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Mills and Ottino point out that as in 1912 the U.S. is on the cusp of a revolution induced by new technologies on the horizon. Then it was electrification, automobiles, the telephone and radio. Now it is cloud computing (big data), smart manufacturing and wireless. Ottino is Dean of the McCormick School of Engineering and Applied Sciences at Northwestern University, Illinois. He describes the changes that smart manufacturing and new metal alloys can bring in manufacturing. America's unique advantages- its educational system, its open and youthful culture and better demographics, that position it to realize serious gains through technological change. Similiar advantages exist with educational systems and the spirit of innovation in Europe. On another dimension the huge increases in connectivity, cloud computing, and precise instantaneous language translation have the potential to bring closer the peoples of Asia, Africa, Europe, Latin America and North America, creating a sociological revolution on how people think and act across regional boundaries....

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Email exchanges between OMB staffers and Obama administration officials, released exclusively to the Washington Post, show the Obama administration urging the OMB to speed up its decision on the half a billion dollar loan to Solyndra. This was part of stimulus funds to the solar industry. Solyndra was a favorite of the Obama administration according to the Washington Post, and aides to Rahm Emmanuel and other officials sent emails urging speeding up approval. OMB officials in their replies stated they were under pressure. One email by a senior OMB staffer sent to McSweeney, Biden's domestic policy advisor, Aug 31, 2009, said: "we have ended up with a situation of having to do rushed approvals on a couple of occasions (and we are worried about Solyndra at the end of the week)... we would prefer to have sufficient time to do our diligence reviews." Other emails referred to "the time pressure we are under to sign-off on Solyndra," and indicated "there isn't time to negotiate." Solyndra had large investments by the funds operated for the family foundation of George Kaiser, an Obama fundraiser....

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Douthat says the record of Texas in jobs, in education, in minority achievement, in rising wages, and in preventing a real estate bubble is genuine and needs to be respected. He is uncertain as to how much of this is a result of Rick Perry's leadership in the state.

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Remittances at $24 billion for 2007 were the largest source of foreign currency for Mexico. In 2007 foreign companies invested $23.2 billion to build factories or setup businesses in Mexico. Mexican growth estimates were cut by the central bank from 3.25% to 2.75%. The $24 billion in remittances is almost the same as 2006 as remittances were slowing down because of fewer jobs in construction for lower paid Mexicans. Tighter border security also means fewer people coming in from Mexico.

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French president Macron is skipping attending the Swiss Davos conference in 2019, as he attends to pressing problems at home. A year ago after attending Davos Macron appeared as a champion of globalization and took some risky actions in the euphoria over his win- stripping job protections at a sensitive time of rising inequality, and abolishing a decades old wealth tax. The election showed a regional and urban-rural divide in France even though Macron gained a large majority in the Assembly. The yellow vested protestors showed no particular allegiance to parties, only showing a sense of dissatisfaction with neglect of working class struggling to make a living. All that is changed now after yellow vested protestors rioted week after week over neglect of working class issues.Macron has resisted pressure to reinstate the wealth tax. He has suspended plans to increase fuel taxes and introduced 10 billion euro worth measures to boost purchasing power of working class French people, a major demand of the yellow vests. A series of town hall meetings are planned for Macron to listen to the voices he has not paid enough attention to before in his aloof style of governing. ...

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Unemployment in Fort Wayne, Indiana, is 6.8%, and 14,600 workers are looking for a job. Peters and Wessel talk to employers in this midwestern U.S. city and find that employers are looking for people in manufacturing with just the right set of skills, in other cases the benefits and parttime local school system jobs paying $8-$12 per hour with no benefits go unfilled because of the lower wage.

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Fomer U.S. Census Bureau officials Gordon Green and John Coder released a study by the firm Sentier Research. The study looks at two groups of Census data from 2005-2007 and 2008-2010, which has information on interviews with 3.5 million households for each period. The study shows 38 states with household income declining. The losses in income are greatest in the midwestern states affected by the loss of manufacturing industries. Incomes fell by 5.7% in the midwestern region of Indiana, Illinois, Michigan, Ohio and Wisconsin. Oil, shale and other energy producing states- Louisiana, Oklahoma, Texas- saw incomes rise by 0.3% from 2007 to 2010. This report looks at pretax income levels in 2010 dollars for all 50 states and 297 metropolitan areas. Michael Greenstone, professor of environmental economics at MIT, says the regional shocks from the economic crisis can last for a couple of decades. The Midwestern states showed median annual household household income decrease by 4.7% to $49,710 and the Southern states showed a drop of 2.5% to $47,389. Nationally for the U.S. the drop in annual median household income from 2007 to 2010 was 3.5% to $51,287. Another finding of the study was that of the top ten metropolitan areas with the highest percentile of incomes, nine were in Connecticut, New York and New Jersey, a region where the financial industry is based. Silicon Valley in California comes in at No. 10 in this list of metropolitan areas. In terms of growth of households reflecting migration patterns and new families the Mountain States of Arizona, Colorado, Idaho, New Mexico, and Nevada did as well as the oil patch states of Texas, Louisiana and Oklahoma, showing an increase in households from 2007 to 2010 of 5.8%....

