AUSTIN, Texas–(BUSINESS WIRE)–American Campus Communities (NYSE: ACC), the nation’s largest student housing company, has once again been recognized in multiple award categories of Student Housing Business Magazine’s InterFace Conference Innovator Awards.
The Innovator Awards are given to student housing owners, developers, operators, architecture firms and universities for excellence in student housing development, marketing and operations. More than 100 industry experts judged on more than 140 entries in this year’s contest. This was the largest number of submissions to date.
ACC has been honored with the following on-campus awards for 2021:
On-Campus Best Public-Private Financing Solution: Manzanita Square at San Francisco State University – ACC recognized an enormous opportunity to provide development and financial expertise and support to a dedicated project team in the California State University System’s first equity-financed public-private partnership. After a 22-month construction duration, Manzanita Square opened its doors in August 2020. The 584-bed, academically oriented community represents a true win-win-win for the project team, the University and its students.
On-Campus Best Implementation of Mixed-Use/Live-Learn: UIC Academic and Residential Complex – The ARC is home to more than 550 UIC students, providing a purpose-built, academically oriented student living environment and classrooms in the heart of campus. The facility provides modern spaces for residents to live, learn and thrive, including 50,000 square feet of academic space including learning halls, classrooms, study spaces and tutoring centers.
On-Campus Best New Development: University of Illinois Chicago Academic and Residential Complex – In the spring of 2017, UIC engaged ACC to deliver the Academic and Residential Complex (ARC), which represents the first phase of the University’s revitalization initiative. Developed as a public-private partnership among UIC and ACC, the ARC was delivered in Fall 2019 after a 20-month construction process.
On-Campus Best Architecture: UIC Academic and Residential Complex – Campus-wide connection is reinforced through transparency between interior program spaces and the outdoor environment. Amenity spaces are highly visible and concentrated on the ground floor to promote and extend the community’s learning environment. The community’s facade and interiors echo the geometric architecture seen throughout campus, celebrating the university’s urban context while simultaneously maintaining a residential collegiate aesthetic.
“It’s an honor to be recognized alongside our innovative university partners for two communities, Manzanita Square and the UIC Academic and Residential Complex, that go above and beyond to create environments conducive to academic success and personal well-being for our students,” said Bill Bayless, CEO at ACC. “Our ACC team members across the country have remained focused on fulfilling our mission of putting students first and creating a place where they love living.”
Bayless gave the keynote address at the conference on Wednesday, July 14th at the JW Marriott in Austin, Texas. In total, ACC has been awarded 43 SHB Innovator Awards since 2013.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of March 31, 2021, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, ACC’s total managed portfolio consisted of 207 properties with approximately 142,400 beds. Visit www.americancampus.com.
In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management’s current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the “company”) operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. These risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking-statements include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, and those discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 under the heading “Risk Factors” and under the heading “Business – Forward-looking Statements” and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our preleasing activity or expected full year 2021 operating results, whether as a result of new information, future events, or otherwise.
Also in late February, Blueacorn and Womply got an unexpected tailwind from a major rule change by the Small Business Administration, which oversaw the loan program. Concerned that women and minority-led businesses were being disproportionately left out, the Biden administration overhauled the loan formula to award sole proprietors — a group that includes contractors and gig workers — loans based on their reported revenue rather than profit. Overnight, millions more qualified for help. Drawn in by the marketing campaigns, they stampeded toward the two companies.
By early March, “we were overrun with demand,” said Blueacorn’s Mr. Calhoun, a private equity veteran who joined the company that month to help manage its growth. “We had a 24-hour period where we went from 15,000 new customer service tickets to 27,000,” he recalled. “Those are Amazon-like levels.”
Blueacorn rented call centers and trained hundreds of temporary workers to troubleshoot. Womply redeployed nearly all of its 200 employees to work on loan issues. Both companies still struggled to keep up. On Reddit groups and social media sites, thousands of borrowers complained about delays, poor communication and problems resolving errors.
Louis Glatthorn, an Uber driver in Boone, N.C., who goes by Bob, applied on Womply’s website on April 7 and signed the paperwork two weeks later for a $7,818 loan. But the money — which is listed in government records as approved — has not been paid by Benworth Capital, one of Womply’s partners. Mr. Glatthorn’s attempts to reach Womply for help have been unsuccessful.
“You can never talk to a person or actually make contact,” he said. A Womply representative declined to comment on Mr. Glatthorn’s experience.
Others had a smoother run. Dan Bourque, an Uber driver in San Francisco, saw Womply’s ads and applied for a loan in mid-April. Seventeen days later, he had a $10,477 deposit — funded by Fountainhead SBF, another of Womply’s partner lenders — in his bank account. For that loan, the process “was flawless,” he said.
The Money Pours In
The millions of tiny loans the two tech companies enabled, coupled with Congress’s decision to make small loans more lucrative, led to gigantic payouts for small lenders. Last year, Prestamos made $1.3 million for its lending. This year, it will collect nearly $1.2 billion, according to a New York Times calculation of lenders’ fees based on government data.
There were two weeks left in the Trump administration when the Treasury Department handed down a set of rules governing an obscure corner of the tax code.
Overseen by a senior Treasury official whose previous job involved helping the wealthy avoid taxes, the new regulations represented a major victory for private equity firms. They ensured that executives in the $4.5 trillion industry, whose leaders often measure their yearly pay in eight or nine figures, could avoid paying hundreds of millions in taxes.
