LyrArc Article Gist
A company making table tennis tables in Uttar Pradesh, India, gains access to the US market as supply chain reorganization takes place.

LyrArc Article Gist
Asymptomatic people infected by coronavirus are acting as spreaders of the coronaavirus making it more essential than ever that everyone wear masks. This is a widely accepted practice in Asia- wearing masks to prevent others from getting a virus. This now needs badly to become the practice in the U.S. and Europe. The longer it is delayed the worse the crisis can get and the longer it takes to eradicate it. Even low grade cotton masks are useful as is the practice in Asian countries. It is now part of the new guidelines of the Centers for Disease Control in the U.S. This needs to be adopted as safe practice everywhere.

LyrArc Article Gist
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.

LyrArc Article Gist
This editorial page opinion in The Economist says the increasing concentration in business is a real problem today. It says tech companies like Apple, Google, Facebook, Amazon are entrenching through acquisitions of smaller companies and startups leading to an unhealthy level of concentration, and control of entire markets. More competition is needed so that startups and smaller companies can grow, and new ideas or ways of doing things get a chance. A big problem is tax avoidance with individuals paying taxes like everybody else, and large tech companies like Google and Apple having the option to not have to pay just like everybody else. It calls for a "tough-but-considered" approach to tax avoidance. Its not that the money saved in taxes goes back to support millions of people hired by the industry through workers wages and future investment that builds a future for workers and the company. It cites figures showing 1.2 million employed in the top 3 carmakers in the U.S. auto industry in 1990, and only 137,000 employed by the top 3 companies in Silicon Valley including Apple and Google with capitalization of about $1 trillion.This contributes to a sense of unfairness that is being expressed in voter sentiment in the 2016 elections, especially with the wide divergence in the way that the top 45 percent has done in net worth of over $400,000 in 2013, after the 5% which is in the millions, and the bottom 50 percent at average overall net worth of $25,000 in 2013. A huge disparity that  U.S. Federal Reserve chairwoman Yellen, who cited these figures at a Boston Fed conference in Oct. 2014, says is "near their highest levels in the last one hundred years and probably much higher than for much of American history before then."  ...

LyrArc Article Gist
 Donald trumps economic plan would worsen the country's economy through extravagant borrowing and lower economic growth in the long run. Because it lowers taxes by 15 percent without any paired cuts Trump's plan would worsen the deficit, so that large debt would hurt the economy in the long run. Clinton's plan would increase taxes by 4  percent largely on high incomes so as not to hurt consumer spending, with paired spending to help lower income households. Because Trump's tax cuts benefits go disproportionately to higher incomes the benefits in terms of consumer spending are slight or insignificant. In the current state of weak income gains of the last ten years it would take some time for the middle and working class to recover. Clinton's plan carefully nudges that recovery forward without aggravating the debt, so that as incomes and net worth recovers across broad parts of the population, the U.S. is poised to go forward with strong growth as in the postwar years. Trump's plan frontloads tax benefits to higher incomes at the expense of worsening debt and enlarging future debt. In the process it worsens income disparities already aggravated by the 2008 financial crisis. Reducing the chances of a broad based recovery for all parts of the population, necessary for a strong recovery.                       ...

LyrArc Article Gist
The corporate income tax rate for American companies is 35%. But many American corporations do not pay 35%. G.E. is likely to pay no federal income tax in 2010. G.E. Capital lost billions during the financial crisis and it is using a tax loss carry forward. It is also using a tax break called the active financing exception which allows U.S. companies to avoid taxes on overseas profits if those profits are made by actively financing some activity or deal, a tax loophole created in 1997 that G.E. lobbies hard to keep. For G.E. the worldwide tax burden was 7.4%. Google also pays a low tax rate. Robert Willens, a corporate tax expert, says the typical multinational corporation pays about half the stated tax rate.

LyrArc Article Gist
CEO's of more than 80 large U.S. companies have come together behind a plan that would reduce the U.S. federal deficit with tax revenue increases and reduced spending. The CEO statement was organized by the Fix the Debt campaign, a bipartisan effort inspired by Republican Alan Simpson and Democrat Erskine Bowles of the 2010 Simpson-Bowles Deficit Commission. The CEO statement calls for an overhaul of the U.S. tax code to eliminate or reduce deductions, credits and loopholes (reduction of tax expenditures also referred to as "broadening the base"). The CEO statement says any fiscal plan to succeed has to control increases in health care spending, make Social Security solvent, and include "comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit." This is the first time a large group of business leaders have supported raising taxes as part of an overall solution. This puts together elements of the Bowles-Simpson plan, reduces deductions and loopholes, lowers rates as part of overall tax reform and cutting spending. The CEO statement says the Simpson Bowles recommendations for $3 in spending cuts for every $1 in tax increases was an "effective framework" for tackling a problem that affects the economic well being and security of the U.S....

