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What is behind Pew Research Report finding showing an unacceptable concentration of wealth that endangers democracy. Higher income groups making $244,000 a year in 2024 gained 19 percentage points of the total US Household Income moving from 29% in 1970 to 48% in 2024. About 50% of the nation's income going to 20% of its people and most of that to 2%-5% of the people of the US. The gains meant loss of 17 of these percentage points for middle income households making $106,000 a year that went from 62% in 1970 to 43% in 2024. Another 2 percentage points was suffered by vulnerable Lower Income groups making $35,000 a year who owned 10% of US wealth in 1970 went down to 8%.  The problems of divisiveness in the Nation come from three distinct areas. First money for state financed education for all being put into wars in the Middle East from Reagan through Obama and Trump and some wasted through capital misallocation to low priority investment by faulty capital market allocation. Second the high cost of pharmaceuticals and healthcare putting a heavy burden on low income and middle income households making $35,000 or 106,000 a year. Third the neglect of manufacturing that cutoff the opportunities for middle and lower income households and their one chance to move up the ladder. And the parallel shift of resources to technology and financial sectors that created opportunities for a smaller group of immigrant and higher middle income households with these skills.  These are the sources of America's distress and each problem is being attacked at its source by president Biden- exit from Afghanistan, canceling student loans that are egregious and prevent the investment in education America needs, large sustained investment in manufacturing and new supply chains, antitrust action on tech monopolistic behaviour, redrawing the shape of America's pharmaceutical sector to provide access to medicine to all parts of the population.    ...

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In this thoughtful essay Bob Davis of the WSJ asks whether the decision of the Clinton administration to admit China into the World Trade Organization was a bad one for the U.S.  Mr. Clinton in 2000 tried to persuade Congress citing words of president Woodrow Wilson that of a dream "of a world full of free markets, free elections, and free peoples working together."  Every year China would have its most favored nation status renewed with help from supporters in Congress. After WTO entry this was not necessary. Chinese leaders saw the entry into WTO as a way to knock down trade barriers, to act a wrecking ball for the planned economy, to give the economy a big boost.  In 1994 China was a relatively backward economy with 60% of the population living on less than $1.90 a day. Hard to imagine today.  Not everyone was convinced that it was good for the U.S. This included a trade attorney who had tackled a huge trade deficit with Japan in the Reagan period- Robert Lighthizer. Lighthizer was Deputy Trade Representative negotiating with the Japanese. His prediction was that no job in America would be safe once China entered the WTO, that China would become a dominant trading nation.  Robert Cassidy, 73, trade negotiator for president Clinton looks back on that time and says that he regrets what has happened, that all his work night and a day only benefited business and hurt workers. David Autor, MIT economist and his colleagues,  in a later study documented loss of 2.4 million jobs to Chinese competition between 1999 and 2011, in many manufacturing towns dotting the landscape of America, particularly in the midwestern states. And the expectation that the higher economic growth would lead to less political control did not turn out to be true.  In the process multinationals rushed to China after WTO entry and China became the world's manufacturing floor. By 2013 China's per capita income reached $7000, after years of fast GDP growth approaching 10% a year.  About 400 million Chinese were lifted out of poverty from living on less than $1.90 per day from 1999 to 2011, according to the World Bank. A big problem was that the U.S. did not plan for the change from WTO entry. No resources were allocated for the plan to let American workers adjust through worker retraining and special trade handicapped income support, to allow for a slow planned shift. Instead the pace of growth was faster than that which the U.S. faced with the Japanese export offensive in the eighties. China experienced double digit growth after 2000. The irony is that the Republican administrations that followed Clinton followed a policy of free trade to the advantage of China's state run economy when working class Americans voted mostly for the Democratic Party. Little was done and little said in the media from Democrats and Republicans in Congress and the establishment during this time even after Mr. David Autor documented the effects of trade in the U.S.  Till Mr. Trump recognizing the alienation in communities hit by job losses from trade upended American politics, shifted this part of the electorate to the Republican base. Mr. Lighthizer's view is that complaints about China should be left out of WTO because it is naive to tackle it that way. With a $375 billion China trade deficit for 2017 the challenge has to be met in a different way, and the U.S. has to rely on regaining its economic strength within a fair trading framework. Having negotiated with the Japanese Mr. Lighthizer sees the approach adopted then as the one right for today. During the long negotiations Lighthizer is said to have received many negotiating positions of the Japanese signifying no change in long sessions. He once simply made a paper plane and sent it right back, in one of these sessions. He meant that the U.S. was serious about reversing the imbalance in trade. ...