The rules were approved on Jan. 5, the day before the riot at the U.S. Capitol. Hardly anyone noticed.
The Trump administration’s farewell gift to the buyout industry was part of a pattern that has spanned Republican and Democratic presidencies and Congresses: Private equity has conquered the American tax system.
one recent estimate, the United States loses $75 billion a year from investors in partnerships failing to report their income accurately — at least some of which would probably be recovered if the I.R.S. conducted more audits. That’s enough to roughly double annual federal spending on education.
It is also a dramatic understatement of the true cost. It doesn’t include the ever-changing array of maneuvers — often skating the edge of the law — that private equity firms have devised to help their managers avoid income taxes on the roughly $120 billion the industry pays its executives each year.
Private equity’s ability to vanquish the I.R.S., Treasury and Congress goes a long way toward explaining the deep inequities in the U.S. tax system. When it comes to bankrolling the federal government, the richest of America’s rich — many of them hailing from the private equity industry — play by an entirely different set of rules than everyone else.
The result is that men like Blackstone Group’s chief executive, Stephen A. Schwarzman, who earned more than $610 million last year, can pay federal taxes at rates similar to the average American.
Lawmakers have periodically tried to force private equity to pay more, and the Biden administration has proposed a series of reforms, including enlarging the I.R.S.’s enforcement budget and closing loopholes. The push for reform gained new momentum after ProPublica’s recent revelation that some of America’s richest men paid little or no federal taxes.
nearly $600 million in campaign contributions over the last decade, has repeatedly derailed past efforts to increase its tax burden.
Taylor Swift’s back music catalog.
The industry makes money in two main ways. Firms typically charge their investors a management fee of 2 percent of their assets. And they keep 20 percent of future profits that their investments generate.
That slice of future profits is known as “carried interest.” The term dates at least to the Renaissance. Italian ship captains were compensated in part with an interest in whatever profits were realized on the cargo they carried.
The I.R.S. has long allowed the industry to treat the money it makes from carried interests as capital gains, rather than as ordinary income.
article highlighting the inequity of the tax treatment. It prompted lawmakers from both parties to try to close the so-called carried interest loophole. The on-again, off-again campaign has continued ever since.
Whenever legislation gathers momentum, the private equity industry — joined by real estate, venture capital and other sectors that rely on partnerships — has pumped up campaign contributions and dispatched top executives to Capitol Hill. One bill after another has died, generally without a vote.
An Unexpected Email
One day in 2011, Gregg Polsky, then a professor of tax law at the University of North Carolina, received an out-of-the-blue email. It was from a lawyer for a former private equity executive. The executive had filed a whistle-blower claim with the I.R.S. alleging that their old firm was using illegal tactics to avoid taxes.
The whistle-blower wanted Mr. Polsky’s advice.
Mr. Polsky had previously served as the I.R.S.’s “professor in residence,” and in that role he had developed an expertise in how private equity firms’ vast profits were taxed. Back in academia, he had published a research paper detailing a little-known but pervasive industry tax-dodging technique.
$89 billion in private equity assets — as being “abusive” and a “thinly disguised way of paying the management company its quarterly paycheck.”
Apollo said in a statement that the company stopped using fee waivers in 2012 and is “not aware of any I.R.S. inquiries involving the firm’s use of fee waivers.”
floated the idea of cracking down on carried interest.
Private equity firms mobilized. Blackstone’s lobbying spending increased by nearly a third that year, to $8.5 million. (Matt Anderson, a Blackstone spokesman, said the company’s senior executives “are among the largest individual taxpayers in the country.” He wouldn’t disclose Mr. Schwarzman’s tax rate but said the firm never used fee waivers.)
Lawmakers got cold feet. The initiative fizzled.
In 2015, the Obama administration took a more modest approach. The Treasury Department issued regulations that barred certain types of especially aggressive fee waivers.
But by spelling that out, the new rules codified the legitimacy of fee waivers in general, which until that point many experts had viewed as abusive on their face.
So did his predecessor in the Obama administration, Timothy F. Geithner.
Inside the I.R.S. — which lost about one-third of its agents and officers from 2008 to 2018 — many viewed private equity’s webs of interlocking partnerships as designed to befuddle auditors and dodge taxes.
One I.R.S. agent complained that “income is pushed down so many tiers, you are never able to find out where the real problems or duplication of deductions exist,” according to a U.S. Government Accountability Office investigation of partnerships in 2014. Another agent said the purpose of large partnerships seemed to be making “it difficult to identify income sources and tax shelters.”
The Times reviewed 10 years of annual reports filed by the five largest publicly traded private equity firms. They contained no trace of the firms ever having to pay the I.R.S. extra money, and they referred to only minor audits that they said were unlikely to affect their finances.
Current and former I.R.S. officials said in interviews that such audits generally involved issues like firms’ accounting for travel costs, rather than major reckonings over their taxable profits. The officials said they were unaware of any recent significant audits of private equity firms.
No Money Owed
For a while, it looked as if there would be an exception to this general rule: the I.R.S.’s reviews of the fee waivers spurred by the whistle-blower claims. But it soon became clear that the effort lacked teeth.
Kat Gregor, a tax lawyer at the law firm Ropes & Gray, said the I.R.S. had challenged fee waivers used by four of her clients, whom she wouldn’t identify. The auditors struck her as untrained in the thicket of tax laws governing partnerships.
“It’s the equivalent of picking someone who was used to conducting an interview in English and tell them to go do it in Spanish,” Ms. Gregor said.
