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Can Joe Biden bring order to the southern border without Congress?

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EVEN BACK when it looked as if the bipartisan border-security bill would get a fair hearing in the Senate, the Biden administration insisted that it was working on a Plan B. Then the bill fell apart, owing to Donald Trump’s desire to deprive Joe Biden of any accomplishments to campaign on, and Plan B became Plan A.

A month on Mr Biden has yet to roll out an executive order for the border—for two reasons. Politically, the border bill’s death revealed just how little congressional Republicans care about governing these days. Their intransigence gives Mr Biden an opening to try to convince voters that the Republican Party are the agents of border chaos. Practically, there is very little the administration can do to restore order at the southern border without money from Congress. Presidents are not powerless when it comes to immigration: Mr Biden’s liberal use of parole proves that. But in reforming the asylum system, the president is constrained by four things: the courts, a lack of cash, international law and Mexico.

Congress has not passed substantive immigration reform since 1990, leaving presidential administrations to govern by executive fiat. The legality of these orders is increasingly challenged in the court system. The Biden administration has reportedly floated two ideas. One is an executive order that would further restrict the ability of migrants to seek asylum if they crossed the border between ports of entry. Yet Mr Biden implemented a version of that last year, and its effectiveness has been limited because of litigation and a gummed-up immigration-court system. The snag is not that crossing between ports is legal (it isn’t), argues Aaron Reichlin-Melnick of the American Immigration Council, an advocacy group. The problem is the inability of immigration courts to process people quickly. It takes more than four years on average just to get an asylum hearing. Staffing shortages—from Border Patrol agents to asylum officers and immigration-court judges—are why Mr Biden insists that congressional action, and the money that comes with it, is the only answer.

The second idea would take a page out of Mr Trump’s immigration playbook. In 2017 Mr Trump restricted travel to America from several Muslim-majority countries under an obscure statute that grants presidents broad authority to suspend the entry of people who “would be detrimental to the interests of the United States”. The Supreme Court upheld Mr Trump’s order in Trump v Hawaii, a case Mike Johnson, the speaker of the House, cites as proof that Mr Biden does not need Congress to act. But that law and that case are less relevant when the people being banned are already in the country, not waiting to fly over.

This is where international law comes in. America signed the 1967 Protocol which expanded the United Nations’ 1951 Refugee Convention. The treaty stipulates that asylum-seekers, no matter how they entered a country, may lodge an asylum claim. That provision is also enshrined in American law, and is the basis for the legal challenge to Mr Biden’s rule limiting asylum for those who cross the border between ports. America must also abide by the principle of non-refoulement, which bars countries from returning asylum-seekers to places where their life or liberty would be at risk.

Mr Johnson’s other favourite suggestion—in lieu of his caucus doing anything—is that Mr Biden should reinstate Mr Trump’s “Remain in Mexico” policy, under which some migrants were returned to the southern side of the border to await a hearing. Mr Johnson waves off Mexico’s resistance to restarting the policy. “We’re the United States,” he told reporters. “Mexico will do what we say.”

Things are not that simple. Mr Trump bullied Andrés Manuel López Obrador, Mexico’s president, into cracking down on migration by threatening hefty tariffs on imports. Mr Biden may be loth to apply such leverage when Mexico is now America’s largest trading partner and is helping to curb fentanyl trafficking. What’s more, only about 80,000 migrants were enrolled in the Remain in Mexico programme between 2019 and 2022, a tiny fraction of those who crossed the border.

In small ways, the Biden administration is making progress. The number of monthly “credible fear” decisions—the standard some migrants must pass to apply for asylum—has more than quintupled since 2022, speeding the process for many. Mexico’s crackdown on migrant trains and the removal of migrants to southern Mexico has diminished flows to Texas (but pushed them towards Arizona).

Despite the obstacles, the president may issue some kind of executive order anyway. “They will be immediately sued and probably blocked by the courts,” argues Julia Gelatt of the Migration Policy Institute, a think-tank. “Maybe that is helpful politically to say, ‘Well, we tried. We really do need you, Congress’.”

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Economics

Will Elon Musk’s cash splash pay off in Wisconsin?

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TO GET A sense of what the Republican Party thinks of the electoral value of Elon Musk, listen to what Brad Schimel, a conservative candidate for the Supreme Court of Wisconsin, has to say about the billionaire. At an event on March 29th at an airsoft range (a more serious version of paintball) just outside Kenosha, five speakers, including Mr Schimel, spoke for over an hour about the importance of the election to the Republican cause. Mr Musk’s political action committees (PACs) have poured over $20m into the race, far more than any other donor’s. But over the course of the event, his name came up precisely zero times.

