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Florida is the first state to reject an abortion-rights measure

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AMONG THE results that came early on election night was for a ballot measure in Florida to enshrine a constitutional right to an abortion. Though 57% of Floridians supported it (with 91% of the vote counted), it failed—falling short of the 60% majority required in the state. The defeat marks the first time state-level abortion-rights campaigners have lost such a ballot campaign since the Supreme Court overturned a national right to the procedure in 2022. Florida’s current law will stand: it bans abortion after the sixth week of pregnancy, with limited exceptions.

Nine other states also voted on abortion-related measures on November 5th (see map). Most, including those in Arizona and Nevada, are expected to pass. Tallies in Midwestern states—South Dakota, Nebraska and Missouri—may be the tightest. The ballot measures vary in scope, from New York’s expansive equal-rights amendment to South Dakota’s measure offering unfettered access to abortion only in the first 12 weeks of pregnancy. Only Florida required a 60% supermajority.

Map: The Economist

Florida’s proposed constitutional amendment would have made abortion accessible until a fetus’s viability, about 24 weeks from conception, and later if necessary to protect the health of the woman. Its failure will affect not only more than 4m women in Florida but millions more across America’s south-east. If the measure had passed, it would have offered relatively permissive access in a region blanketed with highly restrictive laws. None of the states bordering Florida have procedures for citizen-led ballot initiatives that might overturn their laws.

Florida’s abortion-rights activists had raised $110m, a record for such a campaign. Their messaging emphasised health care and freedom from government interference, hoping the Sunshine State’s social liberalism would help them reach a super-majority. While one famous Floridian, Donald Trump, said that he would be voting against the amendment, he did not join the opposition campaign. Instead Ron DeSantis, the state’s governor, became its figurehead. He labelled the amendment too extreme for Florida and defended the state’s six-week ban.

The campaign was contentious. The state agency that regulates medical providers published videos opposing the proposed change, and the Department of Health threatened criminal prosecutions against television stations airing supportive advertisements, claiming they could discourage women from seeking emergency care. (A federal judge rejected the threatened sanctions, saying: “It’s the First Amendment, stupid”).

More than two-fifths of Americans have now voted on abortion since 2022. The breakneck pace of ballot-measure campaigns will slow. Only two more states with bans—Oklahoma and Arkansas—have provisions for citizen-led ballot initiatives. America’s abortion environment is becoming calcified along regional lines, with little appetite for reform in states with restrictive laws. Given that a national law is unlikely to pass in Congress, many Americans will continue to be forced to travel to receive abortions, or receive posted pills. And harrowing accounts of women in restrictive states who have died from complications during miscarriages, or faced serious health risks because doctors were afraid to treat them, will continue to accumulate.

Economics

PCE inflation December 2024:

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Customers shop for food at a grocery store on Jan. 15, 2025 in Chicago, Illinois.

Scott Olson | Getty Images News | Getty Images

Inflation closed out 2024 on a strong note, as a price gauge the Federal Reserve focuses on came in well above the central bank’s target.

The personal consumption expenditures price index increased 2.6% on a year over year basis, 0.2 percentage point higher than the November reading and in line with the Dow Jones estimate.

Excluding food and energy, core PCE registered a 2.8% reading, also meeting expectations and the same as the prior month. Though the Fed considers both readings, historically officials have seen core as the better gauge of long-run inflation.

On a monthly basis, headline PCE rose 0.3% while core increased 0.2%, both in line with forecasts as well.

The Fed targets annual inflation at 2%, a level the price gauge has not seen since February 2021.

The report comes two days after the central bank voted unanimously to hold its key interest rate in a range between 4.25%-4.5%, taking a break after three consecutive cuts totaling a full percentage point.

In remarks delivered Friday morning, Fed Governor Michelle Bowman said she expects inflation to decelerate through 2025, but thinks the central bank should stay on hold until there are clear signs that is happening.

“There is still more work to be done to bring inflation closer to our 2 percent goal. I would like to see progress in lowering inflation resume before we make further adjustments to the target range,” Bowman said in remarks before business leaders in Portsmouth, N.H. “I do expect that inflation will begin to decline again and that by year-end it will be lower than where it now stands.”

The report Friday also showed that personal income increased 0.4% as forecast, while spending rose 0.7%, or one-tenth of a percentage point ahead of the estimate.

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German inflation, January 2025

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Customers waiting at the checkout in a supermarket.

Markus Scholz | Picture Alliance | Getty Images

German inflation was unchanged year-on-year at 2.8% in January, preliminary data from the country’s statistics office Destatis showed Friday in the last reading before Germans head to the polls next month.

