Tax Talks Raise Bar for Richest Americans

By most measures, the personal finances of Anne Zimmerman, a small-business owner in Cincinnati, have little in common with those of Oracle’s chief executive, Lawrence J. Ellison.

Ms. Zimmerman runs an accounting business and a cloud-based Internet service company with combined annual profit of $250,000 to $500,000 in recent years. Mr. Ellison made nearly $15 million in salary, bonuses and perks in 2011, even without the $62 million he received in stock options from Oracle.

In the deficit reduction debate now consuming Washington, however, both Mr. Ellison and Ms. Zimmerman are grouped in the same, sprawling category: wealthy Americans targeted for tax increases.

President Obama has focused efforts on raising revenue from the wealthiest 2 percent of taxpayers — individuals earning more than $200,000 a year and families with adjusted gross incomes above $250,000 — calling them “millionaires and billionaires who can afford to pay a little more.” Republicans have thus far resisted those efforts, countering that the high earners are job creators and that increasing their taxes would discourage hiring.

But for all the broad brush rhetoric of political debate, the rate increases and limits on deductions now being discussed by the president and Congressional Republicans are calibrated to take the biggest bite out of the highest earners. They would lead to a smaller increase for those who earn less than $500,000 a year. The figures are all adjusted gross incomes, and since some deductions would be preserved, a household would probably have more than $250,000 in total income, perhaps $300,000, before it would fall into the wealthy definition used by the president.

If all Mr. Obama’s tax proposals for wealthy Americans were enacted, they would raise $1.6 trillion over the next decade. And an analysis by the Tax Policy Center, a nonpartisan research firm, found that the increases would be heavily weighted toward the wealthiest. Taxpayers with adjusted gross incomes over $1 million would see average increases of $184,504, the study found, with higher taxes on the ultrawealthy bloating that average. Those with adjusted gross incomes from $200,000 to $500,000 would face a tax increase averaging $4,446, with people toward the lower end having only a modest increase and people on the higher end paying several times more.

A married couple with two children earning $300,000 would see its effective tax rate increase to 21.1 percent from 16.5 percent, according to an analysis by the Tax Policy Center. A married couple with two children earning $2 million would see its effective federal income tax rate rise to 26.8 percent from 21.6 percent.

To Ms. Zimmerman, the Cincinnati businesswoman, that amount sounds reasonable.

“I’m not going to change my business decision-making process based on a few percentage points of tax increases,” she said. “If it helps get the country on a better path, well, we’re all in this together.”

But some conservatives and business advocates warn that the proposed increases could stall the sluggish economic recovery.

“There is a price that comes with these tax increases on the very wealthiest because that is where the capital is concentrated,” said William McBride, chief economist at the Tax Foundation, a conservative research firm. “That price is economic growth and hiring.”

About four million of the 114 million American households face a possible tax increase. And while they are a narrow slice of the overall population, they are nonetheless a swath of well-to-do Americans so varied that they defy easy categorization. Census data indicates that they cut across a broad range of occupations: doctors, auto dealers and dilettantes, professional athletes and financial planners, family farmers, entrepreneurs, two-income couples, corporate executives and hedge fund managers.

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Which Tablet to Buy Among Dozens Confuses Shoppers

Holiday shoppers with a tablet computer on their gift list this year might be forgiven for feeling a little panicked.

Look at the tablets available online or at a consumer electronics store and it can be dizzying to choose from among the dozens of slim rectangles with touch screens — each with various sizes, features, prices and applications.

Tablets were supposed to be a simple alternative to the bloated personal computer market. And when “tablet” was synonymous with “iPad,” that was true.

But this is the first holiday season in which the iPad faces competitors that have built up a solid footing in the market. Amazon and Google introduced tablets just in time for the shopping rush. As a result, many consumers and analysts say, the new market of keyboardless computers is quickly becoming as confusing as that of the old-school PC.

“What’s different about this holiday season is that consumers have not just more choice, but really good choices,” said Sarah Rotman Epps, who studies consumer computing trends at Forrester. “There have been many iPad wannabes but no real quality alternatives, and now there are several.”

While choice is a good thing for consumers, she said, it also makes shopping “confusing and complicated.”

