Kamala Harris touted an economic plan during Tuesday night’s US presidential debate against former president Donald Trump which she called the “opportunity economy.”
As the US grapples with persistent economic concerns, Harris’s plan aims to address the needs of working and middle-class families. Here’s what we know so far.
The Democratic candidate’s economic agenda, while broadly aligned with the Biden administration’s policies, is an approach that reflects her personal priorities and political strategy, which one of her aides told The Guardian was a case of “same values, different vision.”
“She’s not moving far away from him on substance, she will highlight the ones that matter most to her,” the aide said.
The vice president’s focus on the economy is no coincidence. Polling has consistently shown that economic issues remain at the forefront of voters’ minds in this election cycle. With the Biden administration facing low approval ratings on economic management, Harris sees an opportunity to reframe the narrative and offer a fresh perspective on tackling America’s economic challenges.
Here are the key pillars of the Vice President’s economic plan.
Housing crisis intervention
At the forefront of Harris’s “opportunity economy” is a bold $40 million investment aimed at addressing the nation’s housing crisis. This figure, notably double the amount allocated by the Biden administration, underscores Harris’s more aggressive stance on tackling housing affordability and availability.
Enhanced child tax credit
A centrepiece of Harris’s economic vision is an expanded child tax credit. In her own words during Tuesday night’s debate with Trump, she proposed “extending a tax cut for those families of $6,000, which is the largest child tax credit that we have given in a long time.”
This measure aims to provide tangible financial relief to young families, she said on Tuesday, enabling them to afford essential items for child-rearing such as car seats, cribs, and clothing. By focusing on this demographic, Harris is targeting a key voting bloc while addressing the financial strains many young parents face in today’s economy.
Small business empowerment
Drawing from personal experience and recognising the vital role of small businesses in the American economy, Harris has proposed a $50,000 tax deduction for start-up small businesses. This policy not only reflects her stated passion for supporting small business owners but also aligns with a broader strategy of fostering entrepreneurship and local economic development. By providing substantial tax incentives for new businesses, the Vice President aims to stimulate job creation and economic growth from the ground up.
Aggressive price gouging prevention
In a move that goes beyond current administration policies, Harris proposes empowering the Federal Trade Commission (FTC) and US attorneys to take decisive action against companies engaged in price gouging, a Politico report noted.
This aggressive stance on consumer protection demonstrates Harris’s willingness to confront corporate practices that she sees as harmful to working Americans. It also serves to differentiate her approach from both the current administration and her Republican opponent, Donald Trump.
‘Strategic vagueness’ and flexibility
Interestingly, The New York Times reported that the Vice President’s campaign has deliberately maintained a degree of “strategic vagueness” in some aspects of her economic proposals. This approach, designed to present Harris as something of a “blank slate,” serves a dual purpose.
First, it potentially shields her from specific attacks on her policies. Second, it may help attract support from business groups who might be wary of more detailed, potentially restrictive economic plans.
Contrasting with Trump’s economic vision
Harris has been quick to draw distinctions between her “opportunity economy” and the economic policies proposed by her opponent. She characterises Trump’s plan as primarily benefiting “billionaires and big corporations,” arguing that it would add $5 trillion to America’s deficit.
A key point of contention is what Harris terms the “Trump sales tax,” which she claimed on Tuesday night’s debate would impose a 20 percent tax on everyday goods. Harris asserts that, according to economists, Trump’s policies could result in middle-class families paying an additional $4,000 per year. This framing allows Harris to position her economic plan as more favourable to working and middle-class Americans, in stark contrast to what she portrays as Trump’s trickle-down approach.
Public perception and polling
As Harris rolls out her economic vision, early polling provides a mixed picture of public sentiment.
A Financial Times/University of Michigan poll from August 11 showed Harris with a slight edge over Trump on economic trust, with 42 percent of voters trusting Harris more to handle the economy compared to 41 percent for Trump. However, the same poll revealed that 42 percent of respondents believe a Trump presidency would leave them better off financially, while only 33 percent say the same for Harris.
In the months ahead, Harris is expected to further flesh out the details of her “opportunity economy” while defending it against critiques from both the right and the left. As inflation concerns persist and economic uncertainties loom, the vice president’s ability to convince the American public that her vision offers a path to prosperity for all could prove crucial in determining the outcome of the 2024 presidential race.
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