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Small business loans as a percentage of all business loans held by U.S. banks has dropped to 24% in 2014 from 35% in 2007 before the financial crisis of 2008-2009, according to the FDIC. Even as business loans to larger corporate customers is recovering small business lending has failed to recover. This reduces the prospects for recovery in the job market.

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Lower amounts for financial aid available offset the lower rise in tution costs to leave students just as worse off as before with large amount of student debt in 2013-2014.

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The U.S. Senate voted 79-19 to go forward with a bill on sanctions against China for undervaluation of the yuan. The IMF says China's currency is "substantially undervalued."

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How will countries like India generate jobs when technology enables manufacturing and other activity to do work with fewer and fewer people. Even Hon Hai in China is shifting work to robots. Technological progress is leaving more people unemployed and widening income gaps with the benefits going to a few people, says the Economist in this research based essay. It will require carefully managed governance to invest in infrastructure, raise skills of less skilled workers through education, and wage subsidies for those left behind to ensure our current system works in the future.

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GM will invest $3 billion in electric car production in Michigan. The Orion Assembly plant near Detroit  will produce electric pickup trucks- renovation costing $2 billion and bringing 1500 jobs. A new battery cell factory near Lansing would bring $2 billion in investment in 50-50 joint partnership with LG Energy Solutions creating 1200 jobs. Ford is investing in other states, with $11 billion investment in building 3 battery plants- 2 in Kentucky, one in Tennessee near Memphis. Tesla is investing in Austin, Texas. GM says it is revamping existing factories to save $10 billion through 2030. The new GM investments are part of $35 billion in spending on electric cars through 2025.  For the US as a whole these investments change the look of the auto industry from one that in the past put factories in China and Mexico for gas and diesel vehicles. The shift to electric is now being taken as an opportunity by the Biden administration to encourage auto companies to make a new beginning and speedily build the future electric car base in the homeland itself. So that American workers and families come first in the great American tradition. ...

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

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Obama's State of the Union address in 2014 focusses on increasing the minimum wage, reducing inequality and creating opportunities for the middle class. It marks a shift to doing things by executive order wherever possible to avoid protracted debates and delays by Congress.

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Pollock's interview with Geroge Shultz, Reagan's senior economic advisor and Secretary of State, at his office in the Hoover Institution, Stanford University. He says the U.S. can find its way out of the current economic crisis the way it did during the early Reagan years. On the Fed's loose monetary policy he says the Bernanke Fed's contribution to the economic crisis was very easy money. Now that we have it we realize that its going to take something different from easy money to get the economy moving- not just more money. Three quarters of the debt issued by the U.S. in the last year was bought by the Fed, and the Fed is monetizing debt when it buys debt because at some time this ends up getting out into the economy. Shultz sees the tax rules as being about more than rates. Corporate tax rates should be lowered by cleaning up preferences. But what is most important is predictability and an environment where business feels there is less uncertainty when investing. Shultz says Romney should read his memo to Reagan before Reagan assumed office, excerpted in the WSJ, "Advice to a New President," May 26, 2012. He also recommends John Taylor's new book- "First Principles: Five Keys to Restoring America's Prosperity." ...

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The resistance to serious government assistance to make a large impact on foreclosures stems from arguments like these. They only tell one side of the story, as the mortgage industry and politicians pushed high cost loans on minorities like Hispanics and Black people who did not understand the risks, and dispensed with even the basic requirements for ability to pay on a sustained basis. Instead pushing them into higher amount loans which raised the chances of aquick default on the loan. See the link to this, a detailed article on Hispanics experience in the WSJ, with a graph that shows that more subprime loans were made to minorities than whites in 2004 and 2005, and especially to Hispanics. The other thing about this is that its a very shortsighted approach and one that will end up costing more money. Its also ending up having effects on the global economy which comes back to affect US exports, and make this a severe prolonged downturn that could last anywhere upto ten years if its not tackled in its most serious dimensions, with this one being crucial. Its crucial because the bank bailouts which are approaching a trillion dollars as the bill mounts after each passing month, and the lack of lending thats crimping businesses and leading to huge job losses of 500,000 a month are directly a result of the inability to fix this problem. Its like trying to find out who started the fire when irresponsible borrowers, speculators, the mortgage industry, the credit rating agencies who signed off on irresponsible securtization, the regulators who fell asleep on the job, and central bankers and treasury secretaries who lauded the innovation and the depth and sophistication of the US financial system ignoring the risks of too much liquidity in markets, all lit the matches that got the fire going. The longer the fire burns and bigger it gets, the harder it becomes to put it out the and more fire fighting resources it will take....

