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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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What is the right retirement age for health is an important question. Dana Smith points out that the number 65 that started with the system of social security started in US  by Bismarck in Germany in 1889 and Social Security in the US in 1935 by president Franklin Roosevelt has no basis on the grounds of health of the population and longevity. Since that time people live much longer to about 74 years and for 45% of the people in the US who are in the knowledge based work the ability to work continues past 65 or 67 years.  For the remaining people who are in professions involving physical work such as construction or in the restaurant industry the situation is quite different, requiring a category based retirement age that takes this into account. For these people health outcomes would deteriorate if they continued to work in stressful work for longer. Another factor to be considered is to ask what this means as a national goal. Would a nation aspire to give its citizens an opportunity to travel, broaden their minds and engage in other activities they would like to do which they could not do while working full time. In this situation these years after retirement could give people a chance to live happier lives. It is not to be taken lightly as the current protests in France show. Age discrimination in France also plays a part as there may be fewer years of work opportunity if employers stay away from people over 50 years or discriminate against women. With childcare and care for elderly, part time jobs, women work longer for smaller pensions than men, leading to a sense of unfairness. French protests show that the outcomes need to be weighed carefully from a health and national goal standpoint and the retirement age set accordingly with flexibility for harder work.  Following the pandemic years and the cost of living crisis the protests in France show the need to develop a national consensus on the issue of retirement age, and rules plus culture change in industry that ban age discrimination for workers. Special provisions for women and people in construction so that the system is seen as fair to all parts of the workforce. ...

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David Brooks makes the case for reconciliation and renewal based on making room for the African American narrative. He cites thoughts of a moral order shared by Abraham Lincoln as he struggled with the same issues.

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The remoteness of Tasmania can be felt even from Australia. It was and is still densely forested, and made a home for the worst offenders from British slums sent to this penal colony. The capital Hobart is now a tourist location for Americans and Europeans, and for seeing the wildlife in this area, and scenery that is from a far flung an unique island off the coast of Australia.

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When planning for retirement look at the combined probability of both spouses of living an extra 10, 20, or 30 years after 65 years of age. The combined probability could be 18% of living an extra 30 years says this expert when you look at the combined probability that one or the other spouse would outlive the other and need to depend on retirement savings. Take all these scenarios into account, and working an extra year or two even 6 months can make a difference for a sound retirement, says this expert.

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The BBC cites Mr. Trump's comments on Sean Hannity Show that Attorney General Barr made up his mind "right on the spot" after receiving the Mueller Report before even going into the Report's findings. It says this confirms that Mr. Barr had already made up his mind as stated in an unsolicited June 2018 memo to the Justice Department about presidential immunity from obstruction charges, a reason Mr. Trump chose Barr.

Mr. Mueller did not make a traditional "prosecutorial judgement" because he left it up to Congress as it was not the role of the Justice Department under which Mr. Mueller operated. At issue is also the 34 pages "redacted" by Mr. Barr from the Mueller Report, and Congress will want to see the full Report and all the evidence on obstruction before making up its own mind, says the BBC.

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DJT commenting on the prospects for peace in Ukraine on August 19 after the meeting with Putin in Alaska and EU leaders at the White House by August 18. He comments on Russia's problem with European peacekeeping force- “I don’t think it’s going to be a problem, to be honest with you. I think Putin is tired of it. I think they’re all tired of it. But you never know. We’re going to find out about President Putin in the next couple of weeks.”

On the reasons for making this effort to get everybody together to the table- not a Peace Prize as the media says. As usual DJT says something few would expect to hear-

“I want to try and get to Heaven if possible. I’m hearing I’m not doing well. I really hit the bottom of the totem pole. But if I can get to Heaven, this will be one of the reasons.”

 

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Kramer, McIntire, and Meier of the NYT, provides this indepth account of Trump top campaign aide Paul Manafort's consulting work in Ukraine for Ukraine's president Yakunovych, ousted after protests in Kiev. Ukraine's newly formed National Anti-Corruption Bureau is looking into corruption in Ukraine's system, including corruption in the Yakunovych years. It is this corruption that has hurt Ukraine and other Eastern European countries in their move towards becoming properly functioning democratic states inside the EU or neighboring the EU. Much aid has been sent to Ukraine by Germany and the EU to help Ukraine develop a democratic and economic framework free of cronyism and corruption. Manafort's involvement with interests in Ukraine and Russia during a period of long and persistent protests in Kiev, followed by the ouster of Yakunovych and the war with Russia, when the policy of the U.S. and Europe was to protect Eastern European  member states of the European Union including Poland and the Baltic States, and reach some form of settlement in Ukraine, are controversial. Andrew Kramer of the NYT describes Manafort's consulting company's activities in Ukraine during this tense period, and how it may have have been counterproductive to the constructive efforts of the U.S. and the European Union. ...

