Saving Lives in America

Saving Lives in America

Among developed nations (OECD members), the United States has the highest percentage of gun owners. Switzerland is second. Yet the murder rate by guns is more than 70% less per capita in Switzerland. Switzerland’s gun laws are similar to the U.S. with three exceptions: (1) mandatory background checks, (2) no assault weapons and (3) gun licenses. These regulations do not violate the 2nd Amendment.

There have been 251 mass shootings in the U.S. in 2019 through August 4th. Switzerland has not had a mass shooting since 2001. There have been 2,191 children killed or injured by guns so far this year in the U.S. Mental illness rates are no higher in the United States than they are in Canada and Western Europe. Lenient gun laws are responsible for the high death rate from guns in the U.S.

The American people and the NRA should support reasonable gun laws that will save the lives of thousands of American children and sustain the 2nd Amendment.

World Government, Sovereignty and China

World Government, Sovereignty and China

The greatest problems facing civilization are (1) global warming and (2) global governance. This report explores the need for global governance.

For nearly eighty years, the World Federalist Movement has promoted the concept of a democratic federal world government to eliminate wars and control nuclear weapons. Under such a world government, individual countries would lose a considerable degree of sovereignty. For Americans, loss of sovereignty has been the greatest barrier to the creation of a federal world government. In the choice between world government and sovereignty, the vast majority of Americans chose sovereignty.

In 21st century, the roll of sovereignty in this choice will diminish significantly. China will become the dominate world power with more relative military power than the United States and the Soviet Union at their combined peak.

The arithmetic is simple and it is on China’s side. China has more than four times the population of the United States. When China’s per capita income reaches half that of the U.S., their Gross Domestic Product (GDP) will be double the U.S. (½ x 4 = 2) When China’s per capita income reaches parity with the U.S., their economy will be four times the size of the U.S. Therefore, their defense department can be four times the size of the U.S. Defense Department and Chinese autocracy will rule the world.

China will pass the U.S. in nominal GDP before the middle of this century according to forecasts by the International Monetary Fund (IMF), the Organization for Economic Cooperation & Development (OECD), the Economist Intelligence Unit (EIU) and PricewaterhouseCoopers (PwC). According to the IMF, China has already passed the U.S. in GDP at purchasing Power Parity (PPP), but not yet at nominal GDP.

China’s economy has grown at the rate of 9.5% over the past 30 years. This incredible success has brought nearly one million people out of poverty. Chinese leaders see this validating their style of autocratic leadership. While China’s growth rate is slowing, they will likely continue growing at higher rates that the developed countries due to their lower base of per capita income.

World domination by China should motivate nations to join together and find a better solution to world government. Reforming the United Nations, with its one-nation, one-vote, will not solve this problem. The United States and other OECD countries should initiate and fund a study to find a solution to global governance.

 

Impacts of Climate Change

Global Warming & the Impacts of Climate Change

The Paris Accord climate agreement, signed on Earth Day 2016, hoped to restrict global warming to two degrees centigrade. The United States withdrew from the Paris climate agreement on June 1, 2017.

Studies show that 93% of increased temperatures are absorbed by the ocean. The earth and air absorb the remaining 7%. NASA and NOAA predict that oceans could rise up to two meters (6.6 feet) by the end of the 21st century and continue rising into the 22nd century.

Historically, climate scientists have underestimated the impact of climate change to avoid damaging their forecasting credibility. In addition, scientists underestimated the magnitude of methane gas and carbon dioxide released from Siberia and the Artic as the tundra thaws. Methane has 20 times the impact of carbon dioxide on global warming.

The rise in sea levels from a two-degree centigrade increase in warming would mean the abandonment of some island nations in the Pacific Ocean plus parts of Persian Gulf countries. It would also result in the extinction of the world’s tropical reefs. A two-degree increase in temperatures is now the best-case scenario.   A recent study, reported in the New York Times 8/1/18, predicted there is only a 5% chance of holding the temperature rise to two degrees are and a 95% chance it will go higher.

A three-degree warming would mean the loss of most coastal cities, plus the loss of more ocean island nations and arctic forests. This has become the more realistic outcome.

