Inflation has decreased significantly over the past year, but many Americans are still not pleased with the progress. Vice President Kamala Harris, who has taken a populist approach to handling the economy if elected president, aims to create an opportunity economy where everyone has the chance to succeed. She plans to bring together various groups to create jobs, grow the economy, and lower the cost of everyday needs such as health care and housing. Harris contrasts herself with former President Donald Trump, claiming his policies only benefit the elite.
One of Harris’ key economic proposals is to provide up to $25,000 in down-payment support for first-time home buyers. However, this plan, along with other economic proposals, would require congressional approval. The proposal comes at a time when home prices are at a record high, leading to a decrease in the share of Americans planning to purchase a home. Policy analyst Jaret Seiberg pointed out that this plan may benefit existing homeowners at the expense of home buyers, potentially leading to higher prices without increasing the supply of available homes.
Harris also proposed a plan to stop food companies from raising prices on consumers, intending to introduce laws limiting their ability to increase prices. However, economists have raised concerns that this policy could lead to shortages of goods if profit margins are lower, ultimately creating more problems than it solves. The policy could result in adverse consequences despite the good intentions.
In an effort to win over voters in Nevada, a key swing state, Harris vowed to eliminate taxes on tips, following a similar promise made by Trump. Economists have criticized this policy, stating that it could be overly complicated and unfair to workers, with potential implications for the federal budget deficit. Trump, like Harris, has embraced populism despite criticism from economists, advocating for policies such as ending taxes on Social Security for seniors and imposing tariffs on imports from China, which could potentially lead to higher inflation and economic instability.
Harris has not provided many details on her stance regarding tariffs, leaving some uncertainty about her economic policies. Trump’s approach to tariffs and other economic policies has been met with criticism from economists, who warn about the potential negative impacts on the economy. As the presidential election approaches, the spotlight is on the economic proposals put forth by both candidates and their potential implications for the economy and the American people.
