LyrArc Article Gist
Ron Wyden, Democratic Senator from Oregon, on maintaining competitive choice for 200 million Americans who have to buy insurance outside the Exchange proposed in many of the bills being put forward in the U.S. Congress. This lack of choice between seriously competitive plans will leave the situation in the same way that it is today, with little hope for controlling runaway costs and doom health care reform. The key to controlling costs says Wyden is introducing choice and competition. Wyden will introduce this plan as an amendment called Free Choice to legislation being debated in Congress.

LyrArc Article Gist
A shocking 70% of calories of American children and young people come from industrially manufactured foods and drinks including packaged snacks. A report made by a presidential commission led by Robert Kennedy Jr shows the dire situation for health of American children. The use of ultraprocessed foods and chemical exposure are leading to US children in 2025 being called the "sickest generation." The report assails a faulty medical system which invests too much in research on diseases and does little on understanding and working on prevention of diseases. It assails the "overmedicalization of America's children" and says this has happened because of the pharmaceutical industry's capture of the nation's biomedical apparatus and calls this a stark failure. It says this is a "critical policy failure" where corporate profitability supersedes the health of children. In mental health overdiagnosis and overtreatment are major problems. The report will be discussed at a president Trump event on Thursday, May 22, 2025. ...

LyrArc Article Gist
The failure of regulators is one of the features of the last decade leading to the losses of capital that could have been better allocated to infrastructure, health education and paying down debt in the U.S. and Europe. This WSJ report says fintech or financial technology companies faced little regulation or critical oversight from regulators as regulators tried to foster growth in that sector. This puts more burden on shareholders to be vigilant, it says. Wirecard went into insolvency with huge losses and debt and accounts in the Philippines for over a billion dollars that were later proved not to exist. The astonishing aspect of the Wirecard scandal is the way German regulators not only did not investigate but pushed back against critics of the company's finances, that there was something fishy about the finances. Wirecard was established in 1999, and is described as a slow-burning story since 2016 when the stock price took off for a wild ride. This report says government regulators are relaxing important rules in the hope of coming up with a winner- this is proving to be a dangerous exercize and an exercize in folly, as it leads to losses of capital with no one taking responsibility among government officials or regulators. In the case of Wirecard the German officials even filed a criminal complaint against accusers, and banned short selling. of stock.    British and European financial watchdogs are acting as cheerleaders and watchdogs at the same time says the WSJ. Watch out it says when regulators play this kind of double role. During the financial crisis of 2008 the revolving door between companies being regulated and the regulatory agencies themselves was a defining feature of that period leading to huge losses of capital. Today this has taken on a new  and additional dimension, each time making things worse, even as infrastructure investments, investments in health and education are being deprived of capital because they benefit the public, and are not a benefit to small groups of well connected people willing to flagrantly conduct activities such as setting up accounts that do not exist for over a billion dollars.   ...

LyrArc Article Gist
Contact tracing being setup using iphones and android phones with bluetooth technology by Apple and Google. The idea is being studied for adoption by the U.S. government. The problem is that this kind of contact tracing is not as effective as the kind used by South Korea, Taiwan and Singapore with information from cellphone carriers. Contact tracing apps would be written by developers for each country and chosen by Apple and Google one for each country. How it works- When a person comes down with symptoms he can upload the information about who he has been close to stored on the phone. This information would then be used to contact the person who was exposed to the person with symptoms but unaware of this. A message would tell that person he was exposed to someone who now has symptoms and to contact public health authorites and take effective steps. When the person with symptoms gets tested if he was positive that would also appear on a exposed person's phone without name or other information.  The normal contact tracing is time intensive requiring many phone calls and using data from cellphone carriers. This is done in Singapore, Taiwan and South Korea. It is considered to be more effective. The approach of these Asian countries is more thorough and allows effective tracing and isolation, quarantining of persons having coronavirus or having exposure in countries with rampant coronavirus. The U.S. needs to move quickly to adopt the methods used in these Asian countries. The loss of hundreds of thousands of lives should be weighed against privacy concerns and clearly there should be a way to allow one time use of personal information for coronavirus, so that this kind of information is used only in public emergency situations. All three Asian countries are democracies. Putting health care workers at great risk including working pregnant doctors, as in the story in WSJ about a hospital in Maryland, should make it clear that everything including privacy concern should be placed in context, and use of personal information be permitted in a public emergency such as a contagious virus- with information protections removal for the period of the crisis. ...

