Hamas Strengthens as Palestinian Authority Weakens

RAMALLAH, West Bank — In the daily demonstrations here of solidarity with Gaza, a mix of sympathy and anguish, there is something else: growing identification with the Islamist fighters of Hamas and derision for the Palestinian Authority, which Washington considers the only viable partner for peace with Israel.

“Strike a blow on Tel Aviv!” proclaim the lyrics of a new hit song blasting from shops and speakers at Monday’s demonstration, in a reference to Hamas rockets that made it nearly to Israel’s economic and cultural capital. “Don’t let the Zionists sleep! We don’t want a truce or a solution! Oh Palestinians, you can be proud!”

Pop songs everywhere are filled with bravado and aggression. But this one reflects a widespread sentiment that does not augur well for President Mahmoud Abbas and his Palestinian Authority, which is rapidly losing credibility, even relevance. The Gaza truce talks in Cairo, involving Egypt, Turkey and Qatar, offer a telling tableau. The Palestinian leader seen there is not Mr. Abbas, but Khaled Meshal, the leader of the militant group Hamas, who seeks to speak for all Palestinians as his ideological brothers in the Muslim Brotherhood rise to power around the region.

Israel is also threatening Mr. Abbas, even hinting that it may give up on him, as he prepares to go to the United Nations General Assembly on Nov. 29 to try to upgrade the Palestinian status to that of a nonmember state. The Israelis consider this step an act of aggression, and even some Palestinians say it is somewhat beside the point at this stage.

“His people are being killed in Gaza, and he is sitting on his comfortable chair in Ramallah,” lamented Firas Katash, 20, a student who took part in the Ramallah demonstration.

For the United States, as for other countries hoping to promote a two-state solution to this century-old conflict, a more radicalized West Bank with a discredited Palestinian Authority would mean greater insecurity for Israel and increased opportunity for anti-Western forces to take root in a region where Islamism is on the rise.

Since Hamas, which won parliamentary elections in 2006, threw the Fatah-controlled authority out of Gaza a year later, Mr. Abbas has not set foot there. Yet he will be asking the world to recognize the two increasingly distinct entities as a unified state.

Manar Wadi, who works in an office in Ramallah, put the issue this way: “What is happening in Gaza makes the Palestinian Authority left behind and isolated. Now we see the other face of Hamas, and its popularity is rising. It makes us feel that the Palestinian Authority doesn’t offer a path to the future.”

In Cairo on Monday, Mr. Meshal seemed defiant and confident in his new role, daring the Israelis to invade Gaza as a sixth day of Israeli aerial assaults brought the death toll there to more than 100 people, many of them militants of Hamas and its affiliates. Rockets launched from Gaza hit southern Israel, causing some damage and panic, but no casualties, leaving the death toll there at three.

“Whoever started the war must end it,” Mr. Meshal said at a news conference. “If Israel wants a cease-fire brokered through Egypt, then that is possible. Escalation is also possible.”

Officials in the authority have been holding leadership meetings, staying in close touch with the talks in Cairo and issuing statements of solidarity. They have also sent a small medical delegation to Gaza and argue that there is a new opportunity to forge unity between the two feuding movements. But they are acutely aware of their problem.

“The most dangerous thing is the fact that what we could not do in negotiations, Hamas did with one rocket,” one official said, speaking on the condition of anonymity. “The people had such excitement seeing the occupiers run in panic. It’s a very dangerous message.”

Mr. Abbas, whose popularity has been on the decline as the Palestinian Authority faces economic difficulty and growing Israeli settlements, also ran into trouble not long before the Gaza fighting began when he seemed to give up on the Palestinian demand of a right of return to what is now Israel.

Many Palestinians believe that Israel launched its latest operation in Gaza to block the Palestinian Authority’s United Nations plans by embarrassing it. Israeli officials say that is ridiculous: the operation’s purpose is to stop the growing number of rockets being fired at their communities, and Israelis interrupted their deliberations over the United Nations bid to wage the military campaign.