The reading was also in line with a forecast from economists polled by Reuters. The print is harmonized across the euro area for comparability. 

On a monthly basis, the harmonized consumer price index fell by 0.2%

Germany’s inflation rate has now stayed above the European Central Bank’s 2% target for the fourth month in a row, after falling below that threshold in September last year.

This roughly mirrors the development of re-accelerating inflation in the wider euro area. The European Central Bank on Thursday said that disinflation in the bloc “is well on track” and has broadly developed in line with staff projections.

Euro area inflation came in at 2.4% in December. The January figures are slated for release next week.

The January inflation print is among the final key economic data released before Germany’s election on Feb. 23, which is taking place earlier than originally scheduled after the collapse of the ruling coalition in November 2024.

Germany’s economy has been one of big topics during campaigning next to immigration, as the country has been grappling with lackluster economic growth and the renewed rise of inflation.

The government earlier this week slashed gross domestic product expectations to 0.3% for full-year 2025, after annual GDP contracted in the last two years. Quarterly growth has also been sluggish, even as the economy has so far avoided a technical recession characterized by two consecutive quarter of contraction.

Non-harmonized inflation is expected to average 2.2% this year, the government added in its annual economic report.

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Donald Trump revives ideas of a Star Wars-like missile shield 

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IN THE LATE 1980s Edward Teller, the father of the hydrogen bomb, and Lowell Wood, an astrophysicist, proposed a seemingly bizarre scheme to defend America against missile attack. The “Brilliant Pebbles” system envisaged thousands of small satellites in low-Earth orbit, each housing heat-seeking missiles to take out incoming Soviet nukes long before they released their warheads. The idea faded, not least because the technology seemed distant. Now Donald Trump is resuscitating it.

On the campaign trail Mr Trump promised to build an “Iron Dome” for America, referring to an Israeli missile-defence system. The name is a misnomer. The Israeli system is designed to take out short-range rockets. What Mr Trump meant, and spelt out in an executive order published on January 27th, was a more ambitious effort to detect and counter intercontinental ballistic missiles (ICBMs) and the like. America already has a system designed to do that, known as Ground-Based Midcourse Defence (GMD), which relies on interceptors in Alaska and California.

Mr Trump’s proposal differs in important respects. One is its scope. GMD was intended to parry limited attacks involving a small number of ballistic missiles, such as might occur in an attack by North Korea. Mr Trump’s shield is supposed to block “any foreign aerial attack”, which would imply not only both cruise and ballistic missiles, but also a full-scale strategic attack by Russia or China involving many hundreds of missiles at once.

Critics of missile defence say this is folly, because it is generally cheaper to build additional offensive systems than interceptors to stop them. Russia and China—which are building missile shields of their own—have also argued that American defences risk undermining nuclear deterrence, because they might one day allow America to strike enemies without fearing retaliation. Advocates retort that the missile threat has changed: long-range non-nuclear missiles could now paralyse military facilities in the continental United States, allowing enemies to coerce America into staying out of a distant war.

In any case, Mr Trump’s favoured design is also noteworthy. GMD targets incoming missiles when they are in mid-flight. In theory it is easier to take out a missile in its “boost phase” (as it is taking off), when it is moving more slowly. The problem is that this is a fleeting moment—three to five minutes for ICBMs.  The new order calls for “proliferated space-based interceptors capable of boost-phase intercept”. That amounts to a Brilliant Pebbles-like system: a lot of small, armed satellites, some of which would be above Russia, China and other foes at all times.

The cost of building tiny computers and putting thousands of them into orbit is far lower than it was in Mr Teller’s days—partly thanks to Elon Musk. But it is still eye-wateringly expensive, and liable to hoover up a good chunk of the defence budget. America would require 500 satellites in total to have just three to four interceptors in range of North Korean launchpads, estimates Bleddyn Bowen of Durham University; hundreds more than that would probably be needed, he says.

A key technical challenge will be building space sensors with “fire-control-quality tracking”—good enough at spotting and tracking enemy missiles to guide interceptors to them—says Tom Karako of CSIS, a think-tank. But if the technology proves mature, the implications could go beyond missile defence. “We will see the emergence, gradual understanding, and eventually acceptance of ‘space fires’,” says Mr Karako, which could include satellites capable of targeting, with both explosive and electronic means, targets on the ground, those in the air and other satellites in orbit.

There are many doubters. Mr Trump aired similar ideas in his first term but failed to back them with hard cash. Spending for an American Iron Dome will compete with a string of other priorities, from a bigger navy to more nuclear weapons. “It’s always a budget question,” says Mr Karako. “Show me your budget for missile defence, and I’ll tell you what your ‘Iron Dome for America’ is.”

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