Vice President Kamala Harris unveiled its economic agenda in a speech on Friday in Raleigh, North Carolina.

The Democratic presidential candidate laid out plans including a proposal for a federal ban on what she called price gouging on food, as well as a $25,000 down payment for certain first-time home buyers and tax breaks for home construction. She also spoke at length about lowering drug costs and criticized her Republican opponent’s platform. former President Donald Trump.

Here’s a closer look at some of their promises and claims.

The impact of Trump’s proposed tariffs

HARRIS: Trump “wants to impose a de facto national sales tax on everyday products and basic necessities that we import from other countries. … And you know, economists have done the math. Donald Trump’s plan would cost the average family $3,900 a year.”

THE FACTS: Harris was referring to Trump’s proposal to impose tariffs of 10 to 20 percent on all imports – he cited both figures – and up to 60 percent on imports from China.

Most economists believe the tariffs would raise the prices of many goods. The Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, estimates that average incomes for the top 60 percent of earners would fall by 1.8 percent. And the Center for American Progress Action Fund, a progressive advocacy group, has calculated that the higher tariffs would cost households an additional $3,900 annually. Trump has said, however, that revenue from the tariffs could be used to cut other taxes, which would lower the overall cost of the policy.

Reducing the cost of insulin and prescription drugs

HARRIS: “I will lower the cost of insulin and prescription drugs for everyone.”

THE FACTS: Harris made this promise with reference to the Inflation Reduction Act of 2022that allows Medicare to negotiate drug costs directly with pharmaceutical companies. While it’s difficult to predict whether it can comply with that law, especially without more details, recent policy may provide some clues.

The White House announced on Thursday that it had signed contracts with manufacturers that Taxpayers save billions of dollars by reducing the list prices for 10 of Medicare’s most expensive drugs. However, there are a number of factors – from discounts to the person’s Medicare drug plan deductible or copayment – that determine the final price a person pays when they pick up the drugs at their pharmacy.

Powerful pharmaceutical companies tried unsuccessfully to stop these negotiations with lawsuits. They eventually held talks and executives indicated in recent weeks during earnings calls that they do not expect the new Medicare drug prices to affect their profits. However, manufacturers have warned that the Inflation Reduction Act could drive up prices for consumers in other areas.

Both the Trump and Biden administrations have capped insulin copayments at $35 for certain Medicare beneficiaries. Biden’s caps have a broader reach because they apply to all insulin products covered by a Medicare Part D or Part B plan. According to the non-profit health policy research KFFTrump’s proposal only applied to some insulin products covered by a voluntary subset of Part D plans.

A nationwide ban on “price gouging” in the food trade

HARRIS: “As president, I will address the high costs that matter most to most Americans. … And I will work to ensure that the first federal ban on food price gouging is passed.”

THE FACTS: Although food prices are 25% higher today than they were before the pandemic four and a half years ago, they have stabilized recently and it is not clear whether price gouging is currently occurring.

Over the past 12 months, food prices have risen by an average of just 1.1%, comparable to pre-pandemic price increases. Moreover, prices for most goods and services generally do not fall significantly except in deep, painful recessions. Instead, most economists expect wages to rise enough to allow Americans to adjust to higher costs. Yet prices overall are still higher than they were a few years ago.

Combating the housing shortage and helping home buyers

HARRIS: “And by the end of my first term, we will end America’s housing crisis by building three million new owner-occupied and rental homes. … While we work on the housing crisis, my administration will provide first-time homebuyers with $25,000 to help them make a down payment on a new home.”

THE FACTS: These promises may end up being contradictory. Harris’ proposal to subsidize the down payment would help more Americans afford a home, almost certainly increasing demand. And this comes at a time when estimates of the housing shortage in the United States are already between 3 million up to 7 million.

Harris’ proposal to offer tax incentives to builders to encourage the construction of homes and apartments would address this problem. However, there are many reasons experts cite for the housing shortage, including restrictive land use laws, higher costs for building materials and even for the shortage of construction workers that cannot be addressed by tax incentives.

Harris also promises to cut red tape that restricts new construction, but that is primarily a state and local issue, and many communities are already in motion to make house building easier.

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