But Israel says anything that does not involve direct negotiations is a waste of time. The government of Prime Minister Benjamin Netanyahu has repeatedly threatened to take severe retaliatory steps against the Palestinian Authority, including cutting off badly needed tax receipts to Palestinian coffers, should Mr. Abbas go ahead at the United Nations.

In a speech here on Sunday night at a Palestinian leadership meeting, Mr. Abbas repeated his determination to go to New York and ask for a change in status to that of nonmember state. He has chosen the symbolically significant date of Nov. 29, when the General Assembly voted in 1947 to divide this land into two states, one Jewish and the other Palestinian Arab.

The United States has asked Mr. Abbas not to do so, but instead to resume direct negotiations with Israel, which have essentially been frozen since 2008.

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Bits Blog: Intel Chief Executive to Retire in May

8:21 p.m. |Update

SAN FRANCISCO — After almost 40 years at Intel, its chief executive, Paul S. Otellini, is retiring, just as the company struggles with a momentous challenge: computing’s big shift to mobile devices.

Mr. Otellini, 62, surprised the technology world Monday by announcing that he would retire as an officer and director of the chip company this May, three years before he hits Intel’s mandatory retirement age. The board said it would immediately begin a search for a successor.

During a tenure that began in May 2005, Mr. Otellini established a strong track record. He increased Intel’s revenue 57 percent, to $55 billion at the end of 2011, and slightly widened its gross profit margin. Along the way, Mr. Otellini had to settle an antitrust suit for $1.25 billion, persuaded Apple to put Intel chips in its computers and cut 20,000 workers. Intel, the world’s largest semiconductor maker, now employs 100,000 people.

But the company’s share price has fallen about 20 percent in Mr. Otellini’s time. That is because the world of personal computers and computer servers, which Intel dominated partly through a close relationship with Microsoft, now competes with a global explosion of smartphones and tablets, which connect to large data centers. While Intel has some presence in these areas, it faces many new competitors and challenges, both to its business and to its way of thinking about products.

The right successor to Mr. Otellini, said Andrew Bryant, Intel’s chairman, would preserve Intel’s engineering-driven culture but turn it into an organization that is better able to anticipate rapidly changing consumer tastes.

“We don’t see the PC category going away, but we see that the market has changed,” Mr. Bryant said. “We need to figure out what the market wants.”

Mr. Otellini could not be reached for comment. In a statement issued by Intel, he said that “after almost four decades with the company and eight years as C.E.O., it’s time to move on and transfer Intel’s helm to a new generation of leadership.”

Last month Intel reported that its third-quarter net income fell 14.3 percent from a year earlier, to $3 billion, largely because of poor demand for PCs. The research firm IDC said that worldwide PC shipments fell 8.6 percent to 87.8 million units in the third quarter. Adding to the woes, Microsoft’s Windows 8 operating system, which Intel hoped would lift sales, was released in October to tepid reviews.

While they are both hurting from the PC plunge, Intel and Microsoft may be the best off of a troubled bunch. Last week, Advanced Micro Devices, Intel’s top competitor in chips for PCs, was forced to deny rumors that it was looking for a buyer. Its stock is down about 65 percent this year. Hewlett-Packard and Dell, both big PC makers, are also struggling.

Mr. Bryant said that Mr. Otellini had informed the board of his decision last Wednesday, citing a need for new leadership. He credited Mr. Otellini with putting Intel on track to produce chips that require less power. That is important both for battery-dependent smartphones and for data centers running hundreds of thousands of servers.

He also noted Mr. Otellini’s efforts in spearheading a category of lightweight laptop computers called ultrabooks, which have yet to take off in the market. Mr. Otellini also championed a wireless technology called WiMAX that never lived up to its billing.

