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The skepticism from US economists for Biden's efforts to boost US manufacturing coming from the same economists who thought it did not matter if US workers made the products that were used in the US. As if Made in USA did not matter. As if Made in India or Made in Germany did not matter. As if creating jobs at home or in other countries made no difference. At the same time as US or companies in India and Vietnam, other countries in Asia or European Union ramp up their efforts for shorter supply chains and manufacturing at home, they are working on building up the manufacturing knowhow and technologies that make manufacturing in the US, EU or India competitive with manufacturing in China. It is the lack of this manufacturing knowhow and experience that was neglected over two decades that has resulted in the situation faced today of long, unreliable  and in the end costly supply chains during the pandemic.

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As the related article in The Washington Post points out the narrative inside India relates more to the the sense that terrorism has been a persistent problem for India and the public's sense that action was needed. Most of the issues in South Asia relate to development, roads, dams, bridges, airports and housing that need to be built, healthcare, sanitation and education on a massive scale. This is an area where India can show the way forward for South Asia, and be the real test for Mr. Modi after the many projects that he has initiated in India in the first term. It is only ordinary Indians, Pakistanis, Bangladeshis, Sri Lankans, and other people in South Asia that are paying the price for neglect of development and infrastructure as China, South Korea and other nations have forged ahead. A focus on development is the right sphere for competition both for Mr. Modi and for people in the region.

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U.S. president Trump signs an executive order on March 28, 2017, reversing the American commitment to the Paris climate change agreement. The executive order also lifts a moratorium on the sale of coalmining leases on federal lands. The Obama administration 2015 clean power plan was designed to restrict greenhouse gas emissions from power plants. It was blocked by courts in 2016. Trump says he is reversing president Obama's war on coal. Earlier he approved the Keystone pipeline for bringing oil from oil sands in Canada to the U.S.. Under the Paris agreement the U.S. agreed to cut greenhouse gas emissions 26-28% by 2025 from 2005 levels. Market changes including the availability of cheap natural gas from technology advances fracking and hydraulic fracturing is leading a shift away from coal, apart from Obama administration regulations. Another factor is the long term trend towards cleaner energy, with large energy producers such as American Electric Power and other companies planning for the long term which is likely to be in the direction of cleaner energy. These companies see the Trump administration changes as a situation that may not be for the long term. ...

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Profit outlook for global airlines dims with the sluggish global economy and high fuel prices. This is affecting most airlines including Etihad and Emirates airlines in the Middle East. Qantas forecast a 91% drop in pretax profits for the fiscal year ending June 2012 falling to A$50 million.

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Venezuelan president Chavez says his cancer has returned and he will need more surgery in Cuba. This comes shortly after winning the presidential election. He asks Venzuelans to support vice president Nicholas Maduro, a former bus driver and union leader, for president if new elections are held. Venezuela's constitution requires new elections in 1 month if Chavez dies or resigns. Higher spending in the election year has widened the gap between revenues and spending from 5% to 20%, with expectations Venezuela's currency, the Bolivar, will be devalued.

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As unemployment rises and industrial production drops Democrats in the states with dependence on heavy manufacturing and use of coal are going to have to make the difficult tradeoffs between their support for controlling emissions and favoring the environment versus their interest in keeping industry. According to the Department of Energy, in 2005 the state of Ohio derived 86% of its electricity from coal compared to California which derived 20.7% of its electricity from coal, 40% from hydroelectric power and renewable sources. Other Great Lakes and Plains states are similar to Ohio. Yet the key committees in Congress and the Senate are controlled by Ms. Boxer, Mr Waxman, and have the backing of Speaker Pelosi.

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Abbott Labs acquisition of Piramal Healthcare for $3.7 billion gives it 7% of the Indian market. Acccording to IMS Health emerging markets drug sales for 17 countries went up from $42 billion in 2000 to 126 billion in 2009. Anlysts expect 70% of global growth to come from these areas in next 5 years.

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How capital is flowing all over the middle east from oil rich countries to other countries in the middle east. See related article on GE infrastructure orders in the middle east WSJ July 25,2007, one of GE's fastest growing markets after China and India. What opportunities are available to other companies in other industries in the middle east? Private equity firms, including one run by a Pakistani and Carlyle Group, state companies in oil rich companies funding cross border investments, special econmic zones of Israel in Egypt and Jordan, dismantling of protectionis barriers, having executive of Unilever as Egyptian trade minister to overhaul public sector and regulations, increased foreign investment which brings with new knowhow and ideas (about $40 billion a year including Turkey).