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About 19% or one in five do not have access to books at home in Britain, new research shows. A recent report shows 51% of parents find books just too expensive. The National Literacy Trust Report shows 64% of parents say the amount of money they have to spend on books has decreased. The findings are alarming as 1 in 13 children do not read at all, and only half of the children read daily.  This has serious repercussions on children's futures- in school, in college and in the job market. Reading habits develop with access to books at home and at libraries. Owning books encourages children to develop reading habits. The very basis of the fair societies and democracy of the UK, US and Europe is the access to books and reading for all parts of society and people at all income levels. Without this democracy cannot be sustained as the population is less and less literate and unable to preserve and protect its freedoms or misled by political leaders. The current threats to freedom Mr Biden has pointed out at Independence Hall in Philadelphia arise from this neglect that opened up with the neglect of manufacturing communities in the US and Europe which gradually eroded incomes and access to the goods and services that were opened up through the improvements of the last half of the 20th century. And improvements then lost in the "free markets" period of the last three decades that shifted manufacturing and jobs overseas, and reduced incomes of ordinary people.  ...

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  “And 5 million manufacturing jobs were lost while racking up trade deficits of $19 trillion." The Washington Post does not deny this as false, and this is the crux of the point DJT has made what everyone with eyes to see has seen for 40 years. DJT sometimes exaggerates to make his point. False should mean the meaning is false not that a particular number 70% vs 50% for India's tariff on Harley Davidson motorcycles. It should also consider PM Modi's stand for India- to support the US position when it comes to American factories closing by the thousands and destroying not just it's manufacturing but also it's middle class, just as Gandhi would have done. That close is India's sentiment for the American people and the Republic, and the defense of its recovery as a manufacturing nation for its workers and families. DJT did not say that it is a poor country as the Washington Post says is "Trump's telling." As Greg Ip of the WSJ pointed out in 2024, it is that the US simply cannot sustain the blows to its workers and its manufacturing base from a $1 trillion deficit year after year with China. Before bringing economist's into the picture one has facts of what the devastation to American workers has done to communities across America. DJT said and most workers will stand by his words- "For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike. American steelworkers, auto workers, farmers, and skilled craftsmen. They really suffered gravely. They watched in anguish as foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories, and foreign scavengers have torn apart our once beautiful American dream." Not a single report in the US and foreign media reports of Liberation Day Rose Garden speech by DJT on April 2, 2025, says that DJT said he would trust what he sees with his own eyes and experience for 40 years, and not economists who have turned their backs on American workers, turned to a UAW worker from Detroit and asked him to tell what he saw for 40 years.  "Brian, I’d like to have you come up here for a second. Okay? I just see him sitting. He’s been a fan of ours, and he understands this business a lot better than the economists, a lot better than anybody. Brian, say a few words, please. Would you?" And this what Brian a retired autoworker from Macomb Conty, Michigan saw for 40 years that economists refused to see in their economic theories- "I have watched my entire life, I have watched plant after plant after plant in Detroit and in the Metro Detroit area close. There are now plants sitting idle. There are now plants that are underutilized, and Donald Trump’s policies are going to bring product back into those underutilized plants. There’s going to be new investment. There’s going to be new plants built."     ...