Intel influences PC manufacturers in a number of ways. Besides designing and making the very core of their products, Intel also invests heavily in related fields; for example, through its venture arm it created a $300 million fund to promote ultrabooks. And it teaches its customers what they can do with each new generation of Intel chips, which in turn leads to new software development.

While Intel will look at both internal and external candidates, Mr. Bryant said, an internal candidate would probably prove a better fit, as that person would understand the culture. In its 45-year history, all of Intel’s five chief executives have been insiders.

Mr. Otellini’s departure is the third exit of a prominent executive from a major tech company in the last few weeks. In late October, Scott Forstall, who was the head of Apple’s mobile software development, was fired by Timothy D. Cook, the chief executive. Steven Sinofsky, the head of Windows at Microsoft, left the company a week ago, just after the introduction of Windows 8 and the Surface tablet. His brash personality led to internal clashes, and he and Steven A. Ballmer, Microsoft’s chief executive, agreed that it was time for him to go, according to a person briefed on the situation who was not authorized to speak publicly about it.

While both of those men were regarded as abrasive by those who worked with them, Mr. Otellini was not. A generally well-liked San Francisco native with an M.B.A. from Berkeley, Mr. Otellini was considered a break from Intel’s norm when he became chief because he was not formally trained in engineering.

But Ken Dulaney, an analyst with Gartner, drew a connection between the departures of the Microsoft and Intel executives.

“While Sinofsky and Otellini are gone for different reasons, underneath it similar forces are at work,” said. “Microsoft and Intel haven’t done a good job making PCs more compelling, and people are spending their dollars for electronics differently.”

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Ecstasy Treatment for Post-Traumatic Stress Shows Promise

Gretchen Ertl for The New York Times

ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.

Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work out of their home in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.

The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.

“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”

In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.

The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.

The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.

But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.

The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”

The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.

A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.

“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”

In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.

“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.

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Really?: The Claim: Eye Problems Can Cause Headaches in Children

Really?

Anahad O’Connor tackles health myths.

THE FACTS When a child complains of frequent headaches, many pediatricians order an eye exam. “In some pediatric ophthalmology practices, it’s a daily occurrence,” said Dr. Zachary Roth, a resident in ophthalmology at Albany Medical Center in New York.

Often, a child may experience headaches while reading or doing schoolwork, leading parents to think the child needs glasses. But are eye problems really a cause of childhood headaches?

In a recent study, Dr. Roth and his colleagues examined 158 children under age 18 who were referred to ophthalmologists for frequent headaches. Then, they evaluated the children’s medical records and looked at the results of earlier vision exams.

Ultimately, the researchers could not find any significant link between headaches and diagnoses of vision problems. In three-quarters of the subjects, the headaches went away over time, both in those who received new glasses and those who did not.

The study, which was presented at a recent American Academy of Ophthalmology conference, was not designed to look for causes of the headaches. But there were “quite a few” children with family histories of migraine, Dr. Roth said. Sinus problems and stress headaches also appeared to be common issues, he added.

“I think the take-away message is that it’s very unlikely for headaches to be caused by an eye problem,” he said. “The experience of all the ophthalmologists we talked to is that it almost never seems to be related to the eyes, so it’s probably more fruitful to investigate other causes.”

THE BOTTOM LINE Vision problems are often blamed for childhood headaches, but in reality, the two are rarely related.

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Election, Storm and Shaky Economy Affect Holiday Shopping

Many retailers have more than the usual riding on sales beginning this Thanksgiving weekend.

The presidential election pushed holiday shopping later than usual because some toy and game makers held off on their big introductions for maximum attention. The aftereffects of Hurricane Sandy have included logistics problems and merchandise delivery delays. And some retailers, trying to keep inventory lean during uncertain economic times, have given themselves little room for error: shipments of holiday toys, for instance, are down 13 percent this year, to the lowest level since 2007, according to the global trade research firm Panjiva.

All of that makes for a particularly strange holiday season, retailers and analysts say.