For the companies that make tablets, the choice means everything. The stakes are much higher than the sale of individual devices. Each company is trying to snag lifelong customers for their other products — like music, apps, e-books, movies, Web search or word-processing software.

While Apple has dominated the market until now, selling more tablets than any other company, its perch is being threatened by the newcomers.

“Apple left a lot of room for rivals to grow,” said Tero Kuittinen, an independent mobile analyst.

By keeping its tablet prices so high, he said, Apple could lose its place as the biggest tablet seller, just as it did with smartphones when it lost the first-place position to Samsung, which makes less expensive phones using Google’s Android software. The iPad still dominates the market with a 50 percent share, according to third-quarter figures from the research firm IDC, but that is down from 60 percent a year ago. Samsung is in second place with an 18 percent share, Amazon is third with 9 percent, and Asus, which makes Google’s Nexus 7 tablet, is in fourth with 8.6 percent of the market.

But Google, which makes the vast majority of its revenue on Web ads, still lags in the tablet market, even though sales of its Nexus 7 tablet are approaching one million a month, according to Asus. About 98 percent of Web traffic from tablets comes from iPads, according to Onswipe, a digital publishing company. Google would like more of that traffic, as well as more buyers for apps and media from its Google Play store, as would Amazon and Microsoft.

“The first decision you make is what ecosystem am I in, do I want the Android Play store and content or some other?” said Hiroshi Lockheimer, Google’s vice president for engineering for Android. “So the importance of the ecosystem can’t be overstated.”

But the decisions after that are still complex.

Say, for example, that you want a tablet that runs Google’s Android operating system. There is the Nexus 7, a seven-inch tablet made by Asus, and the Nexus 10, a 10-inch tablet made by Samsung. Then there are the Samsung Galaxy Tab 2 10.1 and the Samsung Galaxy Note 10.1 (not to be confused with the Samsung Galaxy Note 2, a 5.5-inch smartphone). And that’s not to mention the dozens of Android tablets made by Lenovo, Toshiba and others.

This year, Microsoft also has a tablet, called Surface. Amazon has the Kindle Fire and Fire HD, and Barnes & Noble has the Nook HD and HD+. Once shoppers choose one, they have more choices to make, like whether they want to pay $15 more for the privilege of not seeing ads on the Kindle Fire.

Even Apple, which has always prided itself on having simple product lines, now offers the new iPad, the older iPad 2 and the iPad Mini. If you factor in the various amounts of storage and the choice of cellular data or just Wi-Fi, there are essentially 14 iPad models to choose from.

Complicating the decision on hardware, different tablets connect to different online stores for apps, music and video. If you have built your music and app collection on Apple devices, an Android tablet may mean starting from scratch, and vice versa.

The proliferation of products is nothing new for a mature market, as anyone who has stood in front of a wall of televisions at Best Buy or in a parking lot of Priuses at a Toyota dealership knows.

But some consumer electronics companies that have given their customers too many options have run into trouble, said Shaw Wu, an analyst at Sterne Agee. They include Motorola Mobility, which is trying to rescue its cellphone business by paring its lineup of 27 devices, and Research in Motion, which offers a perplexing matrix of BlackBerrys with confusing names, like the BlackBerry Torch 9810, 9850 and 9860.

Google in particular runs this risk, said Michael Gartenberg, a technology analyst at Gartner, because it gives away its Android operating system to any device manufacturer that wants to use it, resulting in an uncontrolled array of Android devices running different versions of the software. Some apps will work only with particular versions, making it difficult to know exactly what you are getting.

Google has tried to address this problem in recent months. It gave its line of Nexus products names corresponding to their screen size and began selling them in its Play store. (Google teams up with manufacturers to build the Nexus devices.) It began running ads for the tablets online, on billboards, in print and on television, which had been rare for the company, and assigned a public relations employee to focus on selling hardware to consumers.

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Teenage Boys, Worried About Body Image, Take Health Risks

Béatrice de Géa for The New York Times

David Abusheikh at a gym in Brooklyn. He goes six days a week and says he uses protein supplements to help build muscle.

It is not just girls these days who are consumed by an unattainable body image.

