Vice President and Democratic presidential nominee Kamala Harris gave the first real look into her economic agenda Friday, Aug. 16. The speech in Raleigh, North Carolina, marks the first major policy address given since she has taken over the top of the ticket.
Harris is looking toward the economy as it remains one of the top priorities for the majority of voters. The policies she laid out this week take those of the Biden-Harris administration a step further.
Price gouging
Harris said she supports a federal ban on price gouging. While most states have some sort of ban on the books in cases of emergency, this would allow the federal government and Federal Trade Commission to enforce laws nationwide.
“Look, I know most businesses are creating jobs, contributing to our economy and playing by the rules. Some are not and that’s just not right,” Harris said Friday. “And we need to take action when that is the case.”
President Joe Biden has made price gouging a key talking point of his presidency, especially in the case of pharmaceuticals. He touted allowing Medicare to negotiate drug prices and created a task force to deal with unfair and illegal pricing spearheaded by the Department of Justice and FTC.
“Too many corporations raise prices to pad their profits, charging more and more for less and less,” Biden said during his 2024 State of the Union address. “That’s why we’re cracking down on corporations that engage in price gouging and deceptive pricing.”
Sen. Elizabeth Warren, D-Mass., introduced a bill on a federal price gouging ban in the Senate in February. That bill makes it illegal for a person to sell something at a grossly excessive price, leaving the FTC to define what is considered “grossly excessive.”
But critics say an anti-price gouging policy is tantamount to price controls.
“Government-imposed price controls create scarcity and a vicious cycle of poverty and dependence on government. So naturally, Kamala Harris likes them,” Sen. Mike Lee, R-Utah, posted on X.
Grocery prices have climbed 21% since Biden took office. Democrats often blame corporate greed while Republicans blame federal spending.
While grocers did see elevated profit margins during the height of inflation, an analysis by the Federal Reserve Bank of San Francisco said markups are not the main driver of inflation post-pandemic, claiming supply chain shocks drove prices up.
For his part, former President Donald Trump highlighted how he plans to bring down grocery prices on Thursday.
“We’re going to drill, baby drill, that’s going to bring down prices of everything, because energy brought it up,” Trump said.
Housing affordability
Harris is also building off of the Biden administration’s efforts to increase housing inventory and affordability. Biden outlined plans for 2 million homes during his State of the Union address.
“I’ve cut red tape so more builders can get federal financing, which is already helping build a record 1.7 million housing units nationwide,” Biden said in March. “Now pass my plan to build and renovate 2 million affordable homes and bring those rents down!”
Haris is upping the ante to 3 million housing units in her first term, including tax incentives for builders to expand supply.
“I know what home ownership means,” Harris said Friday. “It’s more than a financial transaction. It’s so much more than that.”
The vice president also proposed a $25,000 tax credit for first-time home buyers as down-payment assistance, a policy that would require approval from Congress.
Last year, a measure of housing affordability hit its lowest level in nearly four decades, meaning the typical American family cannot afford the typical American home.
Trump also addressed housing needs and lack of inventory this week.
“We’re going to open up tracks of federal land for housing construction,” Trump said Thursday. “We desperately need housing for people who can’t afford what’s going on now.”
Most federal land is controlled by the Bureau of Land Management, Fish and Wildlife, the National Park Service and the Department of Agriculture.
Child Tax Credit
Harris’ plan to expand the Child Tax Credit also takes the Biden administration’s policy one step further.
Biden called to make permanent the 2021 pandemic-era child tax credits at $3,600 per child. When the policy expired, it reverted to $2,000 per year.
“Restore the Child Tax Credit because no child should go hungry in this country,” Biden said in his address to Congress. “The way to make the tax code fair is to make big corporations and the very wealthy finally pay their share.”
Harris is looking to expand the tax credit and is also looking for a subsidy reminiscent of baby bonuses that would give parents $6,000 the first year the child is born.
“The costs can really add up, especially for young parents who need to buy diapers and diapers and clothes and a car seat and so much else,” Harris said.
This policy is where the campaigns of Harris and Trump are most aligned.
“We will support baby boomers and we will support baby bonuses for a new baby boom,” Trump said in August of last year.
Trump’s running mate, Sen. JD Vance, R-Ohio, laid out his own plan for the child tax credit over the weekend.
“I think one of the things you can do is make it bigger per child,” Vance said on CBS Face the Nation. “I think we’d love to see it at a higher dollar value. And again, President Trump and I have proposed that. I mean, look, I’d love to see a child tax credit that’s $5,000 per child.”
Despite the appearance of bipartisan support, a bill that would have extended the popular pandemic-era child tax credit failed to pass the Senate this summer.