LyrArc Article Gist
The corporate share buybacks announced by U.S. companies in the last 3 months now exceed $200 billion, more than double than in 2017, according to a WSJ analysis. This includes Cisco, Wells Fargo, AbbVie, Amgen, Alphabet (Google). The surge in corporate buybacks started in December after the tax cut of the Trump administration cut U.S. taxes by $1.5 trillion over a decade, cutting the corporate tax rate for large companies from 35% to 21%. The tax cut also included a one time tax for repatriation of $2 trillion held by U.S. companies overseas. This WSJ analysis says there are questions whether the tax cut is working, whether it will encourage new investment, lead to companies increasing wages, or whether this will largely result in corporations returning money to investors with larger dividends and corporate buybacks. Morgan Stanley's analysis of earnings transcripts of companies in the S&P 500 show 44% of the companies say they will use some portion of the tax gains to make capital investments and increase wages, with 28% going in the opposite direction and using them to return money to shareholders. Experts caution that corporate buybacks do not always lead to the company's stock outperforming the stock market. The future of companies depends more on the capital investments and in human capital. There is a sense that workers wages have stagnated since the mortgage financial crisis in 2008, with the economic crisis, globalization and outsourcing, reduced alternatives for workers, geographic pressures in relocation, all pushing wages down.  This is being closely watched with articles on stagnation in wage growth this week in the NYT and WSJ, and earlier in the Economist magazine. Reports on the Trump administration tax cuts passed by a Republican Congress suggested a large tilt towards benefitting the highest income households. Problem with higher stock prices reaching the broader middle class are recognized in that one third of stocks are owned by overseas investors, and 84% of the remaining stocks are owned by the wealthiest 10%. Republicans have turned to bonuses typically of $1000 per person given by companies yet this amounts now to about a few billion dollars over an estimated 4 million Americans, says this WSJ analysis. This is not enough to justify a huge tax cut and raise the deficit by over a trillion over 10 years on the assumption that it would lead to higher wages or capital investment when about $200 billion goes to boosting stock prices. This comes at a time when the American middle class is not broadly invested in the stock market after the exit following the battering stock prices took during the 2008 financial crisis. ...

LyrArc Article Gist
The vote in Ohio in midwestern US for the Republican seat vacated by Rob Portman brings together voters concerned about crime, the Southern border and taxes. One of the candidates Mr. Vance, says problems closer to home are more important than Ukraine. This WSJ report looks at thinking in Ohio. About 88% of Republican have a negative opinion on Mr. Putin and 95% of Democrats. When it comes to helping Ukraine defend itself 35% of Democrats  and 62% of Republicans believe the US is not doing enough to help Ukraine defend itself.

LyrArc Article Gist
Questions China faces on AI- 17% high youth unemployment and 200 million young people in the gig economy in low wage demanding work. Chinese Communist party wants to see a stable China that can pursue industrial progress for decades like the European Union and the US. For this reason it is not going to let this level of dissatisfaction with high youth unemployment and low wage demanding work for young people to go to the next level. For this reason it will carefully make investments in AI -not the hyper investments in AI that are taking place in the US. The competition with China is going to take place on many fronts, and the industrial bloc created by the EU with India and Nordics has a 15 year plan during which it and the US are likely to far exceed anything China does at a slower rate of growth. As in the US choices will have to be made in China, investment in one area means disinvestment in other areas that have equal or more priority. Today's capital markets are in complete dysfunction in the US operated by a few banks and tech company leaders, similar to the situation prevailing in pharmaceuticals and healthcare. Investment priorities and planning are needed. It is a major error to say US cannot plan that capitalism does not have planning, because it is absolutely true that planning goes on at every level in American companies with Xerox, IBM, Oil Companies and other large companies, all having a Long Range Plan as well as planning for individual projects and investments in plants. If a good infrastructure plan, project by project, state by state, and at the local level, is not put in place this will simply not take place. If no good reindustrialization plan, project by project, state by state, and at the local level, is not put in place, this will simply not take place. In that case the competition with China would surely be lost before it had begun. Yet that is surely not the case, as every good American company has a long term plan. And this plan looks at all the potential investments the Nation can and should make in priorities and in the interests of the Nation and the People. All have to compete for resources and AI surely would not get the lions share of resources in China, or in the US, in a fair and well run market system where planning rightly takes place, because it would displace the very basic structure of a fair and well balanced economy that serves the American people, or the people of European Union and India, or the people of China. ...