Take David Abusheikh. At age 15, he started lifting weights for two hours a day, six days a week. Now that he is a senior at Fort Hamilton High School in Brooklyn, he has been adding protein bars and shakes to his diet to put on muscle without gaining fat.

“I didn’t used to be into supplements,” said Mr. Abusheikh, 18, who plans on a career in engineering, “but I wanted something that would help me get bigger a little faster.”

Pediatricians are starting to sound alarm bells about boys who take unhealthy measures to try to achieve Charles Atlas bodies that only genetics can truly confer. Whether it is long hours in the gym, allowances blown on expensive supplements or even risky experiments with illegal steroids, the price American boys are willing to pay for the perfect body appears to be on the rise.

In a study to be published on Monday in the journal Pediatrics, more than 40 percent of boys in middle school and high school said they regularly exercised with the goal of increasing muscle mass. Thirty-eight percent said they used protein supplements, and nearly 6 percent said they had experimented with steroids.

Over all, 90 percent of the 2,800 boys in the survey — who lived in the Minneapolis-St. Paul area, but typify what doctors say is a national phenomenon — said they exercised at least occasionally to add muscle.

“There has been a striking change in attitudes toward male body image in the last 30 years,” said Dr. Harrison Pope, a psychiatry professor at Harvard who studies bodybuilding culture and was not involved in the study. The portrayal of men as fat-free and chiseled “is dramatically more prevalent in society then it was a generation ago,” he said.

While college-age men have long been interested in bodybuilding, pediatricians say they have been surprised to find that now even middle school boys are so absorbed with building muscles. And their youth adds an element of risk.

Just as girls who count every calorie in an effort to be thin may do themselves more harm than good, boys who chase an illusory image of manhood may end up stunting their development, doctors say, particularly when they turn to supplements — or, worse, steroids — to supercharge their results.

“The problem with supplements is they’re not regulated like drugs, so it’s very hard to know what’s in them,” said Dr. Shalender Bhasin, a professor of medicine at Boston Medical Center. Some contain anabolic steroids, and even high-quality protein supplements might be dangerous in large amounts, or if taken to replace meals, he said. “These things just haven’t been studied very well,” he said.

Anabolic steroids pose a special danger to developing bodies, Dr. Bhasin said. Steroids “stop testosterone production in men,” he said, leading to terrible withdrawal problems when still-growing boys try to stop taking them. Still, the constant association of steroids with elite athletes like Lance Armstrong and Barry Bonds perpetuates the notion that they can be managed successfully.

Online, in bodybuilding forums for teenagers, boys barely out of puberty share weight-lifting regimens and body fat percentages, and judge one another’s progress. On Tumblr and Facebook, teenagers post images of ripped athletes under the heading “fitspo” or “fitspiraton,” which are short for “fitness inspiration.” The tags are spinoffs of “thinspo” and “thinspiration” pictures and videos, which have been banned from many sites for promoting anorexia.

“Lifted b4 school today felt good but was weak as hell,” wrote one boy who said he was 15 and from Tallahassee, Fla., on a message board on Bodybuilding.com in September, saying he bench-pressed 245 pounds. “Barely got it.”

Many of these boys probably see themselves in Mike Sorrentino, “The Situation” from the “Jersey Shore” series on MTV, or the Adam Sackler character, on the HBO series “Girls,” who rarely wears a shirt or takes a break from his crunches.

Mr. Abusheikh, for instance, has a Facebook page full of photos of himself shirtless or showing off his six-pack abs. At his high school, participation in the annual bodybuilding competition hit an all-time high of 30 students this year.

“They ask us about everything,” said Peter Rivera, a physical education teacher at Fort Hamilton High School who helps oversee the competition. “How do I lose weight? How do I gain muscle? How many times a week should I work out?” Some boys want to be stronger for sports, Mr. Rivera said, but others “want to change their body type.”

Compared with a sedentary lifestyle of video games and TV, an obsession with working out may not quite qualify as a health hazard. And instructors like Mr. Rivera say most boys are eager for advice on the healthiest, drug-free ways to get in shape.

With so little known about supplements, it can be difficult, particularly for teenagers, to make wise decisions.

Read More..

