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LyrArc brings in selected articles from many of the world's top publications.

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Washington Post Original article ›
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The recent appointment of fast food executive Andrew Puzder as Labor Secretary has caused great concern among union leaders. Puzder supports a $9 minimum wage compared to $15 supported by Democrats. Unions now represent 7% of the labor force, down from a high of 20% during Reagan's time when Reagan appointed a construction company executive as Labor Secretary and cut regulations.  Globalization has thinned the ranks of workers in unions. And the failure of Democratic administrations to stem the shift of factories overseas to China, Mexico and other places, as part of global supply chains focussed on cost, has weakened Democratic support among workers since the period of Bill Clinton. It eroded to the point where Obama won 65% of support among unions and Hillary Clinton won 56% in 2016. Interestingly the Republican Romney gained 33% versus 37% for Trump, showing voters were more inclined to move away from Democrats and only a smaller number willing to support Republicans, but the shift enough to give Republicans a win in 2016 for the presidency. The figures are from a Election Day survey of trade union AFL-CIO, and a larger proportion in midwestern states showed disaffection with policies from Clinton to Obama. In fact Obama spent years promoting another free trade agreement TPP that favored tech more than auto and older industries, just as Bill Clinton had promoted NAFTA, without giving thought to what this was doing to its worker base of support. A similar situation happened with Social Democrats in Germany as a SPD administration moved to the centre and handed Christian Democrats led by Merkel a win in parliamentary elections. As Democrats such as former Labor Secretary Reich, a professor at UC Berkeley who served under Bill Clinton, describe the problems of working class people their is less reflection on the impact of the changes from globalization and how Democrats handled or mishandled it, and more on the politics between the two parties.   ...
The Economist Original article ›
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This report in the Economist points to the improved situation for Mexico after the scare from Trump's plans to build the wall and deport large numbers of immigrants. The peso dropped by 15% between mid November 2016 and January 2017, but has since recovered, and non-oil exports were up 5.5% in February 2017 over prior year with the manufacturing growth in the U.S.  Growth forecasts are now up from about 1% GDP growth previously to 2% for 2017, close to the 2.3% in 2016. Much of the change in mood in Mexico is a result of the failure of the early travel bans being blocked in the courts, the failure to get health care legislation through Congress, and the effort by the trade advisers and economic advisers around Trump to move Trump's positions more to the centre and closer to traditional Republican party positions. Wilbur Ross, the Commerce Secretary, says " a sensible agreement" can be reached with Mexico. Peter Navarro, trade adviser, talks about making "a mutually beneficial regional powerhouse." Robert Lighthizer, a veteran from the Reagan days, is likely to be made the new U.S. Trade representative. Still as the Economist points out the "20% border adjustment tax" continues to be supported by Paul Ryan in Congress to pay for tax cuts. But certainly the mood has lifted in Mexico in the first 100 days. This is true for economic policy in relation to China and Germany, and the close circle of Ross, National Economic Council head Gary Cohn, and Secretary of State Tillerson is moving Trump to the centre in policy statements to get things done. Mexico is faced with internal challenges of reestablishing the rule of law, improving infrastructure, reducing red tape and corruption, addressing problems in the education system, to promote economic growth. These challenges may prove to be as large as the external challenges were once thought to be. ...
The Times Original article ›
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Gerard Baker in The Times of London looks at California as some kind of dystopia, a malfunctioning place with rolling blackouts from PG&E the electricity company, drought and water shortages, housing costs soaring making it affordable only to the few at the top, and high taxes. He cites an expert from Chapman University who compares it to some sort of medieval feudal place run by nobility at the top, the investors, lawyers and people in entertainment, with the academy and the media as a kind of clerisy who propagate the ideas that this nobility supports, a small middle and the rest as serfs or minimum wage workers in logistics, retail and farms. Median costs of housing are about $613,000, and the affordability index of people who can afford housing is 32% compared to 56% in the country. Hispanic immigrants now prefer Texas, though with a loss of 6 million people in the last decade and gain of five million, it sees increase in population with high birthrates from the existing population to about 40 million. Half the population of homeless in the U.S. are now in California though it has only one eighth the population of the country. High housing costs and high cost of living hurt people at the low end, the lower middle and the retired the most. With low wages at the bottom and extremes of wealth, homeless, housing zone restrictions, drought and rolling electricity blackouts, this is not what the future should look like.  ...