LyrArc Article Gist
Who is Nandalal Weerasinghe? This report in The Daily News gives some idea about the man chosen to help Sri Lanka negotiate a deal with the IMF.  Dr. Nandalal Weerasinghe was an alternate executive director at the International Monetary Fund before being appointed deputy governor of the Ceylon Central Bank in 2012. Before this he managed several macroeconomic departments at the central bank and was assistant governor of the central bank from 2007 to 2009, He has spent the large part of his career in economic positions at the Central Bank of Ceylon after getting his PhD in economics from the Australian National University. Weerasinghe is the leading expert in macroeconomics from Sri Lanka who has IMF experience. He says "things will get worse before they get better." He retired early from the central bank with a change in government in 2019. He was reappointed as Sri Lanka faced a debt crisis in March 2022 following the two year long pandemic, and the Ukraine war in 2022 that was bad for emerging market economies. Weerasinghe says about the crisis facing Sri Lanka- Recent decisons followed Modern Monetary Theory. This has dire consequences. In recent times the savings brought about by the low tax and interest rate regime passed savings on to the corporate sector and took away spending power from savers and pensioners. Surging inflation made things even worse for the lower income middle class and older parts of society. Years of accumulated debt have brought Ceylon to this point. In Ceylon one is seeing the effects of savings being passed on to the corporate sector in an economy dependent on tourism and remittances from overseas workers, both hit by the two year long pandemic. This is part of  a trend that has hurt emerging market economies from Argentina and Pakistan which also turned to the IMF to Turkey.  In other countries in the European Union savings also passed on to the corporate sector with low tax and low interest rate regime. With high inflation resulting in the cost of living crisis seen today in France and Germany. This type of policy that Weerasinghe calls 'Modern Monetary Theory' is not healthy for the European Union and the US, as these policies led to the neglect of much needed and vital investments in infrastructure, health and education. Only now are these effects being corrected by new administrations of Biden in the US and Scholz in Germany, with Biden's 2 trillion plan for workers and families, and a similar plan from chancellor Scholz. With this come needed investments to tackle climate change, all of which was neglected before. India has taken a different approach. By following good governance, managing vaccination effectively during the pandemic, social emphasis for food, water, electricity, cooking gas, medicine for the vast population of 1.2 billion, and a Master plan for building Made in India manufacturing,  India has avoided such crises and maintained strong economic growth. In this sense it is a model for South Asian, South East Asian, African, and Latin American emerging market economies that face a difficult situation today. Good governance is critical.   ...

LyrArc Article Gist
After 2 years of the pandemic's devastating effects on health, governments around the world decided to protect ordinary people from the effects of higher prices for staples and food with the increase in inflation. This WSJ report takes a detailed look at different countries and how they after coping with the effects on total debt and debt servicing needs of moves such as subsidies and tax cuts. The situation is exacerbated by the Ukraine war which affects wheat exports from Ukraine and Russia, and the high oil prices as a result of the war. The effects shown by country are- China- consumers are protected from high oil prices by regulated retail gasoline prices. As oil prices keep going up state owned refineries will bear a disproportionate share of the burden of high prices. India- The government has set aside $40 billion in aid as subsidies for oil and fertilizer. This will support farmers and consumers for fiscal year to March 2023. It will make it harder to cut the budget deficit from 6.9% of GDP to 6.4%. Pakistan - A subsidy of $1.5 billion was given for diesel, gasoline and electricity by the Imran Khan government. This did not have IMF approval and talks are taking place on the IMF program between the government and IMF for it to continue. Rampant inflation has led to reduced popularity of the Imran Khan government. Argentina- A new program to refinance $44 billion in debt with IMF assistance is being affected by the subsidies for oil and electricity. About 800,000 tons of grain are being diverted to the domestic market from exports. Agricultural producers such as Argentina have better protection from higher food prices. In Argentina 40% of the people are living below poverty and the country has 50% inflation.  Malaysia and Indonesia- Both countries are exporters of commodities and higher prices could provide additional revenues to meet higher import prices, says the WSJ. Egypt- higher prices for wheat imported from Ukraine and Russia where Egypt gets 70% of its wheat needs have increased cost of subsidies by $1 billion. Kenya- Fuel subsidy costs will increase by $500 million over 2 years. Europe- In France 400 million euros relief package and in Spain 500 million euros relief package for energy price increases. In Germany cash payments to taxpayers, heavily discounted transportation tickets, and price caps on gasoline and diesel.   ...

