Kamala Harris is set to unveil plans for a federal ban on food and grocery “price gouging” and assistance of up to $25,000 in down payment support for first-time homeowners – populist proposals the vice president has embraced since becoming the Democratic Party’s presidential nominee.
Harris is scheduled to outline her proposals Friday, in her first speech on the economy focusing on dealing with rising grocery and housing prices – key concerns for voters. She is set to speak in front of supporters at a rally in Raleigh, North Carolina, a battleground state that she and former President Donald Trump, the Republican nominee, are vying to win in the November presidential election.
“In her first 100 days, Vice President Harris will work to enact a plan to bring down Americans’ grocery costs and keep inflation in check,” her campaign said in a memo to reporters Wednesday.
Harris aims to ensure “big corporations can’t unfairly exploit consumers to run up excessive corporate profits,” her campaign said, and will specifically call out the “highly consolidated” meat processing industry. “The lack of competition gives these middlemen the power to drive down earnings for farmers while driving up prices for consumers.”
Speaking to reporters Thursday, Trump called Harris’ proposal “communist price controls.”
“They don’t work, they actually have the exact opposite impact and effect,” he said. But it leads to food shortages, rationing, hunger, dramatically more inflation.”
In the U.S., the Federal Reserve sets interest rates independently, and presidential policies do not have much influence on lowering prices, at least in the short term.
“It is highly unlikely that any single policy introduced by a president could have a significant enough impact to bring inflation down from its current level to the Federal Reserve’s long-term target for the economy, which is 2%,” said Andrew Lautz, associate director for the Bipartisan Policy Center’s Economic Policy Program.
Trump has said he will fight rising prices by boosting oil and gas production. While increasing energy supply could have a downward pressure on prices, and in turn on inflation, it won’t happen quickly, Lautz told VOA.
Lower inflation
While Americans are still feeling the pain, last month U.S. year-over-year inflation dipped under 3% for the first time since March 2021. Unemployment remains low, retail sales figures are upbeat, and most economists no longer warn of recession.
Still the overall health of the economy remains a key concern for voters, and a point of attack on the campaign trail.
“The only thing Kamala Harris can deliver is horrific inflation, massive crime and the death of the American dream,” Trump said.
Both candidates have also promised to slash federal taxes on tips received by workers in the service and hospitality industry.
Critics say that proposal won’t help fast food servers or other low-income workers who don’t get tips and is vulnerable to abuse.
“How can we be sure that it’s deserving working people, as opposed to opening the door to a whole bunch of other people who might treat their bonuses and performance fees like tips and exempt themselves?” said Steven Rosenthal, senior fellow at the Tax Policy Center.
Such proposals are common during presidential campaigns, Rosenthal said. “We often see a race to the bottom, with the candidates trying to outbid themselves for how many tax cuts they can promise.”
If enacted, those promises will be costly at a time when the country needs to seriously think about fiscal responsibility and deficit reduction, said Lautz.
“We are at nearly $28 trillion in federal debt held by the public,” he said. “The Congressional Budget Office estimates that’s going to increase by another $20 trillion or so over the next decade.”
Trump previously held a commanding lead among voters on key economic issues, with various polls showing Americans think they will be better off financially under Trump than President Joe Biden.
However, a survey conducted for the Financial Times and the University of Michigan’s Ross School of Business published this week found that 41% trust Trump to be better at handling the economy, while 42% believe Harris would be better – a figure up seven points from Biden’s numbers in July.
