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Will the dramatic burst of bipartisanship in Congress last?

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Something remarkable just happened in American politics. Despite intense polarisation, a burst of bipartisanship has enabled Congress to pass vital legislation, over the objections of hard-core obstructionists in the House of Representatives. How was this possible?

The Republican Party began the 118th Congress holding the fifth-narrowest House majority in American history—and its most extreme members appeared firmly in control. Kevin McCarthy became speaker after a humiliating 15 rounds of voting. As a way to win the job, Mr McCarthy agreed to place hard-right members on the powerful Rules Committee, where they could routinely undermine the party’s leaders. He also accepted a change that allowed a single member of Congress to call a vote on his ouster. The influence of the berserker caucus peaked when eight Republicans voted with the Democratic Party to remove Mr McCarthy from the speakership in October 2023.

However, the extremists have had stunningly little influence on policy, despite their formidable procedural power. The passage of legislation to aid Ukraine and other allies is only the latest example. President Joe Biden signed it into law on April 24th (along with a bipartisan move to ban TikTok unless it is sold by its Chinese owner).

In the spring of 2023 Mr McCarthy negotiated a deal to modestly cut discretionary spending in exchange for an increase to America’s borrowing limit. The House Freedom Caucus howled that the reductions were insufficient. Although 71 Republicans voted against the Fiscal Responsibility Act, the legislation still passed with help from Democrats. The insurgent wing of the Republican Party could only grumble as Mr McCarthy held on to his job.

But averting a government shutdown in September 2023 was a step too far. Mike Johnson, a Louisiana congressman, replaced Mr McCarthy after several weeks of chaos in the lower chamber. He kept the government funded with short-term spending bills, the sin for which Mr McCarthy was excommunicated, but Republicans were not eager to go through the ordeal of finding yet another speaker. Republican divisions undermined the party’s bargaining power with the White House and the Democrat-controlled Senate, and Mr Johnson eventually passed a solution for the remainder of the fiscal year that bore a striking resemblance to what Mr McCarthy had negotiated a year before.

The hard right betrayed even greater legislative ineptitude in its fight against funding for Ukraine. Many conservatives demanded drastic changes to America’s immigration system, and a group of senators negotiated what would have been the most restrictive immigration law in decades in exchange for nearly $100bn in funding for Ukraine, Israel and Taiwan. Republicans rejected the proposal because of pressure from Donald Trump, who sees the crisis on America’s southern border as a political winner as he campaigns for a new stint in the White House.

Mr Johnson, who had voted against Ukraine aid several times before taking the speaker’s gavel, had a change of heart, swayed in part by intelligence briefings. The legislation he put to the House was remarkably similar to the Senate bill, though he broke it into several pieces. Whereas a majority of Republicans supported the debt-ceiling increase and the government-funding bills, most rejected the new aid for Ukraine. Ironically, many complained that nothing had been done to tackle America’s porous border. Republican hardliners won virtually nothing they had sought in earlier negotiations, yet Congress still provided $61bn for Ukraine. Though shamefully late, it will make a big difference to Ukraine’s war effort.

While the hard right was up in arms, Mr Trump stood by the speaker. “We have a majority of one, OK?” Mr Trump said in a radio interview on April 22nd. “It’s not like he can go and do whatever he wants to do. I think he’s a very good person.”

For now Mr Johnson appears secure in his position. Marjorie Taylor Greene, an excitable congresswoman from Georgia, has threatened to oust him, but has yet to force the question. “The old maxim on Capitol Hill is that you vote when you have the votes,” says Doug Heye, a former Republican leadership aide. “Clearly Marjorie Taylor Greene didn’t have the votes.”

A strong majority of House Republicans would back Mr Johnson, as they did Mr McCarthy, but the new speaker has also built goodwill with some Democrats. “For all its rank partisanship, the House right now is functionally and uneasily governed by a group of Republicans and Democrats,” wrote Brendan Buck, a former aide to two Republican speakers.