LyrArc Article Gist
Having an adequate supply of N95 masks is critical for each hospital tackling the coronavirus pandemic. The lack of enough masks leaves health care personnel without the basic protection and is a grave emergency. Hospitals are resorting to reuse of the masks in this crisis and this is not a good practice as it increases the chances of infection. President Trump has invoked the Defense Production Act on April 2 against 3M. This gives the federal government more control over 3M's operations to ensure that it goes all out to make the healthcare N95 masks that the hospitals need in this grave emergency. This report in the WSJ covers the situation as of April 3 on the supply of M95 masks for health workers and others. N95 masks block 95% of very small particles. Supply in the U.S. is for 50 million N95 masks. Demand in the U.S. is for 300 million N95 masks as estimated by the Department of Health and Human Services. in March- this is how many are needed by health care workers to fight this pandemic in the U.S. The principal manufacturer is 3M. 3M company has doubled its production since January 2020. The trend before this pandemic was to send production over to China and other countries. This is changing now with the pandemic and the U.S. policy shifting to be self sufficient in medical supplies in the event of an emergency. A policy Peter Navarro, who heads the agency in charge of getting medical supplies, says President Trump is insisting be implemented. Hospital buyers supported the earlier trend to keep costs down, but this appears to be a costly mistake, putting health care workers in hospitals across the U.S. without the basic protection they need. Minnesota based 3M invented the first modern disposable masks in the 1960's. Interestingly 3M continued to make millions of masks in the U.S. even though competitors moved manufacturing overseas. The 50 million disposable masks 3M made globally went to workers in industries where it provided extra safety from metal shavings or other substances, and medical workers. Now 90% of masks go to medical workers. 3M ramped up production globally since January 11 when the pandemic first hit to 100 million masks a month globally, and 35 million a month in the U.S. at plants in South Dakota and Nebraska. 3M says that it will import 10 million masks from its factory in China, which earlier this year was restricted from shipping it outside China as China needed masks for the pandemic. About 10 million more masks are made by two other manufacturers Alpha Pro and Louis Gerson Co.  U.S. Department of Health and Human Services ordered 600 million N95 masks from 5 companies to distribute to hospitals and build up the national medical supply stockpile. 190 million each of this is from 3M and Honeywell and 130 million Owens & Minor Inc.  3M says it will make 50 million a month in the U.S. by June. Honeywell which had moved production overseas, plans to bring back production to the U.S. by making 10 million masks by May at its Rhode Island and Phoenix plants. There is a company in Singapore that makes one million masks a day in China and other Asian countries, Pasture Pharma Pte, but most of it is committed to government agencies in China.   ...

LyrArc Article Gist
Italy faces tighter restrictions and a national lockdown at Easter for the coronavirus, Italians who were the first to go into lockdown on March 10, 2020, now think they will be the last to exit lockdowns. The mood in Europe is of frustration with the slow vaccination drive and the failure to procure enough vaccine supplies and to approve vaccines in time. The US and Britain have vaccination drives that are moving rapidly leading to a reduction in cases and deaths. In Europe new cases are rising since mid February 2021, and there is the spread of the new variant first detected in the UK.  The variants make up 70% of new cases in France says Health Minister Olivier Veran. ICU's in France are 80% full. Elections in France in 2022 and in Germany in September 2021 are leading to government reluctance to impose tighter restrictions. The government strategy is now being questioned. Only 30% of Germans now have confidence in chancellor Merkel's ability to make competent decisions. The CDU's partner in the government, the SDU socialists have even less trust with SDU getting less than 10%. There are signs of a third wave of coronavirus in Germany resulting from variants of the virus, slow vaccinations, and reopenings. ...

LyrArc Article Gist
Baucus is a six term senator from Montana. He won easy re-election in the fall. Question are being raised about the extent of fundraising Baucus is doing even as he is conducting the negotiations for writing up the health care reform bill. He continues to accept donations from health care executives and health care companies. Public Citizen advocacy group says that Baucus's fundraising in the middle of the health care debate is very troubling. As chairman of the Senate Finance Committee, Baucus is a key person in the health care legislation development.The Washington Post says health care companies gave Baucus $1.5 million in 2007 and 2008 as he began to hold hearings for the health care reform debate. The health care industry gave $170 million to federal lawmakers in 2007 and 2008, with 54% going to Democrats, according to the Center for Responsive Politics. Senator Grassley of Iowa, the ranking Republican in Baucus's committee received more than $2 million from the health care industry since 2003. House Ways and Means Committee chairman Rangel took in $1.6 million, and ranking Republican Dave Camp $1 million. Clearly any new health care legislation will fall short on achieving the critical reduction in health care costs that is needed to help the U.S. economy as long as lawmakers are beholden to lobbyists and donations....

LyrArc Article Gist
Walgreens is changing its growth model to add the business of Health and Wellness buying two companies I-trax Inc. and Whole Health Management which run 350 health centres at corporate offices. Pharmacies will be added to these centres. Its targeting 7600 office sites with 1000 or more employees that could use a health-care center. Its competitors CVS and Walmart are going into managing employer drug benefit programs, with Walmart's selling point being reducing costs of paying for prescriptions for employers.

LyrArc Article Gist
The DW's Ines Pohl interviews Bangladesh prime minister Sheikh Hasina as she begins a fourth term as prime minister. Hasina says "everybody should take a break so we can accomodate the younger generation."  Hasina says she will not run again. 

As the economy continues growth at 6-7 percent Hasina emphasizes basic needs of food security, housing, health, education, job opportunities. "Every human being wants a better life we have to insure that", says Hasina.