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Virgin Atlantic, the airline of Richard Branson, gets a lifeline in the form of a package of financial help of $1.5 billion to prevent bankruptcy. Virgin Group will retain 51% control and Delta Airlines 49%. The UK has opted not to undertake a airline bailout strategy. Branson has continued to make speculative investments including one with Bain Capital for $2 billion on three cruise ships for Virgin Voyages, a order for cruise ships made before the pandemic. The Virgin Group makes $150 million a year in revenue.

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Six of seven letters to the NYT shown in this report say that president Biden is right to run for a second term and that age is not a factor considering what he has set out to do. And the potential for American renewal in infrastructure, manufacturing, and reviving communities and towns across America, for a "transformative president." One reader puts it plainly- saying "shame on you" to New York Times, and reminding the New York Times that Mr. Biden has navigated on of the most divisive and difficult times in American history with dignity and good judgement. And asks why so much potential that Mr. Biden now offers should be thrown away just because of an ingrained bias against older people.  Recently columnists and the editorial board of the New York Times, and not just the NYT, the WSJ and others also, have shown this type of bias against older people and a willingness to throw away so much transformative potential that Mr. Biden has shown. Some readers here say it is just the media that has shown this attitude, that the public understands and grasps the opportunities Mr. Biden is creating for America. For Biden too there is a message- that he must truly commit to saving the soul of America and that for this the road is a long and arduous one ahead. ...

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Turkish American MIT economist is awarded the Nobel Prize- but not for the work he needs recognition for the renewal of America and US Way Forward. Daron Acemoglu's work is important not just for a new look at countries that experienced colonialism noted by the Nobel folks in Stockholm. Much of his recent work on "Why Nations Fail," and "The Narrow Corridor," cover the United States and why it is important that US policies keep the goal of "We the People" uppermost. George Washington reminded America to be wary of the  "absurd notion that the many are made for the few," in his Draft of the Inaugural Address in 1789. In this sense the Nobel committee and much of the economics profession is far behind the times as the focus has shifted to how countries that were once known as developed have neglected rebuilding their industrial base, neglected their infrastructure modernization investments, and neglected workers and families connected with it, that are the foundations of progress and a better life. This is also an issue in 2024 for the right Way Forward for the US, and for nations in Europe, Asia and the rest of the world. ...

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Only 38% of Germans polled want to see Germany involved in an international crises. Germans including chancellor Scholz are hesitant to take up confrontational role with Russia for the long term says this report by David Sanger and Steve Erlanger of the NYT. Even as the Ukraine crisis reaches a stalemate chancellor Scholz is careful not to put Germany into a difficult position beyond his earlier commitment to spend 2% of GDP on defense with $100 billion invested in defense that has been fulfilled. Scholz meets president Biden this week.

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This editorial in the Hindu and the related article in the NYT point out the impressive record of the Awami League party government of prime minister Sheikh Hasina in growth- tripling electricity in a decade, and in social indicators, such as gender parity and education, improvements in infrastructure. A related report from Germany also showed the positive sense of the changes in Bangladesh including the first long bridge over the Ganges river near Dhaka connecting different parts of the country.

This sense of progress is marred by what is seen as increasing authoritarianism of the government. 

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In the days when cross border technology flows were limited and the investment in India was small, India's technological capabilities at an early stage H1-B visa program acted as an exchange program where Indian engineers could gain experience and skills, learn new technologies in the US, that would benefit both India and the US taking a long term view. In 2025 when cross border technology flows to India from the US are large and significant, when Indian investment is large India's economy fastest growing and from a much larger base, with ability to absorb talented engineers in expanding Indian business, the H1-B program is one that drains both the US and India. India as a huge brain drain of 60,000 of its best engineers every year to 2030 or 300,000 of its best engineers and the 3 million engineers they would have trained locally through their creative talents. For the US it means the loss of 300,000 engineering jobs to 2030 for locals in 51 states in the Nation. Both make no sense. Business practices once set do not change. This is why an executive order by DJT was signed by the president to impose a $100,000 fee that Tata, Meta, Google, Microsoft, Apple can choose to pay every year for 6 years if they want to hire someone on H1-B Visas. To call this group of Indian H1-B of 60,000 engineers "dreamers" also makes no sense because 3.3 million engineers knowledge base and skills to India's growth capabilities and modernization could increase economic growth, modernization of Indian infrastructure, to make India a Dream State to live in. And the same number of American born engineers would make each of the America's 51 states Dream States through repowering America's new modernization of infrastructure and power economic growth. ...

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Perceived average savings needed for retirement in the US shown in surveys are 20% higher in 2022 over 2021. Americans believed about average $1.25 million would be needed for retirement. This varies by state and the cost of living by state, and whether they would be supporting older parents, grownup children.