Mr Johnson’s shift on Ukraine does not mean Congress will take up much serious legislation for the remainder of this term, especially as the campaign season shrinks the legislative calendar. Expect some tweaks—Mr Johnson is considering changes to how “earmarks”, which designate a specific recipient for certain spending, are made in funding bills, probably an attempt to shore up support with conservatives—but nothing as salient as the foreign-aid package. A serious effort to impeach Mr Biden is unlikely: even trying would alienate many of the Democrats implicitly helping Mr Johnson remain in power.

Will America’s accidental speaker be leading House Republicans next year? Retaining the House won’t be easy, and parties that lose their majorities tend to fire their leaders. The Republican Party will have to increase its majority to give Mr Johnson a chance, and the power of a Trump endorsement would depend largely on whether he wins the presidency. It doesn’t help that House Republicans have a history of punishing their leaders for doing the right thing.

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.

Economics

UK inflation September 2024

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The Canary Wharf business district is seen in the distance behind autumnal leaves on October 09, 2024 in London, United Kingdom.

Dan Kitwood | Getty Images News | Getty Images

LONDON — Inflation in the U.K. dropped sharply to 1.7% in September, the Office for National Statistics said Wednesday.

Economists polled by Reuters had expected the headline rate to come in at a higher 1.9% for the month, in the first dip of the print below the Bank of England’s 2% target since April 2021.

Inflation has been hovering around that level for the last four months, and came in at 2.2% in August.

Core inflation, which excludes energy, food, alcohol and tobacco, came in at 3.2% for the month, down from 3.6% in August and below the 3.4% forecast of a Reuters poll.

Price rises in the services sector, the dominant portion of the U.K. economy, eased significantly to 4.9% last month from 5.6% in August, now hitting its lowest rate since May 2022.

Core and services inflation are key watch points for Bank of England policymakers as they mull whether to cut interest rates again at their November meeting.

As of Wednesday morning, market pricing put an 80% probability on a November rate cut ahead of the latest inflation print. Analysts on Tuesday said lower wage growth reported by the ONS this week had supported the case for a cut. The BOE reduced its key rate by 25 basis points in August before holding in September.

Within the broader European region, inflation in the euro zone dipped below the European Central Bank’s 2% target last month, hitting 1.8%, according to the latest data.

This is a breaking news story and will be updated shortly.

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Economics

Why Larry Hogan’s long-odds bid for a Senate seat matters

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FEW REPUBLICAN politicians differ more from Donald Trump than Larry Hogan, the GOP Senate candidate in Maryland. Consider the contrasts between a Trump rally and a Hogan event. Whereas Mr Trump prefers to take the stage and riff in front of packed arenas, Mr Hogan spent a recent Friday night chatting with locals at a waterfront wedding venue in Baltimore County. Mr Hogan’s stump speech, at around ten minutes, felt as long as a single off-script Trump tangent. Mr Trump delights in defying his advisers; Mr Hogan fastidiously sticks to talking points about bipartisanship, good governance and overcoming tough odds. Put another way, Mr Hogan’s campaign is something Mr Trump is rarely accused of being: boring. But it is intriguing.

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Economics

Polarisation by education is remaking American politics

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DEPENDING ON where exactly you find yourself, western Pennsylvania can feel Appalachian, Midwestern, booming or downtrodden. No matter where, however, this part of the state feels like the centre of the American political universe. Since she became the presumptive Democratic presidential nominee, Kamala Harris has visited Western Pennsylvania six times—more often than Philadelphia, on the other side of the state. She will mark her seventh on a trip on October 14th, to the small city of Erie, where Donald Trump also held a rally recently. Democratic grandees flit through Pittsburgh regularly. It is where Ms Harris chose to unveil the details of her economic agenda, and it is where Barack Obama visited on October 10th to deliver encouragement and mild chastisement. “Do not just sit back and hope for the best,” he admonished. “Get off your couch and vote.”

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