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David Barboza of NYT describes the hidden subsidies China gives to Foxconn for its plant in Zhengzhou, in a poor region of China. The factory there makes about half a million iPhones a day. These subsidies include incentive packages, infrastructure building, local government help of about $1.5 billion. As a result Apple has high margins. For a 32 gigabyte iPhone 7 that costs $400 to make, the retail price is about $649 in the U.S.  The hidden subsidies is why Apple can maintain dominance as profits are reinvested. And the result is that with only 12% of the smartphone market Apple can take in 90% of the profit, according to Strategy Analytics. Barboza looks back at Apple before co-founder Steve Jobs left in 1985 as focussing on manufacturing at plants in Colorado and California. By 2001 with iPod sales soaring the move to China under Cook, who previously worked for Compaq, was underway. With the introduction of the iPhone in 2007, the move to China for manufacturing accelerated. The reason: only China offered the kind of subsidies, the speed of approval and building of infrastructure facilities, the local government support, the hundreds of thousands of workers, and the best tooling engineers, to produce in huge volumes with speed, and maintaining quality levels. Earlier plants including one in Colorado Springs that this Lyrarc editor was invited to visit just prior to Jobs rejoining Apple had many quality problems, so much so that Apple had a large part of the manufactured personal computers set aside for rework. The quality levels were dismal, defects were unbelievably high. This is the Apple manufacturing process and plant that Jobs must have seen when he returned, and which he hired Cook to fix. Not only were costs higher in the U.S., (subsidies in China came later) when Jobs looked at the manufacturing quality and the inability to get the quality he needed from American workers and engineers at that time in the 1990's, only then did he turn to China- and the more he saw what was possible to accomplish there he sensed an unusual opportunity to finally put the ghosts of memories from competition with Microsoft at rest, and to surpass everything that had been done in Silicon Valley. The result one of the most ingenious and large manufacturing networks in the world, huge profits for an American company, except for one thing- it would not do much for American workers. ...

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U.S. Fed chairwoman Janet Yellen, says the Fed will be prepared to respond to the "twists and turns" in the recovering U.S. economy in 2014-2015. In many ways Yellen finds the recovery "disappointingly slow and consistent expectations for a pickup in growth dashed over a number of years." She sees the labor market behaving in "some perplexing ways and showing patterns that are novel." The high rate of long term unemployed is an abiding concern and Yellen says a healthy job market is "more than 2 years away." This clarifies remarks made at her first press conference, which were interpreted to mean the Fed would raise rates in a much shorter time frame. U.S. stock markets responded favorably to her remarks after declines and volatility over several weeks following the previous press conference.

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Biden gives a rousing call to the Nation, on what he has achieved for America and its workers and families, for the people of 51 states, and what the tasks are for the future to 2035. It surpasses the State of the Union address 2024 in the vigor and importance of his message, 76 days before a national election to decide the future of the Nation and the World. Key parts of the speech selected by Lyrarc, on Infrastructure above and Manufacturing here with 800,000 new Manufacturing jobs created. "Because of you and so many electeds out there, American manufacturing is back. Where the hell does it say we wouldn’t lead the world in manufacturing. Eight-hundred-thousand new manufacturing jobs. Our Republican friends and others made sure they’d go abroad to get the cheapest labor. We used to import products and export jobs. Now we export American products and create American jobs, right here in America, where jobs belong. With every new job, with every new factory, pride and hope is being brought back to communities throughout the country that were left behind. You know you’re from it, many of you. You know what it’s like when that factory closed where your mother, your father, your grandmother, grandfather worked. And now you’re back, providing once again, proving that Wall Street didn’t build America, the middle class built America, and unions—unions—built the middle class.  It’s been my view since I came to the Senate and that’s why I’m proud to have been the first President to walk a picket line and be labeled the most pro-union President in history. And I accept it. That’s a fact. Because when unions do well, we all do well.  ...