Teenage Boys, Worried About Body Image, Take Health Risks

Béatrice de Géa for The New York Times

David Abusheikh at a gym in Brooklyn. He goes six days a week and says he uses protein supplements to help build muscle.

It is not just girls these days who are consumed by an unattainable body image.

Take David Abusheikh. At age 15, he started lifting weights for two hours a day, six days a week. Now that he is a senior at Fort Hamilton High School in Brooklyn, he has been adding protein bars and shakes to his diet to put on muscle without gaining fat.

“I didn’t used to be into supplements,” said Mr. Abusheikh, 18, who plans on a career in engineering, “but I wanted something that would help me get bigger a little faster.”

Pediatricians are starting to sound alarm bells about boys who take unhealthy measures to try to achieve Charles Atlas bodies that only genetics can truly confer. Whether it is long hours in the gym, allowances blown on expensive supplements or even risky experiments with illegal steroids, the price American boys are willing to pay for the perfect body appears to be on the rise.

In a study to be published on Monday in the journal Pediatrics, more than 40 percent of boys in middle school and high school said they regularly exercised with the goal of increasing muscle mass. Thirty-eight percent said they used protein supplements, and nearly 6 percent said they had experimented with steroids.

Over all, 90 percent of the 2,800 boys in the survey — who lived in the Minneapolis-St. Paul area, but typify what doctors say is a national phenomenon — said they exercised at least occasionally to add muscle.

“There has been a striking change in attitudes toward male body image in the last 30 years,” said Dr. Harrison Pope, a psychiatry professor at Harvard who studies bodybuilding culture and was not involved in the study. The portrayal of men as fat-free and chiseled “is dramatically more prevalent in society then it was a generation ago,” he said.

While college-age men have long been interested in bodybuilding, pediatricians say they have been surprised to find that now even middle school boys are so absorbed with building muscles. And their youth adds an element of risk.

Just as girls who count every calorie in an effort to be thin may do themselves more harm than good, boys who chase an illusory image of manhood may end up stunting their development, doctors say, particularly when they turn to supplements — or, worse, steroids — to supercharge their results.

“The problem with supplements is they’re not regulated like drugs, so it’s very hard to know what’s in them,” said Dr. Shalender Bhasin, a professor of medicine at Boston Medical Center. Some contain anabolic steroids, and even high-quality protein supplements might be dangerous in large amounts, or if taken to replace meals, he said. “These things just haven’t been studied very well,” he said.

Anabolic steroids pose a special danger to developing bodies, Dr. Bhasin said. Steroids “stop testosterone production in men,” he said, leading to terrible withdrawal problems when still-growing boys try to stop taking them. Still, the constant association of steroids with elite athletes like Lance Armstrong and Barry Bonds perpetuates the notion that they can be managed successfully.

Online, in bodybuilding forums for teenagers, boys barely out of puberty share weight-lifting regimens and body fat percentages, and judge one another’s progress. On Tumblr and Facebook, teenagers post images of ripped athletes under the heading “fitspo” or “fitspiraton,” which are short for “fitness inspiration.” The tags are spinoffs of “thinspo” and “thinspiration” pictures and videos, which have been banned from many sites for promoting anorexia.

“Lifted b4 school today felt good but was weak as hell,” wrote one boy who said he was 15 and from Tallahassee, Fla., on a message board on Bodybuilding.com in September, saying he bench-pressed 245 pounds. “Barely got it.”

Many of these boys probably see themselves in Mike Sorrentino, “The Situation” from the “Jersey Shore” series on MTV, or the Adam Sackler character, on the HBO series “Girls,” who rarely wears a shirt or takes a break from his crunches.

Mr. Abusheikh, for instance, has a Facebook page full of photos of himself shirtless or showing off his six-pack abs. At his high school, participation in the annual bodybuilding competition hit an all-time high of 30 students this year.

“They ask us about everything,” said Peter Rivera, a physical education teacher at Fort Hamilton High School who helps oversee the competition. “How do I lose weight? How do I gain muscle? How many times a week should I work out?” Some boys want to be stronger for sports, Mr. Rivera said, but others “want to change their body type.”

