Harris Pitches New Policies Amid Poor Economic Polling

One of the most important issues for Kamala Harris’ campaign is reframing the argument around the economy. With inflation and the economy plaguing her term as vice president, she recently introduced new proposals aimed at helping the working class and young families.

One headline policy is a tax credit for homebuilders who sell houses to first-time buyers, as well as $25,000 in down payment assistance for eligible buyers. “There’s a serious housing shortage in many places. It’s too difficult to build, and it’s driving prices up. I will work in partnership with industry to build the housing we need, both to rent and to buy,” Harris said at the campaign event Friday in North Carolina where she announced her latest slate of economic policies.

This policy responds to the explosion in housing prices over recent years. In early 2019, the average sales price of a home was $375,500, while in the second quarter of 2024, the average sales price reached $501,700, an approximate 33% increase in five years.

She also proposed a $6,000 tax credit for parents in the first year of a child’s life, geared at helping young families. She also suggested capping the monthly price of insulin at $35 and pledged that, as president, she would work to “cancel medical debt for more and more millions of Americans.”

One of her more controversial proposals is a federal ban on price gouging on food, which includes new penalties for companies that exploit crises and break the rules. “We will support smaller food businesses that play by the rules and are trying to get ahead,” Harris said.

This policy aims to address high inflation, a significant challenge for the Biden administration in recent years. Laws preventing price gouging would attempt to combat “greedflation,” the theory that price gouging has exacerbated inflation. Food price inflation over the last four years often exceeded general inflation, peaking at 11.4% year over year in August 2022. Since Biden took office, prices generally have risen around 20%.

Outlining new policies on the economy and inflation is crucial for Harris as she seeks to differentiate herself from the economic challenges of Biden’s first term. The latest Economist/YouGov poll, conducted Aug. 11-13, found that Biden has a -13% net approval rating on jobs and the economy – 39% approve and 52% disapprove – and a -28% net approval on inflation. The RCP Average for Biden’s approval on inflation is also -28%, and -20% net approval on the economy.

Harris fares slightly better. According to a Financial Times/Michigan Ross poll taken Aug. 1-5, voters trust her slightly more on the economy. However, 42% of respondents said Trump’s policies would leave them better off, compared to 33% for Harris. This poll was taken before Harris outlined her latest economic plans.

Harris’ new policies have faced criticism since being unveiled last week. Since announcing her plans to limit price gouging, Republicans, including Trump, have labeled her a communist. “Under her plan, Kamala will implement SOVIET-style price controls,” Trump wrote on Truth Social. He also shared AI-generated images associating Harris with the hammer and sickle flag of the Soviet Union. Since announcing the price gouging policy, Trump has begun calling Harris “Comrade Kamala Harris,” a term linked to Soviet Union citizens and communist parties worldwide.