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Krueger and Posner, eminent economists, say the reason wages have stagnated in the U.S. with wages not having budged much over a decade 2008-2018, is not only because of globalization and automation as long term trends. They attribute this stagnation in wages to "monopsony power," or power American corporations have over workers because of their stronger bargaining position and because workers have few alternatives.  For most of this period 2008-2018 high unemployment as reflected by the people out of work and taking part time jobs or having stopped looking for work, shifted bargaining power to companies. The Economist magazine pointed out that workers have not shared in the profit and gains corporations made during this period. Here Krueger and Posner show additional factors such as non compete clauses in worker agreements that have depressed wages. Half of franchise agreements prohibit competition for labor. Outsourcing work to other companies that hire workers means these outsourcing companies have more power over workers than the original companies using the labor. Unions represent only 7 percent of private sector workers by 2017, compared to 35 percent in the 1950's, so that there are no mechanisms to counteract the greater bargaining power gained by companies vs. workers. The way workers have roots in the communities they live and the consolidation of employers into a few companies in a particular area, mean fewer options exist for workers.  Senators Warren and Booker and the anti-trust division of the U.S. Justice Department are in agreement on this issue of widespread use of noncompete agreements that is considered unlawful, says this report in the NYT, offering hope for a solution to bring a better balance between the rights of workers to fair wages and companies seeking profit for stakeholders. Issues about workers, lack of gains for workers, prevalent outsourcing, and the frustrations of labor with parties that had lost touch with their worker base- such as Labor in Britain, SPD in Germany, Socialist Party in France and the Democratic Party in the U.S. - have led to political upsets with support shifting to other parties. This has not led to significant change to improve bargaining power of workers to correct the imbalance that now exists between labor and companies, leading to calls for change. Eric Posner is a law professor at the University of Chicago law school and co-author of a new book "Radical Markets: uprooting Capitalism and Democracy for a Just Society." This book turns the popular notion on its head that free markets have produced the imbalances that hurt social cohesion and democracy, by saying it is precisely the suppression of free competition such as for labor that have created this unhealthy situation. This is true in other areas where monopoly power has developed in other parts of the U.S and European economies in 2008-2018, as also for distortions in capital allocation that hurt infrastructure and other public investment. Krueger is a professor of public affairs at Princeton University and former head of the President's Council of Economic Advisors in 2011 under Obama, showing that Democrats themselves failed to correct this imbalance leading to a shift to other parties and Mr. Trump, who also appear to lack ideas or solutions to this problem that affects social cohesion and democracy. This is contrary to the vision of American or European society of better opportunity for all shared by all Americans and Europeans for most of the twentieth century. ...

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On the production side output has fallen to an estimated 1.6 million barrels a day(U.S. government and independent analyst estimate) from nearly 3 million barrels a day in 1998. But even this is an estimate, PDVSA says its daily output is about 2.2 million barrels a day, and plans to boost it 4 million barrels a day by 2012. PDVSA points out that the oil exports to the US have remained steady at 1.5 million barrels a day. The content links to oil policy are 1. PDVSA direct involvement in economic development and social goals. 10% of annual investment budget to go to socail programs or about $1 billion a year. For private oil companies in joint ventures with government 3.3% of the local investment budget is required to go to social programs. Oil service companies include community projects such as low income housing in their bids. And spend 5% of the value of the contract in hiring worker owned service companies. Adding road construction and subsidized food programs the spending approaches $8billion for 2005 according to PDVSA. quote: "its not easy... but there will be no more projects with their backs turned to our reality." Rafael Ramirez President of PDVSA told industry executives in June. 2. According to the WSJ PDVSA's diminished production has cut world output by more than 1 %. PDVSA's 2004 financial results show exploration investment was only a meager $60 million in 2004 down from a small $174 million in 2001. Current wells are so old that that the ir output declines by about 23% a year, drilling new wells only keeps production levels stable. This decline can be seen also in the backdrop of the major strike in late 2002 and early 2003. At the time Chavez fired 19000 employees of PDVSA who opposed his policies. The employment levels are only now back to pre-strike levels. ...