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The growing middle class in Brazil, new aspirations and the demand for better public services in transportation, education and healthcare. Alexandre Peppe, a 29 year old from the outlying parts of Sao Paulo, is a new member of the middle class, being the first to go to college in his family and finding a job in the state government. He was one of the protesters on the streets of Sao Paulo. The growing middle class has new hopes and aspirations that see serious shortcomings in the corruption of political leaders, neglect of public services such as transportation and overspending on the soccer stadiums for the FIFA and World Cup championships. Economic growth is slowing to about 1% in Brazil for 2013, creating new constraints for public spending just as demand for infrastructure and services is growing for the now large middle class.

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Citigroup CEO Michael Corbat's plans to make 11,000 job cuts, about 4% of the workforce, and close 84 branches. Most of the cuts will take place in consumer banking with 6200 cuts, and in the investment bank and transaction services with about 1900 cuts. Citigroup has reduced its workforce by 100,000 since the end of 2007 after the bank was hit by the global financial crisis. Analysts at Credit Agricole Securities and Fitch Ratings say this does not go far enough. Fitch Ratings says the cuts reduce expenses by only 2% of annual expenses and are modest moves. The cuts at the investment bank do not compare with more aggressive action taken by UBS CEO Ermotti. Goldman Sachs analyst Ramsden says the investment bank represents 60% of assets but generates only 30% of revenue, a highly inefficient use of resources.

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Jan Corzine, Governor of New Jersey has talked to governors from the states of Ohio, Michigan, Wisconsin, New York, and Massachusetts about how best to execute an effective economic recovery stimulus program with the federal government. Here are the ideas they have come up with. The stimulus should cover five areas, infrastructure, countercyclical programs, housing, education, and middle class tax cuts. The principle to keep in mind is to take advantage of the strengths of the federal government and of the state and local governments. Infrastructure investment should be intelligent ones to modernize the capabilities of the country for the next phase of development and competition in the global economy and in making far reaching changes in transportation and energy for sustainable development in a global economy. A key point of Corzine's here is that safety net social programs will need to be shored up or the stimulus effects will be lost. Over the 2 years 2009 and 2010 he suugests the federal government boost its countercyclical spending by at least $250 billion. And it should do this by increasing the federal medical assistance percentages, federal share of Medicaid costs and other health care related programs such as reimbursement to hospitals for treating the uninsured, Temporary Asistance for Needy families, and child care grants. He proposes doubling the federal funding of unemployment trust funds under the Unemployment Insurance Modernization Act, with incentives to cover vulnerable low-wage and part-time workers who are often denied unemployment benefits. Corzine emphasizes this. That even if the Obama administration puts large sums into infrastructure spending, cutbacks in state and local safety net programs would cancel out much of the effect of the stimulus. The reason is simple while the federal government is adding to jobs on one hand, the states without the money would be cutting back jobs and services. This point will be critical in making the stimulus work. The other point Corzine appears to emphasize by quoting Roosevelt at Oglethorpe University in 1932, is that bold experimientation not clinging to rooftops in the flood, will be needed....

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Don't let the current holiday season retail sales fool you as they have held up reasonably well. The impact of the mortgage and housing crisis will be felt in a delayed manner. It won't be till 2008 that the impact will really be felt. And the impact is expected to be lasting and deep, could take the rest of 2008, 2009 and into 2010 for this protracted tightening of credit. About $300-400 billion contraction in credit is expected when banks tighten their credit lending because of losses they are taking in the mortgage crisis. This will happen in an environment of falling house prices and consumers will not have access to the $340 billion in cash from home and mortgage equity financing that they took out in 2006, estimate of the Bureau of Economic Analysis. Auto, retail, apparel, and luxury items would be hit the most. On the jobs side not all the jobs will be lost in the USA. The USA imports about $740 billion in consumer goods and autos each year, which is one third of consumer spending excluding food and energy. The lower consumption in auto and apparel would affect exporters in Japan and China and South Korea. But Chinese exports have reached a point that they are causing trade tensions and a call for strengthening the yuan. An increase in American exports and lower imports could help bring down America's trade deficit. This could give China an opportunity to build its domestic market and markets in Asia and Europe so that it is not so dependent on the US market. For the US where the savings rate is near zero this is an opportunity for consumers to build their savings and reduce debt. Europe and India and the Middle East are expected to continue growth and China may see slower but continued growth in 2008 and 2009. In the US industries like aircraft and infrastructure promoting companies that sell to countries like Russia, India Brazil, the Middle East, and China will continue to grow. And because rates are still low large nonfinancial companies still have access to funds for expansion and capital investment. In a global economy the US consumer may be one part of a much larger picture. ...

