With the 2024 Presidential Election on the horizon, Vice President Kamala Harris, the Democratic nominee, has articulated her strategy to support middle-class Americans grappling with daily financial strains. In her recent Raleigh, N.C., address, Harris underscored the imperatives of reducing housing and grocery store prices. While she lauded the accomplishments of the Biden administration, she acknowledged a palpable public disconnect from these achievements. Harris’s economic roadmap signifies her commitment to the middle class, but certain details in her agenda remain to be fleshed out as the campaign advances.
Addressing Housing Affordability
Tax Breaks for Housing Construction
A core element of Harris’s economic agenda is tackling the perennial challenge of housing affordability. Despite overall inflation rates cooling, housing costs persist as a pressing issue. Harris pinpointed the inadequate housing supply as the root of the problem and proposed tax breaks to jumpstart the construction of 3 million housing units over the next four years. This initiative aims to alleviate supply constraints that have driven up prices and put homeownership out of reach for many Americans.
New tax incentives targeted specifically at the development of starter homes mark a significant aspect of Harris’s plan. These incentives are designed to benefit first-time homebuyers, making a tangible impact on their ability to purchase homes. However, critics argue that such credits might inflate housing prices further due to the increased purchasing power they provide, without necessarily expanding the actual supply.
First-Time Homebuyer Benefits and Innovation Fund
Additionally, Harris seeks to provide a substantial $25,000 credit for first-time homebuyers, seeking to ease the financial burden of down payments and make homeownership accessible to a broader demographic. Complementary to this, a proposed $40 billion innovation fund aims to assist local governments in navigating rental market challenges—an effort to bring equilibrium to the housing market.
However, this proposal faced criticism for potentially elevating home prices without addressing the supply issue directly. Kevin Hassett, a former economic advisor to President Trump, reflected these concerns by suggesting the credits might lead to higher home prices without a corresponding increase in housing availability.
Reducing Food and Healthcare Costs
Combatting Food Price Gouging
Another cornerstone of Harris’s economic policy is targeting food and healthcare costs, which she emphasized in her speech. Harris accused certain businesses of engaging in food price gouging, suggesting this practice contributes significantly to the financial strain on American families. To address this, she proposed granting more authority to regulatory bodies like the Federal Trade Commission (FTC) to impose limitations and curb such exploitative practices.
This suggestion drew backlash from various quarters, including the Trump campaign, which labeled it as governmental overreach. Non-partisan economists echoed the sentiment, highlighting potential shortages as a consequence of such regulations. Conversely, figures like Adam Green from the Progressive Change Campaign Committee defended the plan as necessary to create a competitive and fair marketplace.
Expanding Affordable Healthcare
In the realm of healthcare, Harris’s proposals build on President Biden’s policies, aiming to cap insulin costs at $35 and limit annual out-of-pocket prescription drug expenses to $2,000 for all patients, extending beyond the current cap for seniors. She also targets substantial savings by expediting Medicare’s ongoing drug price negotiations, efforts that persist from the Inflation Reduction Act of 2022.
Furthermore, Harris advocated for addressing medical debt—proposing the removal of such debts from credit reports and pushing for the cancellation of up to $7 billion in existing medical debt. These measures are poised to deliver immediate financial relief to affected individuals and families, alleviating some of the burdens associated with exorbitant healthcare costs.
Enhancing Family and Worker Support
Reviving the Child Tax Credit
Harris’s economic blueprint also revisits the child tax credit, proposing an initial $6,000 credit during a child’s first year, followed by a $3,600 credit in subsequent years. This enhancement seeks to provide more substantial and targeted financial relief compared to earlier expansions under the Biden administration.
In addition, Harris aims to bolster the Earned Income Tax Credit (EITC) for low- and moderate-income workers and their families. This reform is intended to deliver more significant financial benefits to vulnerable populations, demonstrating Harris’s commitment to addressing economic inequalities.
Support for Manufacturing Policy and National Debt
With the 2024 Presidential Election approaching, Vice President Kamala Harris, the Democratic nominee, has outlined her strategy to aid middle-class Americans dealing with everyday financial challenges. In her recent speech in Raleigh, N.C., she emphasized the need to lower housing and grocery prices. Harris praised the Biden administration’s achievements but also noted that many people feel disconnected from these accomplishments. Her economic plan underscores her dedication to the middle class, though specifics of her agenda will need to be detailed as the campaign progresses.
Harris aims to address the growing economic concerns many Americans face. By focusing on key issues like affordable housing and the rising cost of groceries, she plans to make daily expenses more manageable for families. Her acknowledgment of the gap between the administration’s successes and public perception indicates her awareness of the need for better communication and tangible results. As her campaign continues, the development of these economic policies will be crucial to her strategy, ensuring that they resonate with the needs of middle-class voters.
