As the date of the November 5 presidential elections approaches, the matter of the economy has emerged as one of the major issues of the voters. The debate between Democratic candidate Kamala Harris and her Republican counterpart, Donald Trump, most likely, will be dedicated to the Key Economic Issues. Given that 8 in 10 adults point to the economy as their number one, higher than issues such as abortion or climate change, it is only logical that candidates would seek to demonstrate their plans for improving the economic situation.
Elevated prices and inflation
Inflation had to be the number one on the agenda as far as the year 2021 was concerned as it was clear that prices were on the rise which in turn was because of the effects of the covid on supply chains and the stimulus packages by the government. Nevertheless, there are still major markets which tended to cool down in the last few months, such as grocery costs which were 21% above pre pandemic levels. For instance, a grocery cart which was 150 dollars in 2020 now costs roughly 182 dollars thus increasing strain on a household budget.
Harris has pledged to fight inflation by being the first to introduce a federal law, charging food suppliers and retailers against price exploitation. However, a number of economists voice concern whether such policies would fetch down the prices to such extent. While the situation for most economists who look at aggressively fighting inflation is rather grave, Donald Trump has claimed he will remove what he terms the “inflation nightmare.” Some critics, however, argue that his intention to implement barriers on imports will turn back the trend of decreasing inflation.
Taxes: Rival Perspectives
Some tax proposals have been made by Harris and Trump that are markedly opposed to each other. Harris’s plan involves an increase in taxes on corporations, but his political nemesis Trump wants to decrease the tax from twenty-one to fifteen percent. In addition, he wants to continue the implementation of the Tax Cuts and Jobs Act12, enacted in 2017 and primarily in favor of the upper-class section of society. A number of such tax cuts are unwinding in the year 2025 and this is one of the key messages in the Presidential Campaign for Trump.
Harris’s tax plan includes more targeted relief to the low and middle-class families such as the provision of a Child Tax Credit of up to $6000 for new parents and the enhancement of Earned Income Tax Credit. Nonpartisan analyses suggest that her proposals would reach out to more Americans than Donald Trump especially those on the lower income bracket.
Housing and Affordability
The lack of affordable housing has been a persistent hurdle for many after the recession, especially for American citizens. High mortgage rates combined with rampant increases in prices of homes have rendered the possibility of home ownership to millions as a pipe dream. To alleviate this situation, Harris has also suggested putting down $25000 in down payment assistance on the first purchase for rental tenants who do not miss their payments and extending tax-breaks to developers of low cost housing to stimulate the market.
Trump on the other hand has also advocated for introducing some of the country’s federal land into use in an effort to expand the housing stock. Quite ironically however, his plan to expel into thin air some undocumented workers who constitutively work in the construction sector in the US, is likely to aggravate the housing crisis if at all this plan proves to have a chance of success.
As the course of politics shows, the economy will certainly be the main determinant of the next US president. They are coming out to convince the voters that their policies will not only tame the wave of inflation but even bail America out of the current state of economic quagmire that has prevailed for quite some time now.