Wall Street Journal Original article ›
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AstraZeneca PLC showed a net profit decline of 8.3% in fourth quarter 2011, on sales that remained stable at $8.66 billion compared to $8.62 billion in the prior year quarter. AstraZeneca is facing competition from low cost generics and cuts in government health care spending similiar to the rest of the industry. The company has announced new job cuts of 7,300 job for 2012, which brings total job cuts to 30,000 for the last 5 years. Most of the job cuts are in the U.S. and Europe. Hiring has continued in emerging markets leaving the net job cuts over the last 5 years at 9,600. Of the 7,300 job cuts planned for 2012, 2,200 will be in R&D departments, 1,350 in manufacturing and 3,750 in sales. AstraZeneca is changing the way it will do research and development with these changes. It will close the neuroscience research laboratories in Sodertalje, Sweden and in Montreal. It will have in its place "virtual" neuroscience units, small groups of 40-50 researchers working with academic groups and scientists outside to utilize the best science in the field. This is one of the most radical changes in R&D practices among pharmaceutical companies. In marketing the approach has shifted from having full time sales people call doctors offices to using online marketing tools and telemarketers. This approach is also being adopted for emerging markets....
The New York Times Original article ›
LyrArc Article Gist
Payne and Applebaum take a look at the Airbus factory in Mobile, Alabama. The $600 million manufacturing facility could have been built anywhere, as parts are made in many different countries. There are no special advantages in assembly at Mobile, that could not be obtained elsewhere. It is mainly the result of a decision at Airbus to make the planes in the large markets, and gaining a larger share of America's military budget. Airbus got $158.5 million in state and local incentives, including a school that trains Airbus workers. The goal is to make it cost not a cent more than it costs to make the airplanes in Europe, even though it costs a lot to ship parts from Hamburg. The non unionized labor makes it possible to have lower labor costs with the starting wage at $16.50 an hour.

Wall Street Journal Original article ›
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The government of president Hollande in France added about 7 billion euros of new taxes after May 2012, and an additional 20 billion euros in the 2013 budget. Spending cuts totaled about half the tax increases. France's taxes are the highest of the major EU countries and there is concern that this may hinder the economic recovery. French businesses are cutting back on capital spending. Insee survey for April 2013 showed French manufacturing businesses planning cuts in investment of 4% for 2013. The government says spending cuts go up in 2014 to about two thirds of the deficit reduction and tax increases about 6 billion euros. France's statistics agency Insee says economic growth was 0.5% in the second quarter of 2013 compared to the prior quarter. The recovery was supported by consumer spending, with private capital investment lagging behind. This is about 1.9% growth in GDP on an annualized basis, according to J.P. Morgan.
The Times Original article ›
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Forecasts from French bank BNP Paribas show Britain's national output or GDP is expected to grow 5.4 percent in 2022, faster than economic growth in China of 5.3%. China's growth is slowing sharply because the manufacturing sector is facing energy shortages, and the construction sector is faced with decades of buildup of debt that cannot be paid.

Wall Street Journal Original article ›
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Greece shows the first sign of returning to positive economic growth after years of decline leading to a drop in GDP of about 25% since 2008. The Greek economy contracted by 2.6% in the 4th quarter of 2013 compared to the 3rd quarter, according to Hellenic Statistical Authority. For 2013 the economy contraced by 3.7% instead of an estimated 4%. Growth is expected to be flat in 2014 or growth of 0.6%. For the first time manufacturing and retail sales are showing signs of growing and new car registrations increased in Jan. 2014. Finance ministry data show Greece's budget with a surplus of 691 million euros in 2013, compared with a deficit of 3.46 billion euros in 2012, before debt payments. The figure is higher at 812 million euros when money from the EU coming in for public works is added. Unemployment remains high at 28%.