A big change for Hasina is in girl's education. "What I have done is that education for girls is totally free up to the 12th grade and that we provide a stipend to them." Hasina sees the culture change into making parents rethinking girl's education as a big change, believing that the girl can earn her own money as a good thing when she is married. It is a change she believes will continue to change Bangladesh society.

LyrArc Article Gist
The IPO is expected to bring $10 billion and reduce the government's stake to below 50%. The IPO plans for the shares to go for between $26 and $29. For the government to breakeven the shares have to rise to about $50. GM plans to sell 24% of its total shares for $10 billion at the midpoint of the estimated share price. Under the plan, Treasury would sell $7 billion of its shares cutting its stake to 35% from 61%. The UAW trust which pays for retiree health care, would sell $2 billion of its shares. Canada and Ontario would sell about $1 billion of their shares. The government will try to recoup some of the $49.5 billion given to GM.

LyrArc Article Gist
U.S. added 245,000 jobs in November. Unemployment rate drops from 6.9% to 6.7% as some Americans give up looking for work. The concern now is not the rate of job creation which is healthy but the drop outs from the workforce.  Concern arises from the long drawn out effects of the 2009 financial crisis and its effects which were seen over a decade. This report in NYT says the share of prime age Americans who were employed returned to the January 2008 level in 2019. And then the pandemic hits putting everything back again. This time if the lesson is learned about the long term damage to working families it is that this be tackled as a priority for the central bank, the U.S. Federal Reserve, an the Treasury, and Council of Economic Advisors, under the leadership of president Biden. Fortunately both Yellen and the new proposed head of the Council are students of labor markets and have stated this is one of the lessons they have learned and will act on. As this report says the opiate crisis, the risks of addiction increased, and there were links to the long period people were without jobs. The longer a person is without a job the more likely he will become permanently unemployed. The hope now is that the vaccination effort could bring people back to work quickly as business and life resumes in 2021, with workers being hired back. The share of prime age Americans working in November is 76.5% compared to 80.5% in February, which means this has to go up by about 4 percentage points. The people who are not in the labor force today but still want a job are 2.2 million. It is this that needs to be the focus of the new administration, central bank, and Congress. ...

LyrArc Article Gist
India's Modi government is introducing a new plan to reduce rural poverty. It is implementing Universal Basic Income by depositing Rs 6000 or $84 directly to bank accounts of farmers with less than 5 acres. This helps 120 million poor farming families meet basic living needs in India, where rural poor often make less than a dollar a day. The cost of the program is $10.5 billion a year. The opposition Congress Party also has a plan for Guaranteed Minimum Income. India has national elections in May, and the government plan is also designed to fulfill promises of improving quality of living of Indians with the programs for Clean India, toilets and electricity for all Indians, bank accounts for all Indians, and series of other programs.  The advantage of the program as shown in a government paper in 2017 is that money goes directly to bank accounts avoiding corrupt middlemen or bureaucrats, and that it is possible in India to accomplish a lot by spending a relatively small amount to realize immense benefits. The Budget deficit for the year ending March 2019 will go up from 3.3% to 3.4%, and for year ending March 2020 go up from 3.1% to 3.4%- small increases relative to the immense difference in the lives of rural Indian families as a result. A series of programs for universal access to electricity, health care, toilets and clean sanitation, bank accounts and basic income, are designed to bring forth a New India different from the past. These programs are being implemented or put forward in the first term, with the Modi government looking for voter approval to push forward further development in a second term. The government paper on UBI in 2017 showed that in a country like India a small amount goes a long way in reducing poverty. By providing income of just above $100 a year to around 75%  of Indians, poverty can be cut from 15% to 1%. The paper shows cost at 5% of GDP which can be partially offset by reducing other government  subsidies. ...

LyrArc Article Gist
The 2016 Republican platform is written to express the ideas in the Republican Party for family values, child rearing using the Bible and traditional values, calling pornography a "public health crisis."  The Family Research Council and tradition or family focussed groups played an important role in writing it, with Mr. Trump playing less of a role. Instead of "physical barrier" with Mexico, it says "a wall"  should be built in a taking up Trump's idea, but in general it is a clear expressing of traditional family values that Republicans have supported for years and expressed frustration with the movement of social lives in an opposite direction. The same sex marraige decision by the Supreme Court and transgender debate were not present in 2012 election, so in that sense the Republicans see the country as moving in a different direction. More of the pendulum having swung too far in another direction is how Republicans perceive it, and their response is to go back to how things used to be and the world they knew, based on what they see as positive outcomes for the whole of society. Hence language that encourages teaching of the Bible in public schools, condemning pornography as a menace particularly for children, and insisting on "man made laws being consistent with God given natural rights." A good understanding of the Bible is considered "indispensable for the development of an educated citizenry."   Amendments opposing gay and transgender are being added. ...

