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Economics

Checks and Balance newsletter: Joe Biden’s state-of-the-union speech

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This is the introduction to Checks and Balance, a weekly, subscriber-only newsletter bringing exclusive insight from our correspondents in America.

Joe Biden delivered a party-convention (state-of-the-union) speech, writes James Bennet, our Lexington columnist

No one got whacked over the head with a cane, but in other respects Joe Biden’s state-of-the-union speech proved to be one of those moments in which I found myself wondering if American politics is returning to its 19th-century mores—thanks in part to social media and other 21st-century technology. The Progressive era introduced institutions that restrained some of the excesses of partisanship, such as the civil service. It also inculcated ideals of bipartisanship and decorum that are now fading away. They may have been debts vice was paying to virtue—even at its most seemingly decorous, politics is always a rough business—but I think we will miss them if they truly disappear. 

It is a bit melancholy that Mr Biden, with his veneration for the rites of Washington, would find himself compelled to deliver a state-of-the-union address that was in many respects more like a party-convention speech. But this has been coming for years, since even before a Republican congressman shouted “You lie” at President Barack Obama in 2009 during an address to a joint session of Congress. The next year, in a state-of-the-union speech, Mr Obama took the extraordinary step of chiding the Supreme Court, for a decision related to campaign finance—precedent for the shot Mr Biden took Thursday night at the justices for overturning Roe v Wade. In 2020 Nancy Pelosi, then speaker of the House, theatrically tore apart her copy of President Donald Trump’s speech after he finished delivering it.

Mr Trump, with his contempt for what he sees as the pretences of a cynical, transactional business, accelerated the trend towards open partisanship in all aspects of governing. The clownish displays by his minions in the House chamber on Thursday night, with their heckling and their MAGA hats or t-shirts, undermined the subsequent pious outrage of Republicans over Mr Biden’s politicking. 

It is an axiom of American politics that presidential elections are a referendum on the incumbent. But in this campaign Americans have a choice between two presidents, neither of whom they much like. For each man the path to a second term lies through negative partisanship, ie, persuading voters that the other guy is worse. It will be a brutal campaign. 

And that made the more humane moments in the House chamber on Thursday night seem all the more precious, even if they were flashes of old-style senatorial clubbiness. “I know you don’t want to hear any more, Lindsey, but I gotta say a few more things,” Mr Biden said towards the end of his speech, singling out Lindsey Graham, a senator from South Carolina. Mr Graham has remade himself as an acolyte of Mr Trump, but, clearly delighted by the presidential attention, he roared with laughter. 

And Mr Biden drew his most powerful contrast with Mr Trump by closing on a high note. It is another axiom of American politics that presidential campaigns are about the future, and Mr Biden is out to paint Mr Trump as obsessed with grievances from his past. Mr Biden’s refrain at the end of the speech became “I see a future,” as he envisioned more freedom, fairer taxation, less gun violence. “I see a future for all Americans,” he said, and—the partisanship of his speech notwithstanding—he added, “I will always be a president for all Americans.”

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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