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Some sensible guidelines in taking loans for graduate schools are provided in this WSJ report- debt repayments should not be more than 10% of discretionary income so that money is there for high food, housing costs and savings. Debt should not exceed the first year's salary whn starting to work.

And students considering grad school need to be aware that while they are in grad school their undergraduate loans can grow by 50% from say $27,000 to $41,000.

47.3 million Americans carry 1.777 trillion in student debt, of which federal government is 1.693 trillion, growing at $48 billion a year. The average debt per person at about $40,000 default at about 5%.

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Wages remain stagnant, labor participation rate declines, and U-6 at 11.8%, as unemployment rate declines to 5.9% in U.S. labor market.

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Pennsylvania is one of the critical states in the 2020 U.S. election. It is also one of the states hit hard by the coronavirus. Pennsylvania has also seen the impact of layoffs in the vital steel industry during two decades of neglect by previous administrations till the tariffs on steel from China by president Trump began a reversal of this trend. Unemployment is high in Pennsylvania as a result of the pandemic. 51 of 67 counties in the state recorded unemployment rate increases for 2020 that are in the top 20% for the U.S. Pennsylvania and Michigan are two critical states for the 2020 election. Pennsylvania has done much worse than other states including Michigan when it comes to the impact of the pandemic on unemployment rates in all counties. Voters could decide to blame the Democratic governor for lockdown restrictions  that worsened unemployment or president Trump for his approach to the coronavirus. There is also concern among conservative voters about the kind of change they seek between steady improvement in unemployment and a shift to radical changes in the economy. ...

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Issues of inequality and lack of upward mobility came up in the last presidential election. A Federal Reserve Survey for 2018 shows the financial fragility facing many Americans. One quarter of working individuals say they do not have any retirement savings. About 17% of households say they cannot pay all their monthly bills. About 40% of Americans say they do not have enough cash to cover an unexpected $400 expense, and would have to rely on credit cards balances or loans from family to make the payment. This survey by the Federal Reserve is done each year since 2013, after the financial crisis hit in 2009 it became more important. Still Americans are showing unusual resilience and upbeat spirit. About 75% say they were doing Ok or living comfortably up from 63% in 2013. And two out of three described lovcal economic conditions as "good" or "excellent."  This shows that the financial vulnerability resulting in the loss of jobs in the U.S. both from jobs lost in manufacturing going overseas,  jobs lost through automation or industrial decline in some sectors, and the hit from job loss during the financial crisis and its aftermath years of 2009-2014 is still leaving a lot of families financially vulnerable. Low interest rates and stagnant wages also meant savings growth for ordinary Americans was less than it should be in a healthy economy without booms and busts. This is also the environment in which the U.S. is tackling challenges to its technological leadership in 5G following a decline in sectors such as autos and electronics, with job losses to Japan and South Korea. New trade agreements are focussed on correcting the imbalance, first with Mexico, South Korea, and now with China. Focus is also on fair wages and labour overseas to raise American wages in key sectors. The damage done by a low interest rate to savings of ordinary Americans outside the stock markets is also being seen as a downside in the boom bust cycle, that includes loss of jobs for vulnerable American families. The rise of the tech sectors has diluted the traditional protections of working class Americans with the shifts and realignment of the major parties. ...

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Brian Wesbury puts together some math as to the estimated cost of the subprime mess. Agrees on what the Bernanke Fed has done. Sees need not for liquidity in the system but concedes need for it to prevent seizure in credit markets, and sees need for more certainty and confidence in the long run.