LyrArc Article Gist
The US needs good manufacturing jobs for the jobs and income that it brings into communities, and also because of the tax revenues from the companies making products in America that provide the basis for local governments to provide good public services in healthcare, education, and transportation. To say comparitive advantage that helped first Japanese and now Chinese manufacturers is real and how society gains is to deny some basic facts that are self evident from observation that contradict textbook ideas in economics. Comparitive Advantage is a textbook economics concept that says countries are proficient in what they make best and should specialize in that product. But it is a static concept that exists only in textbooks. If Japan in 1960, China in 1980 and India in 2000 were each presented with this idea they would have turned down the idea of making steel and remained makers of lower end products such as footwear and textiles. If Japan in 1980, China in 2000, and India in 2020 were each presented with this idea they would have turned down the idea of making semiconductors and remained makers of lower end products such as steel. A senior vice president of US Steel in the late 1960's even told this writer a graduate student at Northwestern in Chicago- as the US can make steel better than India or China let us keep making it for you. He and much of the business faculty at Northwestern also could not understand in 1970 why Airbus was being setup to compete with Boeing who by the concept of comparitive advantage should have had the whole market to itself for commercial aircraft . By this kind of thinking Airbus would not exist today because it did not have the lowest cost or the manufacturing technologies Boeing had through its vast manufacturing operation. America would be still the only one making aircraft in 2023 if textbook concepts ruled the day. By indirect methods such as hidden preferential arrangements, provision of inputs such as land, capital and labor, tax relief, the costs can be represented in a way that shows it is cheaper to manufacture overseas. The lack of a level playing field is what president Biden is correcting by doing what first Japan, then South Korea, then China and now India are doing since the 1960's. By 1974 in four years after its founding in 1970 Airbus came up with its first model the A-300 using advanced technologies. America will regain its leadership in the cost and manufacturing of many products through Biden policy and the efforts of American companies by 2030, and do this in a transformative way that will benefit the world as a whole.  It is an enormous error to say the US does not need good manufacturing jobs, that local governments do not need the tax revenues from manufacturing plants to build services for communities where manufacturing workers live, and the US does not need the manufacturing experience curve that leads to reduced costs. It is this loss of the manufacturing experience curve that is the most vital aspect for understanding the need for the US government to compete effectively with the governments of Asian countries to keep manufacturing healthy and strong at home. Economics experts ignorant of how important this science and engineering principle is fail to grasp this. Related to this is the idea of a virtuous cycle in manufacturing- whoever braves the hard years of moving up the learning and experience curve gets rewarded because once that country has mastered that skill it gets better an better as the technology advances- making it harder and harder to prevent a new monopoly in manufacturing by the country (Japan, China or Taiwan) that had the highest costs and the least advantage ten or 20 years earlier but just persevered through it all with the government's help to gain cost competitiveness. This part does not make it into the economics textbooks which are mostly theory and much of it outdated by the time they are written. Observation is the best teacher and guide as it is in science, to guide policy and action. Obsessive attachment to theory that ignores observation becomes the enemy of progress. Comparitive advantage is one concept that needs to be retired even from the textbooks. Overseas manufacturing then is a piece of the overall picture that fits into what is good for the US. Macroeconomic principles determine microeconomic outcomes as opposed to microeconomic principles with companies out on their own being forced to compete without a level playing field, or handing out technology for special status in a recipient country as some do putting the US at a macroeconomic disadvantage. This is also healthy for the recipient country overseas, as recrimination with loss of manufacturing jobs in the US inevitably leads to the kind of recrimination that does not serve either country well as in the case of China today, and worse still can lead to conflict, even war. After the egregious situation of loss of manufacturing communities across the US leading to destabilizing the social fabric, it is hard to see such thinking prevail about the US not needing manufacturing as a vital part of its social fabric and industrial strength. China, it can be said, would have developed, and developed well over the past two decades without overconcentration of US and EU manufacturing in China. Without aggravating the problems of climate change and contamination of air, land and water, and destabilizing the social fabric in the US hurting workers and communities across the US, if macroeconomic policy was made to manage this process in the US government without it being left entirely to individual companies to decide. Instead China faces today a difficult situation through events such as destabilizing the social fabric in the US (the Trump tariffs), advanced economies in G-7 resistance to sharing of technologies, the damage to its environment from microeconomic locally determined policy at individual companies, and the global effects of climate change from climate unsustainable levels of growth since 2000.  ...

LyrArc Article Gist
The failed June 2007 bombings planed and executed outside of the theater district in London and at the Glasgow airport terminal do not get as much media attention now but could have done a lot of damage and caused many deaths and injuries as well as panic in London and Glasgow. The terrorists were from Iraq and Jordan London and highly educated being doctors and part of the National Health Service. In the light of the Mumbai attacks it shows that the vulnerability of the UK from disaffected muslims.