LyrArc Article Gist
The Republican tax law of 2018 is unpopular, according to a new NBC/WSJ poll in April 2018. Only 27% of people in the poll view the tax law favorably, 36% view the tax law unfavorably. About one third or 32% say they have no opinion, possibly because they have no clear idea of how it will impact them or the country. On trade and other economic issues the Republican Party is viewed more favorably, including for its tougher stance to give the U.S. a level playing field. Even though the Republicans are not viewed so favorably on taxes, the poll findings show the Democrats are not seen as better on taxes and economic issues. The poll also shows the Democratic Party better able by large margins to handle issues such as gun violence, sexual harrassment and health care. This shows that under an aging Democratic leadership of Pelosi, Hoyer and Schumer, and the failure of Hillary Clinton, the younger Democrats with a more Progressive tendency are having to make their own case with people not clear how the Democrats can offer a better alternative. ...

LyrArc Article Gist
For years the US shunned artisanal mining by small operators using children with no safety equipmentn for cobalt supplies. With China restricting the supply, the US AID agency has a $20 million program to integrate these small operators into the global supply chain. The US is coming to terms with the "inconvenient truth" that is there when it involves mining in the Congo for cobalt, a precious metal that is needed for renewable energy and lithium ion batteries in electric cars. Don't forget that 70% of the world's cobalt comes from the Congo and a third of this is dug up in small mines dug up in an in formal sector where children also work and there is no safety equipment. 

LyrArc Article Gist
India has one of the largest refineries in the world at Jamnagar run by Reliance Ltd. It buys 2 million barrels a day of oil from Russia, making up a third of Russian oil exports and second only to China which takes in half of Russian oil exports. India buys this at about $60 a barrel and it generates about $45 billion dollars of revenue for Russia. Indian refineries have the technology to process Russia's heavier crude oil. Some of it is processed in India and exported to Europe.

US and DJT statements about India and a tariff rate of 25% are based on India moving from exporting less than 2% from Russia in 2021 to 45% of its imports in 2024.

LyrArc Article Gist
US 28 Point Peace Plan for the Russia- Ukraine war put out on November  20 2025 and the Ukrainian response. Ukraine and EU plans for counter proposals on some of the key points. Zelensky says Ukraine may have to choose between losing a partner and dignity in his message to the Ukrainian nation as the US takes a neutral stand in the war and pushes for a settlement which Ukraine and Europe see as "capitulation."

LyrArc Article Gist
US president Biden's 2024 Budget places great emphasis on aid to workers and families in the US and shores up the Medicare hospital-insurance trust fund. He will do this by raising taxes on the wages, investment gains and self-employment income of people making more than $400,000 a year. Additional savings come from increasing the drugs on which Medicare can negotiate prices from 20 to 50 drugs.  Childcare- families making less than $200,000 a year will get subsidized child health care, the lowest income families paying nothing. Housing- Building and preserving 2 million housing units. Series of tax credits to make buying homes more affordable. College education- Reducing the cost of going to education with $12 billion allocated for this. Offering tution free community college. Family and Medical Leave- Federal paid family and medical leave program. Retirees- a $2000 cap on out of pocket cost of prescription drugs for retirees. Reduced taxes for under $400,000 income households- This would be done without increasing the deficits to extend the tax reduction from the 2017 tax cuts to households making less than $400,000 a year.     ...

LyrArc Article Gist
This editorial in the WSJ tells readers not to confuse the spirit of a pro-growth initiative in the CEO statement of Oct. 2012 with a simple tax increase. The CEO's are doing this as a part of a larger effort for a strong recovery in the U.S. economy and not simply to increase taxes. For the first time CEO's are backing tax increases to break the influence of what the Journal calls Republican deadenders who flatly oppose any tax increases period leading to unacceptable deadlock and uncertainty that prevents business from investing and hiring. This is part of a broader set of tax reforms to lower rates overall, reduce tax expenditures and support the Simpson-Bowles commission recommendations framework to reduce the deficit.

LyrArc Article Gist
How unknown brand Vizio, started by a Taiwanese expatriate with equity ownership by suppliers of flat panels are bringing low priced flat panels to Costco and to American customers.

LyrArc Article Gist
UK government tax authority, HMRC has 42 billion in unpaid taxes from business and individuals under the Tory government, says this report in The Guardian. This would be more than what all local authorites in England will spend on social care, environment and planning, culture, it says. Another 4.5 billion pounds were lost in fraud and error. The Guardian calls Tory prime minister Sunak "the billionaires prime minister" and says "the little people" are us.

LyrArc Article Gist
Income of $63,000 a year is what an average full time worker makes in the US and $140,000 what it takes to build a middle class life in the US in 2025. It is unlike the days of their parents say young people when most people could afford to buy a home if they worked full time. In 2025 engineers making $90,000 say they cannot make room for a down payment at that salary, or afford the cost of having one or two children. 

LyrArc Article Gist
The European Central Bank follows the US Federal Reserve in raising interest rates. The ECB raised rates by half a percentage point. The Fed earlier raised rates by three quarters of a percentage point. The effort is to tackle inflation before it takes root in US and Europe.