Compared with a sedentary lifestyle of video games and TV, an obsession with working out may not quite qualify as a health hazard. And instructors like Mr. Rivera say most boys are eager for advice on the healthiest, drug-free ways to get in shape.

With so little known about supplements, it can be difficult, particularly for teenagers, to make wise decisions.

Read More..

Israel Warns of ‘Expansion’ as Attack Widens to Media Sites

Mohammed Saber/European Pressphoto Agency

Two children look through the rubble of their house after an airstrike in Beit Lahiya, Gaza, on Sunday.

GAZA CITY — Israel pressed its assault on the Gaza Strip for a fifth day on Sunday, deploying warplanes and naval vessels to pummel the coastal enclave and striking at two media offices here as Prime Minister Benjamin Netanyahu warned of a possible “significant” expansion in the onslaught and President Obama defended Israel’s right to protect itself.

Speaking in Bangkok, Mr. Obama said Israel was within its rights to respond to an attack on its territory.

“There’s no country on earth that would tolerate missiles raining down on its citizens from outside its borders,” Mr. Obama said in his first public comments since the violence broke out. “We are fully supportive of Israel’s right to defend itself.”

The president also said that efforts were under way to address Israel’s security concerns and end the violence. “We’re going to have to see what kind of progress we can make in the next 24, 36, 48 hours,” Mr. Obama said.

Even as the diplomacy intensified on Sunday, the attacks continued in Gaza and Israel.

Mr. Netanyahu’s warning came as militants in Gaza aimed at least one rocket at the Israeli heartland in Tel Aviv, one day after Israeli forces broadened the attack beyond military targets, bombing centers of government infrastructure including the four-story headquarters of the Hamas prime minister.

“We are exacting a heavy price from Hamas and the terrorist organizations and the Israel Defense Forces are prepared for a significant expansion of the operation,” Mr. Netanyahu told his cabinet at its routine Sunday meeting, referring directly to the call-up of thousands of reservists that, coupled with a massing of armor on the Gaza border, many analysts have interpreted as preparations for a possible invasion.

“I appreciate the rapid and impressive mobilization of the reservists who have come from all over the country and turned out for the mission at hand,” Mr. Netanyahu said. “Reservist and conscript soldiers are ready for any order they might receive.”

His remarks were reported shortly after a battery of Israel’s “Iron Dome” defense shield, hastily deployed near Tel Aviv on Saturday in response to the threat of longer-range rockets, intercepted at least one projectile aimed at the city on Sunday, Israeli officials said. The episode was the latest of several salvos that have illustrated Hamas’s ability to extend the reach of its rocket attacks.

Since Wednesday, when the latest escalation of the conflict began, Iron Dome has knocked 245 rockets out of the sky, the military said on Saturday, while 500 have struck Israel.

The American-financed system is designed to intercept only rockets streaking toward towns and cities and to ignore those likely to strike open ground. But on Sunday a rocket fired from Gaza plowed through the roof of an apartment building in the southern Israeli city of Ashkelon. There were no immediate reports of casualties there.

In Gaza City, the crash of explosions pierced the quiet several times throughout the early morning.

Hamas health officials said the Palestinian death toll rose to 53 by early Sunday afternoon, the latest victim a 52-year-old woman whose house in the eastern part of Gaza City was bombed around lunchtime.

A few hours earlier, a Hamas militant was killed and seven people were wounded in an attack on the Beach Refugee Camp, where Ismail Haniyeh, the Hamas prime minister, has a home. Those killed on Sunday included 3 children aged between one and 5, the health officials said.

In Israel, 3 civilians have died and 63 have been injured. Four soldiers were also wounded on Saturday.

The onslaught continued despite talks in Cairo that Egyptian President Mohamed Morsi said Saturday night he thought could soon result in a cease-fire. Prime Minister Netanyahu said he would consider a comprehensive cease-fire if the launches from Gaza stop.

Saturday’s attack on Mr. Haniyeh’s office, one of several on government installations, came a day after he hosted his Egyptian counterpart in the same building, a sign of Hamas’s new legitimacy in a radically redrawn Arab world.