The audits of her clients wrapped up in late 2019. None owed any money.
The Mnuchin Compromise
As a presidential candidate, Mr. Trump vowed to “eliminate the carried interest deduction, well-known deduction, and other special-interest loopholes that have been so good for Wall Street investors, and for people like me, but unfair to American workers.”
wanted to close the loophole, congressional Republicans resisted. Instead, they embraced a much milder measure: requiring private equity officials to hold their investments for at least three years before reaping preferential tax treatment on their carried interests. Steven Mnuchin, the Treasury secretary, who had previously run an investment partnership, signed off.
McKinsey, typically holds investments for more than five years. The measure, part of a $1.5 trillion package of tax cuts, was projected to generate $1 billion in revenue over a decade.
credited Mr. Mnuchin, hailing him as “an all-star.”
Mr. Fleischer, who a decade earlier had raised alarms about carried interest, said the measure “was structured by industry to appear to do something while affecting as few as possible.”
Months later, Mr. Callas joined the law and lobbying firm Steptoe & Johnson. The private equity giant Carlyle is one of his biggest clients.
‘The Government Caved’
It took the Treasury Department more than two years to propose rules spelling out the fine print of the 2017 law. The Treasury’s suggested language was strict. One proposal would have empowered I.R.S. auditors to more closely examine internal transactions that private equity firms might use to get around the law’s three-year holding period.
The industry, so happy with the tepid 2017 law, was up in arms over the tough rules the Treasury’s staff was now proposing. In a letter in October 2020, the American Investment Council, led by Drew Maloney, a former aide to Mr. Mnuchin, noted how private equity had invested in hundreds of companies during the coronavirus pandemic and said the Treasury’s overzealous approach would harm the industry.
The rules were the responsibility of Treasury’s top tax official, David Kautter. He previously was the national tax director at EY, formerly Ernst & Young, when the firm was marketing illegal tax shelters that led to a federal criminal investigation and a $123 million settlement. (Mr. Kautter has denied being involved with selling the shelters but has expressed regret about not speaking up about them.)
On his watch at Treasury, the rules under development began getting softer, including when it came to the three-year holding period.
Monte Jackel, a former I.R.S. attorney who worked on the original version of the proposed regulations.
Mr. Mnuchin, back in the private sector, is starting an investment fund that could benefit from his department’s weaker rules.
A Charmed March
Even during the pandemic, the charmed march of private equity continued.
The top five publicly traded firms reported net profits last year of $8.6 billion. They paid their executives $8.3 billion. In addition to Mr. Schwarzman’s $610 million, the co-founders of KKR each made about $90 million, and Apollo’s Leon Black received $211 million, according to Equilar, an executive compensation consulting firm.
now advising clients on techniques to circumvent the three-year holding period.
The most popular is known as a “carry waiver.” It enables private equity managers to hold their carried interests for less than three years without paying higher tax rates. The technique is complicated, but it involves temporarily moving money into other investment vehicles. That provides the industry with greater flexibility to buy and sell things whenever it wants, without triggering a higher tax rate.
Private equity firms don’t broadcast this. But there are clues. In a recent presentation to a Pennsylvania retirement system by Hellman & Friedman, the California private equity giant included a string of disclaimers in small font. The last one flagged the firm’s use of carry waivers.
The Biden administration is negotiating its tax overhaul agenda with Republicans, who have aired advertisements attacking the proposal to increase the I.R.S.’s budget. The White House is already backing down from some of its most ambitious proposals.
Even if the agency’s budget were significantly expanded, veterans of the I.R.S. doubt it would make much difference when it comes to scrutinizing complex partnerships.
“If the I.R.S. started staffing up now, it would take them at least a decade to catch up,” Mr. Jackel said. “They don’t have enough I.R.S. agents with enough knowledge to know what they are looking at. They areso grossly overmatched it’s not funny.”
A few years ago, while on a work trip in Los Angeles, I hailed an Uber for a crosstown ride during rush hour. I knew it would be a long trip, and I steeled myself to fork over $60 or $70.
Instead, the app spit out a price that made my jaw drop: $16.
Experiences like these were common during the golden era of the Millennial Lifestyle Subsidy, which is what I like to call the period from roughly 2012 through early 2020, when many of the daily activities of big-city 20- and 30-somethings were being quietly underwritten by Silicon Valley venture capitalists.
For years, these subsidies allowed us to live Balenciaga lifestyles on Banana Republic budgets. Collectively, we took millions of cheap Uber and Lyft rides, shuttling ourselves around like bourgeois royalty while splitting the bill with those companies’ investors. We plunged MoviePass into bankruptcy by taking advantage of its $9.95-a-month, all-you-can-watch movie ticket deal, and took so many subsidized spin classes that ClassPass was forced to cancel its $99-a-month unlimited plan. We filled graveyards with the carcasses of food delivery start-ups — Maple, Sprig, SpoonRocket, Munchery — just by accepting their offers of underpriced gourmet meals.
tweeted, along with a screenshot of a receipt that showed he had spent nearly $250 on a ride to the airport.
“Airbnb got too much dip on they chip,” another Twitter user complained. “No one is gonna continue to pay $500 to stay in an apartment for two days when they can pay $300 for a hotel stay that has a pool, room service, free breakfast & cleaning everyday. Like get real lol.”