BBC News Original article ›
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Decades of investment in infrastructure and manufacturing have given China a strong grip on manufacturing. China's economy depends on exports with sluggish domestic demand. One economist in Hong Kong says Vietnam is the key, if tariffs are placed on Vietnam it will be tough he says, because Chinese goods enter the US from third countries.

In 2025 China's world trade is imbalanced to an extraordinarily large degree, hurting thriving manufacturing communities around the world, and depends on a concentration of port logistics, manufacturing and lack of fair trade practices, that allow $3.5 trillion in exports while taking in only $2.5 trillion in imports. By 2008 America was waking up to this, DJT actually flagged it a decade later, Biden realized this, in the second term what appears like a whirlwind 100 days is really action on many fronts that is coming one to two decades late. 

South China Morning Post Original article ›
LyrArc Article Gist
This report in The South China Morning Post in Hong Kong, gives insights into the Chinese position in trade war with the U.S.  China has its own internal groups which support China being able to take a leadership role in world affairs. Xi Jinping made giving China a prominent role in the world a feature of his presidency. China  has this internal audience and its own sense that China's resurgence was won with hard work and cooperation, plus dedication of the Chinese people. In the past Japan and South Korea also used state subsidized industries, and subsidies to gain leadership in key business sectors involving high technology. China would see this state subsidies model as its own model of development. From this standpoint the U.S. demands on subsidies as unfair competition could be seen as changing a key part of its economic model.  Asking China to put everything in writing and show tangible proof of enforcement as the U.S. insisted in talks, was too much for the Chinese side. China said trust us to do this, and lift the tariffs based on our verbal assurances. The U.S. having seen decades of no progress on this point, wanted tangible proof before tariffs were lifted. Added to the demands on subsidies were the demands for no more of what the U.S. calls stealing of U.S. technology through forced transfer of technology by U.S. firms as a condition to operate in Chinese markets. With the U.S. lagging in 5G technology and Huawei ahead the issue resonates on the U.S. side. Add to this Mr. Trump's key voter base includes the former Democratic party supporting workers who have shifted to him because of trade agreements and policies of Clinton and Obama that hurt American workers through seemingly endless closure of manufacturing plants from Chinese competition.   ...
WSJ Original article ›
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Much of what is written here about Xi Jinping pursuing Chinese socialist vision was known since he became president in 2013 when China's Communist party was losing its appeal, and efforts were made to seize power within the communist party by a leader in the western province of Chongqing. Bo Xi Lai attempted to take advantage of the situation with appeals to the working class and without any genuine commitment beyond a power grab. It was well known that Xi Jinping is a son of one of the veterans of the Communist party under Mao, Xi Zhongxun, unlike leaders who followed premier Deng Xiaoping such as Jiang Zemin. Zemin was a relatively unknown figure who was in university during the crucial period of 1947-49 when Mao came to power in mainland China. It would not be correct to say that little was known about Xi's own ideas about socialism as the long term answer to China's problems. Xi also came in as president at a time when the Communist party was losing its appeal to working class people after three administrations that followed premier Den Xiaoping. These three administrations followed a form of state capitalism that allowed companies to pollute the environment, compete without any regulations, and allowed to operate without any controls as long as they pursued growth aggressively and expanded the economy.There was an effort by Communist party regional leader in western Chinese province of Chongqing, Bo Xi Lai, to use this as an opportunity to grab power in China. During his first year as president Xi had to resolve this issue by having a court trial after revelations of corruption and misuse of power by Bo Xi Lai.  