EconAir

I HEARD THE NEWS TODAY, OY VEY   Reflecting the changing age demographics of America, World Wide Wrestling forms a new subsidiary – World Wide Pickleball.   China’s 400 million senior citizens organize to pressure the government to raise their retirement benefits. The government reluctantly agrees, raising the minimum retirement pension from $20/month to $22/month.   Miami tries to attract tourists by advertising itself as “the Venice of America” and extols its water sports. EGs (electric gondolas) are the main type of transportation. Climate scientists project that by 2050 the major cause of death in coastal cities will be drowning. Phoenix opens up its latest tourist attraction, called “Death Valley,” where tourists from the north try to survive in extreme heat with limited water. Anyone who fails the survival course gets his money back.   Alaska gives tourists on cruise ships virtual reality glasses after the last glacier melts.   The Grand Ole Opry has its b...

    On domestic policy.  "Ask not what your country can do for you, but what you can do for me.”   On the Republican Party. "It's my party and I'll lie if I want to." “You know the mob makes you pay money, right?” says Trump about a proposed US protection fee for defending Taiwan.   On the global economy. “The sun never sets on my golf courses.”   On foreign relations. “ Ask not what America can do for you; I’ll tell you what you can do for America and how much it will cost.”   On fiscal policy. “Tax cuts for the rich, benefits cuts for the poor.”   On education. "Everything you need to know is on my media company Social Truth." On Europe. "What a bunch of losers. Anyone with any brains or drive emigrated to the United States a long time ago."   On being told his programs will add up to $10 trillion in new national debt over the next four years and $500 billion a year to yearly deficits, he responded, “Not my problem.” On why the Trump family...

Industrial Robots There were 4.3 million industrial robots in 2023. Japan was the world’s largest producer, with about 40-45% of the total.  China remains the largest market, with 276,288 robots installed in 2023, accounting for 51% of global installations. in 2023.  China installed more robots than the rest of the world combined. China’s “robot density,” the number of robots per 100,000 manufacturing workers, is 60% higher than in the U.S. This is more impressive since China's labor force is about four times larger than America's. The technology to produce robots is related to the technology to produce artificial intelligence (AI), sensors, advanced computer chips and applications, telecomm systems, electric vehicles and batteries.  China to Invest 1 Trillion Yuan, about $140 billion, in Robotics and High-Tech Industries.  China’s National People's Congress announced a new venture capital fund. March 25, 2025 —  China’s National Development and Reform Commissi...

  AMERICAN AUTOMOBILE INDUSTRY Tariffs on imported cars should help  American car companies. But it is more complicated. Tariffs on "Mexico" will hit American car companies and their suppliers particular hard. Trump has   threatened to raise tariffs on Canadian car imports in order to "permanently shut down the automobile manufacturing business in Canada." Most of the imported cars from Canada are made by American car manufactures.  Almost half the cars sold in the United States are imports. About 23% of cars sold in America come from Mexico; another 10% come from Canada. Most of them are assembled by American car companies.  About $100 billion in parts and subassemblies cross the border and will have to pay the tariff, in addition to the tariff on completed cars that are imported. Price of cars in America will go up and possibly car sales will go down. American car manufacturers are in poor financial shape and  cannot afford to absorb the cost increases. O...

The Wall Street Journal recently published an article on how China has  stopped publishing important economic statistics. The article also implies that some economic statistics are manipulated.  Getting reliable figures has always been a problem. Years ago I read a thorough analysis of Chinese figures that indicated China was overestimating its real GDP growth by 2%. I still use that correction. In recent years, it may be even larger. If 2% is a reasonable correction, it means that China's real economic growth rate in 2024 was around 3%, not the reported 5%, which was about the 2024 U.S. real growth rate. Many estimates come from private or non-government sources, as illustrated in this article. Some numbers have been almost impossible to get. Much of China's macro economy occurs and is reported at the provincial and local level. Local officials have always fudged the figures since their careers depend on their figures being equal to or greater than the goals given to the...