LyrArc Article Gist
A hydropower dam in the Stiegler Gorge in Tanzania is being built at a cost of $4 billion. With an output of 2.1 gigawatts it will double Tanzania's electricity production. More electricity should result in less felling of trees to burn for charcoal to do cooking. According to UNDP only 10% in rural areas have electricity in Tanzania. At a practical level this means a child cannot have a light bulb at night to create the light in which to read. Darkness descends on villages in rural areas with bita and fragments of light - solar and lamps. German aid for the project was debated in parliament because of the work on the Rufiji river and disruption for the Selous Game Reserve used by tourists. The area for work to be done is 1000 square kilometres and the Game Reserve is covering 50,000 square kilometres so that efforts can be made to meet electricity goals and maintain the Reserve in its new form. President Magufuli is moving forward with the project with Tanzania's pressing needs for electricity. In recent years, Brazil, China and India have also placed these concerns as a priority in developing their hydropower resources. This also reduces the need to burn coal because of its effects on health.   ...

LyrArc Article Gist
Microsoft's Satya Nadella got his start at age 24 at Bing search engine. He is now 56 years. During this period he worked with both Bill Gates and Steve Ballmer who succeeded Gates at Microsoft. He is now remaking the Bing Search engine by using AI. This has happened since 2018 when he met Altman at the Sun Valley Tech conference in Idaho. He invested $1 billion in Altman's OpenAI, and has recently brought in Suleyman of Inflection who is a competitor of  Altman's OpenAI into Microsoft with the idea of setting up an internal AI business as well. To do this he has invested $10 billion in advanced AI chips that he has bought from chipmakers which have reduced the capital available for Microsoft's other businesses. This WSJ report by Dotan and Jin says Altman started his venture because he did not want to let AI to be led by Google silently developing its own version and doing leapfrog over competitors. A At this point in 2024 Google, Facebook and Amazon are building their own AI talent and making large investments in the chips that support AI. It is rapidly becoming an oligopoly of a few tech companies that makes deals among themselves for strategic advantage and protect themselves from public or government regulatory scrutiny. The controversy surrounding the firing and rehiring of Altman at OpenAI has brought new scrutiny from the FTC. The monopolistic behaviour of tech companies and their splitting the tech market among themselves as Google and Apple have done show the need for government action to prevent a repeat of this in AI. And to take action to break up existing monopolies in Search engines and in the Internet as Theodore Roosevelt did at the turn of the century for the oil business, breaking up Rockefeller's Standard Oil and Esso. Only when that happens can the true potential of the Internet be realized for Education, Health and other fields. Who can say that the iPad or iPhone or Google's Search engine has increased global literacy or American literacy? By freeing up these technologies- that belong to the people of America and the world- for education, health and other fields of human development mankind can advance once again. By regulating provide the ground rules for good use instead of the current danger of the Internet acting in ways to reduce public knowledge to levels that cannot sustain democratic process, and create stratified society where each group only sees what it has seen before and does not explore the world or knowledge in all its variety, all its ability to surprise us with new discoveries. ...

LyrArc Article Gist
Sadanand Dhume in WSJ reflects opinion in the US that is wary of handout politics that has been carried to an extreme in India's election. In Venezuela the bad turn for the oil rich economy was when Chavez's successor Maduro ignorant of the problems it would create decided to give oil at almost no cost to all Venezuelans. In India the leading opposition party offered $1 lakh rupees to every woman in the state of Uttar Pradesh. India's federal government under Modi has given free food to about 800 million people and renewed the pledge this year because of the pandemic's devastating the rural economy- about 60% of India is still rural. This is essential for India to advance to build a broad based growth model for India similar to China 1990-2010 and Japan 1890-1915 and 1950-1970 during the transformation of their economies, similar also to the US under FDR/Truman/Eisenhower/Kennedy 1940-1965.  Clean environments Swacch Bharat was essential for basic sanitation and toilets to reduce health risks, cooking gas to shift rural women from firewood and health risks, direct deposit bank accounts for 300 million rural households essential to eliminate leakages, solar energy is planned to cut energy cost  This has brought and will bring the level of income and consumption power of the lower and middle classes to create a 500 million strong consumer base for industry. It is a carefully planned effort based on the success in states such as Gujarat, and looking at the way this was done in China and the US for learning lessons. It is not a reckless effort to win votes such as the offer of 1 lakh rupees to every woman in Uttar Pradesh state with no plan for industrialization and modernization of the Indian economy to make it the third largest ahead of the EU by 2035. Dhume is right to point this out and it is apparent to any outsider who looks at Sab Ka Vikas Sab Ke Saath- prosperity for all, including all parts of society irrespective of caste and religion.  ...