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A look at two crises in 1918 and 1957 of virus pandemics shows early and decisive action to prevent public from gathering and intermingling, are critical. In today's densely populated urban environments this translates into lockdowns and quarantines that are strictly enforced. The 1918 pandemic took 50 million lives worldwide, the 1957 pandemic took 1 million lives worldwide, says this report based on some estimates. MIstakes were made then and science was not as developed for vaccines and new drugs. Which is why health authorites are taking this very seriously. Greg Ip of the WSJ looks at coronavirus health crisis in relation to earlier disasters- SARS 2003 originating in China, 1957 flu epidemic, 1918 Spanish flu epidemic, to draw insights on what measures have worked best. Previous epidemics and crises provide clues on what makes things worse or better and the long term consequences of actions. The more health and safety are prioritized there is some impact on the economy. But crises have proven that the economic impact is temporary and short lived with the economy and jobs bouncing right back once the crisis has passed. The second insight is that early on in the crisis there is a great deal of uncertainty, leading to fumbled or delayed, or timid response. Sort of like lets wait for more information coming out of China, or now Italy, which happened first in February, and then again in March. Tim Adams who worked in the U.S. Treasury Department during 9/11 and Hurricane Katrina, and is now the president of the Institute of International Finance, says if you look to plan a perfect response you lose valuable time. Time is of the essence. Learning to make speed the priority, to think in tranches, be visible, and worrying about how to pay for it later, is what he says he has learned from these crises response efforts. In the case of the coronavirus, some valuable time was lost becausee of the uncertainty and lack of early information, making speed and rapid comprehensive action very critical. The Spanish flu epidemic of 1918 infected over 500 million people worldwide and killed 50 million or more, including 675,000 in the U.S., according to the Centers for Disease Control and Prevention. During this epidemic the Chicago public health commissioner flatly opposed closing businesses, saying worry kills people more than the epidemic. A 2007 study shows cities that took that attitude saw higher death tolls in the Spanish flu epidemic of 1918. Philadelphia waited 16 days before restricting social gatherings, St Louis took just 2 days. The result: the daily death rate from the epidemic peaked at level five or more times higher in Philadelphia than in St. Louis. Social distancing was not much of an issue then as people worked in jobs that required less contact, such as farming, fishing and forestry, as well as other jobs that did not require that contact in large offices.   ...

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Anti-dumping tariffs imposed by the U.S. on solar panels from China. This applies only to solar cells produced in China. Solar cells from other countries can still be used in assembled solar panels without being affected by the new tariff.

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Some of the crude rhetoric at Donald Trump rallies, and use of coarse language, according to the NYT. Working class and older Americans show their anger at a system that appears to have left them behind with slogans, stickers, T-Shirts. The idea of the wall figures in much of this and shows that the wall has become not jut about Mexico but a metaphor that captures this anger, that reflects this anger. Another aspect of the 2016 campaign is that those most vulnerable and most in need of help have not sought the comfort of knowing about programs to improve middle class and working class wages, incomes, to build infrastructure, create jobs, stop companies from shifting jobs overseas, plans for improving accesss to health care and education, to ask for specifics and delivery. This is the supreme irony of the 2016 election campaign that not enough attention is going to what will be done for the middle and working class, and what specifics will be delivered, in what time frame- which is essential for restoring the condition of the American middle and working class to where it was in the 2 decades after the Second World War. ...

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VW will move its US headquarters to Virginia from its present location at Auburn Hills, Michigan. This will bring it closer to where its customers are on both east and west coasts. It will also start emphasizing environmentally sound powertrain technologies meaning higher fuel efficiency and less polluting engines as is now becoming very important in Germany and the rest of the EU. Detroit will lose 400 more jobs in the process.

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Working mothers in the UK and other parts of Europe did better than working moms in the US when it comes to not dropping out of the workplace. Many mothers in the US dropped out as schools closed and businesses closed. In northern and western Europe fewer women left the workforce during the pandemic. In this sense the European policies to protect jobs by paying workers to furlough did better to help mothers keep a foot in employment even as they did home schooling.