Xi's father Zhongxun's role in the revolutionary movement offers clues to Xi's own convictions and faith in the party. Zhongxun was a communist soldier who set up the revolutionary base areas in Shanxi-Gansu northwest border region of China that provided a refuge for Mao's army following the Long March. Other clues come from Zhongxun's role as head of propaganda during the period after 1944 and in 1952. Xi's family background particularly on his mother's side shows a fervent commitment to Chinese socialist vision during the chaotic years when the Japanese invaded China and Chiang Kai-Shek's nationalist forces failed to defend China's sovereignty. One reason Xi has been less understood is that little attention is paid to Xi's mother, Qi Xin who was highly educated and fervently believed in Chinese socialism and nationalist spirit during the Japanese invasion in 1938. In fact Qi Xin had to leave middle school after the Japanese took over Beijing. She joined the Counter Japanese Political and Military University to continue education and in 1941 attended the Central Party school. She met Xi's father Zhongxun in 1944. In 1953 she enrolled in the Marx School of Communism, and it was her position at the school that offered her husband added protection during the Cultural Revolution that affected Deng Xiaoping and others. With such a history in the 1930's, 1940's, and 1950's it is likely that Xi was profoundly influenced by his father's role in the revolutionary movement, and his mother's faith in socialism with national spirit as the way to protect against the foreign invasions. It would now appear that by the time Xi joined the Politburo in 2003 there was no question about the future course China would take given the role of his parents, and the events of 1938 the fall of Beijing, his mother having to flee, and the events that followed. Xi showed resilience during the period of the Great Proletarian Revolution when he was sent to the villages at a time when he would be studying in school and college. He was sent to an agricultural commune in largely rural Shanxi province where he worked as a manual laborer alongside other people and developed a relationship with the local farmers. Unlike other leaders during that period which could even be said about premier Deng Xiaoping in 1989, Xi took a different lesson from this experience largely because his father and mother were committed to the socialist vision for the long run. His father was still not fully rehabilitated by premier Chou en-lai when Xi was allowed to enter Beijing's Tsinghua University in 1975. He studied chemical engineering at Tsinghua graduating in 1979. Upon graduation he worked as a assistant for 3 years to a vice premier who was minister of defense. He then left Beijing for Hebei province to work as a deputy secretary of the provincial CCP. He was made Mayor of Xiamen, then governor of Fujian province in 1999 where he tackled environmental conservation before moving to Zheziang province. His father passed away in 2002 and it would appear that he was carefully trained in different provinces instead of staying in Beijing, for a position of national leadership. Xi got his break in 2007 when the upper leadership of Shanghai city was tainted in a wide ranging pension fund scheme. He was made party secretary for Shanghai. This was the position Jiang Zemin had held before he succeeded premier Deng Xiaoping. In only a few months in October 2007 Xi was made one of the 8 Politburo members, ready to succeed Hu Jintao as president. Xi's perception of being sent to the villages and making it to university education was that it was part of the long run socialist struggle, with pain that his father had also endured as simply a phase in which things would be right in the end. Xi's mother comes across as a resilient figure and one who had herself gone through the struggles of the 1930's and aided her husband on one occasion. Some of this resilience could have been passed on to the son. Xi's wife is a zealous participant in Chinese dance and music performances that created enthusiasm for the Chinese socialist revolution from the 1930's period. In his conversations  with colleagues in the party, in culture and temperament, Xi has been forthright about this background and his style of work.  Xi is unlike premier Deng and the presidents who succeeded him such as Hu Jintao mentored by a former mayor of Shanghai Jiang Zemin who came to power in 1989. Xi is more in line with the leaders around Mao like his father in his outlook and thinking, with a cautious temperament that comes from years going through ups and downs of political struggles. He is once said to have responded with dismay about being in a top position in the government knowing how precarious this had been for his father. The education at Tsinghua, his engineering background, and his easy familiarity with farmers in the provinces, mean that he understands China and its history well enough to have the confidence to shape Chinese policies in a way that none of his predecessors had except Mao, premier Chou-en-lai, Liu Shao Chi and a few veterans from that time in the 1930's. That Xi waited patiently for so long to gradually assert his ideas about socialist vision for China may be the surprising part of his behaviour till 2021.  