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"No amount of misrepresentation or statistical contortion can conceal or blur or smear that record. Neither the attacks of unscrupulous enemies nor the exaggerations of over-zealous friends will serve to mislead the American people." FDR said this  on October 31, 1936, it could also be president Biden.The current Media and Hollywood efforts to choose presidential candidates of their choice runs contrary to "We the People," contrary to views of ordinary Americans, of voters, workers and families. President Kennedy was told he should not take the nomination because he was too young. Kennedys' response was that it was he not Humphrey that went to state after state and won the votes in the primaries, no one else made the effort to run in the primaries in each state. President Biden has the support of 14 million in the primaries. George Chidi from Atlanta reports that undecided voters number about 1 million in the swing states and most are much older than the average. Most may feel insulted by talk about age when they are in the same category.  A 102 years old Lockheed engineer in Atlanta suburbs says he is a Republican but will not vote for Trump. There is also the women's vote in Georgia and Atlanta suburbs with abortion ban as the issue as it was in Kentucky and Kansas. How many vote will also be a factor, making energizing the base a key factor. The idea that one party is doing better than the other is refuted clearly by some of the people in Georgia shown here, and the age factor does not get the prominence the Media have given it, as long as the government is functioning well. Media has failed to look at the policy details of each candidate in a colossal failure that calls for alternatives. Older voters who are the major part of the 1 million or so voters in swing states that are undecided also say that the fact is that with both the candidates- as it is with administrations that are led by young presidents seen as too young to lead (JFK) the opposite of today- many of the decisions are made with an experienced group of advisers around the president. Many if not all also realize that the vast experience of an older president is also an asset. Much of Biden's legislation for chips science, infrastructure, the Inflation Reduction Act have not happened in Germany, France or the UK, and would not have happened in the US without the ability of president Biden to get the bipartisan support from being the one with the most experience in Congress in a long time. The result is the hundreds of thousands of jobs created each month and a growing economy, inflation down from 9 to 3% as the first step to further cost of living action to support ordinary workers and families. Only LBJ comes close and he signed landmark legislation for Medicare and Medicaid, and for civil rights into law 60 years back. By removing America from the wars that Reagan and Bush started and Obama and Trump failed to end president Biden has given the US an opportunity to inspire and lead the free world in a way that has not happened in many decades and build a growing economy, a bright future for the Nation. ...

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California's economy is going through tough times during the coronavirus. Unemployment is up to over 20% which compares to 14.7% for the U.S., closer to that of New York. The state depends on the tourism industry, agriculture in the San Joaquin Valley, and entertainment industry around Los Angeles for jobs. Tech in the San Jose area does not account for as many jobs. The state also has a public university system and foreign students mostly from China bringing in $7 billion.   Its port system around Long Beach and Los Angeles connects with the Asian economies and China, for goods mainly transported to the rest of the U.S.  All these sectors are the ones most badly hit during the coronavirus.  California now has a deficit of $54 billion and was the first state to borrow from the federal government to pay $13 billion in unemployment claims. Undocumented Californians are not able to collect unemployment because of their immigration status, creating an American version of the informal economy that is found in India and Italy or Spain. California has 83 million people taking plane trips to the state for a tourism industry that normally brings in $145 billion. 600,000 travel industry jobs were lost in the state. Taxes related to travel are a significant source of revenue for cities in California bringing in $12 billion. The only sector that is less affected is the tech industry, yet this makes up only about 10% of the jobs or 1.7 million higher paid but fewer jobs. This tech sector at about just 15% of the California economy GDP, is of a precarious nature with a boom bust pattern, the last boom one that happened since the 2009 financial crisis. It in no way forms a significant support for employment or income for people in California or the U.S., and may even be responsible for distortions in the allocation of capital away from infrastructure and public services, through its disproportionate influence on how the nation's capital is allocated. The broader changes underway during coronavirus are likely to affect the state over many years, as supply chains shift away from China, and as infrastructure and public services investment assume their rightful role again in the nation rebuilding effort, agriculture and rural America become a part of the American renewal story.   ...

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The basic problems facing American health care. Douglas Elmendorf , head of the Congressional Budget Office, says none of the bills he has seen make the fundamental changes needed in how medical care is delivered and paid for. The big issue is the unwilingness of different interests to accept serious changes. THe NYT says the long run solution to the problem of rising costs is to move away from the fee-for-service system that pays hospitals and doctors for each additional service they provide and into anew system that is organized around ways that encourage low-cost and high quality healthcare. The difficulty is that the long run may be too far, considering the seriousness of the crisis. Elmendor also suggests taxing employer provided health benefits, as this will discourage the excessive use of medical care. As the NYT says this is politically risky, even though it believes this may be a way to the new system which has to discourage the use of health care in the manner it is conducted now, with too many tests being conducted. A new system requires an enlightened approach on the part of each interest group in the face of a crisis, and the failure to do that may only end up retaining some of the worst aspects of the old system just mentioned that drive up costs and make universal health care unaffordable....