Some of these companies have been tightening their belts for years. But the pandemic seems to have emptied what was left of the bargain bin. The average Uber and Lyft ride costs 40 percent more than it did a year ago, according to Rakuten Intelligence, and food delivery apps like DoorDash and Grubhub have been steadily increasing their fees over the past year. The average daily rate of an Airbnb rental increased 35 percent in the first quarter of 2021, compared with the same quarter the year before, according to the company’s financial filings.
set up a $250 million “driver stimulus” fund — or doing away with them altogether.
I’ll confess that I gleefully took part in this subsidized economy for years. (My colleague Kara Swisher memorably called it “assisted living for millennials.”) I got my laundry delivered by Washio, my house cleaned by Homejoy and my car valet-parked by Luxe — all start-ups that promised cheap, revolutionary on-demand services but shut down after failing to turn a profit. I even bought a used car through a venture-backed start-up called Beepi, which offered white-glove service and mysteriously low prices, and which delivered the car to me wrapped in a giant bow, like you see in TV commercials. (Unsurprisingly, Beepi shut down in 2017, after burning through $150 million in venture capital.)
These subsidies don’t always end badly for investors. Some venture-backed companies, like Uber and DoorDash, have been able to grit it out until their I.P.O.s, making good on their promise that investors would eventually see a return on their money. Other companies have been acquired or been able to successfully raise their prices without scaring customers away.
Uber, which raised nearly $20 billion in venture capital before going public, may be the best-known example of an investor-subsidized service. During a stretch of 2015, the company was burning $1 million a week in driver and rider incentives in San Francisco alone, according to reporting by BuzzFeed News.
But the clearest example of a jarring pivot to profitability might be the electric scooter business.
Remember scooters? Before the pandemic, you couldn’t walk down the sidewalk of a major American city without seeing one. Part of the reason they took off so quickly is that they were ludicrously cheap. Bird, the largest scooter start-up, charged $1 to start a ride, and then 15 cents a minute. For short trips, renting a scooter was often cheaper than taking the bus.
But those fees didn’t represent anything close to the true cost of a Bird ride. The scooters broke frequently and needed constant replacing, and the company was shoveling money out the door just to keep its service going. As of 2019, Bird was losing $9.66 for every $10 it made on rides, according to a recent investor presentation. That is a shocking number, and the kind of sustained losses that are possible only for a Silicon Valley start-up with extremely patient investors. (Imagine a deli that charged $10 for a sandwich whose ingredients cost $19.66, and then imagine how long that deli would stay in business.)
Pandemic-related losses, coupled with the pressure to turn a profit, forced Bird to trim its sails. It raised its prices — a Bird now costs as much as $1 plus 42 cents a minute in some cities — built more durable scooters and revamped its fleet management system. During the second half of 2020, the company made $1.43 in profit for every $10 ride.
“DoorDash and Pizza Arbitrage,” about the time he realized that DoorDash was selling pizzas from his friend’s restaurant for $16 while paying the restaurant $24 per pizza, and proceeded to order dozens of pizzas from the restaurant while pocketing the $8 difference, stands as a classic of the genre.)
But it’s hard to fault these investors for wanting their companies to turn a profit. And, at a broader level, it’s probably good to find more efficient uses for capital than giving discounts to affluent urbanites.
Back in 2018, I wrote that the entire economy was starting to resemble MoviePass, the subscription service whose irresistible, deeply unprofitable offer of daily movie tickets for a flat $9.95 subscription fee paved the way for its decline. Companies like MoviePass, I thought, were trying to defy the laws of gravity with business models that assumed that if they achieved enormous scale, they’d be able to flip a switch and start making money at some point down the line. (This philosophy, which was more or less invented by Amazon, is now known in tech circles as “blitzscaling.”)
There is still plenty of irrationality in the market, and some start-ups still burn huge piles of money in search of growth. But as these companies mature, they seem to be discovering the benefits of financial discipline. Uber lost only $108 million in the first quarter of 2021 — a change partly attributable to the sale of its autonomous driving unit, and a vast improvement, believe it or not, over the same quarter last year, when it lost $3 billion. Both Uber and Lyft have pledged to become profitable on an adjusted basis this year. Lime, Bird’s main electric scooter competitor, turned its first quarterly profit last year, and Bird — which recently filed to go public through a SPAC at a $2.3 billion valuation — has projected better economics in the years ahead.
Profits are good for investors, of course. And while it’s painful to pay subsidy-free prices for our extravagances, there’s also a certain justice to it. Hiring a private driver to shuttle you across Los Angeles during rush hour should cost more than $16, if everyone in that transaction is being fairly compensated. Getting someone to clean your house, do your laundry or deliver your dinner should be a luxury, if there’s no exploitation involved. The fact that some high-end services are no longer easily affordable by the merely semi-affluent may seem like a worrying development, but maybe it’s a sign of progress.
River Islands, the development where the Namayans hoped to live, is in Lathrop, Calif., which has a population of 25,000. It sits about a half-hour beyond Altamont Pass, whose rolling hills and windmills mark the border between Alameda and San Joaquin Counties. Though technically outside the Bay Area region, Lathrop’s farms and open fields have been steadily supplanted by warehouses and subdivisions as it and nearby cities have become bedroom communities for priced-out workers who commute to the Silicon Valley and San Francisco.
Today in Business
In Livermore, on the eastern side of Alameda County, the typical home value is nearing $1 million, according to Zillow. That falls to $500,000 to $600,000 over the hill in places like Tracy, Manteca and Lathrop. The catch, of course, is that many residents endure draining, multihour commutes.