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Economics

German inflation, March 2025

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Customers shop for fresh fruits and vegetables in a supermarket in Munich, Germany, on March 8, 2025.

Michael Nguyen | Nurphoto | Getty Images

German inflation came in at a lower-than-expected 2.3% in March, preliminary data from the country’s statistics office Destatis showed Monday.

It compares to February’s 2.6% print, which was revised lower from a preliminary reading, and a poll of Reuters economists who had been expecting inflation to come in at 2.4% The print is harmonized across the euro area for comparability. 

On a monthly basis, harmonized inflation rose 0.4%. Core inflation, which excludes food and energy costs, came in at 2.5%, below February’s 2.7% reading.

Meanwhile services inflation, which had long been sticky, also eased to 3.4% in March, from 3.8% in the previous month.

The data comes at a critical time for the German economy as U.S. President Donald Trump’s tariffs loom and fiscal and economic policy shifts at home could be imminent.

Trade is a key pillar for the German economy, making it more vulnerable to the uncertainty and quickly changing developments currently dominating global trade policy. A slew of levies from the U.S. are set to come into force this week, including 25% tariffs on imported cars — a sector that is key to Germany’s economy. The country’s political leaders and car industry heavyweights have slammed Trump’s plans.

Meanwhile Germany’s political parties are working to establish a new coalition government following the results of the February 2025 federal election. Negotiations are underway between the Christian Democratic Union, alongside its sister party the Christian Social Union, and the Social Democratic Union.

While various points of contention appear to remain between the parties, their talks have already yielded some results. Earlier this month, Germany’s lawmakers voted in favor of a major fiscal package, which included amendments to long-standing debt rules to allow for higher defense spending and a 500-billion-euro ($541 billion) infrastructure fund.

This is a breaking news story, please check back for updates.

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Economics

First-quarter GDP growth will be just 0.3% as tariffs stoke stagflation conditions, says CNBC survey

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U.S. President Donald Trump speaks to members of the media aboard Air Force One before landing in West Palm Beach, Florida, U.S., March 28, 2025. 

Kevin Lamarque | Reuters

Policy uncertainty and new sweeping tariffs from the Trump administration are combining to create a stagflationary outlook for the U.S. economy in the latest CNBC Rapid Update.

The Rapid Update, averaging forecasts from 14 economists for GDP and inflation, sees first quarter growth registering an anemic 0.3% compared with the 2.3% reported in the fourth quarter of 2024. It would be the weakest growth since 2022 as the economy emerged from the pandemic.

Core PCE inflation, meanwhile, the Fed’s preferred inflation indicator, will remain stuck at around 2.9% for most of the year before resuming its decline in the fourth quarter.

Behind the dour GDP forecasts is new evidence that the decline in consumer and business sentiment is showing up in real economic activity. The Commerce Department on Friday reported that real, or inflation-adjusted consumer spending in February rose just 0.1%, after a decline of -0.6% in January. Action Economics dropped its outlook for spending growth to just 0.2% in this quarter from 4% in the fourth quarter.

“Signs of slowing in hard activity data are becoming more convincing, following an earlier worsening in sentiment,” wrote Barclays over the weekend.

Another factor: a surge of imports (which subtract from GDP) that appear to have poured into the U.S. ahead of tariffs.

The good news is the import effect should abate and only two of the 12 economists surveyed see negative growth in Q1. None forecast consecutive quarters of economic contraction. Oxford Economics, which has the lowest Q1 estimate at -1.6%, expects a continued drag from imports but sees second quarter GDP rebounding to 1.9%, because those imports will eventually end up boosting growth when they are counted in inventory or sales measures.

Recession risks rising

On average, most economists forecast a gradual rebound, with second quarter GDP averaging 1.4%, third quarter at 1.6% and the final quarter of the year rising to 2%.

The danger is an economy with anemic growth of just 0.3% could easily slip into negative territory. And, with new tariffs set to come this week, not everyone is so sure about a rebound.

“While our baseline doesn’t show a decline in real GDP, given the mounting global trade war and DOGE cuts to jobs and funding, there is a good chance GDP will decline in the first and even the second quarters of this year,” said Mark Zandi of Moody’s Analytics. “And a recession will be likely if the president doesn’t begin backtracking on the tariffs by the third quarter.”

Moody’s looks for anemic Q1 growth of just 0.4% that rebounds to 1.6% by year end, which is still modestly below trend.

Stubborn inflation will complicate the Fed’s ability to respond to flagging growth. Core PCE is expected at 2.8% this quarter, rising to 3% next quarter and staying roughly at that level until in drops to 2.6% a year from now.

While the market looks to be banking on rate cuts, the Fed could find them difficult to justify until inflation begins falling more convincingly at the end of the year.

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