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Why Republicans have failed to scrap the Department of Education

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“That department should be abolished,” said President Ronald Reagan about the Department of Education in 1983, echoing a campaign promise. In 1995 while running for president, Lamar Alexander, a former education secretary under President George H.W. Bush, vowed to eliminate the department he once ran. In 2022 Betsy DeVos, after serving as education secretary under President Donald Trump, said she thought her department “should not exist”. In September Mr Trump himself chimed in: “I’m dying to get back to do this. We will ultimately eliminate the federal Department of Education.” Republicans have threatened to abolish it for decades. So what is taking them so long?

The Education Department (ED) was established in 1979 by President Jimmy Carter as part of a campaign promise to the National Education Association, America’s largest teachers’ union. Before that education matters were handled by the Department of Health, Education and Welfare. Detractors argued that there is no constitutional authority for a federal education department. Since then, the issue has reliably surfaced as a Republican talking point. In the current cycle the topic duly appeared in Project 2025, a presidential-transition plan developed by the Heritage Foundation, a conservative think-tank, for Mr Trump.

Yet it turns out that breaking up is hard to do. The department handles all federal financial aid for students, which involves over half of all undergraduates. That this matters is particularly obvious when it goes wrong: witness this year’s FAFSA debacle, when a buggy website prevented hundreds of thousands of students from applying for federal aid and potentially enrolling in college. If the ED were eliminated, this task would have to go somewhere else, probably to the Treasury Department.

The ED also provides funding to public schools (though they receive most of their money from state and local governments). Federal money helps schools support poor students and those with disabilities. In the absence of the ED that funding would have to be disbursed from somewhere else—again, probably Treasury. Another of the ED’s responsibilities is overseeing civil-rights enforcement in schools. Without it, that would probably fall to the Department of Justice. The agency collects national data on schools. If the ED were eliminated, this task could migrate to the Census Bureau.

To truly eliminate the ED, and the tasks within it, Congress would need to act. That probably won’t happen. Reagan realised as much in 1985. “I have no intention of recommending the abolition of the department to the Congress at this time,” he wrote in a letter to Senator Orrin Hatch, a fellow Republican and chairman of the Senate Labour and Human Resources Committee. He cited lack of support in Congress as his reason for keeping it.

Mr Trump, if re-elected, would probably face the same obstacle. Americans generally want to fund public schools. Although 60% of adults (and 88% of Republicans) think that the government is spending too much, 65% of adults (and 52% of Republicans) say it is spending too little on education. And even if he could win congressional support, abolishing the ED would not affect what children learn on a daily basis.

“The only thing the Department of Education definitely doesn’t do is education,” says Daniel Currell, a former senior adviser in the ED in the Trump administration. Most decisions about what children learn and do from kindergarten until they graduate from high school are handled by the state and local authorities. That is why Republican politicians have been able to use local rules to remove critical-race theory from classrooms, for example, and ensure that transgender children do not take part in some school sports.

So why do Republicans keep banging on about abolition? Probably because it is a lot easier than talking about policy nuances such as the privatisation of federal aid, supporting local control and fears of government overreach. In 2011 Rick Perry, then the governor of Texas and competing in the Republican primary, listed the departments he would eliminate should he be elected president: Commerce, Education. “The third one I can’t. Sorry. Oops.” The third was the Department of Energy, the agency he would later run under Mr Trump. Perhaps he should have forgotten Education instead.

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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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Economics

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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