The pandemic may have upended that economic order, in California and elsewhere. Thousands of families that could afford to do so fled cities last spring, and while some will return, others will not — particularly if they are able to continue to work remotely at least part of the time. One recent study estimated that after the pandemic, one-fifth of workdays would be “supplied remotely” — down from half during the height of the pandemic but far above the 5 percent before it.
If those trends hold, it will make it easier for many workers to live not just in farther-out towns like Lathrop but to abandon high-cost regions like the Bay Area altogether. Midsize cities that for years have tried — usually in vain — to recruit large employers through tax breaks can now attract workers directly.
“If Google moves to Cleveland, that’s great, but if one Googler moves to Cleveland, that’s also great,” said Adam Ozimek, chief economist of Upwork, a freelancing platform.
To some extent, the pandemic accelerated a shift that was already taking place. When the housing bubble burst, members of the millennial generation were in their teens and 20s. Now the oldest of them are turning 40, and about half are married. They are hitting the milestones when Americans have traditionally moved to the suburbs.
This morning, I am going to tell you another story about the C.D.C. and its approach to Covid-19 behavioral guidelines. It’s a story that highlights the costs of extreme caution.
When Dr. Rochelle Walensky, the C.D.C. director, appeared before a Senate committee this month and defended the agency’s description of how often Covid-19 is transmitted outdoors, she cited a single academic study.
She was responding to a question from Senator Susan Collins of Maine, who had asked why some C.D.C. guidelines seemed inconsistent with the available data. Collins quoted from that day’s edition of this newsletter and argued that the C.D.C. was exaggerating the risk of outdoor activities by claiming that “less than 10 percent” of Covid transmission occurred outside.
Anything close to 10 percent would mean that outdoor infections were a huge problem. Yet the true share appears to be closer to 0.1 percent.
a study published in The Journal of Infectious Diseases. The study was “a meta-analysis,” she explained, which means it synthesized data from other studies. “The topline result of all studies that were included in the systematic review said less than 10 percent of cases were transmitted outdoors,” she said.
Her answer made the study sound definitive. Walensky did not mention any other studies or offer any logical argument for why she believed outdoor transmission was a significant risk. She implied that the C.D.C. was simply listening to The Journal of Infectious Diseases, which, as she noted, is a top journal.
Later that day, one of the study’s authors posted several messages on Twitter, and the story got more complicated.
‘An amazing resource’
The tweets came from Dr. Nooshin Razani, an epidemiologist at the University of California, San Francisco. In them, she emphasized that the study’s results suggested that the share of Covid occurring outdoors was “much lower than 10 percent.” The central message of the paper, Razani wrote, was the relative safety of the outdoors:
in her testimony, had used the two terms interchangeably.)
Singapore construction workers who probably transmitted it in enclosed spaces.)
The actual share occurring outdoors is “probably substantially less than 1 percent,” Razani told me. “The outdoors is an amazing resource,” she added. “What we really should be focused on is how to transition more activities to be outdoors.”
Masks for all campers
Yet the C.D.C.’s guidance continues to treat outdoor activities as a major risk — as if the truth were closer to 10 percent than 0.1 percent.
The agency advises unvaccinated people to wear masks outdoors much of the time, and many communities still impose strict guidelines on outdoor activities. The C.D.C. has also directed virtually everyone attending summer camp this year — counselor or camper, vaccinated or not — to wear a mask at almost all times. The camp guidelines use the word “universal.”
It’s true that for many people, masks are a minor nuisance. For others, though, masks bring real costs. Some children find it harder to breathe while wearing one during, say, a game of soccer or tag. Many adults and children find it more difficult to communicate. That’s especially true for people without perfect hearing and for young children, both of whom rely heavily on facial movements to understand others.
has written, is often “like talking on your phone in a zone with weak cell service.”
No free lunch
For unvaccinated adults indoors or in close conversation outdoors, the costs of a mask are vastly lower than the risks from Covid. But the trade-offs are different in most outdoor settings, and they are different for children. The Covid risks for children are similar to those from a normal flu (as these charts show).
There does not appear to be much scientific reason that campers and counselors, or most other people, should wear a mask outdoors all summer. Telling them to do so is an example of extreme caution — like staying out of the ocean to avoid sharks — that seems to have a greater cost than benefit.
The C.D.C., as I’ve written before, is an agency full of dedicated people trying their best to keep Americans healthy. Walensky, a widely admired infectious-diseases expert, is one of them. Yet more than once during this pandemic, C.D.C. officials have acted as if extreme caution has no downsides.
Everything has downsides. And it is the job of scientific experts and public-health officials to help the rest of us think clearly about the benefits and costs of our choices.
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baked feta pasta and dalgona coffee — as well as a new generation of cooking stars who are largely self-taught, preparing meals in their home kitchens.
Within 24 hours of posting his first TikTok in 2019, Eitan Bernath, now 19, had tens of thousands of followers. His upbeat and approachable food videos have since earned him over a million more, and he has three full-time employees, as well as a gig as a resident culinary expert on “The Drew Barrymore Show.”
Other up-and-coming food creators are making six figures through the app and sponsorships, often using TikTok fame to launch cookware lines, cookbooks and more.
Read Taylor Lorenz’s full story. — Sanam Yar, a Morning writer
Perhaps even worse, Ms. Cooper remarked early on that she’d never heard of Brian Lehrer, the beloved WNYC morning host whose gently probing, public-spirited interviews embody the station’s appeal, and that she didn’t “get” why he was popular. She has since come to the view that “Brian is the soul of the station and, in many ways, the city itself,” a WNYC spokeswoman, Jennifer Houlihan Roussel, said in an email.