Traditional approaches of paying unemployment benefits for longer used in the US did not keep women attached to work, which would allow them to recover more quickly. Much can be learned in the US from this. The proportion of women working actually rose between 2020 and 2019 in Germany, Netherlands and Norway as the government subsidized wages instead of paying unemployment benefits for longer periods.

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Walt Mossberg, who writes the Wall Street Journal's consumer technology review section, watched Steve Jobs up-close over the years since 1997. They met one-on-one for product introductions, long discussions about the industry, and recently after Jobs illness, at his home in Palo Alto. Mossberg describes a long walk to a nearby park after Jobs had undergone a liver transplant. It provided an insight into the man Steve Jobs was. Persistent- he called Mossberg for 4-5 straight weekends during the dark days of 1997-1998 to convey his vision of Apple products or discuss aspects of reviews. Patience and optimism about the future- Jobs always maintained a positive tone and a vision of what could be in the digital revolution, and Apple's role in it in these discussions. There is the opening of the first retail store in the Washington D.C. area, and Jobs patiently handles Mossberg's incredulity about Apple and its inexperience with retail stores. And Jobs saying that he had taken a serious interest in the details- down to the translucency of the glass. There is the meeting with Bill Gates at the fifth All Things Digital Conference, when both made their appearance together for the first time and Jobs hands a cold bottle of water to Gates. By this time Jobs had already come to the conclusion- as he once said after accepting a $150 millon investment from Gates in 1997-1998- that it was no longer true that Microsoft had to lose for Apple to succeed....

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Janet Yellen is nominee to be Treasury secretary in the new administration of Joe Biden. The economic rebound from the pandemic that started in the summer is faltering without additional stimulus and help to businesses and people affected by the pandemic. She is the former chairman of the U.S. central bank the Federal Reserve.  Yellen faces a divided country and likely a divided Congress on many issues facing the country. She says of these divisions and the challenging task she faces of forging compromises- "Right now we live in a country where people look at the same set of facts and come to diametrically opposite conclusions, so that is a big challenge to anyone who takes that job, to build support for your policy outcomes." Yellen believes that the slow recovery after the 2009 financial crisis was because of a lack of a big enough stimulus and policy consensus across parties and with public opinion backing this up. During the pandemic in March 2020 the first stimulus was passed for $3.3 trillion  with support from the Congress and the Trump administration. Today Congress is split on the second stimulus with Democrats pushing for about $2.2 trillion for aid to state and local governments, jobless workers virus testing strategy. Republicans calling for about one third of this or $650 billion to help small businesses and industries such as tourism, retail and airlines. Because  interest rates are near zero much depends on getting an effective stimulus for speedy economic recovery. Conversations between the Treasury Secretary and the Federal Reserve, America's central bank, are critical to getting things done. A lot also depends on how Democrats and Republicans can put aside differences for the sake of getting the recovery back in place where it was during the summer. The media has a role to play in not stoking differences in public opinion which was the case close to the election to an unprecedented degree. One critical aspect of American process in getting things done is to bring Congress and the public with an elected president. Without a conciliatory approach and humility few presidents have succeeded as Congress and public opinion is also critical to getting things done. The House changes every 2 years so that even with  majorities- made transient by the founders of the constitution- nothing is certain without getting the other political party on your side. For the sake of the country and the people devastated by the pandemic, the professional class, media and politicians, Congress and the president need to bring a clear and transparent willingness to look at the national interest going forward.  ...

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Greg Ip in the WSJ says president Biden's popularity has not surged because of lack of results in the fight against inflation. Yet inflation has been cut in half as reported in the WSJ recently, with May inflation of 4% in the US being about half of what it was at its peak of 9% in 2022.  Inflation is much worse in Europe. Biden policies that helped fight inflation included the Inflation Reduction Act to control health costs, the policies to keep Russian oil below a certain level that reduced oil prices to $75 a barrel, and the sequential interest rate increases by Jerome Powell at the Fed. The long term benefits of increased investment in manufacturing in the US for jobs growth, and competitive policy to gain US leadership in many technologies also provide for sound growth in the long term.