That stature was underscored Saturday by a visit to Gaza from the Tunisian foreign minister and the rapid convergence in Cairo of two Hamas allies, the prime minister of Turkey and the crown prince of Qatar, for talks with the Egyptian president and the chairman of Hamas on a possible cease-fire.

A delegation of Arab ministers plans to visit Gaza on Tuesday, Reuters reported, while Ban Ki-moon, the United Nations Secretary General, is expected in Cairo on Monday.

But Mark Regev, a spokesman for Mr. Netanyahu, denied reports on Saturday that a truce was imminent.

President Obama said Sunday that he had spoken several times with Mr. Netanyahu in Israel, Mr. Morsi in Egypt and Prime Minister Recep Tayyip Erdogan of Turkey in hopes of finding a way to address Israel’s security concerns without ramping up military operations further.

“We are actively working with all the parties in the region to see if we can end those missiles being fired without further escalation of violence in the region,” he said.

Jodi Rudoren reported from Gaza City, Isabel Kershner from Jerusalem and Alan Cowell from London. Reporting was contributed by Fares Akram and Tyler Hicks from the Gaza Strip, Carol Sutherland and Iritz Pazner Garshowitz from Jerusalem, Peter Baker in Bangkok, and David D. Kirkpatrick and Mayy El Sheikh from Cairo.

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The iEconomy: As Boom Lures App Creators, Tough Part Is Making a Living

Béatrice de Géa for The New York Times

Ethan Nicholas has made more than $1 million on an artillery game.

ROSEDALE, Md. — Shawn and Stephanie Grimes spent much of the last two years pursuing their dream of doing research and development for Apple, the world’s most successful corporation.

But they did not actually have jobs at Apple. It was freelance work that came with nothing in the way of a regular income, health insurance or retirement plan. Instead, the Grimeses tried to prepare by willingly, even eagerly, throwing overboard just about everything they could.

They sold one of their cars, gave some possessions to relatives and sold others in a yard sale, rented out their six-bedroom house and stayed with family for a while. They even cashed in Mr. Grimes’s 401(k).

“We didn’t lose any sleep over it,” said Mr. Grimes, 32. “I’ll retire when I die.”

The couple’s chosen field is so new it did not even exist a few years ago: writing software applications for mobile devices like the iPhone or iPad. Even as unemployment remained stubbornly high and the economy struggled to emerge from the recession’s shadow, the ranks of computer software engineers, including app writers, increased nearly 8 percent in 2010 to more than a million, according to the latest available government data for that category. These software engineers now outnumber farmers and have almost caught up with lawyers.

Much as the Web set off the dot-com boom 15 years ago, apps have inspired a new class of entrepreneurs. These innovators have turned cellphones and tablets into tools for discovering, organizing and controlling the world, spawning a multibillion-dollar industry virtually overnight. The iPhone and iPad have about 700,000 apps, from Instagram to Angry Birds.

Yet with the American economy yielding few good opportunities in recent years, there is debate about how real, and lasting, the rise in app employment might be.

Despite the rumors of hordes of hip programmers starting million-dollar businesses from their kitchen tables, only a small minority of developers actually make a living by creating their own apps, according to surveys and experts. The Grimeses began their venture with high hopes, but their apps, most of them for toddlers, did not come quickly enough or sell fast enough.

And programming is not a skill that just anyone can learn. While people already employed in tech jobs have added app writing to their résumés, the profession offers few options to most unemployed, underemployed and discouraged workers.

One success story is Ethan Nicholas, who earned more than $1 million in 2009 after writing a game for the iPhone. But he says the app writing world has experienced tectonic shifts since then.

“Can someone drop everything and start writing apps? Sure,” said Mr. Nicholas, 34, who quit his job to write apps after iShoot, an artillery game, became a sensation. “Can they start writing good apps? Not often, no. I got lucky with iShoot, because back then a decent app could still be successful. But competition is fierce nowadays, and decent isn’t good enough.”

The boom in apps comes as economists are debating the changing nature of work, which technology is reshaping at an accelerating speed. The upheaval, in some ways echoing the mechanization of agriculture a century ago, began its latest turbulent phase with the migration of tech manufacturing to places like China. Now service and even white-collar jobs, like file clerks and data entry specialists or office support staff and mechanical drafters, are disappearing.