“The election sucks all of the oxygen out of the room in terms of attention,” said Eric Hirshberg, the chief executive of Activision Publishing, the video game company. “A lot of the best media inventory goes to the candidates. It gets more expensive because there’s this premium demand from the candidates.”

Hasbro is adding more shades of its Furby toy through the end of the year, and Mattel last week introduced a new Monster High video game. Last year, Activision introduced its big Call of Duty release in early November. This year, though, it did not release Call of Duty: Black Ops II until Nov. 13.

“We were also worried that if we released Call of Duty before the election, no one would show up to vote,” Mr. Hirshberg said. (He was speaking facetiously, but given that the game’s retail sales were more than $500 million in the first 24 hours after it made its debut, he may have a point.)

And while retailers were expecting the election to delay some shopping, they were not expecting a storm. RetailNext, which tracks shopper traffic, said that store visits and sales in the Northeast were down about 25 percent during the storm and afterward.

Major retailers have said the election and Hurricane Sandy affected sales. Saks and Target said the beginning of November was choppy, and Macy’s said that the storm seemed to have pushed sales later into the season.

“Some of it is lost, most is postponed,” Karen M. Hoguet, Macy’s chief financial officer, said of demand. “It’s a question of timing.” And Kohl’s chief executive, Kevin Mansell, said the company typically experienced sales slowdowns pre-election and postelection, “and then the business kind of accelerates.”

The late introductions and delayed shopping put toy companies, in particular, in a difficult position: they were under pressure to make hit toys, largely via preorders and layaway, months before people would actually be buying them. Retailers and toy companies started trying to gauge demand early, looking for preliminary data on which items were unpopular and which ones were stars.

Walmart started layaway a month earlier this year versus last year, and Toys “R” Us also started holiday layaway earlier, giving the stores a jump on things. Amazon and other e-commerce sites are promoting tools like preorders, wish lists and gift registries — anything that can give them a sense of what people will buy as the Christmas season churns on.

Preorders are “an important tool to gauge customer demand, and get some feedback from our customers earlier in the process,” said John Alteio, director of toys and games for Amazon. Product introductions later in the year “can be challenging in the toy industry, so we have to draw some comparisons when we can and make the best estimate.”

Paul Solomon, co-chief executive of Moose Toys, which makes Micro Chargers and The Trash Pack, said preorders and layaway were becoming increasingly important. “It’s giving us a good read, early, as to how things are performing, and it’s even more crucial now to make a lot of noise about the brand earlier than in previous years,” he said.

“Preorders are kind of a cottage industry for games like Call of Duty,” Mr. Hirshberg, the Activision chief, said. The company began promoting the game in March, when it ran spots during the NBA playoffs.

In May, it released an ad featuring Oliver North, the national security aide at the heart of the Iran-contra affair and a consultant on the game, talking about the future of warfare. It accepted preorders starting in May. Through the summer, Activision revealed different facets of the game at various conferences, and this month it began running international television, outdoor, digital and mobile ads.

“There’s not a clean math equation that says this many preorders equals this many sales, but it’s confidence-building for us in terms of orders, in terms of production,” Mr. Hirshberg said.

John Barbour, the chief executive of LeapFrog, learned the value of early promotion after last year, when the children’s tablet LeapPad1 became a surprise hit. “It was very hard for me to gauge how successful it would be. Everyone took their best shots,” he said. By November and December, the LeapPad was selling out, and Mr. Barbour had to pay a premium to source tablet screens, and paid for airplanes to fly in extra inventory.

This year, he focused on early promotions that would translate into preorders and layaway, so toy retailers could accurately adjust their orders in time for the holidays. A good response early on means not just bigger orders from retailers, he said, but also more promotional support and more shelf space: it becomes a self-fulfilling prophecy.

“For retailers, it’s phenomenal. It brings demand forward, and they get a better read on what they’re going to need,” he said. When the LeapPad2 became available for preorders in August, it sold as much in two days of preorders as it did in its first week on sale last year, Mr. Barbour said.