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Samuelson discusses the differences between the Bureau of Labor Statistics figures for June 2014 using the Payroll Survey and the Household Survey, each telling a different story. According to the Payroll Survey 288,000 jobs were added. The Payroll Survey is a monthly survey of 554,000 business locations, with firms asked to give the number of people on payrolls, pay and occupations. The Household Survey of the BLS asks households in monthly interviews with 60,000 Americans whether they have a job, is it part time or full time, are they looking for full time work, or jobless and for how long. The Household Survey showed June 2014 job increase at 407,000, using an estimate of 1,115,000 increase in part-time jobs and a loss of 708,000 full time jobs. Of the two the payroll survey is larger and considered by economists to be more representative. Other statistics show the parttime workers at about 3 million higher than 2007 before the 2008 financial crisis, suggesting the shift to part time jobs has been one negative result of the crisis....

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The port of Long Beach which takes in 20% of the container shipping of the USA,, and is next only to Los Angeles port in container shipping, is becoming a story of two economies, the American and the Chinese. Thousands of cars from Toyota, Nissan and Mercedes are piling on port property turning it into one huge parking lot, as dealers across the country say they have no need for them, and piles of paper and metal baled together to be shipped back on these ships to China to be recycled into cardboard for export boxes are also piling up as China no longer needs them. The drivers who drive the trucks are also being laid offf and looking for new jobs, which are signs that a deeper economic downturn is underway and the the Detroit automakers GM and Ford CEO's who told the Banking committee that they are making their estimates for 2009 on the basis of a 13- 14 million vehicle sales year may be in for another rude shock. The figure for the last quarter may be running at 10 million, and if this continues into 2009 as its expected to do, even the producton of cars after accelerated plant closures may have nowhere to go in 2009. Which is why there are so many questions about what is going on in the auto industry and so much need for candour and frank discussion that was missing in the evasiveness apparent in the Senate hearings on November 18, 2008, as CEO and union president skirted around the issues and senators failed to ask many other questions like these on what is happening on demand as well as many others....

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DJT tariffs are selective and reciprocality makes them fair. This also cushions the impact on consumers and countries. Countries who have blatantly unfair tariffs for decades can then decide as in EU, China, India, Japan, S. Korea, Mexico and Canada, can decide how they will respond by looking at what they need to do for fair trade. Some tariffs are intended also as domestic policy for failure to control of fentanyl into the US as with CMC countries Canada, Mexico and China. US producers will make goods sourced from these countries at home and as DJT says about autos from Mexico this will lead to American producers in Detroit picking up production and bringing manufacturing back home to USA. Most goods Americans use were made in the US in the postwar period from 1950-1980, American manufacturing will get the boost it so badly needs after unfair trade practices from other countries in the EU, Japan, Taiwan and China. By April this policy will be in place, by June in 6 months the policies will be fully operational at entry ports in the US including Los Angeles and Long Beach. All tariffs are selective, carefully evaluated for individual countries and products and regions based on reciprocality a principle that is fair to all countries and the principle on which the world trading system is founded. Individual companies and industries that gain this or that benefit may present it differently saying is good or bad based on their interest and profits- for the US and American people the principle of reciprocality provides a yardstick that is both fair and in the long term interest of bringing jobs and higher wages to the US. ...

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Inflation on an annual basis hit 27% in June. The central bank widened the band it alloed the dong to rise or fall against the dollar each day from 1% to 2% and announced a devaluation of 2% in June 2008. At this time the dollar buys 19000 dong on the black market compared to the official rate of 16600 dong, and the official rate is climbing up to the higher unofficial rate. A large part of the inflation is caused by a flood of foreign investment and bank loans to state owned companies, and the spending by state owned companies. The state owned companies like the Vietnam Shipbuilding Industry Group are controllinng their spending. Some of the inflationary influx is investment from foreign manufacturers trying to escape rising costs in China, showing the risks if this and other factors are not carefully managed. Recently Greenspan advised Vietnamese premier Nguyen Dung to mop up the liquidity surge and restrict spending by state owned firms.

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Shipping and freight statistics show an increase of shipments from Mexico. Trains and truck shipments from Mexico to the U.S. increased by 8.7% by weight in the first 11 months of 2011 compared to the prior year. By comparison shipping containers entering the ports of Los Angeles and Long Beach went down by 0.2% in 2011. Mexico stands to benefit from the shift in dynamics as manufacturing costs in China increase with labor constraints, higher wages, higher commercial land prices and recent Asian supply chain issues making firms wary of unanticipated problems. This is expected to benefit the U.S. with the return of some manufacturig jobs and a serious rethink of outsourcing. Because of highly automated factories and advanced technologies the manufacturing process requires fewer and more skilled operators, reducing the labor component of costs. Carlisle Companies CEO, David Roberts says he is expanding tire manufacturing plants in Tennessee. He says he can make tires as cheaply or cheaper in the U.S than in China. This has serious implications as the U.S. gets down to rebuilding and renewal of its manufacturing industry....

