Kamala Harris’ economic agenda will lower costs for American families
The past few weeks have seen a dramatic shift in the mood of the presidential election. Vice President Kamala Harris has been packing stadiums as she tours the country with her new running mate, Minnesota Governor Tim Walz. Last week, there was a lot of focus on the Harris campaign unveiling a new economic agenda, and today I’ll dive deeper into how that agenda will improve the lives of many Americans.
Harris’s primary focus is to lower the cost of everyday goods for the average citizen while creating the incentives and benefits necessary to create affordable housing for all. In a literal sense, Harris plans to make the American Dream a reality for millions more Americans, especially young people who can no longer afford housing due to inflated rents and housing prices. By confronting corporate greed, a Harris presidency would make it significantly more affordable for millennials and Gen Z to raise families and for baby boomers to retire with dignity.
Let us take a closer look at the concrete proposals.
1. Call for the construction of three million new housing units to end the housing shortage in the next four years.
We all know that housing is a huge problem across the country, concentrated mostly in metropolitan areas like New York. However, in order for people to afford housing close to where they work, we need to broaden our view to include suburban and rural areas for investment and development. Creating new housing units is simply supply and demand; however, it is important to note that increasing the supply of housing units does not and will not undermine the value of current homeowners. The demand is so great that it artificially drives up housing prices, creating a feedback loop that also limits older Americans because they cannot afford to downsize, which in turn discourages young families from buying the homes currently owned by the Silent Generation/Boomers.
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Harris plans to accomplish this by creating the first entry-level homebuilding tax incentive and expanding existing tax incentives for companies engaged in affordable rental housing construction. This is critical because developers are largely incentivized to only build “luxury” units that give them the highest return. With a tax incentive, affordable housing can be built at a profitable margin while still remaining affordable to regular folks. They also plan to create a fund to encourage innovative housing construction. This will enable local governments to fund local housing solutions. This is an innovative and pragmatic policy because the needs of Bucks County residents are different than those of Nashville or Los Angeles, but ultimately we are all struggling with a housing shortage. And interestingly, Harris also plans to cut red tape and unnecessary bureaucracy around housing. I particularly like this because it will alleviate some of the burdensome regulations and make government functional and efficient – just like we want it to be!
2. Lowering rents for hard-working Americans by fighting against corporations and large landlords.
Much of the plan focuses on homeownership, which is a central part of the American dream; however, renters are particularly skewered by landlords who are raising rents astronomically with no consequences to date. This is critical for young Americans, as we have been largely confined to renting for the past two decades. Harris plans to accomplish this by preventing Wall Street investors from buying up homes in bulk and making them more expensive. This would be accomplished by passing the Law against Predatory Investing which will limit the purchase of single-family homes for rent by investors. Harris also plans to prevent rental data companies from fixing prices to increase rents. There is no functioning rental market if large corporations manipulate the system to the detriment of the working population.
3. Providing a historic $25,000 down payment for first-time home buyers.
The Biden-Harris administration had previously proposed a program that would provide $25,000 to first-time homebuyers and $10,000 to first-time homebuyers. While this is a progressive policy that could help many Americans, the means test limits the program’s impact. By providing the full $25,000 down payment to all first-time homebuyers, the impact will be significantly greater and provide funds to young people who cannot save enough money while paying inflated rent prices. With the influx of funds, young people could finally be able to afford to buy the homes they need to support their families, and housing could be created for older Americans so they can downsize without breaking the bank.
4. Reduce prescription drug costs and relieve medical debt
Millions of Americans use necessary and life-saving prescription drugs that were previously funded by taxpayer dollars. Under the Biden administration, we finally got Medicare to negotiate drug costs with manufacturers, both saving the government money and lowering consumer out-of-pocket costs. That also included a $35 cap on insulin for seniors. While that’s great, there are millions more people who rely on insulin and other prescription drugs who aren’t eligible. Under her plan, Harris will extend that cap on insulin to everyone and cap all out-of-pocket costs at $2,000.
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It is still ridiculous to me that America is the only modernized country that does not provide universal health insurance, but what is worse is that millions of Americans suffer from crushing medical debt. Americans deserve better. Harris’ proposal includes a plan to cancel medical debt for up to 3 million people. Let me also say that a Trump presidency with the elimination of Affordable Healthcare Act This would strip millions of Americans of their health insurance and dramatically increase costs for those who still have insurance by eliminating patient protections for pre-existing conditions included in the ACA. In contrast, Harris, of course, plans to expand the ACA and increase competition among companies (both pharmaceutical companies and insurance companies) to reduce costs for consumers.
5. Reduce food costs
As major corporations expand their influence and buy up smaller competitors, they continue to post record profits. While COVID has affected global supply chains, corporate greed has been the biggest factor in increased prices for food and consumer goods. If you only listened to Republican rhetoric, you would believe this was due to increased government spending, but that’s a bunch of bullshit. Fortunately, we may have a working-class champion standing up to these greedy corporations and limiting price increases by passing a federal ban on price gouging on food and groceries. Arguably one of Biden’s best decisions was strengthening his FTC and NLRB, and under a Harris administration, we should expect more of the same. On this issue in particular, the FTC will be given new powers to investigate and impose harsh penalties on companies that try to rip off consumers.
6. Tax cuts for the middle class – with up to $6,000 tax credit per child
While Trump and Vance pose as fighters for ordinary people, in reality they represent the interests of the wealthy elite and billionaires who benefited from the 2017 tax cut during Trump’s presidency. Harris will not play a role; she will actually pass legislation that benefits the working class and young families. Recall that Republicans opposed continuing the expanded tax credit, but Harris is proposing a new $6,000 child tax credit for families with children in their first year and restoring the expanded $3,600 child tax credit that was introduced as part of the American Rescue Plan. And if you don’t have kids, Harris wants to cut your taxes by up to $1,500 by expanding the Earned Income Tax Credit. And in parallel with other health insurance cost savings, Harris wants to cut taxes by up to $6,000 to allow Americans to afford their health insurance purchased through the ACA marketplace. Although it’s not explicitly stated here, I’d also like to add that the Biden/Harris plan has always included protecting Social Security and Medicare by raising the cap on the tax that funds both programs. That would make both solvent indefinitely.
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All in all, Vice President Kamala Harris has given Americans a lot to think about with her first platform. Unlike Trump, her proposals are pragmatic and offer opportunities for ordinary people. And more importantly, Kamala Harris is proposing an agenda that gives hope – one that makes the American dream possible for younger generations. I am excited to see what else comes out of her campaign, especially on the issues of workers’ rights, wealth inequality and healthcare.
While these proposals address some of those issues, there is still more work to be done. It looks like Harris will seek to continue the domestic agenda that has improved the lives of millions of Americans, and we know it will protect the civil rights of all while preserving our democracy. Harris’ agenda is something to be excited about, and I can’t wait to see what else is unveiled during the Democratic National Convention next week.