LyrArc Article Gist
This self portrait by Vladimir Putin about his growing up years in Leningrad and the life of his father and mother during the siege of Leningrad by Germans may offer a better sense of the mind and thinking of the Russian president than the Dresden years when he was a junior Russian official in Communist East Germany (the GDR). It is an interview of the Russian president in 2000 by Nataliya Gevorkyan, Natalya Timakova, and Andrei Kolesnikov over twenty years back. Putin's father suffered severe injuries during the war in the fighting around Leningrad, twice being given up for dead and being dragged wounded across the frozen Neva river to a hospital by a neighbor. His mother was half dead from starvation and his father passed on his food given to him at the hospital. Having gone through the memories of this period affected Vladimir Putin's view of the world and no amount of US or German assurance about NATO's intentions may have erased these memories from childhood. The long period in power and the Covid isolation may have led to  perceptions that were less likely to change so that Putin did his own research and wrote a long paper on Ukraine in 2021 that reflected Russia and Ukraine's long history but did not reflect the changing national aspirations of Ukraine's people in 2022. This may have led to the miscalculation and the errors by both Putin and the leaders Merkel-Bush-Obama that the detailed WSJ report of 20 years of events show to have happened. The WSJ report of April 1, 2022, was titled "Vladimir Putin's 20 Year March to War in Ukraine and How the West Mishandled It." The Social Democrats in Germany under Schroeder and Steinmeier mishandled it by deepening economic integration with Russia as a way to make up for what had happened in the German invasion of Russia, and the Christian Democrats under Merkel with business interests never really grasped the different thinking of the Russian president relying solely on deep economic integration of the EU and Germany with Russia as well as China as an answer. Mr. Bush and Mr. Obama from a distance even less so.  This has led to the miscalculation by Russia under Putin leading to invasion of Ukraine, and the US and Germany being unprepared about taking action to prevent it.  Beyond the key participants and the war damage, there is the enormous damage that is taking place in the mental health around the world after Covid with constant barrage of images of war and refugees streaming into Poland. There is the problem of food imports, of food scarcity in the Middle East, and inflation in food prices for Africa and the Middle East. As Brendan Simms, a Cambridge historian has shown in his book "Europe The Struggle of Supremacy 1453 to the Present," which is now being read by German chancellor Scholz, this has happened before with the UK, Netherlands, Spain, Germany, Sweden, Denmark and Russia engaging in these conflicts that led to prolonged wars and eventually to only small shifts in power. Yet with huge effects for ordinary people caught in the wars such as today's refugees and people struggling to feed their families in Africa and Asia after the effects of Covid on income. Food prices have gone up by 50% to almost double in these countries.   ...

LyrArc Article Gist
On the first day of the new vaccine policy on June 21, 2021, India has vaccinated 6.9 million people. India has now vaccinated 287 million people out of a population of 1.2 billion. This is a race against time as new variants caused the second wave of coronavirus in April and May of 2021 with cases peaking at over 300,000 a day.  The shortcoming of the old vaccine policy are being corrected. The entire vaccine supply process and the vaccination drive is now being handled by the federal government. Earlier during the second wave vaccine supply and the vaccination drives were under an arrangement with no clear overall responsibility. States shared responsibility with the federal government and target vaccination goals were missed, vaccine supplies were inadequate.  A similar arrangement in Germany failed and Germany's vaccination supplies were inadequate and vaccination drive stalled. This caused immense frustration in Germany in April-May 2021. Germany's troubled history before World War II led to a reliance on decentralized actions, and state governments imposed different rules in a relatively small country compared to India. This was corrected with the federal government taking on the entire responsibility for the vaccine supply and vaccination drive leading to good results today in vaccines. With India's huge population and political process of different state governments, some lacking experience in administration for a complex process, and others failing to coordinate well with the federal government, the lack of overall responsibility at the federal government posed serious risks of missing targets for vaccines and letting the coronavirus wreck the economy and public confidence. Complex negotiations with other governments in Europe and the US for vaccine manufacture in India could only be handled at the federal level. The resources and planning at the federal level were already in place in India for infrastructure and other projects, experience and setting targets in that area at the federal level could now be transferred to this task in vaccines. Somewhere in the range of 8 million vaccines a day need to be reached and sustained from August to December 2021 for India to reach the goal of vaccinated all 1.2 billion people ahead of any further attack from a third or fourth wave, say experts. This is not a choice for the federal government, it is simply something India has got to accomplish to be a healthy nation that can grow with neighbors in Europe, the US, Australia and Japan and build confidence in its Asia-Pacific region. The entire Asia-Pacific region has a lot resting on how well India achieve this goal and moves on to the next phase of assisting its neighbors in the region.  ...