It may be that he wanted to make the changes only after he could persuade party leaders and colleagues of his vision and long run goals. And because the Chinese economy had grown so large that it would take time to steer the ship in a different direction for the long term. In most of the negotiations with president Trump he cautiously let trade negotiators handle the situation, all the time learning about how to tackle problems of China's relationship with US and Europe. US president Biden also has a vision that is veering towards a socialist perspective in terms of bringing gains of progress to workers and families. So does Mr. Trump, Mr. Boris Johnson in UK, and Social Democrat's Scholz in Germany. It is both economic and political as Mr. Xi is quoted as saying in this WSJ report. The necessities of such action are both economic, social and politically driven as capitalism has veered way off course.  In this report it is mentioned that Soho China 40% stake was taken by a large capital markets firm in New York in the hope of large gains, as Soho China developer was a tycoon who wanted to leave China. Seeing it as not favorable to his company following events in Hong Kong. This behaviour of capital markets groups in New York and tech companies in Silicon Valley, driven by profits and not aware of the social and economic problems of working class American families is a problem in the US and in Europe. It is also what has driven so many large tech companies to expand manufacturing operations in China, that hurt US manufacturing capabilities and American workers jobs- an issue raised by president Trump and taken up by president Biden. Biden has already moved to make Intel Corporation change its plans and invest in American manufacturing technologies in a quietly implemented U turn. US president Biden is left with the unenviable job of solving this huge problem during the pandemic. He has also committed to a somewhat socialistic vision with a $3.5 trillion plan for workers and families, as has vice chancellor Scholz in Germany with his own version of programs, after the failures of unregulated forms of capitalism. Scholz goes so far as to say his mission is to show that there is really no such thing as a self-made man, that it is help from society, his fellow citizens, and government, that makes it possible for him to do his work. In a sense the world is shifting away from Reagan forms of capitalism without regulation after seeing disastrous results during the pandemic. Not just China. Some form of government guidance and regulations are now seen as essential in China, the US, UK, Germany and India for a better society and a better, healthier life, and for opportunity for all in each country.   ...
NYTimes.com Original article ›
LyrArc Article Gist
Amazon expands during the pandemic when retail on line delivery has helped people reduce trips to the grocery or retail stores. Amazon hired 427,000 people to expand its workforce to 1.2 million people by November 2020, 9 months into the pandemic. Almost doubling the employee workforce. These workers are mostly at warehouses, with some software engineers and hardware specialists. This includes hiring in India and Italy and is worldwide hiring. This does not include 100,000 temporary workers for the holidays, and 500,000 delivery drivers working for contractors.  Only hiring of 230,000 people by Walmart about 2 decades a ago in one year comes close. Walmart hired 180,000 people during the pandemic. Walmart has 2.2 million employees. With the expansion underway Amazon looks to become the largest private employer in the world in 2 years, say experts.  Amazon pay is $15 an hour after an increase of $2 recently. Its coronavirus safety practices have been upgraded after early criticism in April and May. Recent expansion in Italy and in India are also part of worldwide expansion after Walmart has pulled back from its worldwide expansion. This also shows how quickly major aspects of life are changing during the pandemic as some companies in online business are becoming more prominent than others. Target and Walmart have also increased in size. Best Buy has changed its focus with its conversion into a company that leads with personal service in online plus store hybrid retail and a focus on seniors and older people for healthcare service and product delivery. Companies are changing the way they run or getting a new life in remaking their business. This is also a time when other aspects of business such as social media are becoming evident. Subtle aspects such as reports of higher rates of mental depression through use of social media platforms. There is also the awareness that information technology companies in Silicon Valley generate most of their money in advertising and this advertising of $100 billion is only a small fraction of the $12 trillion U.S. economy. Should Silicon Valley based in California decide priorities on where capital allocation should go through the part it plays in moving startups based less on America's priorities than other considerations. Healthcare, education, cities, and infrastructure have not received funding they need and capital allocation by financial markets has failed the American people, as it has failed in Europe and other parts of the world for similar reasons. This has hit hard communities and people across the U.S. and Europe and also in Latin America, Africa and Asia, with the loss of manufacturing to China and other countries from the U.S. India and Europe. ...