In fact, Ms. Cooper’s mission was to jump-start the station’s lagging digital transformation, something she had done with unusual success in San Francisco and that requires a willingness to make enemies. She has ambitious plans to hire 15 to 20 more reporters — but first she had the near-impossible assignment of bringing together a group of traditional radio journalists, used to working for days and occasionally weeks on colorful local features, with the reporters at Gothamist, the scrappy local blog that WNYC bailed out in 2018. Ms. Cooper sought to professionalize Gothamist away from its bloggy and irreverent roots, telling reporters to be less openly hostile to the New York Police Department in their reporting, two reporters said. Ms. Roussel suggested that Ms. Cooper was trying to rein in Gothamist’s habit of adding “an element of editorializing to its coverage that can be interpreted as bias.”
And Ms. Cooper started pushing the radio journalists to pick up their pace and to file stories for the web. That seemed like a reasonable request, but it led to another stumble in early February, when an 18-year veteran of the radio side, Fred Mogul, filed a story with one paragraph printed in a different font. The editor realized it was Associated Press copy; Ms. Cooper promptly fired Mr. Mogul (who declined through his union to be interviewed) for plagiarism without a review of whether he’d ever done it before.
Ms. Cooper declined to speak to me about Mr. Mogul’s termination. But one thing I learned this week about public radio is that no matter what is happening, someone is always recording it. And that was true when Ms. Cooper called a virtual meeting Feb. 5 over Zoom to inform the full newsroom of her decision to fire Mr. Mogul. According to a copy of the recording provided to me by an attendee, Ms. Cooper told the staffers, “It’s totally OK to be sad.” But then several stunned radio reporters questioned the move, explaining that they regularly incorporated A.P. copy into stories on air and had imported the practice to WNYC’s little-read website, crediting The A.P. at the bottom of the story.
“Gothrough every single one of our articles and fire all of us, because that is exactly what we have all done,” one host, Rebeca Ibarra, told her.
On Feb. 10, more than 60 employees — including Mr. Lehrer — signed a letter asking Ms. Cooper to reconsider and calling the firing a “troubling precedent.”
The costume designer and wardrobe stylist Zerina Akers does not want people to think that her life is picture-perfect, even if she spends her time making sure that her clients are.
“I want to dispel the thought that it is glamorous,” she said of her days, which often include piecing together ensembles for her celebrity clientele, overseeing fittings and tending to her e-tail site. “Yeah, you’re dealing with beautiful things, but you also have to deal with all the luggage, getting all the looks right and running around. It’s a lot of hard work and heavy lifting.”
And, lately, she has been doing all of that on a wounded ankle. She’s mainly worn comfort shoes during the pandemic, but a pair of post-quarantine wedge heels led to her recent mishap. (“Who did I think I was?!” she said, while describing the stumble during a phone interview.)
Ms. Akers, 35, is the go-to stylist for Beyoncé Knowles-Carter — the iconic oversized black hat that the singer modeled in the 2016 “Formation” music video was her handiwork. She also compiled the wardrobe for Ms. Knowles-Carter’s opulent 2020 visual album, “Black Is King,” pulling designs from both established European fashion houses and independent designers from across the African diaspora.
Black Owned Everything, an e-commerce hub featuring a curated selection of apparel, accessories, beauty and décor products.
“Last summer, there was a huge surge in support of Black brands,” she said, describing widespread calls for inclusivity and representation that swelled after the protests against racism and police brutality. That led some people to ask a new question: How long would this last?
“Would it be something that’s going to stick around and really create change, or was it just a trend?” Ms. Akers said. “I felt it was important to not wait around and gauge the reaction of the fashion industry. We were able to create something that we own, and we’re going to keep it going,” she said of the website, which features about three dozen brands.
Ms. Akers, a Maryland native who is based in Van Nuys, Calif., has also been designing clothing recently, a throwback to her teenage years spent creating garments for school fashion shows. Some of her work — a color-blocked dress, a chain-trim bodysuit, a trench jumpsuit — is featured in a capsule collection of separates for Bar III, the private label from Macy’s.
We spoke with her in early May, as she mulled over ideas for revamping the Black Owned Everything site and sorted through wardrobe items intended for the Colombian reggaeton artist Karol G and Chloe Bailey of the R&B duo Chloe x Halle.
Interviews are conducted by email, text and phone, then condensed and edited.
Brandice Daniel, the founder and chief executive of Harlem’s Fashion Row, as part of their annual Designer Retreat. We’re on with the accessories designer Brandon Blackwood, talking about our career paths and giving advice to young people on how to make it in fashion. I talk about the importance of being in good financial standing and doing what you love without prioritizing being “internet famous.”
3:30 p.m. My assistant, Christian Barberena, arrives at my house and we chill in the backyard, going over our next two weeks of work and divvying up tasks. Usually, my team handles internet shopping and sourcing items in stores. Then, I’ll primarily handle things that are being custom-made by designers.
5:45 p.m. I realize I’m about 15 minutes late for a Netflix virtual screening event for “Halston,” and Chris and I tune in to watch. It’s a must-see. Based on what I’ve read about him, it was well-cast — and it’s visually quite stunning.
