By Nandita Bose
WASHINGTON (Reuters) – U.S. Vice President Kamala Harris plans to introduce a new set of economic policies this week aimed at helping Americans build prosperity and providing economic incentives for businesses to achieve that goal, three sources with knowledge of the matter said.
The new policies, which have not been previously reported and could be announced in Pittsburgh on Wednesday, come as undecided voters continue to demand more information about how Harris would help them economically if elected president in November, including in crucial swing states, the sources said.
The move comes amid heated debate in Democratic circles over whether it is a smart strategy to release more economic policy so close to Election Day.
“It’s not just about affordability, it’s about showing (voters) that there is a way to build prosperity,” said one of the sources with direct knowledge of Harris’ economic plans, adding that she wanted to show Americans how to “get your foot in the door.”
None of the sources would provide specific details about the expected new policies, and Harris’ campaign declined to comment on new proposals. However, Harris’ 2020 presidential campaign and President Joe Biden’s administration have plans with similar goals.
In her 2020 campaign, Harris proposed significant pay raises for the millions of public school teachers, forcing companies to publicly disclose their gender pay gaps and penalizing those who don’t close them. The Biden-Harris administration has pushed to eliminate bias in housing appraisals and use the federal contracting budget of more than $700 billion to support minority-owned businesses.
Harris has launched a package of economic policies that target the high cost of housing, taxes, small business spending, child care and goods. Her plans often build on Biden’s policies, such as expanding the child tax credit and raising the corporate tax rate to 28%.
Campaign spokesman James Singer told Reuters that Harris “will continue to present her agenda for an opportunistic economy to lower costs, make housing more affordable and boost economic growth across America.”
Some advisers acknowledge that announcing new economic policies with less than 50 days to go in a neck-and-neck presidential election could result in the new measures never reaching key voters.
“Normally you see a voter-convincing campaign end in September and move on to mobilizing people, but this is not a typical campaign,” said one source with knowledge of the new plans, referring to Harris’s jump to the top of the ticket in late July. “We have to continue to persuade and mobilize people at the same time until the end.”
Republican Donald Trump’s economic proposals, aimed at America’s working class, include eliminating taxes on tip incomes and Social Security benefits, opening up federal lands for housing and deporting millions of immigrants to the country, which Republicans say will drive up costs.
The former president has also proposed new, across-the-board tariffs on goods not made in the U.S., which could increase costs for American consumers and inflation. However, the proposal has the support of a slim majority of voters.
Trump has tried to palm off on Democrats’ inflation, which has skyrocketed worldwide as lockdowns over the COVID-19 pandemic eased, and has made the still-high cost of groceries, particularly bacon, a fixture of speeches. From 2019 to 2023, the Consumer Price Index for food rose 25%, the U.S. Department of Agriculture reported.
HARRIS PROFITS ON ECONOMY
Republicans generally outperform Democrats on the economy, with Trump beating Biden and then Harris earlier this year on the issue.
However, some polls point in her direction.
A Financial Times-Michigan Ross poll this month found that 44% of registered voters had confidence in Harris’s economic policies, compared with 42% who backed Trump. Moreover, Reuters/IPSOS polls in August showed her closing the gap on economic issues.
The Federal Reserve’s decision to cut interest rates by half a percentage point last week, reflecting expectations that inflation risks have diminished, could ease costs somewhat for consumers.
Some Harris supporters have called on the campaign to emphasize the economic message that already exists rather than introduce new ideas.
“My recommendation is to do more show-and-tell. Instead of tackling this with endless white papers, go to grocery stores and apartment buildings and more,” said Donna Brazile, a veteran Democratic strategist.
“Inflation may have come down, but the cost of living hasn’t changed. Some of this is post-pandemic and still needs to be addressed,” she said.
Others say more economic policy is not a priority. Adam Newar, a money manager and Harris donor, said, “It’s a character election,” not a policy election.
“I’m not sure what more policy information actually does. She really needs to continue to articulate a vision, communicate that vision to people who really feel left behind,” Newar said.
Many of Harris’ proposals would require approval by Congress and would likely not pass unless Democrats win both the House and Senate.
(Reporting by Nandita Bose. Additional reporting by Jeff Mason. Editing by Heather Timmons and Marguerita Choy)