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WSJ asks the question how are companies run in America by CEO's during the 9 month old pandemic? To answer that question it looks at Emerson Electric, based in Ferguson, Missouri, with its 90,000 employees in the U.S. and around the world. David Farr is CEO of American conglomerate Emerson Electric that makes products in a number of industries, for longer than most CEO's in America. At 65 years today, he has managed the company since he became CEO at the age of 45. It has 8000 employees in China and 10,000 in Mexico, and plants in the midwest, all hard hit by the pandemic. Add to this racial riots after killing of a black man in Ferguson, Missouri, and you have a challenging situation for any CEO.    As a son of a plant manager at a Corning plant in Corning, New York and growing up in a manufacturing environment in England, his instincts are that customers are what matter the most. That shrinking production could lead to some competitors making it and others shrinking if they did not act quickly to protect their supply chains. His goal is to keep factories running to have parts ready for their customers who made the finished product in the oil and gas industry and in factories where Emerson supplied the automated processes. As a first step he has 7 charter planes fly parts from a Nanjing factory to Shanghai when the trucks stopped moving. He campaigns with the Mexican ambassador to the U.S. to have the company listed as essential business to be kept open in a lockdown but fails. He gets up at 5.30 am and works till 8 pm and spends most nights reading, lounging with 2 spaniels, and going to bed early. He tells his son who works at Caterpillar company to get back to work as soon as he can as he believes being on the job is really really important. Yet he is worried up his daughter working as a pastry chef in New York and wants her to come back home to the midwest. He is a manager in the old style saying he wouldn't hire American workers because the Obama administration was out to destroy American manufacturing with its environmental rules forgetting that he was doing just that in the end-  and what had America and the concept of a free nation and a free people with opportunities for all have anything to do with like or dislike of any president or party. He also has his quirks, keeping 5 baseball bats and swinging a bat while he took walks and did some thinking. Passionate, hard working, and getting it done he keeps Emerson in the game as an industrial competitor from the U.S. ...

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China's military drills around Taiwan have an unintended effect of creating a shift in American and European sentiment on the overconcentration of US and EU investment in China. Business in Germany and in the US has operated for a long time in the Merkel and Bush-Obama-Trump administrations a if this overconcentration which hurt workers and communities in both the EU and the US did not matter as long as the interests of the individual companies was met. Mr. Biden's policy takes an entirely different approach to protect American workers, rebuild American manufacturing, rebuild infrastructure, and to build America's leadership in the world. The military drills only increase the awareness in America of the risks and dangers of the positions taken by previous administrations. Shifting sentiment to back president Biden's strong steps to rebuild America and American leadership.

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President Biden and leaders in the EU, Japan, India and other countries helped negotiate the global minimum tax. Companies would have to pay a minimum tax of 15% in 140 jurisdictions so that tax base shifting could not happen. Yet the US will not get the benefit of these increased taxes to invest more into R&D, manufacturing, infrastructure and strengthen its economy because Republicans have not supported it in Congress. The OECD countries, major EU countries from the EU, Japan and South Korea will get an additional revenue of $192 billion in 2024 as a result of the Global Minimum Tax. Yet even here the GMT is making a difference as companies see not much difference in the different jurisdictions for tax rates the shift is for companies to setup in the US especially for American companies who had always had their base in the US till the tax shifting began.

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US economic growth was 2.4% in the second quarter of 2023. Even though the Fed increased rates at 10 consecutive meetings by 5% since March 2022 to tackle inflation the US economy appears strong. Large investments in the trillions of dollars in US manufacturing and infrastructure, tackling climate change is what is different this time compared to the past 2 decades when bad decisions were made with twin wars in the Arab and Muslim world, and the supply chain was transferred to China, investments were neglected in infrastructure, education and health in public goods, and capital markets allocated money with decreasing advantage to the economy. President Biden was in a unique position after the pandemic to take stock of all these mistakes and move the nation forward in positive directions in a decisive way in scale as well as in spirit and determination. That he has done so is more proof of the resilience of America.

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Kamala Harris stands by her values in her positions on fracking which she says can be combined for transition with a clear timely pursued climate change strategy Biden-Harris has pursued. The investments in climate change action are being made in a way that will protect us from climate change. On immigration she repeated her pledge that she will get the Biden Lankford immigration legislation that closes the Border to her desk and will sign it into law. She pointed out that Biden has served the interests of the American people with the large investments in manufacturing, in climate change action, and in infrastructure, child care, that will be remembered by the American people.

