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Economics

America trusts its institutions less than other rich democracies

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AS FAR AS stereotypes go, brash national self-confidence has long been a defining feature of how Americans are viewed abroad. In 2006, when Gallup first started asking Americans about their trust in key institutions, the country ranked at the top of the G7 league table, tied with Britain. In 2023, for the first time, America came last.

Chart: The Economist

New data from Gallup show that American trust in several national institutions is on the decline. That may not be surprising, given the fraught state of the country’s politics, but the cumulative fall over the years is startling (see chart). Twenty years ago Americans had the highest confidence in their national government of people in any G7 country. Today they have the lowest. Americans are tied with Italians in having the lowest trust in the judicial system, and come last in faith in honest elections. Even the army is suffering from a dip. Although still high at 81%, American trust in its armed forces is now lower than at any point since 2006, and—gasp—lower than in France.

The reasons behind this crisis of confidence in the self-declared greatest country on Earth are varied. The roots of a (healthy) scepticism of government can be traced back to the Vietnam war and the Watergate scandal of the early 1970s. The gradual dying out of the Greatest Generation, which had significantly higher institutional trust than later generations, also plays a role. However, more recent developments help explain the sharp decline of the past years.

Donald Trump’s “constant barrage” of unfounded accusations about the 2020 presidential election clearly plays a big role in Americans’ low trust in the electoral system, says Henry Brady of the University of California, Berkeley. This no doubt also contributes to growing distrust of the judiciary—just last week Mr Trump called the criminal “hush money” trial against him “a communist show trial”. But few things seem to have done more to directly erode trust in the judiciary than the Supreme Court’s decision in 2022 to overturn Roe v Wade. Before this ruling removing a constitutional right to abortion in America, Democrats and Republicans trusted the court in roughly equal measure; afterwards, confidence among Democrats dropped through the floor.

The divergence with Britain is especially striking. Whereas British confidence in the country’s judiciary and electoral system is higher than at any point in the history of the survey, America has moved in the opposite direction. Some 70% of Britons now say that they have confidence in the honesty of elections, compared with only 44% of Americans.

“Like America, the UK has seen a pretty steady decline in confidence in national government,” observes Benedict Vigers, from Gallup, “but this more core belief in the foundation of the democratic system and in fair elections is still pretty strong.” The same cannot now be said about America. Even within the broader OECD club of mostly rich democracies, only Hungary, Turkey and Colombia have less trust in honest elections.

Yet more than the loss of trust overall, what really worries Mr Brady is the increased polarisation of trust in America. Having some institutions that Democrats trust more (journalism, higher education, science) and others that Republicans trust more (religion, the armed forces and the police) is a matter of concern, particularly for the institutions themselves. The problem is even starker when the workforces of such institutions become increasingly homogenous, something that has happened in predominantly progressive higher education as well as in the predominantly conservative military services.

Strong and credible institutions count among the best guarantors of a country’s long-term stability. People who broadly trust authority are more likely to comply with government directives, such as filing their tax returns. During the pandemic, people who had high trust in government were more likely to get vaccinated and comply with public-health guidance on lockdowns or social-distancing rules, according to a meta-analysis by Daniel Devine of the University of Southampton and colleagues. Blind trust in authority is dangerous, and a degree of scepticism can be healthy. But America’s slide towards becoming an ever more distrusting place has perils of its own.

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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