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America’s border crisis in ten charts

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THE CRISIS along America’s southern border is a political liability for Joe Biden. Polling suggests that just 27% of Americans approve of the president’s handling of immigration; more than twice as many say they trust Donald Trump, his likely challenger in November’s election. Increased migration is not all down to policymaking in Washington, DC. But our ten charts below show how the problem has worsened over recent administrations.


Image: The Economist

Start with the number of undocumented, or illegal, migrants crossing the border. By these numbers Mr Biden is a clear outlier. During his presidency there have been record numbers of apprehensions and expulsions at the border; nearly 250,000 people crossed in November alone.

The president with the lowest number of arrivals in at least four decades is Barack Obama.  During his first term yearly apprehensions averaged out at just 431,000, down from an average of 1.2m in the 1980s through to the early 2000s.

Numbers began to rise again under Mr Trump. In 2019 the surge was so great that a quarter of the recent arrivals were released into the country, as government detention facilities and local jails struggled to keep up.


Image: The Economist

America’s tight labour market increases the incentive for people looking to earn a better living. Wars and global instability are also playing a part. Whereas most migrants used to come from just Mexico and the Northern Triangle (El Salvador, Guatemala and Honduras), people from these countries now make up less than two-thirds of all those apprehended (see chart 2). The share of Venezuelans is growing, and tens of thousands of people from as far as India, Russia and China are also seeking asylum in America.


Image: The Economist

All this is putting pressure on the country’s overstretched immigration courts. Our third chart shows that the backlog of cases more than doubled during Mr Trump’s presidency, and doubled again under Mr Biden—the backlog now stands at more than 3m.

The number of judges who deal with these cases has risen steadily over time, though not by enough to make a dent. If America’s 659 immigration judges ruled on four cases every business day it would still take them more than four years to clear the docket (without adding any other cases). The Congressional Research Service, a government body, reckons that even doubling the number of judges would not clear the backlog until 2032.


Image: The Economist

Our fourth chart shows what this backlog means for asylum waiting times. Judges reached a decision on only around 70,000 applications in the 12 months to October. Most of those cases are likely to have been several years old. The long wait is a further incentive for migrants to cross the border illegally, even if they have a weak claim to asylum. The low chance of detention means they could get at least a few years’ work in America before a decision is even made.

Roughly equal numbers of people were granted and denied the right to stay in the past two years. That is far more than in Mr Trump’s day, when only around a third of rulings ended in asylum being granted.


Image: The Economist

Handling these cases is all the more difficult when families and children are involved. Immigration detention centres were built to house single adult men, not families and children. Encounters of unaccompanied children reached similar peaks under both Mr Obama and Mr Trump (though the latter’s administration also separated children from their parents, meaning the true number was even higher). During the most recent wave, under Mr Biden, the number has rocketed (see chart 5).


Image: The Economist

Despite these pressures, the number of agents hired to patrol the border has barely budged since at least 2014. In the 2017 fiscal year, during which Mr Trump was elected president, there were 746 fewer agents than the year before. In the year of the 2020 election, the number rose by less than 100. Funding for Customs and Border Protection (CBP), the agency charged with patrolling America’s borders, has stalled amid partisan fighting. Adjusted for prices, this fiscal year’s requested budget for the agency is roughly the same as it was in 2018.


Image: The Economist

Detaining illegal migrants can be done by CBP officers at the border, or by the Immigration and Customs Enforcement (ICE) agency anywhere in the country. Mr Trump enjoyed the show of force that came with ICE raids; they were a prominent feature of his time in office. Arrests peaked in May 2019, when roughly 57,000 people were taken into custody. That has since dropped to roughly 20,000 per month during Mr Biden’s term.


Image: The Economist

Some of these detentions will lead to deportations, rates of which have fallen since Mr Obama left office (he was nicknamed “deporter-in-chief” among rights groups). Annual “non-citizen removals” were on average 22% higher in his second term than in Mr Trump’s time in office.

