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Will Joe Biden benefit from falling murder rates across America?

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Few politicians talk about violence as much as Donald Trump. In early April, when the former president held his first rally since wrapping up the Republican nomination in Grand Rapids, Michigan, he came onto the stage flanked by uniformed sheriffs. America, he argued, is being overwhelmed by murderous foreigners deliberately sent by hostile governments seeking to empty their prisons at home. Gang members, Mr Trump claimed, are “hiding in bushes, actually, they say”. Overall, he argued, crime rates are “only going in one direction and it’s going to be very bad”.

Unfortunately for Mr Trump, but happily for most Americans, what data there are suggest that most crime is indeed only going in one direction—down. In March the fbi released (partial) national data showing that violent crime of all sorts dropped in cities, suburbs and rural areas alike in the final quarter of 2023. That confirmed what city-level data were already indicating by the middle of last year: that the wave of violence that started almost everywhere across America in the summer of 2020 (when Mr Trump was still president) had crested in most places in 2022. Murder, both the most damaging and the most reliably counted of all crimes, is now heading back towards pre-pandemic levels.

Last year, according to data published by the Major Cities Chiefs Association, which represents police chiefs in the United States and Canada, in the 69 American police departments covered, the total number of murders declined by roughly 10%. More recent data gathered from police departments by ah Datalytics, a private analysis firm, suggest that the total has continued to drop so far this year (see chart 1). In some big cities, such as Boston, Philadelphia and Baltimore, the size of the falls has been especially striking. The firm’s figures also suggest that even the flood of car theft that swelled last year may have begun to ebb slightly.

Chart: The Economist

Explaining why crime falls or rises is tricky. The best explanation for this fall, says Jeff Asher, of ah Datalytics, is simply the end of the pandemic. Most murders in America are the result of arguments that escalate to gunfights, typically between young men. When the virus was spreading, schools and other public services closed, and so more youngsters were pushed onto the streets. Higher levels of stress may have led to more arguments. Now things are somewhat back to normal. Added to that are a few policy changes. For example, many cities have invested plentiful federal money in “violence interrupters” who try to identify and de-escalate fights before they turn into shootings.

Will lower crime help Joe Biden win re-election? Certainly, it is better than the opposite. But the gains are likely to be limited. Polling suggests much of the public thinks crime is still rising. One of the bigger problems Mr Biden has is that police officers are generally conservative, and many are backing Mr Trump, who they think will let them continue to do their job the way they always have.

In the past few years, Republicans in general have enthusiastically hugged cops. For example, earlier this month Florida’s governor, Ron DeSantis, signed a law that criminalises “harassment” of police officers and bans civilians from “carrying out extra-judicial investigations against law enforcement”. Mr Biden, by contrast, is at least rhetorically committed to police reform. “It is a bit of a danger zone” for the president, says Neil Gross, a professor at Colby College in Maine.

Chart: The Economist

The irony is that Mr Trump’s approach seems more likely to generate crime. Under Mr Biden trust in the police has risen among Democrats (see chart 2). When police are trusted, crimes are solved, and crime rates tend to fall. When trust is destroyed—by, say, a police killing—crime rises.

Among the places that saw a rise in the murder rate last year was Memphis, Tennessee. That city was shaken up last January when a young, unarmed and innocent man, Tyre Nichols, was brutally beaten to death by plainclothes officers from a “tactical squad” who had stopped his car. Murders in Memphis have edged down this year. But last month Republicans in the state overturned a city-level ordinance intended to end such unwarranted stops. If Mr Trump wins the election, he may get more violence to talk about.

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

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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