A four-degree rise would put Europe in permanent drought and large areas of China and India would be claimed by desert.   Polynesia would be under water and the American Southwest would become largely uninhabitable.

The New York Times reported that “The prospect of a five-degree warming has prompted some of the world’s leading climate scientists to warn of the end of human civilization.”

Four recent surveys showed that 97% of climate scientists attributed global warming primarily to human activity. (Burning carbon fuels produces carbon-dioxide, which is a greenhouse gas.) A Gallop poll in March 2018 found that only 45% of Americans think global warming will pose a serious threat during their lifetime, including 18% of Republicans and 67% of Democrats. The American Association for the Advancement of Science released a statement saying: “Observations throughout the world make it clear that climate change is occurring, and rigorous scientific research concludes that the greenhouse gases emitted by human activities are the primary driver.”

In 1850, there were 150 glaciers in Glacier National Park. Today, there are 25. Sea ice off the cost of northern Greenland is the oldest and thickest in the Artic and scientists expected it to remain frozen year around. It has been replaced with miles of open water. Sunlight entering the atmosphere is normally reflected back into space by ice, but is now absorbed by the dark blue ocean where ice has melted, further heating the ocean water.

Rising ocean levels are not the only problem created by global warming. From 1950 to 2017, floods have increased 15 times, droughts increased ten times and major wildfires have increased seven times. In the United States, heavy rainfalls are accelerating the loss to topsoil required to grow crops. Rising oceans are poisoning rice paddies with salt water. The accelerated shrinkage of the Himalayan glaciers provides less water for vast agricultural areas in Asia.

Scientists expect global food production to start declining in 15 to 20 years and population is expected to grow from 7.5 billion to over 11 billion by the end of this century.

How is the U.S. Government addressing the climate change issues? The EPA’s proposed budget “discontinues funding for the Clean Power Plan, international climate change programs, climate change research and partnership programs, and related efforts.” The State Department budget proposal “eliminates the Global Climate Change Initiative and fulfills the President’s pledge to cease payments to the United Nations’ (UN) climate change programs by eliminating U.S. funding related to the Green Climate Fund and its two precursor Climate Investment Funds.” The budget also cut several NASA programs designed to study climate change. Joel Clement, award-winning climate scientist in the Department of Interior, was involuntarily reassigned to collecting royalty fees from oil producers operating on Government land. He resigned. In a recent press briefing, Mick Mulvaney, the head of the President’s Office of Management and Budget, stated, “We’re not spending money on that (climate change) anymore. We consider that to be a waste of your money to go out and do that.”

Nevertheless, global warming is the greatest challenge facing civilization in the 21st century. The United States, with the largest economy in the world, should play a leadership role in meeting this challenge.

China vs. U.S. in Objectives

China vs. United States

Differences in Objectives

China and the U.S. have some significantly different objectives.  This is a limited look at some of those differences.

China Objectives

China wants to be Number 1 in renewable energy production.  China now generates nearly twice as much renewable energy (wind & solar) as the U.S.

China wants to be Number 1 in the production and use of electric cars.  China now produces nearly twice as many electric cars and hybrids as the U.S.

China intends to be Number 1 in high-speed rail, which is electric.  China now has more than 15,000 miles of high-speed rail, more than eight times the number 2 country, Spain.  The U.S. has none.

China plans to be Number 1 in artificial intelligence (AI).   Eric Schmidt, former chair of Google, said, “By 2020, China will have caught up in AI.  By 2025, they will be ahead of the U.S.  By 2030, they will dominate the industry.”

China wants to be Number 1 in quantum computing.  According to NASA and Google, quantum computers can outperform today’s supercomputers by more than 3,600 times and today’s personal computers by 100 million times.  Who is leading is hard to measure.  China is building the world’s largest quantum research facility and intends to be the global leader.  China has already launched a satellite than utilizes quantum computing.

U.S. Objectives

One U.S. objective is to “bring back coal” by relaxing or eliminating regulations on the production and use of coal.  Since 1980, coal production has been level at approximately 800 million short tons every year.  In 1980, the coal industry employed 242,000 people.  This year, 53,000 work coal mining according to the Bureau of Labor Standards. This decline in employment is due to technology.  The energy secretary proposed subsidizing coal because natural gas and renewable energy costs have fallen below coal in generating electricity.