The current administration has taken a different approach. On the campaign trail in 2020 Mr Biden promised a pathway to citizenship for some unauthorised immigrants already in America. Deportations have since dropped to record lows. ICE was told to prioritise certain people for deportation, mainly recent arrivals or those who posed a threat to national security. The perception that Mr Biden is more welcoming than his predecessor is no doubt contributing to the current surge.


Image: The Economist

Despite the increasing number of migrants reaching the border, the amount of people actually living in America illegally had, until recently, been falling. The Pew Research Centre reckons that there were 10.5m illegal immigrants in 2021, the latest year available. That is roughly the same as in 2017 and fewer than in any other year between 2005 and 2015. It also puts illegal migrants at roughly 3% of people living in America and 22% of the country’s foreign-born population—the lowest shares since the 1990s. This data does not include estimates since the latest wave of encounters at the border; some 600,000 people are thought to have slipped through undetected in 2023. But the numbers did go down under Mr Trump and Mr Obama and in the latter years of George W. Bush’s presidency.


Image: The Economist

Our final chart shows how America’s opinion of illegal migration has hardened, especially among the left. A poll in December 2017 found that only 12% of Democrats favoured building a wall at the southern border (one of Mr Trump’s main campaign promises in 2016). In December 2023 that rose to 32%.

Construction of the border wall, however, has done little to help. For all Mr Trump’s talk, the Obama administration added more new barriers than he managed. Building has continued under Mr Biden, though record numbers of people are still showing up. Decades of neglect wrapped up in political fighting has crippled the country’s immigration system. Our charts show that neither party has made meaningful improvements.

Economics

Blockchain and Cryptocurrencies Transforming the Digital Economy

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Blockchain and Cryptocurrencies Transforming the Digital Economy

Blockchain and cryptocurrencies are among the most disruptive technologies of the 21st century. Since Bitcoin’s inception in 2009, these innovations have expanded far beyond their initial use case, spawning an entire ecosystem that underpins decentralized finance (DeFi), sustainable applications, and more. However, their transformative potential is tempered by challenges such as environmental concerns and global regulatory hurdles. This article delves into these topics and examines the future of blockchain technology and cryptocurrencies.


What is Blockchain Technology?

Blockchain is a decentralized digital ledger that records transactions across multiple computers securely and transparently. Its key features include immutability, decentralization, and transparency, making it ideal for applications requiring secure and trustworthy data. The technology powers cryptocurrencies like Bitcoin and Ethereum but has also found use in various industries beyond finance.

Cryptocurrencies, the digital assets based on blockchain, serve as mediums of exchange, stores of value, and investment opportunities. Their decentralized nature eliminates intermediaries like banks, reducing transaction costs and enabling peer-to-peer interactions.


The Evolution of Decentralized Finance (DeFi)

Decentralized Finance, or DeFi, represents a paradigm shift in how financial services operate. Built on blockchain technology, DeFi eliminates intermediaries, allowing users to access financial services like lending, borrowing, and trading directly.

Through platforms like Ethereum and Binance Smart Chain, smart contracts automate these services, ensuring transparency and efficiency. The appeal of DeFi lies in its inclusivity—anyone with an internet connection can access these services without the barriers posed by traditional banking systems.

However, the DeFi ecosystem is not without challenges. Security vulnerabilities in smart contracts have led to significant financial losses, while scalability remains a concern for mainstream adoption. Despite these hurdles, DeFi continues to grow, reshaping global finance and increasing access to financial tools for underserved populations.


Environmental Concerns Over Crypto Mining

The environmental impact of cryptocurrency mining is a pressing issue. Mining cryptocurrencies, particularly those using Proof-of-Work (PoW) algorithms like Bitcoin, requires vast amounts of computational power and electricity. For instance, Bitcoin mining consumes as much energy annually as some small nations, leading to significant carbon emissions.

