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President Obama's call for boosting the minimum wage from $7.25 to $9.00 in his 2013 State of the Union address designed to lift millions out of poverty.

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India's robust debate as a democracy is of an astonishing size and diversity of opinion. The debate did not diminish when there was one federal party in many states under Indira Gandhi (1970's). It actually increased many times during this period compared to the period under Jawaharlal Nehru (1950's) taking the example of one state Gujarat as an example of what was going on in 18 states of that time. Newspapers in Gujarati such as Jansatta, Gujarat Samachar and others carried on a vigorous debate with opposing points of view to the Indira Gandhi government at the state and federal level of the 1970's. Most people in places like New York and London fail to understand or see the local language newspapers or are totally unaware of their existence, and the debate carried on in their pages. So that they falsely assume what a small group of English language newspapers tell them about the vigor of Indian democratic debate that is truly unmatched anywhere in the world. And in terms of its 22 languages in one nation one could say in the entire history of the world. Swapan Dasgupta in the Times of India gives the staggering number of publications today in 2023- 144,520 publications reaching 386 million people every day. And 392 television news channels . All in 22 languages. To ignore the local languages as if they did not exist is to ignore India as if a billion people did not exist. Or as it is for China to say that everything written in Chinese papers and Chinese news channels did not exist. Dasgupta also points out that one should take Mr. Modi and the BJP out of this as at the national level its a 10 year old phenomenon. Look back from 2010 for the sixty years from 1950 to 2010 and India was as badly misconceived, misrepresented, and misperceived back then. India he says fell from 105th place in Freedom House rankings in 2006 to 140th place in 2013. Mr. Modi only enters the picture after that. Dasgupta points out the small sample for these ratings 150 respondents and the methodology having missed much if not everything that is needed in a robust democratic debate. There is another aspect which is present which is prominent in New York and London and Washington D.C. and that is that non-alignment is not popular.  One has to see the way Adlai Stevenson running against Eisenhower twice in the 1950's very warmly received Jawaharlal Nehru on his visit to the US and compare it with the way the US perceived India under John Foster Dulles after Dwight Eisenhower was elected in 1952 to understand this aspect of American perception. Dulles was facing the Soviet Union and the British under Churchill then Macmillan had an equal disdain for Nehru's non alignment and tilt towards the Soviet Union. These root perceptions did not change with the Kennedy and Johnson administrations, and continued into the 1970's when Nehru's daughter Indira Gandhi was prime minister and continued non alignment.  India's political alignment after the pandemic is anything but non-aligned. It thinks, acts and lives in a way that is similar to the people of the US and Europe. Not even because it chooses to but because of what it is, coming from being part of its ancient path of Vedanta and Buddhist civilization that is the core Asian experience. It also needs to bring 400 million out of poverty and build the next phase of industrialization and modernization that requires fossil fuels in large quantities at lower prices to sustain its rapid growth. Some of it comes from Russia purely as an economic decision during the pandemic. The Biden administration fully supports India in this task of rapidly growth to meet the aspirations of a mostly young population- sourcing fossil fuels from whichever source that makes sense. To become a key part of the US new supply chain that reverses the overconcentration of the supply chain in China. It can only be said then that Freedom House has the peculiar affliction left behind from the John Foster Dulles period, combined with a bit of arrogance in failing to grasp the central fact of India which is its 22 languages forging one nation- a task nowhere seen in the history of the world. ...

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This report in the WSJ points to Democrats having won consistently 18 states plus District of Columbia adding upto 242 Electoral College votes in every election since 1992. Democrats need 28 more to cross the needed 270 votes. Republicans consistently having 13 states with 102 electoral College votes. Demographic changes in recent years have shifted to where Hillary Clinton may not need to devote resources to Colorado and Virginia because of a more favorable position there.  Carrying Pennsylvania with these 2 states would put Clinton over the 270 required. Vice Presidential candidate for Clinton, Senator Keane is from Virginia and is popular in the state.  Pennsylvania has a long history favoring Democrats. North Carolina has also seen demographic changes favoring Democrats. The Clinton campaign is focussing ads on these states as well as the swing states of Nevada, Iowa and New Hampshire, as well as Georgia, Arizona and Utah which are becoming competitive for Democrats. By keeping up the effort in Georgia, Arizona and Utah, Clinton hopes to make Trump divert resources there. Other two swing states are Ohio and Florida, but this WSJ report says Clinton has to win only one of the four swing states of Pennsylvania, Ohio, Florida, and North Carolina to go over 270 and Trump needs all four. Of the 20 media markets Clinton or her super PACs have focussed their ads on 16 are in these 4 states. The Clinton campaign is looking at several alternative routes to 270 Electoral College votes, which gives it more flexibility to plan the campaign.  ...