Another U.S. objective is to bring back manufacturing jobs.  In 1987, General Motors employed 877,000 worldwide.  At the end of 2017, GM employed 180,000 worldwide and GM produced more cars.  The decline in employees is primarily due to the use of robots and other manufacturing technologies.

Manufacturing employment in the US peaked in 1944 at 38% of total US employment.  At the end of 2016, it amounted to 8% of total employment.  More than 80% of the job losses in manufacturing have been due to technology.

The Administration wants to control immigration with a wall between the U.S. and Mexico.  During the last three years, more immigrants have entered the U.S. from Asia than from Latin and South America.  The illegal Asians have simply overstayed their visas.

Just as a footnote, the U.S. has always dominated the list of the top 1,000 universities in the world.  In 2000, China had none of this list.  Today, the U.S. remains the clear leader with 221 universities on this list, but China is now in second place with 136.  Also, the International Monetary Fund and Pricewaterhouse Coopers have both forecast that China’s economy will be 50% larger than the U.S. in 2050.  The U.S. will be in 3rd place behind India.

Impact of Artificial Intelligence

Impact of Artificial Intelligence (AI) 

Artificial intelligence, biological engineering and quantum computing, when combined, will impact life in the 21st century.  Biological engineering will increase, and possibly double, life spans.  Half or more of today’s jobs will be eliminated by artificial intelligence (AI) and changes will occur faster due to quantum computing. This is the first in a series of columns on these subjects.

Beginning with the Industrial Revolution, there has been a continuing transition in the methods of producing goods and services and the jobs required to produce those goods and services. In 1900, 40% of Americans lived on farms. Today 2% live on farms and they produce five times as much food.

In 1987, General Motors employed 877,000 worldwide.  At the end of 2017, GM employed 180,000 worldwide and GM produced more cars.  This decline in employees is primarily due to the use of robots and other manufacturing technologies. (Source: GM’s Annual Reports.)

Several university research studies have found that 82% to 87% of job losses in the US from 2000 to 2017 were due to automation. The pace of this change is continuing and may even increase as automation becomes more intelligent.

McDonald’s has announced plans to install digital ordering kiosks in place of cashiers at 14,000 of its American restaurants in the next two years, according to Business Insider.

Bank of America has opened three completely automated branches, which do not employ any humans. These branches provide mortgages, credit cards and auto loans. Customers can also use ATMs. For situations requiring a bank employee, customers can have video conferences with employees at other locations.

In some tech firms, administrative assistants are computers that communicate verbally using AI. In Georgetown’s Washington Harbour, a security robot named, Steve, works 24 hours per day, replacing humans.

In Chicago, the law firm, Baker & Hosterler LLP, utilizes IBM’s AI-based legal assistant, ROSS, that can read and understand language, postulate hypotheses, research and then generate responses, along with references and citations to back up its conclusion.

In the investment world, computers use artificial intelligence and algorithms to read, process and trade on news before humans have time to read it. Major investment advisory services, including Schwab, Morgan Stanley, Vanguard, Fidelity and Chase, have introduced or announced AI-based robot investment services. According to Money magazine (August 2018), these services charge about one-third the cost of human investment advisory services.

AI-driven automation is impacting manufacturing jobs. Computers work 24 hours per day with no breaks and no health insurance and perform many tasks more consistently producing better quality. A Chinese company making cell phone components replaced 650 employees with 60 robots using AI. They increased annual volume from 8,000 to 21,000 units and reduced defects from 25% to 5%.

In tradable industries, like manufacturing, companies can produce products in one part of the world and sell these products in another part of the world. Global competition has driven these companies to utilize technology to reduce costs and increase quality. Non-tradable industries, like education and healthcare, have not been pressured by competition in the same way to adopt new technologies to improve outcomes. They have been the least disrupted by productivity-enhancing technologies, but this is starting to change.

In Plato’s Academy (387 BC), students learned by listening to lectures from teachers. Now, 2,500 years later, this remains the primary form of teaching.