Wall Street Journal Original article ›
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The transfer of high speed rail technology by Kawasaki to China, starting with deals made in 2004. Kawasaki did this fearing that other competitors would win the business. It transferred the technology believing that it would be years or decades before China would develop its own capabilities and compete with high speed rail manufacturers in Japan and Europe. Kawasaki says the understanding was that the transferred technology would be used inside China, and not for export. China insists it has improved on the technology that was transferred with its own innovations, and it has the right to compete in the world high speed rail market. A high speed rail line between Shanghai and Beijing is being built using Chinese technology by China South Locomotive and Rolling Stock Industry Corporation (CSR), to cut the time from 10 hours to 4 hours. This is part of a network that will be extended to 9700 miles by 2020 according to the government's plan. As part of its export of high speed rail China Railway Construction Corporation is developing a high speed rail line connecting Istanbul and Ankara. China is bidding for contracts in Brazil and in the USA. The issue of transferring technology is becoming a sensitive one for Germany, Japan and the USA. It means transferring the technology as the price of getting a share of the Chinese market, but paying the price later on with competition from Chinese competitors in the same industry. China is developing its own civilian aircraft that would compete with the Boeing 737 and the Airbus 320. Min Zhu, special advisor for the IMF and former deputy governor of the People's Bank of China, told the Wall Street Journal CEO Council, that China's share of advanced machinery manufacturing could reach 30% of global exports by 2020, from 8% today. ...
The Guardian Original article ›
LyrArc Article Gist
Rebecca Solnit says the Biden administration has governed very well over the last three years, the Washington Post, NYT, WSJ are showing poor judgement and lack of civic duty in not considering what the two alternative visions of America are today as offered by the candidates in the 2024 election. On climate change alone the differences are vast and if nothing is done the results will be catastrophic with increasing risks of extreme heat, floods and other catastrophes. Because of this and all the work being done under Biden's leadership in manufacturing in America, in rebuilding its infrastructure, and in building leadership in science and chips, the Washington Post, the NYT, WSJ, and the television media have shown an extraordinary degree of incompetence. The Washington Post had a sample of its readers responses which we show today in Lyrarc. Of 5 letters from all parts of the country only one stated the Post's position, the rest all 4 wholeheartedly supported Biden and his overall record, his vision and competent administration. This itself shows that the president has the support of the American people and the Media has the lowest ratings in its entire history somewhere in the 20% level where it has languished for the last two decades as we pointed out in Movement for Global Literacy. ...
New York Times Original article ›
Wall Street Journal Original article ›
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Manufacturing in the US is adding jobs for the first time since 1997, according to government data. Job growth in 2010 was 1.2%, or 136,000 jobs. IHS Global Insight expects total manufacturing jobs in the US to increase in 2011 to 12 million. Manufacturing will be a modest contributor to job growth according to economists. Economists projections show a gain of 2.5% or 330,000 manufacturing jobs in 2011. Moody's Analytics estimates job growth of 2% a year through 2015. Government incentives, need to replace aging equipment and rehiring in the automobile industry will help manufacturing. At the same time manufacturers are cautious about hiring and increases in automation reduce the need for workers compared to earlier periods. Overall the loss of about 6 million manufacturing jobs since 1997 will not be made up. Yet the improvement is a positive sign as the US faces high unemployment and companies make investment in new factories overseas to meet growth in emerging markets.
The Guardian Original article ›
The Guardian Original article ›
LyrArc Article Gist
The India Pakistan issues have already evolved into India China issues. And the competition between the US and China has consequences for India, the European Union and the rest of the world. As the US seeks to regain its industrial base and reduce overconcentration of manufacturing in China, India is at the stage of a manufacturing effort that is similar to Japan's in the 1920's and 1970's and China's in the 1990's. It will take place over the next two decades. This is the crucial event for Asia that will see the emergence of not two but three nations in Asia- Japan, China and India as modern manufacturing nations.  The talk about military action popular in the media misrepresents the real issues which are economic and ignore the turning point in 2025 with the Ukraine war putting the European Union and Germany's position of concentration of production in China as untenable. For the US DJT represents a second effort to bring serious manufacturing back to the US and allies such as India. This will be the deciding change in Asia and the world by 2030, 2035 and 2040, as India will make the decisive change to a modern nation similar to the US and Europe. This will open up opportunities for 1.4 billion people in India and a related 300 million people in Indonesia. ...