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The cost of tution for four year colleges has doubled in the U.S. since 1985 even after adjustment for inflation, according to the College Board. Over 3 million households in the U.S. owe more than $50,000 in student loans. Ths is ten times the figure of 300,000 in 1989, and about four times the figure of 794,000 in 2001. Upper middle income families with incomes between $94,000 and $205,000, based on Wall Street Journal analysis of U.S. Federal Reserve data, shows they owed an average of $32,869 in college loans in 2010, up from $26,639 in 2007, after adjusting for inflation. This is affecting the choices parents and students in the middle class are making of colleges, preferring to go to second tier colleges to better manage the costs of tution.

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The Venezuelan government provides gasoline to people in the country at a few cents a gallon- almost free. Even Saudi Arabia, the Emirates and Kuwait which have way better financial balances and dollar reserves do not provide gasoline at such prices. The result is chronic shortages of basic parts and other imports because the government does not have enough dollar reserves for imports. Venezuela devalued its currency by 32% recently, making imports more expensive and pushing inflation up even higher to 28%. The problems it creates are excessive and wasteful use of gasoline, and free gasoline that then provides consumers money to pay for surging cost of everyday imported products. Nullifying any real benefits when shortages, inflation, dilapidated infrastructure and lack of development and jobs, are taken into account. The lack of capital to invest in the oil industry has led to declining production making the situation unsustainable. Yet neither party of Maduro or Capriles in the upcoming April 14, 2013 election, following the death of Chavez, supports ending this subsidy. Efforts to end the subsidy by president Carlos Andres Perez in 1986 led to riots and about hundred deaths in police response, and a coup by Chavez, then a military officer, a few years later. Under Chavez the subsidy was extended to the level at which gasoline is about 4 cents a gallon. Compare this with the price in neighboring Colombia at $4.72 a gallon, and Brazil at $5.40 per gallon. Consumption per capita in Venezuela is excessively high, about seven times per capita than neighboring Columbia. The investment in infrastucture is hobbled by lack of capital, the capital Caracas dilapidated, and no major infrastructure projects taken up by the government. It costs Venezuela 8.6% of GDP or $27 billion to pay for the excessively high subsidy, compared to 3.2% of GDP going to healthcare spending and 5.1% for education. In comparison Indonesia, another developing country, uses 2.5% of GDP or 21 billion for its subsidy for a population of over 200 million. It is not that a fuel subsidy is provided, but the entitlement to free gasoline that makes Venezuela the lone exception. There is a reason why prices in Brazil and China, large developing countries, price gasoline to motorists at over $4 a gallon- to discourage excessive and wasteful use, and release scarce capital for infrastructure development, building dollar reserves for imports of machinery and equipment, and other uses in industrializing economies. Compare Venezuela with Bolivia under the socialist government of Evo Morales. In 2010 Bolivia increased its price of gasoline by 80%. The price in 2013 is about $2.00 per gallon. Morales cushioned the increase by increasing salaries in the health and education sectors, armed forces and police by 20%, and increasing prices of locally produced wheat, corn and rice by 10%. Morales said he did this to reduce state subsidies of $380 million for $660 million in gasoline imports, of which $150 million was siphoned off by smuggling gasoline to neigboring countries. Incentives were provided to oil companies to produce gasoline in Bolivia to reduce imports. ...

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Because most of the increase in U.S. oil production is in landlocked states in the U.S. midwest without easy access to markets in coastal cities, the lower prices of West Texas Intermediate (WTI) crude benefit refiners in the midwest but do little to lower pries of gasoline at the pump.

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Debate in Germany over whether there should be exception to the minimum wage agreement of 8.50 euros per hour. The head of the federal employment agency, Heinrich Alt, says a universal minimum wage would reduce incentives for young people to join vocational training. The new labor minister, Social Democrat Andrea Nahles, says "there will be no exceptions, notwithstanding all the escape fantasies." The Social Democrats insisted on the minimum wage to win support from rank and file working class members after losing support in its own base with the increase in the low wage sector in Germany. Unemployment in Germany is less than 5%, but this comes with an increase in lower wage workers as part of the reforms under the Social Democrat Schroeder administration when unemployment was close to 10%. Economists say the increase in wages would increase weak consumer spending in Germany and increase imports from other eurozone countries. In 2011 the share of the German population making less than the new minimum wage of 8.50 euros an hour, according to the German Institute for Economic Research, is- for former East Germany 27%, for former West Germany 15%, for ages under 24 years 44%, for ages 25 to 60 years 15%. This does not affect the manufacturing sector in East Germany as wages in the sector are above 8.50 euros. The other problem is that wages appear to be declining in Germany, with wages decreasing by 0.3% in October 2013, according to the Federal Statistical Office. ...

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In a Washington Post-ABC News poll conducted in April 2011, 47% approve of the job Obama has done. 50% of Americans polled disapprove of this job performance, and of this 37% strongly disapprove. When asked about the job Obama has done with the economy, 57% disapprove, with many independents disapproving. A similiar poll conducted in January 2011, shows Obama having a 54% approval rating, which was seven points higher than the current approval rating of 47%.