On-line education, including massive open online courses (MOOCs), are where automobiles were in 1920. In 1920, horses were more reliable, but eventually automobiles dominated personal transportation.

Darrell West’s excellent book, “The Future of Work,” describes some technology innovations in education: “Video designers are incorporating math or science puzzles into instructional games. Players are required to answer substantive questions in order to advance through the video game. Those who are successful earn points and win the game. This combination of video gaming and education represents a potent form of digital learning.”   Technology will allow each individual student to learn at his or her optimal speed.

In medicine, at the 2018 World Medical Innovation Forum on artificial intelligence, Health Analytics reported on a dozen technologies using AI that are likely to impact on healthcare in the next decade. These included diagnostic tools, analytics for pathology images and wearable health monitoring devices.

At the World Economic Forum, in 2017, researchers in AI at Oxford and Yale predicted that AI will outperform humans in (1) transcribing speech by 2023, (2) driving trucks by 2027 and (3) working as surgeons by 2053. There is a 50% chance of AI outperforming humans in all tasks in 45 years.

Existing jobs will likely be eliminated by technology faster than new ones are created and the people losing the old jobs will likely lack the skills to perform the new ones. Jobs requiring only a high school education are declining in number. They will continue to be replaced by technology.

AI will significantly improve the productivity of professionals, including accountants, attorneys, diagnosticians, financial advisors, pharmacists and many others. Higher productivity means that fewer people will be required in these professions.

Pricewaterhouse Coopers predicted that AI could contribute up to $16 trillion to the global economy in 2030. This is more than the combined GDP of China and India in 2017

Lifetime learning will necessary to maintain employment. Extraordinary improvements in our education systems will be essential.

In fairness, opinions of AI differ. Elon Musk (Tesla) said that automation driven by AI “is the biggest risk that we face as a civilization.”  Steve Mnuchin, Treasury Secretary, stated, “In terms of artificial intelligence (AI) taking over American jobs, I think we’re so far away from that that it’s not even on my radar screen.   .   .   I think it’s 50 to 100 years away.” This implies that the U.S. is not currently preparing for future disruptions and the requirement for life-long learning associated with AI.

Canada & the Milky Facts

Trade with Canada:  The Milky Facts

Canada guarantees a minimum price for milk for its dairy farmers, just is the U.S. does for its farmers on 13 agricultural products, including milk. Canada uses tariffs on milk to limit the supply and keep milk prices from falling, which would increase the Canadian government’s cost of subsidies. These tariffs only apply to shipments above the Canadian quota. The U.S. does not exceed the quota and therefore pays no tariffs.

The U.S. ships significant quantities of unfiltered milk to Canada. It is used to product cheese and is free to tariffs.

In 2017, the U.S. sold five times as much dairy products to Canada ($792 million) as Canada sold to the U.S. ($149). Total U.S. exports to Canada were $341 billion in 2017 and imports were $333 billion, which produced a U.S. trade surplus in goods and services of $8 billion.

Finally, Canada agreed to end its dairy quotas as part of the Trans Pacific Partnership (TPP). In fact, eleven nations reduced or ended tariffs on 14,000 American made products under the TPP Agreement. The Trump Administration withdrew from TPP agreement.

Income Taxes Have Little Impact on Economic Growth

Income Taxes & Economic Growth

Politicians argue that reducing income taxes stimulates economic growth. Here are the facts.

In the 31 years from 1950 to 1980, the top income tax rate ranged from 70% to 91%. Economic growth during this period was averaged 3.9%.

During the Reagan-Bush presidencies, the top income tax rate was first reduced to 38.5% then to 31%. Economic growth declined to 3.1%.

During the Clinton years, the top income tax rate was increased to 39.6% and economic growth rate rose to 3.9%.

The top income tax rate dropped to 35% the George W Bush presidency and economic growth dropped to 2.1%.

Conclusion:  The evidence shows that cutting income taxes, particularly for people with high income, does not produce economic growth. Factors other than taxes are more important to economic growth.