Today in Business
8 a.m. I awake with a bit of anxiety, because I’ve been trying to figure out how to seamlessly do some construction on the Black Owned Everything site without alarming our followers. I want it to have much more storytelling, engage more Black photographers and graphic designers, and make it more than just a generic e-commerce space. I also have to find an entry-level social media manager to help make the Instagram account more robust while the site is down.
The Rooftop by JG with Liza Vassell, the founder of Brooklyn PR. We’re both late but make it just in time to not lose our table. It’s our first time connecting outside of work and we spent an hour and a half stuffing our faces, discussing our experiences being Black women making our own way, and investing in and supporting each other.
6:30p.m. Today was one of those weird days — productive, yet somehow I was left feeling like I didn’t quite do enough. I start checking out mentally by watching trash TV.
8:30 a.m. My makeup artist, Leah Darcy Pike, arrives to help me get ready for a portrait for this column. I decided to throw on an aqua blue look from my Macy’s collection.
1:17 p.m. I call my product development consultant and deliver the good news that I love our new Black Owned Everything candle sample. It’s kind of woody and sort of like patchouli, with these other weird notes. We also discuss possible product ideas we could launch for Juneteenth, like a summer travel kit.
2:05 p.m. I open my garage in an attempt to organize it, then close it back. It’s filled with jewelry, clothes from past photo shoots, my personal wardrobe overflow, B.O.E. stuff … it’s gotten a little crazy.
3 p.m. It’s Chris’s birthday, so I run out and grab a cake from Sweet Lady Jane and we indulge for just a moment.
4:15 p.m. I go to a mall in Sherman Oaks to pick up monochromatic sneakers for my weekend shoot with Karol G. I love color-blocking, particularly red shoes and red bags.
Sally Hemings. I’m currently obsessed with the narratives of slaves. The varied experiences never cease to amaze me. I keep them etched in my brain as a reminder of how resilient we really are as a people.
8:33 a.m. I’m cracking open the week’s packages one by one. There are 20 to 30 — a combination of gifts, things from Black-owned businesses that they want us to review, and some celeb stuff. For the most part, I try to have some stuff go to my office, but since we’re blurring lines with the pandemic, I’ve just been having it come straight to one place.
10:45 a.m. Head out to meet Chris so we can set up a rack for Karol G before heading into a fitting. The first thing I usually try to do with fittings is see what makes the client’s face light up, then I’ll start with those things that they’re most excited about. Typically, the trickiest part is the alterations because you want to make sure they hold up and last, but not damage the garment. On this day, everything went smoothly.
5:33 p.m. After grabbing a bowl of fried tofu with veggies and grits at Souley Vegan, I head to my office to work on a new project with Chris. We’re trying to start a virtual reality character for the site. She’ll be dressed in the Black-owned brands and you can follow her day-to-day.
8 p.m. We realize we should probably stop working and head home to pack for a shoot in San Francisco. When I fly, I have to have my travel blanket (right now, it’s Burberry), my memory foam neck pillow and a sleep mask — I can never stay awake on a plane, even if it’s just an hourlong flight.
The Australia Letter is a weekly newsletter from our Australia bureau. Sign up to get it by email.
Over the past four years, ever since we opened the Australia bureau, I’ve often been impressed with the thoughtfulness and global savvy of our regular readers. This newsletter has always drawn together a far-flung community of Australians and those who love them.
But after Besha Rodell wrote in last week’s letter about Australia’s decision to keep its international borders closed until the middle of 2022, the floodgates opened in a way I’ve rarely seen. Her heartfelt account was well read the world over, and when we asked for your take on the travel ban, we received hundreds of replies from all over the world.
Though the opinions varied, and there was some support for restricting travel, most of what we received expressed a mix of disappointment, frustration and confusion.
Yan Zhuang wrote about these feelings in a news article this week, but even that may not be enough to capture the volume of emotion. So we decided to share a few more responses below (they’ve been edited for brevity and clarity).
Thank you to everyone who contributed — and we hope you get to see your loved ones soon.
I’m like thousands of expats from all over the world; we are grief-stricken, confused, and completely exasperated by the government’s lack of communication, unwillingness to commit to metrics or a timetable, and lack of empathy. There seems to be almost no capacity for nuance, no willingness to consider the many points on the spectrum between hard closure and flinging the gates wide open, and a seeming inability to distinguish between travel for pleasure or holidaying and family reunification, vaccinated versus unvaccinated travel, and any way forward for Australia other than ‘zero cases at any cost.’
— Monica Elith
We are U.S. citizens who would typically travel once or twice a year to Perth to visit our daughter, who is a dual citizen of the U.S. and Australia. We are both in our 70s, fully vaccinated, and cannot understand why parents do not fall within the Australian definition of “immediate family” for exceptions from the travel limitations. Our son and his fiancé are planning their wedding, postponed from 2020, for April 2022. Will our daughter not be able to travel to the US to be in her only sibling’s wedding? Can a reasonable risk-based approach be considered by the Australian government for resuming international travel sooner?
— Paul Hamer
We moved to San Francisco and then to New York from Geelong/Melbourne seven years ago to pursue careers in tech and the arts. Our oldest is almost 4 and our youngest is almost 1. We have no family here. Our entire family live in Geelong/Melbourne and Canberra.
I cried reading your article, but as with so many things this past year I steeled myself against another setback. We had thought my parents might visit in October, then we might fly back together and quarantine with their help with the kiddos, maybe see my sister, her family and my darling nephew.
Now, that seems so naïve! The idea that my son will be 2 before he meets his grandparents and aunt is one of those thoughts I can’t dwell on.