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The US Federal Reserve Report on Economic Wellbeing of US Households 2024-May 2025 gives some insights into the well being of American households. It shows food insufficiency households the same in 2023-2025 at 7%. The situation for cost of living remains a concern in 2024 as well as 2025. Retirement savings have improved for many middle class Americans, as confirmed by reports from Fidelity and Vanguard. The people earning less than 25,000 are 19% and about the same in 2024 under Biden as under DJT in 2025. 39% make $100,000 or more and 26% make $50,000 -$100,000. Combining the 19% making less than $25,000 and the 16% making between $25,000 and $50,000 shows about one third of the population under $50,000 living paycheck to paycheck. It would appear that $2000 DJT rebate putting $160 billion out of $550 billion of tariff revenues for 2025-2026  in the hands of 79 million households that make less than $100,000 would go a long way to keep the situation stable with optimism and hope arising from the restructuring of world trade that would bring trillions of dollars of investment into the US from Europe and Asia. A this investment plus domestic investment should bring back jobs and higher incomes to US manufacturing in small towns across America. The rest of $550 billion tariff revenue of $390 billion would go to reducing the deficit which would improve prospects for the economy in 2027 and produce a more resilient economy in 2027-2028. As shown on this page the popular Democratic Governor of Michigan in her op-ed in Washington Post supports strategic tariffs, and supports using the revenue for a check to American workers of $2000 per worker or per worker household and offers to work with the opposite party to get a WIN-WIN for the American People.  In the whole process of trade tariffs it must be remembered when seeing the inconsistent cases of tariff use by this Republican administration that these were special reason situations not aberrations or whimsical. First, it should be borne in mind that behind the appearance of DJT making tariff decisions is a carefully thought out process that took ten years to form under Reagan era Trade Representative Lighthizer who negotiated with Japan, and his deputy Jamieson for 2016-2024, and the economic and capital markets experience of Scott Bessent as Treasury Secretary. The two cases of inconsistent application of tariffs relate to the 50% tariff on India and the reduction of tariffs on China agreement on rare earths, and the imposition of a large tarif on Japan and the EU. In the first instance with India it was intended to give Ukraine breathing room from Russian attacks as Germany steps up its military preparedness and assistance to Ukraine. With both countries it was about saving face important in Asian or any societies and it has achieved it's purpose. Reports show both Indian and Chinese refiners have quietly cut purchases of oil from Russia leading to Russian oil selling at about $20 discount to Brent crude oil. In the case of Japan the quick action to raise tariffs was intended not to get into long drawn negotiations and show serious intent- Japan is known for dragging out negotiations for years if not decades. The same is true for the European Union. With the Swiss it was about a certain disrespect of the US coming from attitudes that Swiss products were somehow superior. Not just in the long run, in 2026-2028 history will show that the effort done right - and it takes effort to get this right- to restructure world trade so that other nations are not siphoning off the benefits and leaving the US to lose its manufacturing and factories is the right one. And taken with courage and sincere desire to create a fair distribution of the benefits of world trade for too long distorted by egregious practices of competitors. It has nothing to do with 2 senators from the 1930's who were from places like the Mountain West in the US, having no concept of world trade, Smoot and Hawley, who under a irresponsible president Hoover got everything wrong. This is a carefully set out plan to evenly balance the benefits of world trade to all nations.   ...

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Intel Board members disagreements on how to run the company 2025. Lip-Bu Tan replaced Pat Gelsinger as CEO only a few months back.  Pat Gelsinger had a close relationship with Biden and also had close relations with VP JD Vance. Lip Bu-Tan has no such relations and is seen by DJT and Senator Cotton as "conflicted" in his ties to China as an early investor in Chinese chipmakers. DJT calls for Tan's immediate resignation as CEO of Intel in 2025. Lip-Bu Tan left the Board a few months before the ouster of Gelsinger. It now appears that the ouster of Gelsinger as Intel's recovery proceeded but only gradually was a poor decision of the Board.  This report also shows an acting head of Intel Yeary recently considering selling of the manufacturing business to TSMC which is a staggering revelation considering that the US is trying to build its own dominant chip making business in the US, which it had ceded to TSMC in Taiwan after inventing the computer chip. ...