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According to Germany's Federal Labor Agency, about 1.5 millon workers in about 63,000 companies were in the short-work or Kurzarbeit plan. Under this plan companies are able to put workers on shorter work week schedules without seriously impacting wages. Companies pay for the hours put in by employees on shorter work schedules and the government pays upto 67% of remaining wages. For March 2010 693,000 workers were on the Kurzarbeit plan. Another German way of softening the impact of a recession is to allow companies to keep a work-time account. Employees get paid now for a certain number of hours that they agree to work during an upturn in demand. So that for certain machine tool makers employees work 250 hours less during a downturn but still get paid and make up for this during an upturn by working overtime and still taking in regular wages. What this does is to reduce the need for new hiring during an upturn.

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Two weeks after his election Donald Trump says the U.S. will not join the Trans Pacific Trade Agreement during his term in office. Barack Obama took seven years to negotiate the trade agreement which was opposed by trade unions, the auto industry and was unpopular in the midwestern U.S. because of the impact of trade in hollowing out the manufacturing sector. Here Frank Sieren of the DW.com points out that the agreement was not really about trade, as most of the gains of trade had already been realized according to experts. It was part of the "pivot to Asia" to maintain American dominance in the region, says Sieren. After China pulled together some Asian and European countries into its trade agreement, the Regional Comprehensive Economic Partnership (RCEP), the U.S. pushed for TPP as a counterweight to the China sponsored trade zone. China says it will try to integrate the countries in TPP into the trade zone it has sponsored. President Trump has said that the U.S. is better off negotiating agreements with each country and not getting into multilateral trade agreements. He fought the election campaign on the basis of the opposition to TPP and trade agreements that unfairly hurt American workers. This could have provided the 110,000 margin of victory in the states suffering from the hollowing out in manufacturing such as Michigan, Wisconsin, Ohio and Pennsylvania. A similar hollowing out in Ontario favored Justin Trudeau's Liberals against the Conservatives in Canada's election. ...

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U.S. quarterly seasonally adjusted annual growth rate for GDP for the second quarter 2015 is revised to 3.7% growth from the earlier forecast of 2.3%. The first half GDP growth is still low at 2.2% because of a weak first quarter in 2015. Consumer spending representing two thirds of economic output was up 1.8% in the 1st quarter, and 3.1% in the second quarter of 2015. Another factor relevant to economic growth is gross domestic income or GDI, GDP uses expenditures data and GDI uses income data. GDI was up 0.6% for the second quarter 2015, an average of the GDP and GDI numbers provided by the Commerce Department shows a 2.1% annual growth for the U.S. economy for the second quarter.

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Northwestern University's Robert Gordon sees growth in the US economy dropping from 1.93 %- that it achieved in the period 1972-2007- to 1.5% from 2007 to 2027. At that rate of growth GDP per capita would increase by 35% in the next twenty years, compared to the 62% increase in the previous period. He says better educated workers would be needed to increase the growth rate. And he discounts the impact of the internet revolution as it has no magic quality, and he describes the present transformation technologically as a mere shift to smaller devices that is not changing productivity. He does not see another technological revolution like the internet boom. The coming retirement of baby boomers increases the number of retired people that wage earners would have to support, and there is no evidence of education levels increasing for the remaining workers. What this means is that it will be more difficult to fix large problems from carbon emission, energy to infrastructure improvement. Gordon arrived at these numbers by combining research on educational attainment, technological change, and workforce demographics for the USA, and running this data through models. Gordon has examined data going back to 1891 for the USA. This shows that the next twenty years will be the slowest growth in the nation's history, since George Washington assumed the Presidency....

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The longer the recession, the lower the wages on the next job and the quality of work in the next job, says Columbia University labor economist, Till von Wachter. It may take years for the wages of these workers to catch up to what they were before the recession. From 2007 to 2009, more than half the full time workers who lost jobs they had held for more than 3 years, and then found full time work by early 2010 reported wage declines, according to the Labor Department. About 36% reported the new job paid at least 20% less than the earlier job.

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Galston says the Hillary Clinton campaign strategy may be flawed. Following a president from the same party who has served two terms is difficult for a presidential candidate because of an anti-incumbency mood that sets in after 8 years. Galston cites an expert from Emory University about this costing the incumbent party about 4 percentage points in votes. This would eliminate President Obama's 3.9 percentage point win in 2012, says Galston. Hillary Clinton's cautious campaign sticking to the themes set by the Obama campaign and appealing to the core base of young people, women, minorities, and upscale professionals, runs the risk of not appealing to other voters needed such as the working class white voters. Stanley Greenberg, a pollster with much experience is cited by Galston as showing that the women's vote also is not the same for Democrats. Among unmarried white women for instance it has dropped from a 20 point margin in 2008 for Mr. Obama to a 4 point margin in 2012. By 2014 this was down to 2 points, and in 2015 this is now down to zero margin, with both Republicans and Democrats even among unmarried white women. Unmarried and working class white women are described by Greenberg as looking for a candidate who can help the middle class, with Democrats perceived as the party of government and special interests, making the 2016 election different from the ones before it....