“Technology is always destroying jobs and always creating jobs, but in recent years the destruction has been happening faster than the creation,” said Erik Brynjolfsson, an economist and director of the M.I.T. Center for Digital Business.

Still, the digital transition is creating enormous wealth and opportunity. Four of the most valuable American companies — Apple, Google, Microsoft and I.B.M. — are rooted in technology. And it was Apple, more than any other company, that set off the app revolution with the iPhone and iPad. Since Apple unleashed the world’s freelance coders to build applications four years ago, it has paid them more than $6.5 billion in royalties.

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

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The iEconomy: As Boom Lures App Creators, Tough Part Is Making a Living

Béatrice de Géa for The New York Times

Ethan Nicholas has made more than $1 million on an artillery game.

ROSEDALE, Md. — Shawn and Stephanie Grimes spent much of the last two years pursuing their dream of doing research and development for Apple, the world’s most successful corporation.

But they did not actually have jobs at Apple. It was freelance work that came with nothing in the way of a regular income, health insurance or retirement plan. Instead, the Grimeses tried to prepare by willingly, even eagerly, throwing overboard just about everything they could.

They sold one of their cars, gave some possessions to relatives and sold others in a yard sale, rented out their six-bedroom house and stayed with family for a while. They even cashed in Mr. Grimes’s 401(k).

“We didn’t lose any sleep over it,” said Mr. Grimes, 32. “I’ll retire when I die.”

The couple’s chosen field is so new it did not even exist a few years ago: writing software applications for mobile devices like the iPhone or iPad. Even as unemployment remained stubbornly high and the economy struggled to emerge from the recession’s shadow, the ranks of computer software engineers, including app writers, increased nearly 8 percent in 2010 to more than a million, according to the latest available government data for that category. These software engineers now outnumber farmers and have almost caught up with lawyers.

Much as the Web set off the dot-com boom 15 years ago, apps have inspired a new class of entrepreneurs. These innovators have turned cellphones and tablets into tools for discovering, organizing and controlling the world, spawning a multibillion-dollar industry virtually overnight. The iPhone and iPad have about 700,000 apps, from Instagram to Angry Birds.

Yet with the American economy yielding few good opportunities in recent years, there is debate about how real, and lasting, the rise in app employment might be.

Despite the rumors of hordes of hip programmers starting million-dollar businesses from their kitchen tables, only a small minority of developers actually make a living by creating their own apps, according to surveys and experts. The Grimeses began their venture with high hopes, but their apps, most of them for toddlers, did not come quickly enough or sell fast enough.

And programming is not a skill that just anyone can learn. While people already employed in tech jobs have added app writing to their résumés, the profession offers few options to most unemployed, underemployed and discouraged workers.

One success story is Ethan Nicholas, who earned more than $1 million in 2009 after writing a game for the iPhone. But he says the app writing world has experienced tectonic shifts since then.

“Can someone drop everything and start writing apps? Sure,” said Mr. Nicholas, 34, who quit his job to write apps after iShoot, an artillery game, became a sensation. “Can they start writing good apps? Not often, no. I got lucky with iShoot, because back then a decent app could still be successful. But competition is fierce nowadays, and decent isn’t good enough.”

The boom in apps comes as economists are debating the changing nature of work, which technology is reshaping at an accelerating speed. The upheaval, in some ways echoing the mechanization of agriculture a century ago, began its latest turbulent phase with the migration of tech manufacturing to places like China. Now service and even white-collar jobs, like file clerks and data entry specialists or office support staff and mechanical drafters, are disappearing.

“Technology is always destroying jobs and always creating jobs, but in recent years the destruction has been happening faster than the creation,” said Erik Brynjolfsson, an economist and director of the M.I.T. Center for Digital Business.

Still, the digital transition is creating enormous wealth and opportunity. Four of the most valuable American companies — Apple, Google, Microsoft and I.B.M. — are rooted in technology. And it was Apple, more than any other company, that set off the app revolution with the iPhone and iPad. Since Apple unleashed the world’s freelance coders to build applications four years ago, it has paid them more than $6.5 billion in royalties.

