant Association, said only a handful of businesses in central business districts currently add automatic tips to bills, but the practice may spread as cost pressures continue. Automatic tipping is more common at venues frequented by international tourists, who view the practice as normal rather than exceptional. With international tourism now near pre-COVID levels, Lambert expects more restaurants to include tips on bills by default. A Sydney wine bar recently abandoned its 10 per cent automatic tip after a diner's social media post triggered public backlash. University of New South Wales professor Rob Nichols said Australia's resistance to tipping stems from the expectation that hospitality workers earn at least minimum wage, unlike in the United States where tips constitute most of a server's income. Australians and tourists tip an estimated $3.5 billion annually, and tipping transactions grew 13% year over year in fiscal 2024-25.

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If you watched Avatar: Fire and Ash in James Cameron's preferred high frame rate 3D format and noticed certain sequences appearing unusually smooth while others had the traditional cinematic look, that visual inconsistency is entirely intentional. The third Avatar film continues Cameron's frame rate experimentation from The Way of Water, selectively deploying 48 frames per second for underwater and flying sequences while keeping dialogue scenes at the standard 24 FPS. The human eye perceives somewhere between 30 and 60 FPS, meaning viewers can detect the shift between frame rates. Cameron argues the tradeoff is worth it: discomfort from 3D viewing isn't eye strain but "brain strain," caused when parallax-sensitive neurons struggle to process jumping vertical edges. Higher frame rates smooth this out. When critics questioned the approach, Cameron was characteristically blunt. "I think $2.3 billion says you might be wrong on that," he told DiscussingFilm, referencing The Way of Water's box office.

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Linux's share of the desktop market has climbed to as much as 11% by one count, but that figure includes Chromebooks, and the traditional Linux desktop remains hamstrung by the same fragmentation that killed Unix decades ago. Steven J. Vaughan-Nichols, writing in The Register, argues that the proliferation of Linux desktops -- more than a dozen significant interfaces exist today, and DistroWatch lists "upwards of a hundred" -- makes it nearly impossible for ordinary users to know where to start. Linus Torvalds has long agreed with this hypothesis. "We have way too many desktops," Vaughan-Nichols notes, summarizing Torvalds' position. The deeper issue lies in software delivery: traditional package managers like DEB and RPM "simply don't scale for the desktop," forcing distro builders to constantly rebuild programs for their specific environments. Containerized solutions like Flatpaks, Snaps and AppImages should solve this by bundling dependencies into universal packages, but the Linux community remains divided over which to adopt. Linux Mint, for instance, refuses Snap because "Canonical has too much control over the Snap store." Hardware support further complicates this challenges, the veteran journalist writes. While Dell sells Ubuntu machines and specialist vendors like System76 and TUXEDO Computers cater to enthusiasts, "none of them make it easy" for mainstream buyers, and no major OEM strongly backs Linux. Torvalds has pointed to Chromebooks and Android as the model: Linux won on smartphones because "there's a single, unified platform with a unified way to install programs."

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Instacart has ended its AI-powered pricing tests after a study from Groundwork Collaborative, Consumer Reports and More Perfect Union revealed that the grocery delivery platform was showing different customers different prices for identical items at the same store. The company said Monday that retailers can no longer use Eversight, the AI pricing technology Instacart acquired in 2022, to run such tests. "Now, if two families are shopping for the same items, at the same time, from the same store location on Instacart, they see the same prices -- period," the company wrote in a blog post. The study drew attention from lawmakers; Sen. Chuck Schumer wrote to the FTC that "consumers deserve to know when they are being placed into pricing tests," and Reuters reported that the agency had opened an investigation. Instacart says the tests "were never based on supply or demand, personal data, demographics, or individual shopping behavior." The company also reached a $60 million settlement last week over separate allegations including falsely advertising free shipping.

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BrianFagioli writes: Visa says it has completed hundreds of secure, AI-initiated transactions with partners, arguing this proves agent driven shopping is ready to move beyond experiments. The company believes 2025 will be the last full year most consumers manually check out, with AI agents handling purchases at scale by the 2026 holiday season. Nearly half of US shoppers already use AI tools for product discovery, and Visa wants to extend that shift all the way through payment using its Intelligent Commerce framework. The pilots are already live in controlled environments, powering consumer and business purchases through AI agents tied to Visa's payment rails. To prevent abuse, Visa and partners have introduced a Trusted Agent Protocol to help merchants distinguish legitimate AI agents from bots, with Akamai adding fraud and identity controls. While the infrastructure may be ready, the bigger question is whether consumers fully understand the risks of letting software spend their money.