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The trade deficit with China has led to loss of 3.8 million jobs, 75% of them or 2.9 million in manufacturing. Go back to 1990 and Beijing was a city of bicycles not cars. If Beijing shifted to a open economy and simply imported products from the US and Europe as it had done since 1700 it would have remained a backward agricultural economy. It took 20 years of focused effort after 2000 for China with US technological assistance to excel in manufacturing, as the US had done after 1920. Can or cannot the US excel in Manufacturing with its own focused effort and restore jobs and decent wages to the American people, that is the question. That a $1 trillion deficit that has already destroyed the US manufacturing and its capacity to defend itself by rapidly building up the US Navy, is that not an emergency, then what is, is also the question, and the role, the duty, of the president of the US in such a situation. The federal appeals court has allowed the DJT Tariffs to remain in place till it goes to the US Supreme Court. Today May 30 the WSJ in a front page article shown here says the one California shipyard could assemble a supply ship in 5 days in 1942. China's independence in the fight against Imperial Japan and the Kwantung Army's adventures, and the independence of Europe in the 1940's depended on this vital US capacity. Is this forgotten? FDR acted step by step by 1938 to restore the US lost capacity at that time, what is the role of the president today? ...

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Justice Ruth Bader Ginsberg, the oldest person on the U.S. Supreme Court dies at 87. The U.S. Supreme Court is unique in that there is no retirement age as in India and other countries. She died of pancreatic cancer. She is one of the rare jurists in that she continued to work almost to the end. She was unique in other ways because she got along well with colleagues on the court of different persuasion. Justice Scalia who was the complete opposite in thinking and views than Ginsburg said that this did not matter much as Ginsburg was "fun to be with." Former president Clinton nominated Ginsburg in 1993. Recently Justices Gorsuch and Kavanaugh joined Roberts, Alito, and Thomas,  for a 5-4 majority on the court for conservatives. Ginsburg was a woman's rights advocate in the 1970's. She will be missed mostly for her vigorous personality and feisty attitude to life working and being active even with her health condition. The death of Ginsburg means that the court is now deadlocked with 4 to 4 and no majority for conservatives or liberals. The country has also changed. Both conservatives and liberals claim they uphold the constitution of the country. Ginsburg saw this as the inclusiveness the founders intended- for women, and minorities. The conservatives see this also from the vantage of inclusiveness as the country has splintered into those who are largely college educated and tech savy, and the high school educated and less tech savy more rural and in small town that lost jobs and social services from the shift of manufacturing to China. The conservatives  see the lack of inclusiveness for the rural communities and small towns left out in the tech booms of the last three decades and shift of manufacturing overseas. Cultural attitudes add another layer to basic economic issues and a sense of alienation on both sides. In this climate and with an approaching election in 41 days the Republicans want to nominate their conservative choice supported by their Senate majority, and the Democrats want to block this appointment till after the election.   ...

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As Keith Bradsher of the NYT points out in this report too much may be made of the tariffs of 25% imposed by president Trump on steel imports. The effect Bradsher says on China is trivial because China imports make up a fraction of 1% or 0.1% of China's production, and only 2% of American steel imports. Most of China's aluminium is made into products such as auto parts and solar panel frames, and little of it is imported as raw metal. On the day the tariffs were announced, China's top economic official Liu He met with economic officials of the Trump administration and China's reaction was cautious and reflected the fact mentioned b.y Trump about its huge trade surplus with the U.S. of $375 billion in 2017. China's officials stated "that its dialogue with the U.S. was very useful, constructive, and helpful."  China's principal goals are first to preserve its broader trading relationship with the U.S. which gives it th $375 billion trade surplus for 2017 and creates millions of jobs in China, and to preserve its ability to invest in the U.S.  This has given China access to American technology and manufacturing expertise that would be difficult to develop independently. The Trump administration is meanwhile working with senior members of Congress to come up with new rules for tighter scrutiny of Chinese investments in the U.S. as a new phase of competition in technology takes place between China and the U.S.  ...

