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Is ticketing homeless people a cruel and unusual punishment?

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IN 2013 local leaders in Grants Pass, Oregon, held a meeting to brainstorm ideas for how to tackle the city’s growing “vagrancy problem”. A record of that meeting states that participants suggested “driving repeat offenders out of town and leaving them there”, and buying homeless people a bus ticket to anywhere else. “The point”, said Lily Morgan, a city-council member, “is to make it uncomfortable enough for them in our city so they will want to move on down the road.”

The city, tucked between the Cascade and Siskiyou mountains north of the California border, banned sleeping and camping in public places. Over the next few years Ed Johnson, the director of litigation for the Oregon Law Centre, a legal charity, started to hear from homeless people in Grants Pass. They were woken by police, he recalls, slapped with fines they couldn’t pay and thrown in jail. In 2018 Mr Johnson sued the city on behalf of his homeless clients. On April 22nd the Supreme Court will hear oral arguments in Grants Pass v Johnson. The question at the heart of the case is whether penalising homeless people for sleeping outside when they have nowhere else to go counts as cruel and unusual punishment, which is banned by the Eighth Amendment.

Two cases will serve as important precedent. In 1962 the Supreme Court found in Robinson v California that a Golden State law making drug addiction illegal—rather than the use, purchase or sale of drugs—was unconstitutional. Jail time alone is not cruel and unusual, wrote Justice Potter Stewart, in his majority opinion. But the law criminalised a status rather than an act, and “even one day in prison would be a cruel and unusual punishment for the ‘crime’ of having a common cold.”

In 2018 the Ninth Circuit Court of Appeals, which covers nine western states, applied the logic set out in Robinson v California to homelessness. In Martin v Boise the court held that the city of Boise could not penalise people for sleeping rough when no shelter was available to them, as such citations ran afoul of the Eighth Amendment. The Supreme Court declined to review the case in 2019. Deciding to hear Grants Pass v Johnson gives the court, now more conservative than it was five years ago, another crack at the issue.

Western politicians are hoping the court’s ruling will offer clarity on how to tackle the proliferation of tent encampments. Half of the growth in America’s homeless population between 2020 and 2023 came from the nine western states that comprise the Ninth Circuit. More than a quarter came from California alone. Oskar Rey, a lawyer who advised cities on how to comply with the Boise and Grants Pass rulings, argues that they are narrower than many think. “Sweeping” or breaking up encampments is allowable so long as cities aren’t ticketing homeless people who have no other shelter, argues Mr Rey. Sweeping encampments is anathema to activists who argue that tearing down tents is traumatising, but doing so does not criminalise homelessness.

Still, some policymakers argue that the courts have tied their hands. In some cases that is true. In 2022 a federal judge interpreted the Boise and Johnson rulings broadly, and blocked San Francisco from clearing encampments when there is no other shelter available. Politicians have another reason to blame the courts: it is easier to whine about judges than to shoulder the blame themselves for failed policies.

The interest in Johnson is also revealing of a larger trend. As recently as the early part of the covid-19 pandemic, Democrats were leery of sweeping away encampments. That liberal mayors around the West are now trumpeting their attempts to eradicate them is testimony to how fed up their voters are with homelessness in Los Angeles, San Francisco and Portland. Tents have come to symbolise disorder and failed policies. No wonder politicians who hope to stay in office want them gone.

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Economics

Donald Trump sacks America’s top military brass

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THE FIRST shot against America’s senior military leaders was fired within hours of Donald Trump’s inauguration on January 20th: General Mark Milley’s portrait was removed from the wall on the E-ring, where it had hung with paintings of other former chairmen of the joint chiefs of staff. A day later the commandant of the coast guard, Admiral Linda Fagan, was thrown overboard. On February 21st it was the most senior serving officer, General Charles “CQ” Brown, a former F-16 pilot, who was ejected from the Pentagon. At least he was spared a Trumpian farewell insult. “He is a fine gentleman and an outstanding leader,” Mr Trump declared.

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Checks and Balance newsletter: The journalist’s dilemma of covering Trump

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Checks and Balance newsletter: The journalist’s dilemma of covering Trump

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Germany’s election will usher in new leadership — but might not change its economy

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Production at the VW plant in Emden.

Sina Schuldt | Picture Alliance | Getty Images

The struggling German economy has been a major talking point among critics of Chancellor Olaf Scholz’ government during the latest election campaign — but analysts warn a new leadership might not turn these tides.

