Market Analysis

U.S. Vice President Kamala Harris is expected to introduce a new set of economic policies this week aimed at helping Americans build wealth while incentivizing businesses to support that goal, according to three sources familiar with the matter.

These policies, which have not been previously disclosed, may be announced in Pittsburgh on Wednesday. The rollout comes as undecided voters, particularly in key swing states, continue to seek clarity on Harris’s economic platform as she campaigns for the presidency in November, the sources added.

Harris, speaking with reporters on Sunday following a Reuters report about the planned announcement, said she intends to present her vision for the economy during a speech this week. She described her plan as focused on investing in Americans' aspirations and addressing their economic challenges.

This policy rollout follows an internal Democratic debate over whether releasing new economic proposals so close to Election Day is a strategic move.

“It’s not just about making things more affordable, but about showing voters a pathway to building wealth,” one source with direct knowledge of Harris’s economic agenda said, adding that Harris aims to help Americans "get a foot in the door."

While specific details of the new proposals were not provided, the Harris campaign declined to comment on any upcoming initiatives. During her 2020 presidential campaign, and under the Biden administration, Harris has supported initiatives with similar goals.

In 2020, Harris proposed significant salary increases for public school teachers and policies requiring companies to disclose gender pay disparities, with penalties for those failing to close the gap. As vice president, she has worked with the Biden administration to tackle bias in home appraisals and utilize the federal contracting budget to support minority-owned businesses.

Harris has also previously rolled out policies targeting high costs in housing, taxes, small business expenses, childcare, and consumer goods. Her approach often builds upon President Biden’s policies, such as increasing the child tax credit and raising the corporate tax rate to 28%.

James Singer, a spokesperson for the Harris campaign, did not comment on any new proposals but stated that Harris will continue promoting her "opportunity economy" agenda, aimed at lowering costs, making housing more affordable, and boosting economic growth across the U.S.

However, releasing new economic policies with less than 50 days left in a closely contested election poses a challenge. Some campaign advisors acknowledge that these new measures might not reach critical voters in time.

"Typically, by September, campaigns focus more on mobilizing voters rather than persuasion. But this is not a typical campaign," one source explained, referring to Harris's late July rise to the top of the ticket. "We must persuade and mobilize simultaneously up to Election Day."

Former President Donald Trump’s economic proposals for working-class Americans include eliminating taxes on tips and Social Security benefits, increasing housing construction on federal lands, and deporting millions of immigrants, which Republicans claim is driving up costs. Trump has also proposed new tariffs on goods not made in the U.S., which could raise consumer prices but has garnered support from a slim majority of voters.

Trump has frequently criticized Democrats for inflation, particularly pointing to the rise in food prices post-pandemic. The U.S. Department of Agriculture reported a 25% increase in the Consumer Price Index for food from 2019 to 2023.

SHIFTING VIEWS ON THE ECONOMY

Historically, Republicans have polled more favorably on economic issues, and Trump held an advantage over both President Biden and Vice President Harris earlier this year. However, recent polling indicates a shift in Harris's favor.

A Financial Times-Michigan Ross poll this month showed 44% of registered voters trust Harris’s economic leadership compared to 42% for Trump. Additionally, August polling from Reuters/IPSOS revealed that Harris is closing the gap on economic issues.

The Federal Reserve’s recent decision to cut interest rates by half a percentage point, signaling a reduced risk of inflation, may also help lower consumer costs.

Some of Harris’s supporters have suggested that her campaign should emphasize her existing economic message rather than introduce new ideas. Longtime Democratic strategist Donna Brazile advised the campaign to engage voters more directly through visits to grocery stores and apartment buildings rather than issuing more detailed policy papers.

"While inflation has eased, the cost of living remains high. Some of this is the result of the post-pandemic recovery, which still needs to be addressed," Brazile said.

Others argue that new economic policy proposals are unnecessary. Harris donor Adam Newar, who manages investments, emphasized that the 2024 election is more about character than policy.

"At this point, I’m not sure what more policy information adds. Harris needs to continue communicating her vision to those who feel left behind," Newar said.

Many of Harris’s proposals would require congressional approval and may face significant hurdles unless Democrats gain control of both the House and Senate.

Paraphrasing text from "Reuters" all rights reserved by the original author.