He is being careful not to get too jubilant, though. “The penalties for having too much inventory are greater than the penalties for being a little bit short,” he said.

Still, some brands were ignoring the strange events of this holiday season and proceeding as usual. Stephen Bebis, the chief executive of Brookstone, said some products were becoming available in the final months of the year, but that was because of production delays, not strategy.

“People are still going to have to buy gifts for Christmas no matter who’s the president,” he said.

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Gaza Violence Is Unabating as Other Nations Push for Truce

GAZA CITY — Israeli forces killed at least 11 people, including several children, in a single airstrike that destroyed a home here on Sunday, as Israel pressed its bombardment of the Gaza Strip for a fifth day, deploying warplanes and naval vessels to pummel the coastal enclave.

The airstrike, which the Israeli military said was meant to kill a Palestinian militant involved in the recent rocket attacks, was the deadliest operation to date and would no doubt weigh on negotiations for a possible cease-fire. Among the dead were five women and four small children, The Associated Press reported, citing a Palestinian health official.

Two media offices were also hit on Sunday, and Prime Minister Benjamin Netanyahu of Israel warned of a “significant” expansion in the onslaught, which has already killed over 50 people, many of them civilians.

Speaking on Sunday from Bangkok, President Obama condemned missile attacks by Palestinian fighters in Gaza and defended Israel’s right to protect itself.

“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 made his warning as militants in Gaza aimed at least one rocket at Tel Aviv, a day after Israeli forces broadened the attack beyond military targets, bombing centers of government infrastructure in Gaza, 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 of thousands of reservists who have been called up and the massing of armor on the Gaza border that 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 aimed at the city on Sunday, Israeli officials said. It was the latest of several salvos that have illustrated Hamas’s ability to extend the reach of its rocket attacks.

Since Wednesday, when the escalation of the conflict began, Iron Dome has knocked 245 rockets out of the sky, the military said 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.

Before the latest deadly strike involving civilians on Sunday, Hamas health officials had said the Palestinian death toll had risen to 53. One of the latest victims was 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 Haniya, the Hamas prime minister, has a home. Those killed on Sunday included three children ages 1 through 5, the health officials said.

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

The onslaught continued despite talks in Cairo that President Mohamed Morsi of Egypt said Saturday night could soon result in a cease-fire. Mr. Netanyahu said he would consider a comprehensive cease-fire if the launchings from Gaza stopped.

The attack on Mr. Haniya’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.

Jodi Rudoren and Fares Akram reported from Gaza City. Reporting was contributed by Isabel Kershner, Carol Sutherland and Iritz Pazner Garshowitz from Jerusalem; Tyler Hicks from Gaza, Peter Baker from Bangkok, Alan Cowell from London, Michael Schwirtz from New York 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

Daniel Rosenbaum for The New York Times

Shawn and Stephanie Grimes’s efforts have cost $200,000 in lost income and savings, but their apps have earned less than $5,000 this year.

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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Daniel Stern, Who Studied Babies’ World, Dies at 78

Dr. Daniel Stern, a psychiatrist who increased the understanding of early human development by scrutinizing the most minute interactions between mothers and babies, died on Nov. 12 in Geneva. He was 78.

The cause was heart failure, said his wife, Dr. Nadia Bruschweiler Stern.

Dr. Stern was noted for his often poetic language in describing how children respond to their world — how they feel, think and see. He wrote one of his half-dozen books in the form of a diary by a baby. In another book, he told how mothers differ psychologically from women who do not have children. He coined the term “motherese” to describe a form of communication in which mothers are able to read even the slightest of babies’ emotional signals.

Dr. Stern, who did much of his research at what is now Weill Cornell Medical College and at the University of Geneva, drew inspiration from Jay S. Rosenblatt’s work with kittens at the American Museum of Natural History in the 1950s. Dr. Rosenblatt discovered that when he removed kittens from their cage, they made their way to a specific nipple of their mother’s even when they were as young as one day old. That finding demonstrated that learning occurs naturally at an exceptionally early age in a way staged experiments had not.

