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The fight to win the most unruly institution in Washington

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MIKE LAWLER, a Republican congressman representing New York’s 17th congressional district, considers himself a moderate. Mondaire Jones, a former congressman challenging Mr Lawler, also considers himself a moderate. Neither candidate in this swing race agrees with the other’s self-description. “At the end of the day, if it talks like a socialist, votes like a socialist—folks, it’s socialist,” Mr Lawler said in a recent debate. Mr Jones hit back, “If it talks like a fascist and supports a fascist for president of the United States for the third consecutive presidential election, then it’s a mini-fascist.”

That hyperbole probably won’t sway the contest’s outcome, which is driven more by national trends, but this mostly suburban district north of New York City will help influence which party will control the House of Representatives. Though Senate races get most of the attention, the country’s lower chamber also can make or break the next president’s agenda.

By this point in the election cycle, everyone knows that the presidential election will be decided in six or seven swing states, and that the electoral college gives states in the upper Midwest an outsize say over the future of the free world. The electorate that will determine what the next president will be able to do—the voters who will pick the House majority—are different. During the 2022 midterm elections Republican wins in California and New York, two states used to being ignored in presidential elections, gave the party its majority. Both sides agree that those states could make the difference again. The Economist’s forecast shows that seven of the 20 closest House races are in either New York or California, and are now held by Republicans like Mr Lawler.

Unlike the electoral college, which gives the Republican candidate an advantage worth about two points of the national vote share in this election, the House map is fair. Democrats used to complain about being at a disadvantage due to gerrymandering (the practice of politicians drawing district maps to their advantage). Now we estimate Democrats need only win by one point to have a 50:50 chance of controlling the House.

The tightness in national elections means that control of the House changes often. Between 1955 and 1995 Democrats had the majority. Since 1995 control has switched five times. But the House hasn’t flipped in the opposite direction to a presidential race since the 19th century, and both parties agree that it’s unlikely to happen this year. They also concur that whoever wins a majority will have a narrow one. That means that if Donald Trump wins, Republicans are quite likely to have a House and Senate majority (Republicans are favourites to win the Senate regardless of who takes the White House).

“We’ve expanded the map of competitive districts, which gives us more paths,” says a House Democratic operative, referring to how Joe Biden’s departure from the presidential race boosted down-ballot candidates. Even so, the Democrat believes that only around three dozen races are truly competitive, a view shared by Republican strategists: “I think this really comes down ultimately to a Republican or Democratic plus-five majority.”

Dial five for shutdown

The difference between a five- and ten-seat majority could have tremendous implications for public policy, particularly if Republicans win the House. Their current narrow majority made governing nearly impossible for the past two years, as the party’s nihilists had disproportionate clout. The latest fiscal year was nearly halfway over, for example, by the time Congress approved a permanent government-funding bill. Given that the next president’s ability to govern rides on the shape of Congress, it is perhaps surprising how little money is spent on House campaigns compared with Senate races (let alone the presidential contest).

Congressional Leadership Fund, the most important Republican super PAC for winning the House, raised $81.4m from July to September. House Majority PAC, the equivalent Democratic group, pulled in about $99m. In the Texas Senate race alone the two candidates have raised a total of $166m. The presidential candidates have mustered $1.4bn (campaign groups have gathered an additional $1.3bn). This reflects the fact that House races have been eaten by national politics. If either Kamala Harris or Mr Trump somehow does end up controlling the White House but not the House, it will be because of candidates who managed to defy political gravity in their small corner of the country.

New York’s 17th district is an example. There are almost 90,000 more Democrats than Republicans in Mr Lawler’s seat, which Mr Biden won by double digits in 2020. The candidate will have to buck national trends if he is to remain in Congress. On a recent Sunday, he visited New Life Pentecostal Church in New York’s Hudson Valley. Its pastor, Denochy Cowan, does not endorse candidates, but welcomes any to speak to his congregation, made up of immigrants from Antigua, Haiti, Ghana, Guyana, Jamaica and Kenya. Mr Lawler acknowledged that he may not have much in common with those in the pews, but said it’s OK because that’s what democracy is all about. Paraphrasing Ed Koch, a former New York City mayor, he joked, “If you agree with me on nine out of 12 things, vote for me. If you agree with me on 12 out of 12 things, have your head examined.”

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.

Economics

UK Has a New Prime Minister Without a General Election

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UK Has a New Prime Minister Without a General Election

On July 20, Andy Burnham has been chosen to be the next Prime Minister in UK. The appointment of a new Prime Minister in the United Kingdom often raises questions from people outside the country, especially when no nationwide election has taken place. Many wonder how a new national leader can assume office without voters casting ballots. The answer lies in the UK’s parliamentary system, where the Prime Minister is not directly elected by the public but is instead chosen based on who commands the confidence of the House of Commons.

How the UK Selects Its Prime Minister

Unlike presidential systems where citizens vote directly for the head of government, the United Kingdom elects Members of Parliament (MPs) during a general election. The political party that secures a majority of seats in the House of Commons usually forms the government, and that party selects its own leader to serve as Prime Minister.

If the leader resigns, becomes unable to continue, or is replaced by their party, the governing party can choose a new leader without triggering a general election. As long as the new leader is able to maintain the confidence of Parliament, they can immediately become Prime Minister after being formally appointed by the monarch.

