VPresident Kamala Harris on Friday unveiled several economic policy proposals that build on the Biden administration’s existing efforts to combat rising living costs – but with a much more aggressive approach.
Speaking in Raleigh, North Carolina, Harris pledged to create an “economy of opportunity” through a series of bold economic policies, including the first-ever federal ban on gouging in grocery stores, expanded down payment assistance for first-time home buyers and a $6,000 grant per child for the first year of life.
Harris said her proposals are designed to directly address the financial burden on American families. They aim to more effectively curb inflationary pressures and provide immediate relief in areas such as food, housing and child care. “As president, I will focus all of my energy on creating opportunities for the middle class that strengthen their economic security, stability and dignity,” Harris said.
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The economic proposals come as inflation has fallen in recent months from a peak of 9.1% in June 2022 but remains a pressing concern for many voters. Former President Donald Trump has sought to link Harris to the worst inflation Americans have seen since the Biden administration began. “Harris just declared that fighting inflation is going to be a priority for her from day one,” Trump said in an 80-minute press conference on Thursday. “But day one for Kamala was 3.5 years ago. Where was she?”
Harris drew a stark contrast to Trump in her speech, criticizing his economic policies for favoring wealthy corporations and billionaires while focusing her agenda on fighting price gouging and supporting working families. Her strategy reflects a broader shift within the Democratic Party toward more progressive economic interventions. It mirrors some of the policies advocated by Biden, but adds new elements aimed at addressing the immediate concerns of consumers.
Here are some of the most notable proposals from their economic plan.
Food and foodstuffs
Harris’ proposal to ban price gouging in grocery stores nationwide for the first time is not detailed enough to grab voters’ attention, but it is designed to grab voters’ attention. Harris said she would empower the Federal Trade Commission (FTC) to impose large fines on grocery chains that engage in “excessive” price increases. The campaign declined to provide further information, such as how Harris defines price gouging and excessive profits and whether the proposal would require working with Congress to pass legislation.
“My plan includes new penalties for opportunistic companies that take advantage of crises and break the rules,” Harris said. “We will support smaller food companies that are trying to play by the rules and get ahead. We will help the food industry become more competitive because I believe competition is the lifeblood of our economy. More competition means lower prices for you and your families.”
Harris crafted the measure in response to the nearly 26% increase in food prices since 2019, which has left many American families struggling to maintain their food budgets. However, the idea of government intervention in food prices has received a mixed response. While some progressive lawmakers praised the proposal, critics argue that price controls could lead to shortages and reduced supply because companies would have less incentive to stockpile and sell goods if their profits were capped.
Affordable housing and home ownership
On the issue of affordable housing, Harris proposed a $25,000 subsidy for first-time homebuyers and tens of billions of dollars to facilitate the construction of three million new housing units over the next four years.
The plan includes an expansion of housing tax credits and a $40 billion fund for local housing solutions, doubling investments proposed in Biden’s recent budget. While the Harris campaign touted these measures as critical to addressing a national housing shortage exacerbated by the pandemic, critics warn that these measures could inadvertently drive up housing prices by increasing demand without a corresponding increase in supply.
In her speech, Harris touted her accomplishments as California’s attorney general during the housing crisis, when she gained national attention as a fierce opponent of big banks and mortgage companies. “I’m not new to this issue. As the state’s attorney general, I drafted and helped pass a bill of rights for homeowners, one of the first in America,” Harris said. “I know how to fight for people who are being exploited in the housing market, and I know what homeownership means. It’s more than a financial transaction.”
Health and medical debt relief
Harris reiterated her commitment to provisions of Biden’s anti-inflation bill that would cap insulin prices at $35 a month and limit annual prescription drug out-of-pocket costs to $2,000. These measures, which currently apply to Medicare recipients, would be extended to all Americans under her plan.
Harris also pledged to build on the Biden administration’s efforts to combat medical debt and advocated for canceling more medical debt through federal initiatives and partnerships with states. But experts warn that while canceling medical debt can ease immediate financial pressures, it does not solve the underlying problems of high health care costs and inadequate insurance coverage.
Tax credits and childcare subsidies
Harris wants to use the child tax credit to give families $6,000 in the first year of a child’s life. The new tax credit would build on the Biden administration’s temporary expansion of the child tax credit during the pandemic, which research shows dramatically reduced child poverty.
Harris’ proposal follows one from Trump’s running mate and Senator JD Vance of Ohio, which began this month, that would have increased the tax credit from $2,000 to $5,000 per child. Harris’ campaign stressed that her proposal differs from Trump’s because it aims to provide immediate financial relief to young parents at a time when family expenses are at their highest and many parents are forced to take time off from work.
Harris also called for the restoration of the Biden administration’s child tax credit, which was set at $3,000 per child before it expired at the end of 2021. It is not immediately clear how much the restoration would cost.
A contrast to Trump’s economic vision
In her speech, Harris sought to draw a sharp contrast between her economic policies and those of Trump, who criticized her proposals as “dangerously liberal.” Trump has campaigned on raising tariffs on America’s trading partners, extending the sweeping tax cuts he signed in 2017 and cutting the corporate tax rate from 21 percent to 15 percent. He has also said he could reduce inflation across the board by boosting oil and gas production — which has reached record levels under the Biden administration — and by eliminating job-killing regulations, though he did not specify what those regulations were.
Harris said Trump’s actions, including his proposal for new tariffs on imported goods, would exacerbate inflation and amount to a tax hike on working families. “I think if you want to know who someone cares about, look at who they’re fighting for,” Harris said. “Donald Trump is fighting for billionaires and big corporations. I’m going to fight to give working and middle-class Americans their money back.”