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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.   ...

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In this WSJ post Musk is shown as having regrets on his posts in social media X. It only underscores the volatile nature of the activities of the Tesla founder which do a disservice to the genuine work of cutting costs- something that we have shown was taken up by Harry Truman during the spending in World War II with much grace and by walking in the shipyards and factories of the US without the constant chatter of social media posts. This is what made a mark for Truman in the US Congress leading to the vice presidency, and then in 1944 the presidency, and again in 1952 barnstorming the country by railcar to win over Wendell Wilkie in 1948.  President Jimmy Carter started Planning Programming Budgeting systems which is a truly effective way to budget by simply asking that all budget items be prepared from scratch from zero each year so that spending from past years does not simply getting carried over.  As Susie Wiles and other Republicans around DJT know it is important to keep the long term in mind and act responsibly, speak responsibly to the American people, in the manner Lincoln would have done today. ...

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Ryan Tracy and Anthony DeBarros try to address the question of patchy internet service for America's heartland, rural areas from the prairies of Iowa to the west, and in the south and southeast. Public funds were allocated through the Rural Digital Opportunity Fund for broadband service with the latest optic fiber technologies in 750,000 census blocks in all states except Alaska in the US. This was supposed to bring digital internet with fast speeds enjoyed by urban users to every American home. Instead after this and another program the Connect America program why is internet service serving some customers and not others in rural areas, with patches of areas in each rural part of a state without internet service at the speeds one should expect for streaming and other uses? This WSJ research looks at data and conducted interviews on this important issue and found that internet service providers were given public funds by the FCC yet allowed to pick customers leaving some customers out. FCC rules till 2021 did not require service for all customers equally as long as they provided service to a minimum number of locations statewide say former senior FCC officials. One senior former FFC official says it is not surprising that companies made the decision to do the bare minimum required.  In Heavener, Oklahoma this meant that during the pandemic and lockdown when schools were closed the lack of good internet service affected learning from home. Many students could not get online from home. In 2021 another effort was made. This time funds will not go through the FCC but through the states. The Biden $1 trillion infrastructure spending for workers and families includes $42.5 billion for a rural broadband program in America. This WSJ report does useful service to America by putting the spotlight on one of the issues that divides America today the gap between the quality of life in rural vs. more affluent areas of urban America. It also shows that it is the federal bureaucracy that is at fault in this case for poor internet service in rural areas. Careful attention to this is needed so that rural America gets the attention it deserves from the prairies of Iowa to the mountains, the breadbasket of the country, and the heartland.   ...

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 South Korea has run about 300,000 coronavirus tests, double that in Italy and ten times that in the U.S., says this report in the WSJ. This report shows how the South Korean testing works and the workday of Lee Hyuk-min, a clinical microbiologist at a testing lab of Yonsei University Health System Severance Hospital in Seoul, who is working from 4.45 am to 11 pm. South Korea's effectiveness in controlling the spread is based on a strategy of efficient testing that enables isolating quickly people and areas. South Korea's testing network is a legacy of the MERS coronavirus outbreak in 2015, and the government failure at that time to control it.  It brings together doctors, medical staff, labs, and political leaders in roles following the protocols established since then. Dr Lee and others are the final checkpoint in the system which coordinates a diagnostic operation that combines together 633 test sites and 100 labs. The protocol includes a uniform setup- same testing equipment, same training, same decision making process. At 8 am each day all labs upload results to a shared database, which allows public and private hospitals to monitor patient results and report them to Korea Centers for Disease Prevention and Control. Hospitals upload testing details to an online directory. This surveillance allows South Korea to predict where to concentrate its efforts for controlling spread, says Dr Lee who advises the South Korean government on lab testing issues. Action plan took 2 years for the new rules to be implemented following MERS in 2015. The plan included accelerated bio testing company approval for tests. The first company got approval on Feb 4, followed by 4 other firms. Dr Lee says testing is only part of the equation as labs are needed to process and confirm results. Another key is innovation. South Korea setup testing in drive thru locations, that limit contact and speed up testing, which the U.S. is adopting. Dr Lee says early identification is key, and identifying the first coronavirus patient which was done in South Korea on January 20. Other countries including the U.S. took too long to identify the first patient, says Dr. Lee. ...

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Self-compassion as a useful trait. Being on good terms with oneself helps in improving motivation, self-discipline, and reducing anxiety.The result is a calmer, stronger person in the long run. Actually the research goes back to the 1930's and 1940's, with the books of Harry Emerson Fosdick. He called it self-acceptance and showed that by doing this people shouldered responsibility for themselves. This was for Fosdick a part of "being a real person," also the title of one of his books. The difficulty is that then as it is today, the prevailing notion was that if one engaged in self-acceptance we would take less responsibility for ourselves. In 1927 Fosdick was appointed radio minister for the National Vespers Hour. For 17 years his voice went out to the whole nation struggling with self-doubt during a depression and war, from a room in a church tower overlooking the Hudson River in New York city, each time building in people a faith in themselves.