This energy-intensive process has drawn criticism, prompting calls for greener alternatives. Ethereum’s transition from PoW to Proof-of-Stake (PoS) in 2022 significantly reduced its energy consumption by over 99%. Other blockchain networks, such as Solana and Algorand, are exploring energy-efficient solutions to minimize environmental impact.

Balancing the benefits of blockchain innovation with environmental sustainability remains a critical challenge for the industry. Efforts to power mining operations with renewable energy and improve energy efficiency are crucial for achieving this balance.


Use Cases for Blockchain Beyond Cryptocurrency

Blockchain’s potential extends far beyond cryptocurrencies. The technology’s unique features make it applicable across various industries, driving efficiency, transparency, and security:

  1. Supply Chain Management: Blockchain enhances transparency and traceability, enabling companies to track products from production to delivery.
  2. Healthcare: Secure, decentralized records improve patient data management and privacy while reducing administrative inefficiencies.
  3. Voting Systems: Blockchain provides tamper-proof voting solutions, enhancing transparency and reducing election fraud.
  4. Intellectual Property Protection: Artists and creators can register works on blockchain, ensuring rights protection and fair compensation.
  5. Real Estate Transactions: Digitized contracts streamline property transfers, reducing costs and paperwork.

These applications showcase the versatility of blockchain, providing solutions to long-standing inefficiencies across diverse sectors.


Regulation Challenges in Global Crypto Markets

The regulatory landscape for cryptocurrencies is highly fragmented, reflecting diverse approaches by governments worldwide. Countries like El Salvador have embraced cryptocurrencies as legal tender, while others, including China, have imposed outright bans.

Key regulatory challenges include:

  • Consumer Protection: The crypto market’s volatility makes investors vulnerable to scams and financial losses.
  • Taxation: Governments struggle to establish clear guidelines for reporting and taxing crypto transactions.
  • Cross-Border Transactions: A lack of uniform regulation complicates international cryptocurrency transfers and compliance.

Global collaboration is essential to create a balanced regulatory framework that fosters innovation while protecting consumers. This requires a nuanced approach that addresses risks without stifling technological advancement.


The Future of Blockchain and Cryptocurrencies

Blockchain and cryptocurrencies are poised for significant growth, driven by advancements in scalability, security, and usability. Innovations such as Layer 2 solutions, zero-knowledge proofs, and quantum-resistant algorithms promise to enhance blockchain’s capabilities.

Meanwhile, cryptocurrencies are gaining legitimacy as institutional adoption increases, with major companies like Tesla and PayPal integrating crypto into their operations. Central Bank Digital Currencies (CBDCs), government-backed digital currencies, further highlight the growing importance of blockchain technology.

However, the industry must address challenges related to sustainability, regulation, and security to realize its full potential. With continued innovation and collaboration, blockchain and cryptocurrencies can drive a more inclusive, transparent, and sustainable digital economy.


Conclusion

Blockchain and cryptocurrencies have ushered in a new era of innovation, transforming finance, technology, and beyond. From the rise of DeFi to addressing environmental concerns and exploring non-crypto use cases, their impact is far-reaching. Yet, global regulation and sustainability remain pivotal to the industry’s growth.

As the technology evolves, embracing its opportunities while addressing its challenges will be essential. By fostering collaboration and innovation, blockchain and cryptocurrencies can shape a future defined by transparency, inclusivity, and sustainability.

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Economics

Trump has faced down Republican dissidents in Congress

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REPUBLICANS ON CAPITOL HILL have a reputation for infighting and not getting much done. January 3rd, the first day of the 119th Congress, featured plenty of infighting. Surprisingly, the House GOP also managed to get something done—the formerly simple process of electing their leader. Yet the uneasy victory of Mike Johnson, the House speaker, looks tame compared with the legislative fights to come.

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Economics

Checks and Balance newsletter: Can the tech elite and MAGA come together? 

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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.

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