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New legislation introduced in the U.S. Congress by Senators Orrin Hatch and Ron Wyden giving fast track and trade promotion authority to president Obama faces intense opposition from Democratic Party members of Congress. Only about a dozen House Democrats are considered to be supporting the legislation. Senator Schumer says "I don't believe in these agreements anymore, I've changed." Senator Warren on the left opposes the legislation. Senator Bob Casey of Pennsylvania says the legislation "as paving the way for another Nafta style deal that costs jobs." The deal if it passes the Senate, would face Republican opposition in the House where 50 or more Republicans are reported to be against the fast track approach and giving too much authority to president Obama without Congressional input. Fast track legislation would allow free trade pacts such as TPP to pass Congress without amendments or procedural delays. Labor groups and auto, other manufacturing companies, oppose the legislation because of the impact on manufacturing, West Coast groups in IT industries favor the legislation. Projections made by Petri, Plummer and Zhao at the Peterson Institute of International Economics, show the impact of Trans Pacific Pact (TPP) free trade pact would be $109 billion in added manufacturing imports to the U.S. to 2025 and $ 53 billion in exports, a net U.S. unfavorable of $56 billion. For IT and services sector the added U.S. exports to 2025 are projected at $42 billion and imports at $8 billion, for net $34 billion. U.S. favorable. Because of the dominant position of the U.S. in IT how much of this $42 billion might still happen without TPP. Other societal impacts also figure in the discussion, such as which sector needs the largest help and impacts the largest number of Americans for a sustained economic recovery in the future. ...

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DJT announces actions on Liberation Day, April 2, 2025 freeing America on attacks on its manufacturing base and its workers for 50 years since the 1970's. He announces reciprocal tariffs on all nations with large trading imbalances with the US, a 34% tariff on China and a 20% tariff on all imports from the European Union. These nations he says have taken advantage of the US and looted and pillaged the US workers and communities for decades mainly because of the presidents who sat in the White House executive room and allowed this to happen. US Treasury Secretary Scott Bessent advised all trading nations-  "My advice to every country right now is, do not retaliate." His advice- "sit back, take it in.... Because if you retaliate, there will be escalation". The US is in no mood to be lectured or retaliated when these countries including China, Japan, South Korea and the EU, Taiwan, India a list of about 20 nations have taken unfair advantage of the US in trade for 3 decades. ...

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This is an interview with Columbia University economic historian Adam Tooze about the international trade and economic issues brought about by globalization. The rapid emergence of China in manufacturing and overcapacity in steel has led to action on steel tariffs by president Trump. Tooze is typical of opinion that sees action by Trump not as limited action to level the playing field  as proposed by Trade Representative for the U.S., Robert Lighthizer, but as reckless move on trade.  Lyrarc.com shows articles from the WSJ and NYT showing how opinion got to this point in the U.S., on Robert Lighthizer's views that the U.S. was not facing a level playing field, and  on how trade has hurt communities across the U.S. a long distance away from Silicon Valley. President Trump's views reflect a different perspective that says the U.S. has to balance the favorable situation obtained by China and the European Union through moves of its own to protect U.S. interests. Political commentary that the U.S. was starting a trade war is not supported by the facts showing China's response as muted and a willingness by China to negotiate a balanced trading relationship as its trade surplus with the U.S. continues to grow. The trade surplus is so large that the Trump moves do not tell the real story. They are likely to be overshadowed by the increasing value of the U.S. dollar leading to a continued favorable situation for Chinese exports and a larger trade surplus in 2018, regardless of Mr. Trump's action.  Trump's moves are more significant in other areas- limiting China's access to advanced technologies, with the European Union also taking the same action. This is now the new field of competition for the major world economies. ...

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Savings for China and Japan by increasing oil imports at low prices could amount to about 1% of the economy for each country. Japan imports of oil are one tenth of total imports, and amount to $75 billion. At prices half of what they were before coronavirus the savings are about $40 billion a year. This will offset some of the drop in economic growth of about 3% in the year ending March 2021.

For countries where the coronavirus has been relatively controlled with manufacturing and infrastructure projects ready to go ahead the benefit is greatest. China expects to see about 7% decline in GDP in the first quarter resulting in minimal growth for the year as long as export markets in the U.S. and Europe remain weak. For India it depends on how long the lockdown continues and how quickly economic activity can resume under new conditions. 

