As U.S. voters remain largely dissatisfied with the economy under President Joe Biden, Kamala Harris has sought to define her own economic policy under the label of an opportunity economy. But what does that term mean, and how different is it than what Biden has offered?
Among many contentious topics influencing the 2024 election, the economy remains the number one issue for a majority of voters. With Americans reporting feeling worse off financially despite positive economic trends, Vice President Harris has sought to distinguish her own economic platform from that of the administration in which she currently serves.
President Biden’s economic platform has been characterized by support for unions and American industries, efforts to cancel student debt and attempts to pass major disaster recovery and infrastructure packages. Harris has aimed to build on these policies while doing more to address concerns over rising prices due to inflation, and her economic program has focused largely on ways to lower costs for Americans.
These proposals include a ban on price-gouging, a price cap on prescription drugs and subsidizing the construction of new homes in hopes that increasing supply will help stem rising housing costs.
Harris has also sought to make the case to voters that tariffs proposed by her rival, former President Donald Trump, will exacerbate price increases as companies pass higher import costs on to consumers. However, the vice president has also proposed tariffs in strategic industries such as energy and is likely to retain tariffs on Chinese goods maintained under the Biden administration.
The Harris campaign’s frequent references to an “opportunity economy” combine the Democratic Party’s traditional support for social safety nets and consumer protection regulations with an entrepreneurial message usually associated with Republicans. Besides expanding the child tax credit and the Earned Income Tax Credit, the vice president has echoed Trump’s proposal for eliminating taxes on tips earned by service workers.
Harris has also announced plans to provide more loans for new small businesses and to ensure that historically disadvantaged groups can benefit economically from the growing legal cannabis industry.
Harris’ California background and connections to Silicon Valley also suggest that she may be more friendly to the tech industry and the emerging cryptocurrency market. It remains to be seen whether a Harris administration would replace Lina Khan of the Federal Trade Commission and Gary Gensler of the Securities and Exchange Commission – two Biden appointees known for their tough regulatory approach.
The vice president’s economic plan has received a mixed reception. Many economists believe Trump’s proposed tax cuts and deregulation may help spur economic growth, but a majority polled by The Wall Street Journal have predicted that Harris’ less aggressive trade policy will be better for curbing inflation and the deficit.
When it comes to the general public, however, Harris is still perceived as less capable of handling the economy than Trump, although the margin of Trump’s advantage has shrunk as the election draws near.
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