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The difficulties the new U.S. Treasury Secretary faces as she tries to navigate the politics in Congress and the tries to reach out to moderates and progressives within the Democratic party. All have different views on spending, and where stimulus money should go in a second stimulus. Her long experience with the Fed is seen as not preparing her for the political role of evaluating different opinions that are described by some experts as ten times more political than anything going on in Fed meetings. As a student of Prof. Tobin Yellen sees government intervention as needed in times of economic crises. Twice in ten years the U.S. and the rest of the world has been struck by economic crises- the bank leveraging behaviours and poor lending practices that induced the 2009 financial crisis and in 2020 the coronavirus pandemic. Lessons learned Yellen says about the 2009 recession are that not enough stimulus was provided after the initial stimulus to get a strong enough recovery. Democrats are eager to spend over $2 trillion in a second stimulus. Republicans much less so particularly with a new president. Even under Mr. Trump spending was set at under $700 billion by Republicans for a second stimulus. Another economic crises is one of the U.S. strategic economic position in the world. On this issue of trade Yellen's husband George Akerloff, also a economist is more skeptical of the value of free trade. The failure of the World Trade Organization to ensure a level playing field as China subsidized key industries, and the loss of America's manufacturing advantage over three decades is now the defining issue in American politics. It takes the shape of manufacturing communities that were once a part of Democratic party support shifting away after devastated local economies from the loss of manufacturing plants to China. It takes the shape of a Republican party that is committed to bring back American manufacturing, and a Democratic party that under Biden is seeking the same result. How much each party will invest in terms of making things happen to get this done is one of the issues facing all parties, Congress, the administration, Ms. Yellen, and the new president. Economics does not have the answers. As economists could not have predicted the increase in women participation in the workforce, the drop in Black and Hispanic unemployment rates under the Trump administration. The lack of moral will to get trade to work for the American worker was more of an issue under Democratic and Republican administrations for the last 2 decades, so that issues of growing inequality were never better addressed by any party. It depended more on focus of the president elected to help American workers, and to avoid the cost and distraction of foreign wars when American interests could be protected in other ways. Yellen was not able to make a difference at the Fed because of these reasons and low interest rates have both helped and hurt the middle class, as low interest rates meant Americans were less able to accumulate savings for retirement since 2000. Determination and action counts for more than ideology or policy is the lesson learned in building strong economies and manufacturing.   ...

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Who will take up the difficult work in American childcare centers at $10-$15 per hour when retailers such as Amazon and Target are paying $20-$25 an hour during labor shortages in the US in 2021. As a result thousands of childcare centers in the US are closing and others are operating at a fourth or fifth part of their capacity. The result- less childcare and fewer women able to return to the workforce. Fewer men who can go back to work if caring for a child. This leads to further labor shortages. For a long time retailers like Amazon and Target were faulted for paying wages that made it difficult for workers to support their families. With the increase in inflation of about 5% in 2020-2021 it is even more difficult to pay for essential food and clothing. Another problem that America and Europe have lived through under different administrations in the last 2 decades is now getting even worse. Left to markets alone the whole system breaks down when one by one essential services such as healthcare, sanitation, childcare, transportation, cannot be provided. The US is facing an existential crisis not just in climate change but also in childcare, healthcare services. Both are caused by same source, a lack of emphasis on the right and essential national priorities. The causes go back to faulty capital allocation in America and Europe. $390 billion is allocated for childcare in Biden's plan in October, yet the Biden Families and Workers plan faces resistance. Gradually many of president Biden's programs for women including paid leave, child care and others are being shriveled into smaller and smaller amounts and the $3.9 trillion in spending for the workers and families plan is down now to $2 trillion.  The US and Europe face splits in society with one more urban and from the professional classes and the other more rural and in smaller urban communities and from the less educated classes each having different priorities. Only a clear resolution in the proper direction can bring relief for women, children and all segments of society, needed for a good society. ...