Dr. Stern videotaped babies from birth through their early years, and then studied the tapes second by second to analyze interactions between mother and child. He challenged the Freudian idea that babies go through defined critical phases, like oral and anal. Rather, he said, their development is continuous, with each phase layered on top of the previous one. The interactions are punctuated by intervals, sometimes only a few seconds long, of rest, solitude and reflection. As this process goes on, they develop a sense that other people can and will share in their feelings, and in that way develop a sense of self.

These interactions can underpin emotional episodes that occur years in the future. Citing one example in a 1990 interview with The Boston Globe, Dr. Stern told of a 13-month-old who grabbed for an electric plug. His alarmed mother, who moments before had been silent and loving, suddenly turned angry and sour. Two years later, the child heard a fairy tale about a wicked witch.

“He’s been prepared for that witch for years,” Dr. Stern said. “He’s already seen someone he loves turn into something evil. It’s perfectly believable for him. He maps right into it.”

Dr. Stern described such phenomena in 1985 in “The Interpersonal World of the Infant,” which the noted psychologist Stanley Spiegel, in an interview in The New York Times, called “the book of the decade in its influence on psychoanalytic theory.”

In recent years, Dr. Stern ventured beyond childhood development to examine the psychology of how people thought about time. In one experiment, he interviewed people in depth about a single brief moment at breakfast and found that it took them a full hour to describe all that went through their minds in 30 seconds. This resulted in the 2004 book “The Present Moment: In Psychotherapy and Everyday Life,” which called for people to appreciate every moment of experience and discussed the nature of memory.

In 2010, he published “Forms of Vitality: Exploring Dynamic Experience in Psychology, the Arts, Psychotherapy and Development,” which used new understandings of neuroscience to explain human empathy.

Dr. Stern, who wrote hundreds of scientific articles, also painted, wrote poetry and had friendships with important artists. He gave Jerome Robbins, the choreographer, the title for his “Dances at a Gathering.” His friend Robert Wilson, the avant-garde director and playwright, said Dr. Stern’s slow-motion baby films helped inspire his seven-hour “silent opera,” “Deafman Glance.”

“So many things are going on, and the baby is picking them up,” Mr. Wilson said.

Daniel Norman Stern was born in Manhattan on Aug. 16, 1934. He graduated from Harvard and completed his medical degree at the Albert Einstein College of Medicine. After conducting psychopharmacology research at the National Institutes of Health in Bethesda, Md., he did his residency in psychiatry at the Columbia University College of Physicians and Surgeons. He later trained as a psychoanalyst at the Center for Psychoanalytic Training and Research at Columbia.

Dr. Stern is survived by his wife, a physician who collaborated on much of his research; two sons, Michael and Adrien; three daughters, Maria, Kaia and Alice Stern; a sister, Ronnie Chalif; and 12 grandchildren.

Dr. Stern pointed out how the evolution of the human body bolstered mother-child interaction. He noted that the distance between the eyes of a baby at the breast and the mother’s eyes is about 10 inches, exactly the distance for the sharpest focus and clearest vision for a young infant.

“Her smile exerts its natural evocative powers in him and breathes a vitality into him,” he wrote. “It makes him resonate with the animation she feels and shows. His joy rises. Her smile pulls it out of him.”

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Daniel Stern, Who Studied Babies’ World, Dies at 78

Dr. Daniel Stern, a psychiatrist who increased the understanding of early human development by scrutinizing the most minute interactions between mothers and babies, died on Nov. 12 in Geneva. He was 78.

The cause was heart failure, said his wife, Dr. Nadia Bruschweiler Stern.