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Sharp swings in attitudes have left America divided in terms of education. A comparable situation exists also in the UK as areas with more education access have separated from areas with less access to higher education. As the WSJ analysis points out at one time social cohesion prevailed in the postwar years till 1970 with educational attainment playing a small part leaving social cohesion intact. Even in the period 1970-1990 when there was a shift for college educated women to prefer Democratic Party and white men without a college degree to prefer Republicans this was not a significant gap. The Democratic Party appealed to less educated union voters in manufacturing industries as well as it did with college educated men and women. This gradually fractured during the Clinton and Obama administrations as the Democratic Party  moved closer to the higher educated and drawing more support from new tech industries than manufacturing. Nowhere is this more evident  than in the way college educated women have shifted to the Democratic Party and white men without a college degree have moved to the Republican Party. Swings of different types are normal in elections and politics. But swings purely based on education are rare in American politics and not healthy for the democratic system of government. As the analysis from WSJ/NBC News shows college educated women favor Democratic Party by 33 percent margin. And the swing is even deeper for white men without a college educated degree who favor Republican by a 42% margin. This is the situation before the 2018 U.S. Congressional elections. The combined group of college educated women and white men without a college degree make up 40% of the U.S. voting public. This makes each group unreachable for the other party, a situation unimaginable for many of America's leaders if they would be living today- from presidents Harry Truman and Dwight Eisenhower, John Kennedy and Lyndon Johnson. White voters make up 70% of the electorate, and a situation where they would be unreachable for Democrats would be unthinkable or unimaginable for Truman, John Kennedy. And Eisenhower would also find it unimaginable that he would have to writeoff college educated women in his campaign.  By returning the Labour Party to its roots Britain is combatting this tendency for fracturing of social cohesion. In the way the UK's Blair administration moved away from Labour party's roots in manufacturing and the trade unions, the Democratic administrations under Clinton and Obama  moved away from manufacturing industries and the trade unions.   Most of the postwar leaders of the stature of Eisenhower and Kennedy would have seen such a situation as a significant failure in political leadership. ...

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Laurent Berger is the likely candidate for bringing together all social democratic and socialist parties in France.  French Socialist parties and leaders Melenchon, Glucksmann, and others in Greens party join together to contest the Assembly elections June 30, July 7. This means the socialist parties have finally made the decision to come up with ways to tackle the cost of living crisis, loss of manufacturing, lack of investment in infrastructure that can make a difference in the daily lives of working people. This was missing in Macron's plan as En Marche was built by Macron based on his detecting an opportunity during the last year of Socialist Hollande's term in 2017, not with a well thought out plan for renewal in France. The years of the presidential first and second terms did not work from a plan to tackle the issues facing working class families and benefitted as much from the alienation that had driven working class votes in different directions from the failures of Socialist or Social Democratic leaders. This happened in Germany with Scroeder, in Britain with Gordon Brown, and in France with Hollande, in the US with Clinton and Obama. The path that president Biden has taken to invest in infrastructure with bipartisan support, to invest in manufacturing with bipartisan support is what the Social Democratic and Socialist parties in France with bipartisan help now need to take up. ...

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Lake county with 230,000 population in Ohio received 60 million pills. Ohio Counties say after the $650 million settlement verdict by US courts for CVS, Walgreens, that it cost them $1 billion for law enforcement, social services, and health services. The opioid crisis dealt another blow to communities in the US already devastated by the behaviour of banks in the 2009 economic crisis, the outshoring of entire manufacturing to China, followed by the pandemic in 2020. America is only now coming to terms with the failure of previous adminstrations as the Biden administration takes on this task of bringing America, its workers and families back to healthy thriving communities.

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About 565,000 workers are missing in the UK workforce in December 2022. The Guardian asks the question- Will they ever come back? Many left under stress from healthcare work, from the hotel and restaurant business, and from manufacturing during the pandemic. Some took early retirement, some taking care of family members. A similar situation exists in the US. Jay Powell at the US Federal Reserve, its central bank, and Fed Governors including the head of the Federal Reserve for California are working on ways to get these people back. Brian Deese of Biden's National Economic Council is also working to find solutions including better child care and better benefits for workers. Settling the rail strike on terms attractive for workers and getting rid of onerous rules for workers who could not get paid heath care leave in rail companies, are ways the Biden administration is responding.