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With so much coverage of other aspects of China,  to really understand China and Xi Jinping one has to understand the rural urban situation in China. Xi's long experience as a teenager in the cultural revolution of Mao was in rural areas, the 8 years he spent there till the age of 22, as this report by James Areddy with help of Yijun, Cheng and Qi aptly shows. It traces the shift and mass migration to cities starting with Deng's modernization drive in 1979. This shift of labor to city and town factories as the U.S. and Europe shifted factories and production to China is the story of our times. How it has both helped and hurt China and how it has become the dominant issue of our times, and a lesson for India in the middle of its own modernization and shift of labor to cities. It has helped China modernize with the shift during 1979 to 2016 and run into a road block with president Trump leading a movement in the U.S. of people most hurt by the outsourcing of factories and production to China. It was not meant to be this way. Yet the shift also led to ripping up the fabric of communities and towns with loss of factories across America over three decades. Because China is a large country the impact was huge decade after decade, leading to a backlash against lost jobs in the U.S. and in Europe.  Xi Jinping has romantic view of rural China as he spent 7 years in Shanxi province rural areas during the cultural revolution under Mao. During this period he toiled as part of farm labor alongside villagers which allowed him to get to know villagers and farmers in the countryside well, and formed his view of the world around him. As it is described in a description of the man in Chinese sources- "He arrived at the village as a slightly lost teenager and left as a 22 year old man determined to do something for the people."  China's system separated migrants from city dwellers not  giving same rights to better education, to schools and housing, and official documents separating the two, city dwellers and migrant populations from rural areas. As a result as China modernized and population shifted -shown here in excellent graphic charts over four decades- in 1979 from about 80% in rural areas and 20% in urban the shift goes to 50-50 by 2001. Today it is 40-60 with 60% in rural areas but a population of 40% suffering from severe inequalities and  low incomes. So that GDP per capita of $10,000 for China is deceiving. The real incomes in average disposable income is about $4300 in urban and $1700 in rural area, according to National Bureau of Statistics. High school education is hard enough to get in rural areas, medical care is very basic and the $1700 would hardly get a room in low income housing in a large town in China, says premier Li Keqiang. Keqiang did his masters thesis on urbanization and has studied this shift from his college days. Just as in Gandhi's India, Mao's China is the story of the villages, with 128,000 villages for 600 million people in Mr. Xi Jinping's anti-poverty drive. Hong Kong other issues have to be understood in the context of these concerns of China's leadership today- the sense that strong central leadership alone can keep the country together and bring a decent life to the people in the villages and in the countryside outside the cities.  Modernization of cities still set in the context of China's vast rural population and essential to its full uplift and progress. Xi has allocated $80 billion each year to bring roads, schools, medical facilities, and other amenities including electricity and modern heating. The idea now is to shift people back to the villages, find opportunities for jobs and livelihoods in farming, tourism with guesthouse facilities, and other occupations in the villages. The villages are being turned into attractive places to live one by one in this party drive and providing new enthusiasm and support for the party's efforts. India can learn from this experience in China. The western nations of the U.S. and Europe can no longer and will no longer undertake the wholesale shift of factories with loss of jobs to China or India to offer the prospect of bringing these countries to the kind of urbanization and overall prosperity of small nations like Japan and South Korea, which are a tiny fraction of the population of China and India+ Pakistan + Bangladesh. As a result China is changing strategy now with a return to some aspects of the informal economy in Chengdu with street peddlers and tiny retail, and return of migrants back to better built and improved villages in the countryside. A better life than in cities is possible this view says for people from these rural areas, if the rural areas are given modern facilities and construction and resources are allocated, job creation locally tackled. The villages can offer better air quality, better quality of life where villagers who earlier migrated to cities with ownership of land, when they are modernized with better roads and have better facilities for education, housing and healthcare, better amenities. The new approach is to strike a good balance for urbanization, by modernizing and investing in villages and small towns, so that cities can cope and overall life can be better than with mass migration and wholesale urbanization. It is also a balance that works well for the U.S. and Europe which can redirect manufacturing to their home regions as part of a better distributed and balanced supply chain than the one that was unwittingly built over the last three decades.    ...

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Declan Walsh's article published on May 19, 2013 in the NYT, was written and reported before his expulsion by the Interior Ministry of Pakistan. It surely must rank as an exceptional piece of journalism and possibly the best that has been done on Pakistan in the U.S. media for decades. Walsh focusses on the Pakistan Railways once part of the British Indian Railways which pulled together all of South Asia from Burma and the Afghan border to Ceylon, an engineering feat accomplished by the British which integrated India (and Pakistan) into nation states. He takes a cue from the India patriot Gokhale's advice to the the young Mohandas Gandhi to travel by rail to see India, its agricultural interior and small towns. Walsh rides the Awami Express from Peshawar near the Afghan border to Karachi, in Sindh province. Along the way the train passes Sukkur, crosses the Indus river, reaches Lahore in the Punjab province, and makes its way to Hyderabad in Sindh province near the Thar desert and India. Walsh stops at each point to talk with railway personnel, describes passengers, and the changing terrain. The strains on the society from extremist violence, the lack of investment in the railways, corruption, and railway ministry officials who diverted resources away from the railways, are described in detail, showing how conditions have deteriorated in the railways to this point. It also focusses attention on the need to modernize and rebuild Pakistan's railways. In China and in India railways play a huge role in the life of the common man, providing the major means of transportation and freight links for these large developing countries. By pulling freight business away from the railways and shifting it to businesses outside railways, a critical source of revenue was take away by a rail minister in the Musharraf government, which needs to be reversed. In the U.S., China and India rail freight business is a key part of the railway companies. There is a sense of despair in the railway people Walsh talks to, but his account also spells hope by bringing this to the attention of the outside world, to the public in the U.S. and Europe, even Japan, that what Pakistan needs is new investment, help with infrastructure. It sends a message to the new government to gird itself for the difficult tasks ahead to win the confidence of the people of Pakistan in a way that has not been done in the past. Falling behind is then both problem and opportunity in a modernizing world with new technologies that can transform the landscape....

