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America’s trust in its institutions has collapsed

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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.

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Protests against a regal presidency have been notably peaceful

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There is no need to send in the troops

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Economics

Gavin Newsom is ready for his close-up

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NORMALLY, GAVIN NEWSOM is loose. The Democratic governor of California talks with a staccato cadence, often flitting from one incomplete thought to the next. When he talks to journalists or asks a guest on his podcast a meandering question, he tends to use a lot of meaningless filler words: “in the context of” is a frequent Newsomism. But on June 10th he was clear and direct. “This brazen abuse of power by a sitting president inflamed a combustible situation,” he said during a televised address after President Donald Trump deployed nearly 5,000 troops to Los Angeles to quell protests over immigration raids. “We do not want our streets militarised by our own armed forces. Not in LA. Not in California. Not anywhere.”

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Economics

Consumer sentiment reading rebounds to much higher level than expected as people get over tariff shock

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A woman shops at a supermarket on April 30, 2025 in Arlington, Virginia.

Sha Hanting | China News Service | Getty Images

Consumers in the early part of June took a considerably less pessimistic about the economy and potential surges in inflation as progress appeared possible in the global trade war, according to a University of Michigan survey Friday.

The university’s closely watched Surveys of Consumers showed across-the-board rebounds from previously dour readings, while respondents also sharply cut back their outlook for near-term inflation.

For the headline index of consumer sentiment, the gauge was at 60.5, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago. The current conditions index jumped 8.1%, while the future expectations measure soared 21.9%.

The moves coincided with a softening in the heated rhetoric that has surrounded President Donald Trump’s tariffs. After releasing his April 2 “liberation day” announcement, Trump has eased off the threats and instituted a 90-day negotiation period that appears to be showing progress, particularly with top trade rival China.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” survey director Joanne Hsu said in a statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

To be sure, all of the sentiment indexes were still considerably below their year-ago readings as consumers worry about what impact the tariffs will have on prices, along with a host of other geopolitical concerns.

On inflation, the one-year outlook tumbled from levels not seen since 1981.

The one-year estimate slid to 5.1%, a 1.5 percentage point drop, while the five-year view edged lower to 4.1%, a 0.1 percentage point decrease.

“Consumers’ fears about the potential impact of tariffs on future inflation have softened somewhat in June,” Hsu said. “Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead.”

The Michigan survey, which will be updated at the end of the month, had been an outlier on inflation fears, with other sentiment and market indicators showing the outlook was fairly contained despite the tariff tensions. Earlier this week, the Federal Reserve of New York reported that the one-year view had fallen to 3.2% in May, a 0.4 percentage point drop from the prior month.

At the same time, the Bureau of Labor Statistics this week reported that both producer and consumer prices increase just 0.1% on a monthly basis, pointing toward little upward pressure from the duties. Economists still largely expect the tariffs to show impact in the coming months.

The soft inflation numbers have led Trump and other White House officials to demand the Fed start lowering interest rates again. The central bank is slated to meet next week, with market expectations strongly pointing to no cuts until September.

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