Dr. Stern was noted for his often poetic language in describing how children respond to their world — how they feel, think and see. He wrote one of his half-dozen books in the form of a diary by a baby. In another book, he told how mothers differ psychologically from women who do not have children. He coined the term “motherese” to describe a form of communication in which mothers are able to read even the slightest of babies’ emotional signals.

Dr. Stern, who did much of his research at what is now Weill Cornell Medical College and at the University of Geneva, drew inspiration from Jay S. Rosenblatt’s work with kittens at the American Museum of Natural History in the 1950s. Dr. Rosenblatt discovered that when he removed kittens from their cage, they made their way to a specific nipple of their mother’s even when they were as young as one day old. That finding demonstrated that learning occurs naturally at an exceptionally early age in a way staged experiments had not.

Dr. Stern videotaped babies from birth through their early years, and then studied the tapes second by second to analyze interactions between mother and child. He challenged the Freudian idea that babies go through defined critical phases, like oral and anal. Rather, he said, their development is continuous, with each phase layered on top of the previous one. The interactions are punctuated by intervals, sometimes only a few seconds long, of rest, solitude and reflection. As this process goes on, they develop a sense that other people can and will share in their feelings, and in that way develop a sense of self.

These interactions can underpin emotional episodes that occur years in the future. Citing one example in a 1990 interview with The Boston Globe, Dr. Stern told of a 13-month-old who grabbed for an electric plug. His alarmed mother, who moments before had been silent and loving, suddenly turned angry and sour. Two years later, the child heard a fairy tale about a wicked witch.

“He’s been prepared for that witch for years,” Dr. Stern said. “He’s already seen someone he loves turn into something evil. It’s perfectly believable for him. He maps right into it.”

Dr. Stern described such phenomena in 1985 in “The Interpersonal World of the Infant,” which the noted psychologist Stanley Spiegel, in an interview in The New York Times, called “the book of the decade in its influence on psychoanalytic theory.”

In recent years, Dr. Stern ventured beyond childhood development to examine the psychology of how people thought about time. In one experiment, he interviewed people in depth about a single brief moment at breakfast and found that it took them a full hour to describe all that went through their minds in 30 seconds. This resulted in the 2004 book “The Present Moment: In Psychotherapy and Everyday Life,” which called for people to appreciate every moment of experience and discussed the nature of memory.

In 2010, he published “Forms of Vitality: Exploring Dynamic Experience in Psychology, the Arts, Psychotherapy and Development,” which used new understandings of neuroscience to explain human empathy.

Dr. Stern, who wrote hundreds of scientific articles, also painted, wrote poetry and had friendships with important artists. He gave Jerome Robbins, the choreographer, the title for his “Dances at a Gathering.” His friend Robert Wilson, the avant-garde director and playwright, said Dr. Stern’s slow-motion baby films helped inspire his seven-hour “silent opera,” “Deafman Glance.”

“So many things are going on, and the baby is picking them up,” Mr. Wilson said.

Daniel Norman Stern was born in Manhattan on Aug. 16, 1934. He graduated from Harvard and completed his medical degree at the Albert Einstein College of Medicine. After conducting psychopharmacology research at the National Institutes of Health in Bethesda, Md., he did his residency in psychiatry at the Columbia University College of Physicians and Surgeons. He later trained as a psychoanalyst at the Center for Psychoanalytic Training and Research at Columbia.

Dr. Stern is survived by his wife, a physician who collaborated on much of his research; two sons, Michael and Adrien; three daughters, Maria, Kaia and Alice Stern; a sister, Ronnie Chalif; and 12 grandchildren.

Dr. Stern pointed out how the evolution of the human body bolstered mother-child interaction. He noted that the distance between the eyes of a baby at the breast and the mother’s eyes is about 10 inches, exactly the distance for the sharpest focus and clearest vision for a young infant.

“Her smile exerts its natural evocative powers in him and breathes a vitality into him,” he wrote. “It makes him resonate with the animation she feels and shows. His joy rises. Her smile pulls it out of him.”