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A potato farmer in the Himalyan foothills is able to buy his first refrigerator using his Jio smartphone, even though he lives in a remote part of  India with no paved roads or indoor plumbing. Jio is the company founded by Reliance Industries head Mukesh Ambani, that is changing the way India shops and how it accesses the internet. Jio brings 4G technology to India and dramatically brings down data prices. To do this Reliance used its past success in executing big projects. It was designed to be a network that reached 18,000 cities and towns, and 200,000 villages, some lacking electricity, requiring 200,000 cell towers and 150,000 miles of high tech fiber optic cable. The project is now essentially completed, according to the company. This may be the biggest one it has tackled. Starting in polyester yarn and textile business, and in oil refineries, the company sought to diversify into digital platforms to compete with the likes of Google and Netflix. Ambani sees Jio not as a telecom business but as a digital platform and plans to use it to sell advertising, sell content, and financial services, also selling high speed broadband services. Ambani's project was designed to give India the opportunity to leapfrog into 4G and high speed internet and do this along with expanding the access through lower prices in the market to reach millions of people in remote regions of India including rural areas. Low cost access to data helps level the playing field between the rich and the poor. There are about 390 million internet users in India, penetration of 28%. This is now changing rapidly as prices drop - the potato farmer who bought his first fridge did this on his phone, connecting online with Jio which built a tower nearby that beamed nearly unlimited 4G data for about $2.10 a month. Jio has now signed up 215 million subscribers with its low cost service. Bharti Airtel and Vodafone are larger competitors but it is Jio that has revolutionized the market in India, and which now enables companies like Amazon to use the new 4G services to build its retail online business.   ...

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Amy Goldstein spends time in Janesville, Wisconsin, in U.S. vice presidential candidate Paul Ryan's congressional district, and talks to local people to give a glimpse of life in Janesville after the closing of the GM plant and the 2008 financial crisis. She looks at the effects of long-term unemployment and cuts in services in communities such as Janesville as a public policy scholar at the Woodrow Wilson International Center for Scholars, while on leave from the national staff of the Washington Post. Ryan was first elected to the U.S. Congress in 1998, about a decade before the closing of the GM plant, and has been reelected to Congress each time for 7 consecutive terms. Goldstein says Janesville is typical of the communities across America that have suffered job losses- the loss of more jobs in manufacturing than any other sector, a greater impact of job loss for men than women, and a large impact on people who had less education but well paid jobs. As shown by the recent settlement for a Caterpillar plant in Joliet, Illinois, and across the U.S. manufacturing landscape, older workers who enjoyed higher wages are retiring with newer workers coming in at a lower wage, which is improving U.S. manufacturing competitiveness but also increasing the importance of education for higher paying jobs....

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Two Harvard economists, Lawrence Summers and Lant Pritchett, say China is likely to revert to the mean of average long term growth of developed countries after this spurt of growth is over. Growth is likely to slow to 6% by 2016, and revert to the mean of 2% for industrialized countries in the long term. Goldman Sachs banker Jim O'Neill, says the growth at a higher rate could be sustained because of urbanization. Summers does not rule out this outcome as he accepts a range of outcomes, with the most likely outcome being a reversion to the mean. The factors often cited for slowing growth are lower of productivity of capital as corruption and close connections determine where capital is allocated, misallocation of capital, large increases in credit in the economy since 2009 leading to bad debt in the financial system, aging society and demographics with increasing numbers of older people. Other reasons are the choices being made by Chinese leaders for slowing down to address the problems of air pollution and contamination of water supplies, inflation in housing prices, overdependence on exports, need to shift to increasing domestic consumer spending but unable to do this with the lack of spending power of large parts of the population because wealth is excessively concentrated in the upper ranks of society. The need to manage these forces ensuring some measure of stability depends on finding ways to reduce the growing concentration of wealth and power, in itself a challenge for the Communist Party elite. A combination of different factors with some still unknown factors are likely to play a part in this reversion to the mean for China, a situation encountered by every country so far in North America, Europe and Japan. This makes it even more important that each developing society structure its development around the most optimal goals with the least costs attached to the development....

