Playing with economies

Some announcement from the White House, or from President Trump, and the stock market reacts. That's basically what happens, because when the U.S., with the world's biggest economy (although it may soon be surpassed, from the way things are going), wants to do something, there is an impact on the global economy.

So it should be no surprise that the stock market plunged with announcements on tariffs on steel and aluminum. And no surprise the stock market plunged again with announcements on tariffs on Chinese products.

But will these tariffs really make America great again?

Tariffs on steel and aluminum means it is more costly for manufacturers in the U.S. to import steel and aluminum. If the total cost (import price + tariff) is less than the cost of local steel/aluminum, U.S. manufacturers will then have an incentive to switch to locally-produced steel and aluminum, thereby potentially adding jobs to those two industries. But that is just a "maybe". Manufacturers may also choose to continue importing steel and aluminum, and pass on the higher costs to consumers. At the same time, even if they choose to switch to local steel/aluminum, if their prices are higher than imported steel/aluminum (before tariffs), that additional cost is likely to be passed onto consumers too.

At the end of the day, consumers will end up having to bear the burden of whatever increase in costs the manufacturers face. And if manufacturers do not choose to switch to local steel/aluminum (since they are not bearing the cost increase anyway), there may not be any real effect on bringing jobs back to the U.S.

So consumers lose, and the steel/aluminum industry may not win. Strike one.

As for tariffs on Chinese products... well, unless existing manufacturers in the U.S. have the spare capacity to ramp up production to meet current demand when Chinese products get taxed, people will continue to have to import Chinese products, only at higher prices (import price + tariff). Again, the tariffs do not guarantee retailers will switch to local products; they may continue to import Chinese products and pass on the extra cost to consumers. It is the same situation with steel/aluminum; consumers have to pay for whatever increase in costs, and there is no guarantee there will be a positive impact on bringing back jobs.

So consumers lose, and the manufacturing industry/labor market may not win. Strike two.

A large amount of the trade deficit between U.S. and China is actually poured back into the U.S. as China uses that money to buy U.S. bonds. A smaller deficit may mean China is less willing to spend on U.S. bonds. Which is not a problem if the U.S. budget is balanced and spending within its means, but when you keep having deficit budgets and have to issue bonds to fund spending, someone needs to buy those bonds. If China doesn't buy those bonds, interest rates will have to go up to entice others to buy. This raises interest rates in the U.S., which may not be a good thing for businesses (since it is an increase in the cost of borrowing) and a direct burden to households (who may see an increase in interest rates for home loans).

So borrowers in the U.S. lose. This happens, and it will be strike three.

I guess we shouldn't be playing with economies without fully understanding the impact on all stakeholders, both within and outside the country...

Death penalty for drug dealers

So now the U.S. is talking about the death penalty for drug dealers. Well, coming from Singapore, all I can say is that it works. But the death penalty is not applied to all drug dealers. Only those who traffick certain drugs, and above certain amounts.

But the bigger issue is that if the U.S. (specifically, Trump) is thinking about solving the opioid issue... well, then it is not about drug dealers. It is about pharmaceutical firms. So while the introduction of the death penalty may solve an aspect of substance abuse, it is not going to stop the widespread issue of opioid abuse in the U.S. For that, he really needs to do something else.

Look before you connect

Note to self: Always check the pins you are connecting power to. READ the label.

Just blew out BOTH nRF24L01+ modules by connecting 5V to the 3.3V pin of an Arduino Nano. The Arduino survived, but the nRF24L01+ connected to that same 3.3V pin did not.

Was wondering why it didn't work the first time, so I tried the same thing on another set that I had.

And then I realized my mistake. By then, too late. Both nRF24L01+ modules were gone.

Sigh.
😞

RIP Stephen Hawkings

😢
Physicist Stephen Hawkings has passed away. The world has lost a genius, a person who gave us that much more understanding of our world with his theories.

Rest in peace. It is time for others to continue building on your achievements.

Riding on a never-ending roller coaster

The U.S. under the Trump administration is like going on a never-ending roller coaster ride with your eyes closed. Just when you thought you have gotten over the worst of it, it hits another low. And another. And another.

Soon, North Korea is going to look more stable than the U.S. At least Kim Jong-Un has a consistent message; no one knows what Trump is going to say or tweet next.