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Alan Cullison's exceptional report from Ukraine in 2006, with contribution from Marc Champion, gives a background to the situation in Ukraine in 2014 with street protests leading to the ouster of Yanukovych. None of the hopes for Yanukovych mentioned by Cullison at the end of the article -rule of law, judiciary, corruption, and transforming Ukraine society- were realized. Yanukovych runs for president against Yuvschenko in 2008 and is accused of fraud. He wins in 2010. Tymoshenko spent 2 years in prison under charges from the Yanukovych government with the EU saying the government has been "selective" in its charges. She is released in Feb. 2014 after the ouster of Yanukovych. All the politicians appear to have failed Ukraine's hopes for better governance and national reconciliation to promote economic progress and a shift is needed to a younger generation.

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This is huge- for Germany, for France, and for the European Union. After initial hesitation and a decade of not looking ahead, Germany under Angela Merkel is finally not just looking ahead to its vision for Germany but doing this as a part of the larger European community. And the European Central Bank after its initial lack of community spirit, is paving the way with its own actions for the Europe wide recovery with a significant increase in lending to EU countries.  Germany's finance ministry has agreed to spend 130 billion euros on more than 50 initiatives to promote growth in Germany. No longer is the government looking at the car industry as it did in the past. It is looking beyond to what Merkel calls the "profound upheaval" coming from climate change and digitisation. For Merkel after the changes caused by the pandemic something more had to be done- "We just could'nt introduce a traditional stimulus package. It had to be done with an eye to the future, so that is what we especially emphasized."  This also brings together France's Macron and Germany's Merkel in a combined effort to bring Europe up to face the future with confidence. It is amazing how the pandemic has changed minds in Europe. From the long drawn out period since 2008 when traditional policy ideas and austerity thinking prevailed, to the idea today that this is no way to face the future with confidence for Europe to be back on its own feet, for hope to return. Instead of partnering in austerity with the Dutch and the Swedes, the finance ministry is now looking to France, Italy and Spain, considering the common pain of the core European countries during the pandemic and looking to the future.  Merkel moved to circumvent the traditional Bundestag's refusal to permit debt sharing  across the euro area by producing 500 billion euros of grants for hard hit businesses across the European Union. As Macron says it was a necessary  step- " What is sure is that this 500 billion euros will not be repaid by the beneficiaries.... We are proposing to do real transfers (of money) ... that's a major step." Forecasts from Capital Economics and other forecasters show the European Union's major economies of France, Italy and Germany rebounding quickly in 2021 after the blow in 2020, in a V shaped recovery with growth of close to 6% in France, and higher in Italy because of the bigger hit taken there than Germany. The strong U.S. jobs report with addition of 2.5 million jobs for May shows that the rebound can be sharp upward swing if the policy, will and community spirit is summoned up by leaders and people, no matter what happened in the past decade. It is also based on having the right spirit that knows about investing where it really counts for the people - in infrastructure, health, public services, and avoiding the misallocation of resources and spending that happened before. ...

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For the first time since independence in 1947 India gets a Master Plan for infrastructure development in the whole country.  All federal government ministries are pulled together under one roof. Ministries will coordinate their plans for infrastructure development. Specific investments, specific delivery times, real time monitoring will be done through digital technologies under a single master plan. Railways, highways and roads, waterways transport, energy, telecom broadband and other modal connectivity will now be done in one plan with all federal and state ministries pulled into the master plan. This will produce network effects with today's digital technologies as this has never been tried before in the world. Logistics costs of 14% of product cost will be cut by 6% to 8% under the new logistics frameworks set through this plan and the investments to be made of 100,000 crore rupees. This will boost exports and manufacturing as the new supply chains restructured after the pandemic attract foreign investment to India. For this Indian industry, universities, and federal plus state governments have to act in a coordinated way under a single plan, which will happed for the first time under Gati Shakti.   ...

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The Irish far economy is vulnerable and the Irish farmer at risk following Brexit. Rivals to prime minister Varadkar in the coming election say he has the M50 mentality, referring to the beltway around Dublin, not thinking enough of the Irish farm economy. A hard Brexit would have cut the Irish growth to 0.7% under Theresa May and now to 3.7% under Boris Johnson from the 6% for 2019.  This is happening as the Irish farmer depends on Britain for exports as he has for seven centuries.  Britain is the biggest importer of agricultural products from Ireland. Sinn Fein is gaining ground in this urban-rural divide with 25%, and so is Centre right Fiana Fail at 24%, with 20% for the current prime minister's party, in recent polls. Irish economy also depends on imports from Britain for machinery and trade agreement with Britain is crucial for Ireland now that Brexit has happened. All along Ireland's coast on the Atlantic Ocean for farmers this is a worrisome situation. ...

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A tiered plan of high low and medium categories for tariffs nations was not adopted after long discussions in favor of individual nation tariffs. This will take much time to implement for the 200 nation staff under Trade Representative Jamieson. First reciprocal tariffs go into effect April 2, 2025 on Mexico and Canada.