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The US ports of Los Angeles and Long Beach after Liberation Day- soon to be relics from the China Trade of yesterday. On April 9 US responded to China's 34% tariff with another 50% tariff of its own on China. The US tariff now stands at 104% to China's 84%. China says it won't back down and "will fight to the end." The US president DJT is now certain to restore world trade to the days before China entered the World Trade Organization and upended the world trade order leading to the deindustrialization of the US when US corporations followed Apple in 1998. With Tim  Cook in charge of Apple manufacturing in 1998 doing the first major act of outshoring the whole manufacturing base of a company to China. It was a strategy- to use the huge profits of a three punch approach- brand the product at the high end to command high price in the US through innovation and design (punch 1), followed by making using Chinese labor at low cost in China (punch 2), to generate the huge profits to create a virtuous cycle of investment from these profits to generate new cycle of growth (punch 3). What Apple gained, America's workers lost. This was sold by economists at the service of corporate narrative that it was good for America in the face of the facts showing just the reverse for 25 years 2000-2025. Soon almost the entire manufacturing base of the US was shipped out to China, or Chinese supply bases Vietnam. Japan fell in line and became a supplier to this China Manufacturing for the World. What started out as Microsoft demolishing Apple by 1998 and Apple using this 1-2-3 punch strategy turned into first a disaster for American workers, a loss of the working class leading to the loss of the middle class backbone of America, replaced by Silicon Valley and financial interests in New York City and disproportionate rewards to capital, the rural and small towns, cities across America's heartland thrown into decay and neglect.   ...

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R.J. Barrett, Lieutenant junior grade Navy Reserve, his poem on New Year's Day 1975 on board the USS Coral Sea, Subic Bay- chosen from The National Archives by Captain Sam Tangredi.  "Our shipmates all have gone ashore, At twelve o’clock we heard the roar. So far away and yet so near;  Moored starboard side to Alava Pier. Lines 1 and 9 are strung out tight  The head and stern wires are set just right. The standard moor doubled is what you’ll see, As you walk along checking good ’ole 43. The commander of 7th Fleet’s carrier striking forces embarked aboard, Rear ADM D.C. Davis is the gentleman’s name. Down in the hole the snipes are doing fine Only IC boiler is in on the line. Five fire pumps are lit off and readyD.C. reports secure; water pressure steady. Shore cables fore and aft from the pier do reach In the harbor with us there’s quite a crowd A fleet to make any commodore proud The DESRONs and amphibs are represented well. Some of their names I’ll try to tell.Rathburne, Reasoner, Whipple, and Cook  Are all settled in and have grabbed a nook Knox and Stoddert are nestled in too, But that’s not all; these are just a few. Also in sight from the Coral Sea Are Dubuque, Vancouver, and the Tripoli. Peoria and Thomaston are also around. Some pretty fine vessels pound for pound. Taking one last look around the bay, There’s the Camden, Haleakala, and San Jose. Long Beach and Enterprise, make a special mark  Who could miss their shape, even in the dark? The Gurnard, Reclaimer, and the Grayback Are all included, though good rhymes they lack. And because soon I’ll be retiring aft. I’ll just say “and various other yard and district craft." With all this done, though before the watch’s conclusion I must record my New Year’s resolution. If any lesson over the past year has been learned, This single one, into my mind has been burned. As I stood here thinking of things to say, Twisting verse in every which way, I vowed to myself, if ever I did, That I’ll never volunteer for the New Year’s mid Sam J. Tangredi from the US Naval War College in Newport, Rhode Island pulls out these poems from the National Archives which shows ship's logs and poems written on Navy warships in a regulated formula in standardized form. The entries are in strict official form about condition at sea, speed, mooring lines if in port. In the first entry on January 1 tne US Navy makes an exception as it is in poetic form. In 2020 the Naval History and Heritage Command revived the poetry contest. ...

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Jack Healy, who the NYT says writes about the rapidly changing politics and climate of the American southwest, provides this report from the border town of Nogales, Arizona, on the border with Mexico. In this desolate isolated border region America's future is being decided- Biden being the only Democrat since Harry Truman in 1948 to take Arizona and by just 10,000 votes. There near Nogales the border wall Trump built ends abruptly at the Kelly ranch in a picture shown in this report. Rural Santa Cruz County is except for migrants a solitary and quiet place along the border. Mr. Kelly moved here in 2002 and runs more of a hobby ranch unlike the bigger cattle ranches in the area. Migrants make their way through this part of the border and the Kelly ranch. In the most recent episode a migrant is shot and Mr. Kelly reports the shooting to police. Healy looks at the lives of the rancher and the migrant to give a snapshot picture of what life is really like on the border. And the different sides of the story seen from the rancher's and migrant's situation.  A border area where in a vast dry mesquite region ranchers on the Arizona side live alongside Mexico with people facing high unemployment where people are looking for work and choose to take the risks of crossing the border illegally. Crossings that are made at points on the border wall that end in canyons and riverbeds where migrants and their smugglers make their way. It affects the lives of the ranchers and the migrants in many ways. Ranchers who are in isolated areas- the Kelley ranch is 170 acres- feel isolated and vulnerable as they see a threat in the network of smugglers sending migrants across the border. This is also where the future of America is being decided. After the overconcentration of manufacturing in China, there is the border with Mexico, two regions that have little to do with each other but determine politics and emotions in the US about workers, about migrants and about borders. By understanding both sides of the story president Biden became the first president since Harry Truman to win Arizona in the presidential election of 2021. He won it by just 10,000 votes with a recount showing about 360 more votes. Without Arizona and Georgia both won by Harry Truman in 1948 Biden could not have begun the process of tackling the major issues facing America in 2021. Keeping uppermost workers and families, keeping uppermost the people of America as Truman had done in 1948.     ...