WSJ Original article ›
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The U.S. and China sign Phase 1 of the trade agreement in a sign of reduction of trade tensions between the two countries. Difficult issues of state subsidies under China's state enterprise model of development, and technological competition were put off for the future. China made the deal possible by agreeing to double its purchases of agricultural products, and offering to purchase about $200 billion in American goods and services over the next two years. This gives relief to farmers, a key part of Mr.Trump's support base. This also helps achieve a key Trump and U.S. goal of cutting the U.S. trade deficit with China quickly, just as happened decades ago with Japan.  See the related article and link on how for the first time in decades China's trade surplus with the U.S. is now set on a path for permanent decline. It dropped significantly in 2019 by 12.5% even though China's imports from the U.S. dropped by 21%, based on Chinese customs data released for 2019. With China increasing these imports significantly and the U.S. holding on to tariffs of 25% on $250 billon of China's exports to the U.S. which are outside the Phase 1 agreement, the downward course is set for the next few years for correction of a dangerous trade imbalance. That imbalance was allowed to develop over successive Republican and Democratic administrations. China already has the European Union as its first leading trading partner and south east Asia as its second. China plans to not be so closely intertwined with the U.S. in trade, and yet preserve its state sponsored development model and drive to compete in technology. China's increased purchases from the U.S. of $200 billon are broken down in terms of farm products- $32 billion, manufactured goods- $80 billion, energy products- $50 billion, services $35 billion. In effect the U.S. gets its goal of cutting the unsustainable China trade surplus quickly and with certainty in 3-5 years. China uses the period to transition for less trade linkage with the U.S. yet preserving its state sponsored model of development and drive for technological advancement.   ...
WSJ Original article ›
The Hill Original article ›
LyrArc Article Gist
To preserve and protect the industrial base of America that was shipped overseas starting with Tim Cook and Apple in 2000, and without this industrial base the consequences not just in jobs and manufacturing knowhow lost forever but in loss of leadership of the Free World  which depends on industrial strength, the US president has to decide in 2025. A decision that comes after 25 years of deindustrializing America. DJT says- “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else." “When they build their plant here, there’s no tariff, so they’re going to be building plants here. But I had an understanding with Tim that he wouldn’t be doing this. He said he’s going to India to build plants. I said, ‘That’s okay to go to India, but you’re not going to sell into here without tariffs,’ and that’s the way it is,”  “The iPhone, if they’re going to sell it in America, I want it to be built in the United States.”  ...