LyrArc Article Gist
Justice Ruth Bader Ginsberg, the oldest person on the U.S. Supreme Court dies at 87. The U.S. Supreme Court is unique in that there is no retirement age as in India and other countries. She died of pancreatic cancer. She is one of the rare jurists in that she continued to work almost to the end. She was unique in other ways because she got along well with colleagues on the court of different persuasion. Justice Scalia who was the complete opposite in thinking and views than Ginsburg said that this did not matter much as Ginsburg was "fun to be with." Former president Clinton nominated Ginsburg in 1993. Recently Justices Gorsuch and Kavanaugh joined Roberts, Alito, and Thomas,  for a 5-4 majority on the court for conservatives. Ginsburg was a woman's rights advocate in the 1970's. She will be missed mostly for her vigorous personality and feisty attitude to life working and being active even with her health condition. The death of Ginsburg means that the court is now deadlocked with 4 to 4 and no majority for conservatives or liberals. The country has also changed. Both conservatives and liberals claim they uphold the constitution of the country. Ginsburg saw this as the inclusiveness the founders intended- for women, and minorities. The conservatives see this also from the vantage of inclusiveness as the country has splintered into those who are largely college educated and tech savy, and the high school educated and less tech savy more rural and in small town that lost jobs and social services from the shift of manufacturing to China. The conservatives  see the lack of inclusiveness for the rural communities and small towns left out in the tech booms of the last three decades and shift of manufacturing overseas. Cultural attitudes add another layer to basic economic issues and a sense of alienation on both sides. In this climate and with an approaching election in 41 days the Republicans want to nominate their conservative choice supported by their Senate majority, and the Democrats want to block this appointment till after the election.   ...

LyrArc Article Gist
Greg Ip of the WSJ provides this exceptional report offering readers remarkable clarity on what the Republican Tax Law does- its high and low points.  High Points 1. It reduces the corporate tax rate to bring it in line with other advanced industrialized countries. The corporate tax rate in Germany and Japan is 30%, in the UK it is 19%. For 5 years businesses can write off capital equipment immediately instead of depreciating over a couple of years. This could boost investment and growth. 2.  The law takes aim at deductions that led to distortions. It limits the mortgage interest deduction, and caps the deduction for state and local taxes. This removes the incentive to pay more for homes that exacerbated the housing crisis in 2008. The Alternative Minimum Tax is largely removed. The Low Points 1. The biggest drawback is that lawmakers did not properly fund the tax cuts. Of the 10 costliest tax breaks nine were not touched, including employer health insurance, retirement savings, capital gains. Only the state and local taxes deduction was reduced. And a new tax deduction  was created, a 20% tax deduction for small business (proprietors and partnerships) paying taxes on their individual tax returns. Taxes on the wealthy or value added taxes, reducing tax breaks, is how other advanced industrialized countries paid for the corporate tax cuts, but did not happen here. Additional economic growth  to generate added tax revenues is the way Republicans in Congress say this is funded. Yet this is a questionable assumption as Britain reduced the corporate tax rate to 19% without seeing a surge in economic growth, as Greg Ip pointed out in an earlier WSJ article. At best the Joint Committee on Taxation estimates $500 billion over a decade in added revenues from added growth leaving $1 trillion to be added to the deficit. The WhartonPenn Budget Model (WPBM) estimates only $140 to $367 bill from the additional economic growth resulting in added tax revenues. Under this model only 0.03 to 0.08 percent added U.S. economic growth per year is expected from the Republican Tax Cuts. Such a situation would be bad  for the U.S. as the gradual improvement in Debt to GDP ratio to 78% following the financial crisis of 2008 would be sharply reversed taking the ratio to 97% by 2027. An unsustainable trajectory which will require tax increases in a few years and hurt investment in education, health and infrastructure into the future. This is what worries many experts most on both sides of the political spectrum today about what the Republican Congress has pushed through for a legislative "victory." This is why experts believe this is not serious tax reform and will require a new effort after 2019.   ...

LyrArc Article Gist
Research from Australian National University shows steadily improving conditions for migrant workers in China. Migrant workers were able to spend more time in cities- an average of 8.9 years. The hukou sysem ensures migrants return to rural areas when they have to raise a family. About 252 million migrant workers work in factories and construction jobs in urban areas. Migrants with children leave them with grandparents back home. Improving the conditions of these workers is important to reduce the wage and income disparities in China and to reduce inequality. About a fifth of the migrant population now has pension and health benefits. Creating a balanced economy with domestic consumer spending making a larger share of GDP also requires improving wages and benefits of migrant workers. Incoming prime minister Li Keqiang says in a statement on a government website: China "must take migrant rural workers and gradually change them into urban residents. This requires that we push forward household registration reform." If done seriously this will create a new kind of China as these migrant workers are integrated into urban society after years of being shunned and ignored by China's educated middle class. Professor Meng's research at Australian National University of migrant workers shows the proportion of migrant workers with unemployment insurance increased from 11% in 2008 to 21% in 2012. The research shows similiar figures for health and pensions. Improving their living standards also make it attractive for more young people from rural areas to migrate to cities increasing urbanization....