Iran Nuclear Agreement

U.S. “Withdrawal” from the Iran Nuclear Agreement

Conclusion:

The Iran nuclear deal (JCPOA) will be terminated by all parties before the end of 2018. European companies will be unable to continue trading with Iran due to U.S. sanctions. Iran will no longer benefit from this trade. Consequently, Iran will have no incentive to continue the agreement. Inspections will end.

Facts:

The Iran nuclear treaty is known as the Joint Comprehensive Plan of Action (JCPOA).

Preamble and General Provisions of the agreement states: “Iran reaffirms that under no circumstances will Iran ever seek, develop or acquire any nuclear weapons.” Iran is able to restart peaceful use of nuclear energy in ten years, not weapons. 98% of Iran’s uranium is gone.

No money was “given” to Iran for signing the nuclear agreement. Iran was given access to Iranian bank accounts that had been frozen plus funds owed by China and India for oil already delivered from Iran.

The International Atomic Energy Agency (IAEA) concluded Iran has not violated the nuclear agreement. Using new technical capabilities, the U.S. Intelligence reached the same conclusion.

There is no provision for withdrawal from the JCPOA. The U.S. is first country to violate this agreement.

Iran hardliners are big winners in the U.S. violation of the JCPOA. They had argued that the U.S. cannot be trusted to keep the deal and they have been proven correct. The Iranian moderates have been humiliated by the U.S.

Israel announced on April 30, 2018 that Iran covered up a nuclear program 15 years ago. The U.S. discovered this program in 2003 and publicly released their findings in 2007. Israel did discover some new documents.

Opinion

The E.U. will attempt to maintain trade relationships with Iran, but that is highly likely to fail. They can continue to purchase oil, which is one-third of Iranian exports, for the six-months grade period provided by the U.S. Beyond that, most European companies will terminate trade with Iran to avoid losing access to the large U.S. market. The French company, Total, which is the largest foreign oil investor in Iran, has announced it withdrawing from Iran. The failure to the E.U. to maintain trade with Iran will leave Iran with very little benefits from the JCPOA.

Re-imposing U.S. sanctions without Russia and China will have less impact on Iran than the old sanctions. These sanctions may advance the time when China will clear global payments in renminbi (yuan). This would render U.S. sanctions less effective everywhere.

The U.S. does not have a realistic alternative strategy for preventing Iran from developing nuclear weapons. Iran will not abandon its partnerships in the Middle East, including Hezbollah in Lebanon. A state sponsor of terrorism with nuclear weapons will be more dangerous than a state sponsor of terrorism without nuclear weapons. Terminating the JCPOA is counter-productive to advancing peace and stability in the Middle East.

Donald Trump has withdrawn the U.S. from the Paris Accord on Climate Change, which had no penalties for non-compliance. He withdrew the U.S. from the Trans-Pacific Partnership, even though the TPP reduced tariffs on 14,000 American products going into 11 countries and increased U.S. employment and economic growth. The withdrawal from (violation of) the Iran nuclear agreement appears to be primarily driven by Trump’s effort to obliterate the Obama legacy. The odds for a better agreement are low and potential costs of a nuclearized Iran are incalculable.

 

 

 

Guns

Alternative Solutions to Mass Shootings

Since 9/11/2001, more than 400,000 Americans have been killed by guns. That is four times the number of Americans killed in the Korean War, the Vietnam War, the 1st Gulf War, the Afghanistan War and the Iraq War all combined. Terrorists killed less than 1% of the Americans killed by guns since 9/11/2001 and most of those were on 9/11.

Among the developed nations, the United States has the highest death rate per capita from guns. A person is five times more likely to be killed with a gun in the U.S. than in Canada, nine times more likely than in Germany, and 42 times more likely than in Great Britain. (Per capita, the U.S. does not have 42 times as many mentally ill people.)   Within the U.S., the states with the most open gun laws are the states with the highest death rates from guns.

Americans have four broad alternatives in addressing gun issue:

  1. Arm teachers and school officials.
  2. Adopt Swiss-type gun laws.
  3. Repeal the 2nd Amendment.
  4. Do nothing and allow mass shootings with assault weapons to continue.