WSJ Original article ›
New York Times Original article ›
Washington Post Original article ›
LyrArc Article Gist
This Washington Post analysis of the Republican tax bill gives an exceptional view of the bill's impact and provisions. This is the first major change to the tax laws since 1986. The size of the bill is $1.5 trillion, with the Joint Committe on Taxation projection that the bill will increase tax revenues over a decade by $500 billion, meaning that it will cost $1 trillion being added to the deficit. What the bill does: 1. It offers a permanent tax cut to corporations by reducing the corporate tax rate to 21 percent from 35 percent. Industries benefiting the most are mining, real estate, technology, manufacturing. 2. The individual tax cuts expire in 2025. They are skewed to disproportionately help highest income Americans, much less lower income Americans and much more highest income Americans compared to high income Americans. In this sense it is skewed in a an unusual way to the highest earning Americans- a sort of Trump effect in place. The top 1% get a tax break of $51,140 in 2019, middle income people earning about $100,000 get about $1000 a year in 2019, tax payers earning around $50,000 about $380, and those earning less than $25,000 about $60 a year in 2019. Taxpayers earning about 150,000 get about $2000 a year tax cut. (Tax Policy Center) 3. The basic assumption is that tax cuts are revenue neutral if there is economic growth and most of that growth comes from corporations investing in growth. The problem as Greg Ip points out in the Wall Street Journal is that countries trying thsi approach in the past such as Britain have not seen such growth materialize. Corporate profits are the highest in 15 years as percentage of GDP, according to Vanguard founder Bogle, and are now 20% of GDP compared 11% in 1980. If corporations did not invest with this level of profits how much additional investment is going to happen, ask critics, especially as demand drives growth and wages are not boosted under this plan.  4.  Because the bill's changes to current law makes it likely that 13 million less Americans will be insured over a decade- from fewer people signing up for Medicaid and on exchanges for Affordable Care Act- it will hurt lower income Americans. Skewing at both ends of the income spectrum of this type is rare in American history particularly in the twentieth century after the Depression of the 1930's, and poses risks for social cohesion, making it unpopular with most Americans. A CBS News poll taken Dec 3-5 shows 53% of all Americans opposed, only 35% support the tax bill just passed in Congress.  5. Then why did Republicans do this? Republicans needed a legislative success after failure to repeal the Obama Affordable Care law. This pressure led to passage with Republicans probably aware that this is temporary tax reform requiring a real effort by both parties working together after the midterm elections in 2018 and as the presidential election approaches in 2019.    ...
WSJ Original article ›
LyrArc Article Gist
Having an adequate supply of N95 masks is critical for each hospital tackling the coronavirus pandemic. The lack of enough masks leaves health care personnel without the basic protection and is a grave emergency. Hospitals are resorting to reuse of the masks in this crisis and this is not a good practice as it increases the chances of infection. President Trump has invoked the Defense Production Act on April 2 against 3M. This gives the federal government more control over 3M's operations to ensure that it goes all out to make the healthcare N95 masks that the hospitals need in this grave emergency. This report in the WSJ covers the situation as of April 3 on the supply of M95 masks for health workers and others. N95 masks block 95% of very small particles. Supply in the U.S. is for 50 million N95 masks. Demand in the U.S. is for 300 million N95 masks as estimated by the Department of Health and Human Services. in March- this is how many are needed by health care workers to fight this pandemic in the U.S. The principal manufacturer is 3M. 3M company has doubled its production since January 2020. The trend before this pandemic was to send production over to China and other countries. This is changing now with the pandemic and the U.S. policy shifting to be self sufficient in medical supplies in the event of an emergency. A policy Peter Navarro, who heads the agency in charge of getting medical supplies, says President Trump is insisting be implemented. Hospital buyers supported the earlier trend to keep costs down, but this appears to be a costly mistake, putting health care workers in hospitals across the U.S. without the basic protection they need. Minnesota based 3M invented the first modern disposable masks in the 1960's. Interestingly 3M continued to make millions of masks in the U.S. even though competitors moved manufacturing overseas. The 50 million disposable masks 3M made globally went to workers in industries where it provided extra safety from metal shavings or other substances, and medical workers. Now 90% of masks go to medical workers. 3M ramped up production globally since January 11 when the pandemic first hit to 100 million masks a month globally, and 35 million a month in the U.S. at plants in South Dakota and Nebraska. 3M says that it will import 10 million masks from its factory in China, which earlier this year was restricted from shipping it outside China as China needed masks for the pandemic. About 10 million more masks are made by two other manufacturers Alpha Pro and Louis Gerson Co.  U.S. Department of Health and Human Services ordered 600 million N95 masks from 5 companies to distribute to hospitals and build up the national medical supply stockpile. 190 million each of this is from 3M and Honeywell and 130 million Owens & Minor Inc.  3M says it will make 50 million a month in the U.S. by June. Honeywell which had moved production overseas, plans to bring back production to the U.S. by making 10 million masks by May at its Rhode Island and Phoenix plants. There is a company in Singapore that makes one million masks a day in China and other Asian countries, Pasture Pharma Pte, but most of it is committed to government agencies in China.   ...

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