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Israel Destroys Hamas Prime Minister’s Office

Bernat Armangue/Associated Press

A Palestinian man walked among debris after an Israeli airstrike on Saturday at the Gaza City office of Ismail Haniya, the prime minister of Hamas.

JERUSALEM — Israel retaliated for Palestinian rocket attacks on Tel Aviv and Jerusalem with five airstrikes before dawn Saturday on the Gaza City offices of Ismail Haniya, the prime minister of Hamas — the militant Islamist group that governs Gaza.

The military said it had struck more than 200 targets overnight, including scores of underground rocket launchers and smuggling tunnels in Rafah, on the Gaza-Egypt border. Along with Mr. Haniya’s headquarters, which was destroyed, the military said in a statement that it had struck the Hamas police and homeland security headquarters, and the house of a Hamas commander, Ahmed Randor.

Seven Hamas militants were killed Saturday morning in two separate attacks — four in Rafah, and three in the Al Maghazi refugee camp, in the middle of the Gaza Strip, Hamas said.

Explaining the Israeli rationale for moving from attacking purely militant targets to government buildings in Gaza, Mark Regev, a spokesman for Prime Minister Benjamin Netanyahu, said on Saturday, “It is clear that Hamas itself makes no distinction between its terrorist military machine and the government structure and that they are intertwined.

“We have seen Hamas consistently using so-called civilian facilities for the purposes of hiding their terrorist military machine, including weapons,” he added.

About 30 rockets were fired from Gaza into southern Israel on Saturday morning, one landing in the yard of a house. Three soldiers were slightly injured by one of the rockets, the Israeli military said.

Despite the fighting, Foreign Minister Rafik Abdessalem of Tunisia visited Gaza on Saturday, condemning the Israeli attacks during an appearance at the Al Shifa hospital.

“Israel has to understand that there is an international law and it has to respect the international law to stop the aggression against the Palestinian people,” The Associated Press reported Mr. Abdessalem as saying.

On Friday, emboldened by displays of Egyptian solidarity and undeterred by Israel’s advanced aerial firepower, Palestinian militants under siege in Gaza had broadened their rocket targets, aiming at Jerusalem for the first time, sending a second volley screeching toward Tel Aviv and pushing the Israelis closer to a ground invasion.

Israel’s government more than doubled the number of army reservists it could call to combat if needed in the increasingly lethal showdown with Gaza’s Hamas fighters and their affiliates, after they fired more than 700 rockets into southern Israel over the last year. The escalation has raised fears of a new chapter of war in the intractable Arab-Israeli conflict.

The Israeli military closed some roads adjacent to Gaza in anticipation of a possible infantry move into the territory, which would be the first Israeli military presence on the ground in Gaza since the three-week invasion of 2008-9.

Ghazi Hamad, the deputy foreign minister of Hamas, said Saturday that the Tunisian foreign minister’s visit, following the visit Friday by the Egyptian prime minister, showed that “we as Palestinians are not alone.”

“All Arab nations are with us and against the occupation,” he said. “This will give a strong message to the international community.”

Asked about the possibility of a ceasefire agreement, Mr. Hamad said Israel would have to agree to cancel the buffer zone, a strip of land 300 meters, or almost 1,000 feet, wide along the northern and eastern Gaza borders where Israel does not allow people to go; those who enter can be shot.

Mr. Hamad said the attacks on Hamas government buildings are “a policy of Israel to put pressure on people” but would not significantly change the dynamic of the current fighting.

“Israel has the capacity to destroy all buildings in Gaza, all homes,” he said. “But this is against humanity.

“They destroyed our government buildings before many times, but we rebuild again,” he added. “It’s a long struggle, a long story. It will not stop today or tomorrow.”

The Israel Defense Forces said it would “continue targeting sites that are used to carry out terror attacks against Israeli citizens.”

Many residents of Jerusalem, which Israel claims as its capital despite objections from the city’s large Palestinian population and others throughout the Middle East, were startled Friday when wartime sirens warning of impending danger wailed at dusk, followed by at least two dull thuds. Hamas’s military wing claimed in a statement that they were rockets fired from Gaza, 48 miles away, and had been meant to hit the Israeli Parliament.

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