Solving the school shooting problem by arming teachers and school officials is a severely flawed concept for at least three reasons. First, while a teacher is searching for her or his gun, a shooter with a semi-automatic weapon can fire one round per second at the teacher or 12 rounds per second with a fully automatic weapon. Second, studies show that police accurately hit targets 88% of the time when shooting at a target that is not shooting back, but only 18% of the time when shooting at a target that is shooting back. Third, when the swat team arrives, they may shoot persons with a gun because they are unable to distinguish between a teacher and a criminal.

A better solution is to examine the gun policies of countries similar to the U.S. Switzerland has the most liberal gun laws in Europe and the second highest percentage of gun owners, next to the U.S. Per capita, the Swiss also have the most deaths from guns in Europe, but their death rate from guns is 70% less than the U.S. Switzerland has had no mass shootings in the last 15 years.

Swiss gun laws have three characteristics that differ from the United States: (1) 100% background checks; (2) gun registration; and (3) no assault weapons. Polls show that the vast majority of Americans support these terms. This would reduce American deaths from guns while still allowing high gun ownership.  .   .   Lifting the Federal ban on funding gun research and funding for antiquated computer systems at ATF would also be positive.

The NRA opposes these restrictions. The NRA provided more than $54 million supporting Congressional candidates in the 2016 elections. They also ran television ads and mailed fliers to voters. Economics are an important issue for the NRA. If gun laws were passed that were supported by a vast majority of Americans, the NRA would lose its issues and significant revenue.

The Second Amendment to the U.S. Constitution protects the right to own guns. The U.S. is the only developed country with this constitutional protection. The Second Amendment also makes it difficult to prohibit gun ownership by people who are mentally ill. Conservative columnist, Bret Stephens, recommended repealing the 2nd Amendment. This is clearly the least like alternative.

According to The Economist magazine, “America’s constitution does not prevent tighter gun control. Lack of political will does.” Based on American history, the most likely outcome is that the President and Congress will do little or nothing and more school children will die.

 

North Korea: The Least Undesirable Solution

North Korea: Encouraging Wisdom

North Korea continues to advance its nuclear weapons program and its missile technology. Negotiations are the only realistic solution to these problems. Military action would cause catastrophic damage and loss of lives. Continuing on the current path will allow North Korea to increase its arsenal of weapons.

Today, one of the most critical potential threat posed by North Korea’s nuclear program is the sale of the technology or weapons to ISIS or Al Qaeda or some other terrorist organization. Terrorist organizations have the capacity to smuggle bombs into Mexico and use a drone to deliver them to cities in the southwestern part of the United States. It would be even easier for terrorists to use a drone to drop a bomb in Israel. Drones that can carry 2,000 pounds are now available on the international market. A 2,000-pound nuclear bomb can produce an explosive force of one million tons of TNT.

The risk of an attack on the U.S. from a location in Mexico underscores the importance of a strong relationship with Mexico. Anything less could compromise national security.

To mitigate risks, negotiations with North Korea are the only viable solution. Currently, the precondition of U.S. negotiations with North Korea is the elimination of North Korea’s nuclear arsenal. This precondition is a non-starter for North Korea. Kim Jung-un believes his nuclear weapons are necessary for the survival of his regime. Having observed the demise of Saddam Hussein and Muammar Gaddafi after they gave up their nuclear weapon program, he will not relinquish his nuclear weapons.

To get all parties to the negotiating table, there cannot be any preconditions. A potential outcome from such negotiations might include:

  1. North Korea agrees to freeze its nuclear and missile programs.
  2. North Korea allows inspections by the IAEA.
  3. North Korea agrees to ban the export nuclear weapons, materials and technology.
  4. U.S. agrees to cease regime change plans and rhetoric.
  5. U.S. and U.N. agree to phase out sanctions as compliance is verified.
  6. U.S. agrees to a gradual reduction of its presence in the Korean Peninsula.

While this type of negotiated settlement is not ideal from either the American perspective or the North Korean perspective, it is better than a devastating war and better than allowing North Korea to increase its arsenal of nuclear weapons.

Norman Cousins, author, professor and editor of the Saturday Review wrote, “Wisdom consists of the anticipation of consequences.” Let’s encourage wisdom.