As voters prepare to head to the polls, it is now all but certain that Germany will soon have a new chancellor. The Christian Democratic Union’s Friedrich Merz is the firm favorite.

Merz has not shied away from blasting Scholz’s economic policies and from linking them to the lackluster state of Europe’s largest economy. He argues that a government under his leadership would give the economy the boost it needs.

Experts speaking to CNBC were less sure.

“There is a high risk that Germany will get a refurbished economic model after the elections, but not a brand new model that makes the competition jealous,” Carsten Brzeski, global head of macro at ING, told CNBC.

The CDU/CSU economic agenda

The CDU, which on a federal level ties up with regional sister party the Christian Social Union, is running on a “typical economic conservative program,” Brzeski said.

It includes income and corporate tax cuts, fewer subsidies and less bureaucracy, changes to social benefits, deregulation, support for innovation, start-ups and artificial intelligence and boosting investment among other policies, according to CDU/CSU campaigners.

“The weak parts of the positions are that the CDU/CSU is not very precise on how it wants to increase investments in infrastructure, digitalization and education. The intention is there, but the details are not,” Brzeski said, noting that the union appears to be aiming to revive Germany’s economic model without fully overhauling it.

“It is still a reform program which pretends that change can happen without pain,” he said.

Geraldine Dany-Knedlik, head of forecasting at research institute DIW Berlin, noted that the CDU is also looking to reach gross domestic product growth of around 2% again through its fiscal and economic program called “Agenda 2030.”

But reaching such levels of economic expansion in Germany “seems unrealistic,” not just temporarily, but also in the long run, she told CNBC.

Germany’s GDP declined in both 2023 and 2024. Recent quarterly growth readings have also been teetering on the verge of a technical recession, which has so far been narrowly avoided. The German economy shrank by 0.2% in the fourth quarter, compared with the previous three-month stretch, according to the latest reading.

Europe’s largest economy faces pressure in key industries like the auto sector, issues with infrastructure like the country’s rail network and a housebuilding crisis.

Dany-Knedlik also flagged the so-called debt brake, a long-standing fiscal rule that is enshrined in Germany’s constitution, which limits the size of the structural budget deficit and how much debt the government can take on.

Whether or not the clause should be overhauled has been a big part of the fiscal debate ahead of the election. While the CDU ideally does not want to change the debt brake, Merz has said that he may be open to some reform.

“To increase growth prospects substantially without increasing debt also seems rather unlikely,” DIW’s Dany-Knedlik said, adding that, if public investments were to rise within the limits of the debt brake, significant tax increases would be unavoidable.

“Taking into account that a 2 Percent growth target is to be reached within a 4 year legislation period, the Agenda 2030 in combination with conservatives attitude towards the debt break to me reads more of a wish list than a straight forward economic growth program,” she said.

Change in German government will deliver economic success, says CEO of German employers association

Franziska Palmas, senior Europe economist at Capital Economics, sees some benefits to the plans of the CDU-CSU union, saying they would likely “be positive” for the economy, but warning that the resulting boost would be small.

“Tax cuts would support consumer spending and private investment, but weak sentiment means consumers may save a significant share of their additional after-tax income and firms may be reluctant to invest,” she told CNBC.  

Palmas nevertheless pointed out that not everyone would come away a winner from the new policies. Income tax cuts would benefit middle- and higher-income households more than those with a lower income, who would also be affected by potential reductions of social benefits.

Coalition talks ahead

Following the Sunday election, the CDU/CSU will almost certainly be left to find a coalition partner to form a majority government, with the Social Democratic Party or the Green party emerging as the likeliest candidates.

The parties will need to broker a coalition agreement outlining their joint goals, including on the economy — which could prove to be a difficult undertaking, Capital Economics’ Palmas said.

“The CDU and the SPD and Greens have significantly different economic policy positions,” she said, pointing to discrepancies over taxes and regulation. While the CDU/CSU want to reduce both items, the SPD and Greens seek to raise taxes and oppose deregulation in at least some areas, Palmas explained.

The group is nevertheless likely to hold the power in any potential negotiations as it will likely have their choice between partnering with the SPD or Greens.

“Accordingly, we suspect that the coalition agreement will include most of the CDU’s main economic proposals,” she said.

Germany is 'lacking ambition,' investor says

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