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Even though volatility is high in stock markets, the U.S. stock market has rebounded to levels in August 2019. The level on March 10, 2020 after effects of the coronavirus on the global economy was for the DJIA average in the U.S. to be at the level it was on August 14, 2019, as shown on the graph in the WSJ, in the neighborhood of 25,000. In the last quarter of 2019 there were steep gains in the Dow Jones averages that could not be fully explained, these gains have disappeared. Considering the suddenness of the crisis from the coronavirus in China, and the double whammy of impact on global manufacturing supply chains of first the tariffs on Chinese exports to the U.S., followed by the coronavirus, the impact on stock markets seen in this overall context is comprehensible. Particularly the sharp gains in the last quarter of 2019 which now appear to be muted. There is also some good news for economies such as China and India, which are large oil importing countries, and the rest of Asia, in the sharp drop in oil prices that helps cushion some of its impact on the global economy. For the U.S. this also happens at a time when the economy is in much stronger shape than at any time in the last ten years. ...

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As exports and manufacturing decline, China is continuing to maintain high rates of fixed asset investment with the focus now away from factory construction to infastructure like roads, bridges and rails. The National BUreau of Statistics reported that urban fixed asset investment expanded 26.5% in Jan-Feb 2009, compared to 26.1% growth rate for 2008. Fixed asset investment was 42% of GDP in 2008, according to JP Morgan strategist Jing Ulrich. Now it could go up higher to 45%. China's growth has been off-balance say experts, now it is becoming even more so. As long as factory construction as fixed asset investment a lot of new jobs were being created in the manufacturing sector, now these jobs are not being created. China's small and mid sized companies that generated about half of the 4.42 trillion GDP, like GenTech of Mr Yu profiled in the other linked article in WSJ, and which created 90% of the new jobs, are now contracting. With smaller private consumption, and the efforts to improve the safety net and provide universal medical care inadequate and coming late, domestic demand will not help balance the economy and boost manufacturing. Private consumption is only 35% of GDP in China, a much lower percentage than India. The comparable figures for the US are 71%, UK 64%, Australia, Canada, France, Germany and Japan 57%. The balance is now heavily skewed towards government spending. Investment spending from HongKong and Taiwan, the home bases of industrialists with made for export industries inceased investment by 1% in Jan-Feb of 2009 from the year earlier, compared to 17% growth in all of 2008. And foriegn funded companies have comparable figures of 2% for Jan-Feb 2009 compared to 15% growth in all of 2008. Real estate investment growth also fell to 1% for Jan-Feb 2009 compared to 21% for all of 2008. In short the other pillars of growth in housing, and investments from Hong Kong, Taiwan and the West are declining. ...

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US president Biden points out in his letter to the US Congress- "When I was elected President, a pandemic was raging and our economy was reeling, and trickle-down economics had undermined our nation’s growth long-term. I was determined to rebuild from the middle out and bottom up, not the top down, because when the middle class does well, we all do well. We can give everyone a fair shot and leave no one behind. Our plan has brought transformational progress." "Along the way, we’ve achieved one of the most successful legislative records in generations, bringing new opportunities to communities of all sizes nationwide. We’re tackling years of underinvestment in public infrastructure, clean energy, and advanced manufacturing, making sure the future is made in America by American workers. We’re making the biggest investment in American infrastructure in generations, including over $400 billion for 46,000 projects in 4,500 communities to date. These projects are rebuilding the nation’s roads, bridges, railroads, ports, airports, public transit, water systems, high-speed internet, and more, in every part of the country. We’re also making the most significant investment in fighting climate change in history—advancing breakthroughs in clean technology, boosting energy independence, lowering electricity costs for hardworking families, and revitalizing fence-line communities smothered by a legacy of pollution. At the same time, we’re working with the private sector to strengthen America’s semiconductor and advanced manufacturing industries as well, empowering workers and small businesses to share in the benefits. Already, my Investing in America agenda has attracted $650 billion." ...