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The video games industry in 2025 finds itself caught between the familiar forces of consolidation and job losses that have plagued creative industries, and a newer development: governments and the ultra-wealthy have begun treating games as tools of political influence. Saudi Arabia's Public Investment Fund closed a $55 billion deal for EA this year and acquired Niantic, the makers of Pokemon Go, in March. Microsoft's 2023 acquisition of Activision already signaled the direction of travel. The workforce has borne the costs of this consolidation. More than 5,000 jobs have been lost in the industry this year, and several studios have shuttered, including Monolith Productions. The instability has pushed unions into greater prominence: United Videogame Workers formed in the US and Canada in March as part of the Communications Workers of America, and the firing of 30 staff from Rockstar Games in the UK brought the IWGB Game Workers Union into the spotlight. Meanwhile, the Trump administration has posted AI-generated images of the president as Halo's Master Chief and used Pokemon and Halo memes to recruit for ICE.

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BrianFagioli writes: Samsung is bringing Google Gemini directly into the kitchen, starting with a refrigerator that can see what you eat. At CES 2026, the company plans to show off a new Bespoke AI Refrigerator that uses a built in camera system paired with Gemini to automatically recognize food items, including leftovers stored in unlabeled containers. The idea is to keep an always up to date inventory without manual input, track what is added or removed, and surface suggestions based on what is actually inside the fridge. It is the first time Google's Gemini AI is being integrated into a refrigerator, pushing generative AI well beyond phones and laptops.

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Beverly Hills High School has deployed an AI-powered surveillance apparatus that includes facial recognition cameras, behavioral analysis software, smoke detector-shaped bathroom listening devices from Motorola, drones, and license plate readers from Flock Safety -- a setup the district spent $4.8 million on in the 2024-2025 fiscal year and considers necessary given the school's high-profile location in Los Angeles. Similar systems are spreading to campuses nationwide as schools try to stop mass shootings that killed 49 people on school property this year, 59 in 2024, and 45 in 2023. A 2023 ACLU report found that eight of the ten largest school shootings since Columbine occurred at schools that already had surveillance systems, and 32% of students surveyed said they felt like they were always being watched. The technology has a spotty track record, however. Gun detection vendor Evolv, used by more than 800 schools including Beverly Hills High, was reprimanded by the FTC in 2024 for claiming its AI could detect all weapons after it failed to flag a seven-inch knife used to stab a student in 2022. Evolv has also flagged laptops and water bottles as guns. Rival vendor Omnilert flagged a 16-year-old student at a Maryland high school reaching for an empty Doritos bag as a possible gun threat; police held the teenager at gunpoint. Not every school is buying in. Highline Schools in Washington state cancelled its $33,000 annual ZeroEyes contract this year and spent the money on defibrillators and Ford SUVs for its safety team instead.

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Colin Angle, the founder of iRobot who built the company from his living room over 35 years and sold more than 50 million Roomba vacuums, watched his creation file for Chapter 11 bankruptcy earlier this month after what he describes as an "avoidable" regulatory ordeal that killed Amazon's $1.7 billion acquisition bid. In an interview with TechCrunch, Angle recounted the 18-month investigation by the FTC and European regulators that preceded Amazon's January 2024 decision to abandon the deal. The process consumed over 100,000 documents and a significant portion of iRobot's discretionary earnings. Angle said the deal should have taken "three, four weeks of investigation" given iRobot's declining market position -- 12% and falling in Europe, where the leading competitor was only three years old. During his deposition, Angle said he walked the halls of the FTC and noticed examiners had "printouts of deals blocked, like trophies" on their office doors. He entered the process "looking for a friend" and instead encountered the question: "Why should we ever let them do this?" Further reading: WSJ Editorial Board Says Lina Khan Killed iRobot.