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Investors Rush to Beat Threat of Higher Taxes

Business owners and investors are rapidly maneuvering to shield themselves from the prospect of higher taxes next year, a strategy that is sending ripples across Wall Street and broad areas of the economy.

Take Steve Wynn, the casino magnate, who has been a vocal critic of higher tax rates. He and his fellow shareholders in Wynn Resorts, the company announced, will collect a special dividend of $750 million on Tuesday, a payout timed to take advantage of current rates. Experts estimated that taking the payout this year instead of next could save Mr. Wynn, who owns a sizable stake in the company, more than $20 million.

For the wealthy like Mr. Wynn, the overriding goal is to record as much of their future income this year as they can. This includes moves as diverse as sales of businesses, one-time dividends and the sale of stocks that have been big winners.

“In my 30 years in practice, I’ve never seen such a flood of desire and action to transfer a business and cash out,” said Kenneth K. Bezozo, a partner in New York with the law firm Haynes and Boone. “We’re seeing a watershed event.”

Whether small business owners or individuals saving for retirement, investors are being urged by their advisers to reconsider their holdings. Along the way, many are shedding the very investments that have been the most popular over the last year, contributing to recent sell-offs in formerly high-flying shares like Apple and Amazon.

Investors typically take profits in their own portfolio at year-end, but the selling appears to be more targeted this year. Stocks with large dividends, for instance, are seen as less attractive because of the perceived likelihood of a sharp increase in the tax rate on dividends.

All this is weighing on the broader financial markets, as worries mount about the economic drag from the combination of higher tax rates and reduced government spending set for January if President Obama and Senate Republicans cannot reach a budget compromise before then.

Fears about the fiscal impasse in Washington, along with anxiety about fading corporate profits and weakening economies abroad, have pushed the benchmark Standard & Poor’s 500-stock index down about 5 percent since the election. On Friday, major stock indexes had their best showing of the week after President Obama and Republican leaders signaled that a compromise was possible.

Even if many of the tax breaks scheduled to expire survive a new budget deal, some business owners and investors are bracing for substantial increases in specific areas of the tax code.

The top rate on dividends, for example, could climb to 39.6 percent from 15 percent if no action is taken. Capital gains taxes, which now top out at 15 percent, could rise above 20 percent, many financial advisers say. Most investment income will also be subject to a 3.8 percent charge to help pay for President Obama’s health care law.

Stocks that pay big dividends have been popular in recent years among investors eager for an alternative to the meager returns on bank savings accounts and Treasury securities. Since October, though, the two sectors that provide the most generous dividend payments — utilities and telecommunication stocks — have been among the worst performers, hurt also in part by the devastation of Hurricane Sandy on the East Coast. Utility companies in the S.& P. 500 have fallen 9.4 percent from their highs in October. Telecommunication stocks in the index have dropped 11.3 percent from theirs, compared with the broader index’s 6.8 percent decline from its recent high.

John Moorin, the founder of a medical equipment company near Indianapolis, said he sold about $650,000 in dividend-paying stocks like McDonald’s and Coca-Cola a few days after the election, worried about the potential increase in taxes.

“I love these companies, but I’m so scared that now all of the sudden I’m going to get taxed at such a rate with them that they won’t be worth anything,” Mr. Moorin said.

Although Mr. Wynn has declared special dividends at the end of the year before — most recently in 2011 — in a call with analysts last month, he hinted that higher taxes would cause him and other chief executives to rethink big payouts in future years.

In the meantime, he added, it was “very difficult to do long-range planning with a government that moves as much as this does on so many issues.”

Leggett & Platt, a diversified manufacturer based in Carthage, Mo., decided to move up payment of its fourth-quarter dividend to December from January so shareholders could take advantage of the lower rate.

“If we can help our shareholders avoid taxes and keep more of their dividends, we’ll do it,” said David M. DeSonier, senior vice president for corporate strategy and investor relations.

David Kocieniewski contributed reporting.

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