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Dow Chemical CEO, Anthony Liveris, is co-chair of the Advanced Manufacturing Partnership, an effort to bring together federal government, industry, universities and other groups to invest in new technologies that would generate good-quality jobs and increase U.S. competitiveness. He writes this letter in the Wall Street Journal to correct two misperceptions. The first, is that government has no significant role in nurturing an environment that is good for business and manufacturing industry. Because other countries, including China, are now operating like companies, it is important not to let the U.S. be in a disadvantageous position. Government has always been involved in its writing of tax and incentive policies, regulations, trade agreements, and creating a climate of certainty. The second, is that the loss of manufacturing capacity and job losses in the last 10 years are different from the job losses in the 1980's. These are not the low tech and less efficient manufacturing job losses of the 1980's, but job losses as a result of moving advanced manufacturing capacity and research and development centers to outside of the U.S. Of the 8 million jobs lost in the last recession, he says two million manufacturing jobs of higher pay and supporting employment in other sectors were lost. His point: its time to focus on expanding manufacturing in the U.S. because manufacturing is the sector with the highest multiplier effect on other sectors. Public-private partnerships are critical to this effort for increasing technology development and increasing investment. This view is supported by other experts....

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NHS in Britain plans to begin vaccinating children 12 to 15 years in a couple of weeks. School reopenings have caused concern about the health of children during coronavirus.

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Faces of the U.S. unemployment, foreclosure and housing crisis in Hagerstown, Maryland, in 2011.

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Every appreciation of the euro by 10 cents costs Airbus 1 billion euros in lost profits. Airbus sells its planes in dollars, yet it incurs half of its costs in euros. During the last year the euros has appreciated against the dollar from $1.46 to about $1.35. Gallois, CEO of EADS (the parent company of Airbus), compares the currency swings to a sword of Damocles hanging over the company. Airbus response will be to find 1 billion euros of savings by 2010 in addition to cost cuts planned earlier. Airbus under Enders will look to aggressive currency hedging, renegotiating supplier contracts and cutting more jobs. Cost overruns of the A400M military transport plane of 1.4 billion euros are affecting EADS financial results, with loss of 776 million euros in the 3rd quarter of 2007.

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It will take time to rebuild parts of rural America that were in decline for decades, neglected by politicians of both parties, and are now seeing big investments. Mississippi County, Arkansas is one such rural area where US Steel and other steel makers are putting in new plants to make 12 million tons of steel a year. Only northwest Indiana has larger steel manufacturing plants. Subaru of Japan is located in Indiana. Here in Arkansas only 38% of workers live near the plant as it has seen a lot of decline, most commute from neighboring states or work from RV's.

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Prof. Cusumano of MIT, says that with the loss of Apple's Steve Jobs, the company has lost a great visionary, and it will be difficult for Apple's new CEO Time Cook to make up for this loss. Cusumano has talked to many Apple employees in 2013-2014, and is writing a book on innovation. In this piece Chen and Richtel point out the ways Tim Cook is trying to fill the role Jobs filled, by assembling a group of people within the company who can play the pioneering role for new products, and making new acquisitions such as the Beats acquisition to bring in outside talent. Cook pushed for the introduction of the iPad Air, which now accounts for 60% of all iPad sales. The constant push for the magic in new products that Steve Jobs obsessed with down to details, will be missing. Jobs met daily with design chief Jonathan Ive for lunch at the Cupertino headquarters. Cook meets Ive 3 times a week. And Jobs pulled all the pieces of the new product together in a way that others will have difficulty doing. Cook has brought a different dimension to leadership at Apple by talking about Apple in terms of "advancing humanity," talking about his own personal experiences in the South, and seeing racial discrimination barriers for minorities. He was challenged recently to address issues of working conditions at Apple supplier factories in China. Cook is bringing some manufacturing back to the U.S. with building of new plants in Arizona and Texas. These are areas which were gaps in Jobs record, which Cook is filling gradually, and asking shareholders, customers, to be patient....

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Wadhwa describes the impact of patent trolls on the U.S. patent system. He says the patent system in its current form, with extensive patent defenses by technology firms costing billions of dollars, litigation by companies that are not representing inventors, and the overall negative effects on new companies, actually reduces innovation. There has been a surge in lawsuits regarding smartphone and software patents as a result of businesses that collect patents and sue to earn money through legal settlements.