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Krugman says there is cause for concern from May's U.S. jobs report of only 38,000 jobs added- low even with Verizon strike jobs added back in- compared to the 200,000 a month average since Jan 2013. One cannot read too much into one months report, yet the political uncertainty in a election year adds to the problem. The low interest rates near zero offering little possibility for rate cuts, make it difficult to come up with a policy response. Under a Clinton administration the infrastructure spending option would face Republican resistance.  It is not clear how a Trump administration would respond. Krugman says the jobs figure reflects a stronger dollar- a result partly of the Fed's plan to raise rates- that is hurting U.S. exports.

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The Trump administration sends an official notice to Congress that it intends to renegotiate the NAFTA treaty with Mexico and Canada. The new U.S. Trade Representative Mr. Lighthizer served as Deputy Trade Representative under president Reagan in 1983. He says the focus of the negotiation will to promote economic growth and jobs by making improvements to the treaty. The notice does not mention major modifications of the type that were hinted at by president Trump earlier. The leaders of Canada and Mexico had asked president Trump to renegotiate. Republicans in Congress and business in the U.S. favor improvements instead of the drastic changes. Mr. Lighthizer's approach is stated in his letter that said "NAFTA was negotiated 25 years ago, and while our economy and business has changed considerably in that period, NAFTA has not." New provisions will be needed said Lighthizer for intellectual property rights, state owned enterprises, labor and environmental areas, with effective enforcement.  Because of the rhetoric and language used in the election campaign, it is important to note that Lighthizer has in the past negotiated favorable terms for the U.S. steel industry to prevent dumping from overseas. His style is the opposite of the president. He has stated- "I am friendly when negotiating. I am not theatrical. The art of persuasion is knowing where the leverage is." ...

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Bernie Sanders points out in this NYT op-ed the idea that Donald Trump could benefit from the same discontent among working class voters that helped the Leave campaign is a wake up call for the Democratic Party. He calls for global trade and a global economy that works for working class, middle class Americans.  Sanders is pushing for a Democratic Party that embraces the concerns of working class Americans, that understands the impact of factory closings and loss of jobs, of economic uncertainty, of declining incomes and shrinking opportunities.

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The first Democratic debate for the presidential election of 2016 gives Hillary Clinton a huge boost. Democratic voters find her to be more convincing in the debate than Sanders. Without Biden in the race a Oct 2015 ABC News/Washington Post poll shows Clinton draws 64 percent support among Democrats, and Sanders 25 percent, with O'Malley, Webb and Chafee less than 2%. Even on questions such as who "is closer to you" on the issues, who "understands the problems of people like you," Clinton beats Sanders by 53-36 percent and 51-37 percent in the poll. On honesty she is about even with Sanders. The careful low key approach getting a feel for the voters and their concerns appears to be paying off for Hillary Clinton where it really counts. The picture of Clinton in the media accounts is not affecting Democratic voters.

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The U.S. economy generated 280,000 jobs in May 2015, according to the Labor Department. The unemployment rate increased slightly to 5.5% as more Americans were looking for jobs. This report suggests the weak 1st quarter jobs numbers are a temporary situation from the severe winter.

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The author Li Congjun, is head of the Xinhua News agency, official press agency of the People's Republic of China. He calls for rebalancing the global economy with China depending more on domestic consumption, efforts to restrain the excesses of property and asset price bubbles, and renewed focus on technology and investment.

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John Cochrane of the University of Chicago points out that slight deflation of 1-2% may not be pernicious in 2014-2015.

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Chancellor Merkel meets President Trump in a key summit in March 2017. The two leaders have different styles, one flamboyant the other reserved. Chancellor Merkel tells the German media "it is better to talk with each other than about each other." Trump called Merkel's refugee policy "catastrophic," Merkel has said that the Geneva convention requires countries to do this on humanitarian grounds. On trade German's Economy minister Brigitte Zypries says Germany would file a suit on any hike in import duties at the World Trade Organization, that WTO rules restrict import taxes to 2.5% on autos. Germany's BMW plant in the U.S. exports more autos than GM and Ford put together, and Merkel is likely to emphasize large German investment in the U.S.. The heads of BMW and Siemens and other industry executives are accompanying Merkel to the U.S. as trade will be a key topic.