Why No Election Was Required

A general election is not automatically required every time the office of Prime Minister changes hands. The governing party retains its parliamentary majority because voters elected MPs rather than an individual Prime Minister. If the ruling party chooses a new leader through its internal leadership process, the government continues to operate without interruption.

This constitutional arrangement provides stability and allows the government to continue functioning during periods of political transition. It also avoids the expense and disruption of holding a nationwide election every time party leadership changes.

The King’s Constitutional Role

After a governing party elects a new leader, the monarch invites that individual to form a government. This constitutional step is largely ceremonial and follows long-established conventions. The King appoints the person most likely to command a majority in the House of Commons, ensuring continuity of government.

Although the monarch formally appoints the Prime Minister, political power rests with Parliament and the elected representatives of the British people.

Could an Election Still Happen?

Yes. A newly appointed Prime Minister has the authority to request a general election if they believe it is politically advantageous or if they seek a stronger public mandate. Parliament can also reach a point where a government loses the confidence of the House of Commons, potentially leading to an election or the formation of a new government.

In many cases, however, a new Prime Minister continues governing until the next scheduled general election.

What This Means for the UK

The UK’s parliamentary democracy is designed to ensure government continuity while respecting the results of the most recent general election. Leadership changes within the governing party do not automatically alter the composition of Parliament, which is why a new Prime Minister can take office without another nationwide vote.

Understanding this process helps explain why political transitions in the United Kingdom can appear different from those in countries with presidential systems. While the Prime Minister may change, the democratic mandate of Parliament remains in place until voters elect a new House of Commons at the next general election.

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Economics

Global Grid Upgrades Reshape Macro Economics

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Global grid upgrades reshape macro economics

On July 21, 2026, global economic analysis shifts focus toward a defining structural macroeconomic trend: the massive expansion of public and private capital deployment into high-capacity electrical grid infrastructure. As industrial electrification, automated data center hubs, and renewable energy integration accelerate worldwide, sovereign governments and institutional investors are facing a monumental economic challenge. Updating legacy power grids to meet skyrocketing demand has emerged as a primary driver of long-term capital expenditures and industrial productivity across both developed and emerging market economies.

According to international economic policy updates released this week, grid infrastructure investments are projected to exceed multi-trillion-dollar thresholds over the coming decade. Economic planners caution that without modernized, high-voltage transmission networks, regional manufacturing sectors face severe energy bottlenecks, localized power price volatility, and operational constraints. Consequently, infrastructure spending is rapidly transitioning from passive utility maintenance into a vital component of national economic competitiveness and industrial policy.

The macroeconomic ripple effects of this capital deployment are being felt across global commodity markets and labor networks. High demand for structural industrial inputs—such as copper, aluminum, specialized electrical steel, and high-capacity transformers—has created sustained pricing support for critical material producers. Simultaneously, the specialized technical labor required to manufacture and deploy modern grid hardware is driving wage growth in industrial sectors, adding a complex new layer to central bank disinflation trajectories.

For global policymakers and strategic investors, the economics of energy grid modernization represent a double-edged sword. While massive infrastructure investment boosts short-term gross domestic product (GDP) and strengthens domestic industrial foundations, it requires disciplined fiscal allocation to prevent inflationary crowding-out of private capital. Countries that efficiently streamline grid infrastructure permitting and mobilize private investment will secure lower long-term energy costs, attracting high-tech manufacturing and reinforcing sustainable economic growth.

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Economics

Global Trade Realignment and Supply Chains in 2026

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Global Trade Realignment and Supply Chains in 2026

The international trade architecture entering the second half of 2026 is undergoing a profound structural pivot. As major sovereign economic blocs adjust to the long-term impact of unilateral tariffs and escalating regional subsidies, traditional globalized supply chains are being rapidly replaced by bilateral trade corridors and regional alliance networks. Data released in late July 2026 highlights a significant divergence: while cross-continental freight volumes between non-aligned partners have cooled, intra-regional trade throughout North America, Southeast Asia, and Eastern Europe has surged to record levels. This shift reflects a broader macroeconomic strategy wherein multinational corporations prioritize geopolitical resilience over pure cost minimization.

The primary economic catalyst behind this regionalization is the proliferation of sector-specific tariffs targeting critical industries, notably battery components, clean energy technology, and advanced semiconductor hardware. In response, global manufacturers have adopted multi-tier sourcing models that distribute production across intermediate partner nations before final assembly. While this strategy successfully bypasses primary import duties, it adds structural layers of logistical complexity and administrative oversight. Economists note that while total output remains robust, aggregate production costs have drifted upward, contributing to persistent baseline inflation across major consumer markets.

Simultaneously, currency settlement patterns within these regional blocs are experiencing a notable transformation. Sovereign central banks and commercial institutions are increasingly utilizing localized currency swap lines and digital clearing mechanisms to settle cross-border trade transactions. This transition reduces direct exposure to foreign exchange volatility and mitigates third-party liquidity constraints, further solidifying regional economic cohesion. However, for developing economies situated outside these primary trading alliances, the tightening of international trade networks presents severe challenges, restricting access to key export markets and foreign direct investment.

For corporate strategists and policy analysts navigating late 2026, success requires a thorough understanding of these emerging trade corridors. Organizations must conduct regular risk assessments of their multi-tier supplier networks, model tariff sensitivities under shifting geopolitical scenarios, and invest in real-time supply chain telemetry. As regional economic blocs strengthen their regulatory borders, supply chain agility and compliance fortitude will distinguish market leaders from vulnerable enterprises in the evolving global economy.

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