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Biden has put forward a new initiative to strengthen democracy by getting increased commitments to key features for democratic processes in the world. The idea is not to limit partnerships with other countries says Anthony Blinken, Mr. Biden's main adviser and secretary of state. This means India a key partner in both democracy and the Indo-Pacific can for defending its thousands of miles of border in the high Himalayas with enroachment of China into border areas such as Tibet, maintain its good legacy relationships with Russia as happened in last weeks Modi-Putin meeting.  The idea says Blinken is- "The US does not want to limit your partnerships with other countries. We want to make your partnerships with us even stronger." This means the Philippines, Indonesia, Malaysia, Sri Lanka, can maintain economic and development related ties with China which contribute to their economy, and build stronger relationships of culture and democratic processes with the US, India, European Union and Japan. For this reason the White House has emphasized that this is not about the US giving stamp of approval or disapproval of which country is a democracy and which is not. Too much of that happened under previous governments including Reagan, Carter, Bush, Obama.  The situation of Turkey relates to independence of judiciary and the unwillingness to take another look at problems. There is also the issue of technology is to be used so that citizens are protected from undue surveillance. Mistakes can be made but judiciary acts as an independent branch under the arrangements of checks and balances in American, British and now European frameworks of democracy built over centuries of struggle between monarchies and the people dating back to the Magna Carta in Britain. Neglect of workers and families also is an issue for democracies as for instance the effort now taking place in Germany under Scholz to "respect" workers and families. Lack of this led to the movements in US and European democracies giving room to vent that could ultimately lead to subverting democracies in the homeplace of democracies in the US or Britain. Why such a large gathering of 100 countries? Biden understands that the processes of democracy are always being improved and are a work for each new generation. For this reason there is no perfect scorecard- an ever renewing effort to make the process work in the best interests of the people of the country one generation at a time, to improve the quality of life and do this by preserving the right of peoples to choose their governments.  Why exclude China and Russia, till recently China had a consultative arrangement to run the country and Russia has elections? On this question the response of the Biden administration is that countries commit to the process and back initiatives to "counter authoritarianism. combat corruption, and promote respect for human rights."   Pakistan because it struggles with a long legacy of shortfall in the area of education after the collapse of Mughal rule that was seen under the British, and the general poverty of the Indian subcontinent that is striving to preserve the practice of elections, judiciary, and other democratic processes that were introduced in the Punjab and Sind provinces, and elsewhere since 1900. This is true for much of Africa, and also in parts of India, where aspirations of the people are for democratic process but faced with difficulties, corruption and poverty. In India the efforts of Naoroji, Gokhale, Gandhi, Nehru and Rajagopachari, Govind Pant, almost all leaders of the period since the 1850's, and able well meaning administrators since Lord Mayo in 1868 were to let democratic processes gradually find deep roots. Biden see aspirational in the face of difficulties as acceptable, even truly remarkable, with a willingness to learn from other countries to strengthen its own processes for democracy. It is no longer an Anglo-Saxon model alone as Germany and Europe are part of this process to be renewed by each generation. So are India and Japan. India after a century of elections since 1900 gradually expanding voters from one million to 5 million in the 1930's and to 900 million in 2019, with independent judiciary in a system of checks and balances as in the US.    ...

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Privileged minorities ethnic or white among large native populations. Amy Chua argues that free markets that empower the white minority giving it special privileged status, and democracy that empowers the native peoples, leads to conflict and exacerbates tensions. She talks about the Venezuelan experience with Chavez. Before Chavez Venezuela had free markets and elections in which two parties alternately controlled the government. Even before Reagan era and post Reagan era promotion of free markets and democracy this existed. However people were fed up with corruption and the native peoples did not see their lives improve. They tried a populist politician in Chavez who redistributes petroleum wealth to the poorer classes. Some of this tension is inevitable, but if all sides use good sense and understanding, and manage this tension constructively there still exists a better situation than there was before- when looking at overall public welfare and considering the welfare of the people and the educated professional classes. When there is a failure to work together it shows the shortsightedness of both sides, the poor understanding and lack of joint effort for mutual benefits, and not the shortsightedness of free markets and democracy. And one is not talking of free markets as American type, but free markets as crafted for each individual country based on its own history, culture, time and place, as free markets are not the same in America, Britain, Germany, France, Japan and South Korea, China and India in the post war period. China is not even a democracy and has practiced one of the wildest kind of free market economy based on its own unique situation, calculated consensus to use exports, foreign investment, and domestic investment in infrastructure as engines of development- its own peculiar use of free market ideas for its own situation. If it works, for as long as it works its good. Now as the situation changes with loss of export markets expected in 2009, China is changing to another kind of use of free market ideas tailored to its idea of free markets for development of the Chinese economy and distribution of benefits to urban and rural areas. ...