— Olivia Jones
I moved here last year from the U.S. with my Australian husband (and dual citizen children), and while of course we’re extremely grateful for the normalcy here, it seems ludicrous to imagine we can freeze the country under glass for years. We feel a bit, well, trapped in paradise. I hope the government soon puts a higher priority on figuring out how to safely open its borders instead of acting like we can wall ourselves off from the world indefinitely.
— Arwen Griffith
My only son chooses to live in New York. I am quadriplegic and miss his company but we can FaceTime as often as we like or even, perish the thought, engage in meaningful correspondence — where is the hardship compared to the greater good?
— Ron Irish
My two grandsons live in Sydney, they are almost 5 and 2. Oh the hugs we have missed. I know that many people missed hugs during the pandemic but once they were vaccinated they got their hugs. Will Australia open up in 2022 like they say or will the pandemic continue for years to come? Will I be around to hug my grandchildren again? I had tucked my feelings somewhere deep inside me knowing that it is what it is and I can’t do anything about it but I saw myself in Besha Rodell’s article and it brought me to tears.
— Elizabeth Gundlach
This travel ban has ruined my life! I haven’t seen my fiancé in 16 months. For the past year I have lived every day depressed, angry, hopeless, irritated, lonely and confused. I feel completely abandoned by my country, the people who are completely OK with the travel ban and just see the tens of thousands of Australians suffering as a necessary sacrifice.
The level at which the Australian government has taken people like me, and our concerns, seriously is near nil. Most of us have just become accustomed to the fact that our lives will not change in the foreseeable future, that there are dozens, if not hundreds, of days just like this one waiting for us. We carry on like ghosts, our lives on hold, waiting to be with our loved ones, our children, our parents — many with few years left; we wait to be normal again.
I want to end this week by showing you two Covid-19 charts. They contain the same message: The pandemic is in retreat.
received at least one vaccine shot, and the share is growing by about two percentage points per week. Among unvaccinated people, a substantial number have already had Covid and therefore have some natural immunity. “The virus is running out of places to be communicable,” Andy Slavitt, one of President Biden’s top Covid advisers, told me.
noted. For the first time since March 5 of last year, San Francisco General Hospital yesterday had no Covid patients — “a truly momentous day,” Dr. Vivek Jain said.
There are still important caveats. Covid remains especially dangerous in communities with low vaccination rates, as Slavitt noted, including much of the Southeast; these communities may suffer through future outbreaks. And about 600 Americans continue to die from the disease every day.
But the sharp decline in cases over the past month virtually guarantees that deaths will fall over the next month. The pandemic appears to be in an exponential-decay phase, as this helpful Times essay by Zoë McLaren explains. “Every case of Covid-19 that is prevented cuts off transmission chains, which prevents many more cases down the line,” she writes.
This isn’t merely a theoretical prediction. In Britain, one of the few countries to have given a shot to a greater share of the population than the U.S., deaths are down more than 99 percent from their peak.
down 23 percent from their peak in late April. In India, caseloads have been falling rapidly for almost two weeks.
The rising number of vaccinations also helps; it has exceeded 1.5 billion, which means that more than 10 percent of the world’s population — and maybe closer to 15 percent — has received at least one shot. (A new outlier: Mongolia has secured enough shots to vaccinate all of its adults, thanks to deals with neighboring Russia and China.) Natural immunity, from past infections, may also be slowing the spread in many places, and the virus’s seasonal cycles may play a role, too.
Most countries remain more vulnerable than the U.S. because of their lower vaccination rates. In Africa, a tiny share of people have received a shot, and the numbers are only modestly higher in much of Latin America, the Middle East and Southeast Asia.
The vaccines are how this pandemic ends. That point is coming nearer in the United States and a few other affluent countries, but it remains distant in much of the world. Accelerating the global manufacturing and distribution of vaccines is the only sure way to avoid many more preventable deaths this year. (The Times editorial board, The Economist and National Review have each recently laid out arguments for how to do so.)
“Unless vaccine supplies reach poorer countries, the tragic scenes now unfolding in India risk being repeated elsewhere,” The Economist’s editors wrote. “Millions more will die.”
More on the virus:
Some Americans are struggling to make sense of — and pay — exorbitant and confusing bills, The Times’s Sarah Kliff reports.
A data idea, from Matthew Springer of the University of California, San Francisco: States should report Covid deaths and hospitalizations by vaccination status to highlight the value of the shots.
Virus resources: Look up the pace of vaccinations in your state.
THE LATEST NEWS
disqualified Belarus over lyrics that seemed to endorse a crackdown on antigovernment protests. In 2009, Georgia withdrew over a song about Vladimir Putin.
The Netherlands, which won the contest in 2019, is hosting the event tomorrow in an arena that will allow 3,500 audience members. Many of this year’s contestants qualified for Eurovision last year, though the show was canceled. While they’re getting another chance at performing this year, they’re singing different songs than they had planned in 2020.
The Guardian has a roundup of this year’s entries, including Ukrainian folk-techno and an Azerbaijani ode to a wartime spy. — Claire Moses, a Morning writer
PLAY, WATCH, EAT
What to Cook
tender chicken skewers with tarragon and yogurt.
What to Read
The former N.B.A. star Chris Bosh recommends some of his favorite basketball books. Kobe Bryant makes the list.
What to Listen to
Climbing the world’s tallest mountains without reaching the top and more stories read aloud by the Times journalists who wrote them.
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