Kamala Harris details economic plans ahead of upcoming election

In her debut speech focused on economic policy, Kamala Harris announced a set of proposals aimed at boosting the construction of new homes, providing assistance to first-time homebuyers, offering tax relief to families, and curbing grocery store price hikes, 

As the Democratic presidential nominee, Harris’s plans build on the Biden administration’s initiatives, targeting voter concerns about price increases seen by consumers since 2021. However, many of these proposals would need Congressional approval, where similar ideas have previously faced hurdles.

Among the proposals is a novel tax credit designed for builders who sell homes to first-time buyers, alongside up to $25,000 in down-payment assistance for qualifying first-time buyers, a move her campaign predicts could benefit four million households over four years.

Harris has also advocated for capping the monthly cost of insulin at $35 for all to reduce medical debt and offering a $6,000 tax credit to families in the year they welcome a new child. 

Additionally, she supports a federal law to prevent companies from excessively raising grocery prices and has urged Congress to pass legislation that would restrict property owners from using services that “coordinate” rent increases.

Democrats and their supporters hope Harris will resonate more strongly with voters on economic issues than President Joe Biden has.

While some of Harris’s proposals, like the ban on price-gouging, are expected to be popular, they have also drawn criticism from certain economists. 

Although many states already have price-gouging laws in place during emergencies like hurricanes, experts argue that the term is difficult to define, and expanding such rules could have unintended consequences, such as discouraging production during times of scarcity.

With populism gaining momentum in both major parties, these concerns haven’t deterred Trump’s running mate, JD Vance, from endorsing an even larger tax credit expansion. 

However, Prof Salinger pointed out that Trump’s other economic strategies are unlikely to address inflation worries. Economists suggest that increased drilling would have a minimal impact on global energy markets and warn that Trump’s proposal to impose a 10% or higher tax on imports would likely drive prices up further.

Currently, price increases are slowing down, as disruptions from pandemic-era supply chain issues and the war in Ukraine are easing. 

Inflation, which measures the rate of price growth, was 2.9% in July, marking the smallest annual increase since March 2021, according to the Labor Department. This is nearing the 2% rate considered standard, although prices have risen about 20% since January 2021.