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A group of activists has scraped Spotify's entire library, accessing 256 million rows of track metadata and 86 million audio files totaling roughly 300TB of data. The metadata has been released via Anna's Archive, a search engine for "shadow libraries" that previously focused on books. Spotify described the activists as "anti-copyright extremists who've previously pirated content from YouTube and other platforms" and confirmed it is actively investigating the incident. The activists claim this represents "the world's first 'preservation archive' for music which is fully open" and covers "around 99.6% of listens." They appear to have used Spotify's public web API to scrape the metadata and circumvented DRM to access audio files. Spotify insists that this is not a security breach affecting user data. Though the more pressing concern for the music industry may be AI training rather than pirate streaming services -- similar YouTube datasets have reportedly been used by unlicensed generative AI music services.

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Microsoft's latest holiday ad for its Copilot AI assistant features a 30-second montage of users seamlessly syncing smart home lights to music, scaling recipes for large gatherings, and parsing HOA guidelines -- none of which the software can actually perform reliably when put to the test. The Verge methodically tested each prompt shown in the ad and found that Copilot repeatedly hallucinated interface elements that didn't exist, claimed to highlight on-screen buttons when it hadn't, and abandoned calculations midway through. The smart home interface shown in the ad belongs to "Relecloud," a fictional company Microsoft uses in internal case studies. A Microsoft spokesperson confirmed that both the HOA document and the inflatable reindeer photo were fabricated for the advertisement. The ad closes with Santa Claus asking Copilot why toy production is behind schedule. Further reading: Talking To Windows' Copilot AI Makes a Computer Feel Incompetent.

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President Trump's closure of the de minimis customs loophole in May -- which previously allowed Chinese packages valued under $800 to enter the U.S. duty-free -- has redirected a flood of cheap goods toward Europe, where similar exemptions for packages under $175.8 in the EU and $180 in the UK remain intact. The shift has been swift: exports of low-value Chinese packages to the U.S. have dropped more than 40% since May, according to Chinese customs data, and the EU has this year overtaken the U.S. as the largest market for China's roughly $100 billion cheap package trade. Shipments to Hungary and Denmark have quadrupled, and those to Germany, France, and the UK have risen 50% or more. Temu has recorded seven straight months of double-digit U.S. sales declines, per Consumer Edge data tracking credit and debit card transactions. Its European sales, on the other hand: up 56% in the EU and 46% in the UK since May compared to a year ago. The EU agreed last week to impose a $3.5 fee on imported small packages starting in July and to close the de minimis exemption entirely by 2028. The UK plans to follow in 2029.

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alternative_right writes: Grocery delivery service Instacart will refund $60 million to settle FTC claims that it misled customers with false advertising and unlawfully enrolled them in paid subscriptions. Instacart partners with over 1,800 retailers to provide online shopping, delivery, and pickup services from nearly 100,000 stores across North America. Its platform serves millions of customers and is also used by roughly 600,000 independent shoppers across thousands of cities in Canada and the United States. In a complaint filed on Thursday, the FTC claimed Instacart engaged in multiple deceptive tactics that raised costs for customers, including failing to provide advertised refunds and falsely advertising "free delivery" while still charging mandatory service fees that added up to 15% to order costs. The FTC said Instacart also advertised a "100% satisfaction guarantee," but typically offered only small credits toward future orders rather than full refunds to customers experiencing problems with deliveries or service. The company allegedly hid refund options from "self-service" menus, leading customers to believe credits were their only option.

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Microsoft AI CEO Mustafa Suleyman estimates that staying competitive in frontier AI development will require "hundreds of billions of dollars" over the next five to ten years, a sum that doesn't even account for the high salaries companies are paying individual researchers and technical staff. Speaking on a podcast, Suleyman compared Microsoft to a "modern construction company" where hundreds of thousands of workers are building gigawatts of CPUs and AI accelerators. There's "a structural advantage by being inside a big company," he said. When asked whether startups could compete with Big Tech, Suleyman said "it's hard to say," adding that "the ambiguity is what's driving the frothiness of the valuations." Meta CEO Mark Zuckerberg said in September he'd rather risk "misspending a couple of hundred billion" than fall behind in superintelligence.

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The television industry's brightness war may have hit its inflection point in 2025, the year TCL and Hisense released the first consumer TVs capable of 5,000 nits under specific settings -- a figure that would have seemed absurd not long ago when manufacturers struggled to reach 2,000 nits. LG introduced Primary RGB Tandem OLED technology, moving from a three-stack panel design to a four-stack red-blue-green-blue configuration that the company claims can achieve 4,000 nits. The technology appears in the LG G5, Panasonic Z95B and Philips OLED950 and OLED910. RGB mini-LED also emerged as a new category. The technology uses individual small red, green and blue LED backlights instead of white or blue LEDs paired with quantum dots. Hisense demonstrated it at CES 2025, TCL announced its Q10M for China, and Samsung unveiled its own version called micro-RGB. These sets range from $12,000 to $30,000. Sony has confirmed it will debut RGB TV technology in spring 2026. HDR content is currently mastered at a maximum of 4,000 nits. The situation echoes the audio industry's loudness war, The Verge points out, which peaked with Metallica's heavily compressed Death Magnetic in 2008.

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Uber is hiring more engineers rather than fewer because AI tools have made them "superhumans," CEO Dara Khosrowshahi said, pushing back against the industry trend of using productivity gains to justify headcount cuts. Speaking on the "On with Kara Swisher" podcast, Khosrowshahi noted that other tech executives see AI making engineers 20% to 30% more productive and conclude they need 20% to 30% fewer engineers. His view: every engineer has become more valuable. Between 80% and 90% of Uber's developers now use AI tools, according to Khosrowshahi. The company no longer keeps scores of engineers on call to diagnose issues because AI agents are constantly monitoring systems, he said. The latest AI models are producing "hundreds of millions of dollars of benefit" for Uber, he said, describing the company as an "applied AI" business that harnesses the technology for pricing, payments, matching, routing, identification and customer complaints.

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iRobot, the Bedford, Massachusetts-based company that brought the Roomba vacuum cleaner into American homes over its 35-year history, filed for bankruptcy on Sunday and will be acquired by Picea, its Chinese contract manufacturer that also produces competing household devices. The Wall Street Journal's editorial board placed blame for the company's demise on the Federal Trade Commission under Chair Lina Khan, which opposed Amazon's $1.7 billion bid to acquire iRobot. That deal collapsed in January 2024 amid regulatory pressure from both the FTC and European antitrust authorities. Senator Elizabeth Warren and other progressives had urged Khan to block the acquisition, arguing in a September 2022 letter that Amazon is "'almost universally recognized' as the leader in warehouse and fulfillment robotics space" and that the deal "would open up a new market to Amazon's abuses." After the deal fell through, iRobot cut 31% of its workforce and moved "non-core engineering functions to lower-cost regions." The company had shifted production to Vietnam to reduce its exposure to China but was hit by tariffs under Trump's Liberation Day trade measures -- initially 46%, later reduced to 20%. iRobot said the trade uncertainty made it difficult to operate.

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The Association for Computing Machinery, the world's largest society of computing professionals, announced that all publications and related artifacts in the ACM Digital Library will become freely available to everyone starting January 2026. Authors will retain full copyright to their published work under the new arrangement, and ACM has committed to defending those works against copyright and integrity-related violations. The transition follows what ACM described as extensive dialogue with authors, Special Interest Group leaders, editorial boards, libraries, and research institutions globally. Students, educators, and researchers at institutions of all sizes -- from well-resourced universities to emerging research communities -- will gain unrestricted access to the full catalog of ACM-published work. The Digital Library houses decades of computing research across journals, magazines, conference proceedings, and books.

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More carbon dioxide in the environment is making food more calorific but less nutritious -- and also potentially more toxic, a study has found. From a report: Sterre ter Haar, a lecturer at Leiden University in the Netherlands, and other researchers at the institution created a method to compare multiple studies on plants' responses to increased CO2 levels. The results, she said, were a shock: although crop yields increase, they become less nutrient-dense. While zinc levels in particular drop, lead levels increase. "Seeing how dramatic some of the nutritional changes were, and how this differed across plants, was a big surprise," she told the Guardian. "We aren't seeing a simple dilution effect but rather a complete shift in the composition of our foods... This also raises the question of whether we should adjust our diets in some way, or how we grow or produce our food." While scientists have been looking at the effects of more CO2 in the atmosphere on plants for a decade, their work has been difficult to compare. The new research established a baseline measurement derived from the observation that the gas appears to have a linear effect on growth, meaning that if the CO2 level doubles, so does the effect on nutrients. This made it possible to compare almost 60,000 measurements across 32 nutrients and 43 crops, including rice, potatoes, tomatoes and wheat.

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