Harris to release new economic proposals on US wealth creation: Sources

WASHINGTON - US Vice-President Kamala Harris plans to roll out a new set of economic policies this week that aims to help Americans build wealth and set economic incentives for businesses to aid that goal, three sources with knowledge of the matter said.

Ms Harris, speaking to reporters on Sept 22 after Reuters reported the expected roll-out, said she would outline her vision for the economy in a speech this week.

The new policies have not been previously reported and could be announced in Pittsburgh on Sept 25, the sources said.

Undecided voters continue to ask for more information about how Ms Harris would help them economically if she were elected president in November, including those in critical swing states.

The roll-out would follow a heated debate in Democratic circles over whether releasing more economic policies so close to election day is a smart strategy.

“It’s not just about affordability, it’s also about showing (voters) they have a path to building wealth,” said one of the sources with direct knowledge of Ms Harris’ economic plans, adding that she wanted to show Americans how they can “get a foot in the door”.

None of the sources would provide specific details on the expected new policies, and the Harris campaign would not comment on any new proposals. However, Ms Harris’ 2020 presidential run and President Joe Biden’s administration included plans with similar goals.

In her 2020 campaign, Ms Harris proposed significant pay hikes for the millions of public school teachers, forcing companies to disclose their pay gap between men and women and penalising those who are not narrowing it.

The Biden and Harris administration have pushed to eliminate bias in home appraisals and use the over US$700 billion (S$905 billion) federal contracting budget to buoy minority businesses.

Ms Harris has released a basket of economic policies focused on the high cost of housing, taxes, small business expenses, childcare and goods. Her plans often build on Mr Biden’s policies, like increasing the child tax credit and lifting the corporate tax rate to 28 per cent.

According to the Harris campaign, a fund-raiser in New York City on the afternoon of Sept 22 raised US$27 million for Ms Harris’ coffers. The campaign said it was the Vice-President’s highest-grossing fund-raiser since she ascended to the top of the Democratic ticket.

The reception had none of the hype that accompanied President Biden’s mega-fund-raiser at Radio City Music Hall in March or his big Hollywood bash in June, but Ms Harris’ event raised a similar figure as each of those.

At the same time, the dizzying amount that she has raised during her two months as a presidential nominee can make even a $27 million fund-raiser feel somehow less than remarkable.

Campaign spokesman James Singer told Reuters that Ms Harris “will continue to present her opportunity economy agenda to lower costs, make housing more affordable, and spur economic growth across America”.

Releasing new economic policy with less than 50 days left in a tight presidential election race could mean the new measures never reach crucial voters, some advisers acknowledge.

“Typically, you’d see a campaign wrap-up persuading voters by September and move to mobilising people, but this is not a typical campaign,” said a source with knowledge of the new plans, referring to Ms Harris’ jump to the top of the ticket in late July. “We have to continue persuading and mobilising folks at the same time until the very end.”

Republican Donald Trump’s economic proposals, aimed at working-class Americans, include eliminating taxes on tips and Social Security benefits, opening up federal lands to housing construction, and deporting millions of immigrants in the country who Republicans say are driving up costs.

The former president has also proposed new across-the-board tariffs on goods not made in the US that could raise costs for American consumers and inflation, but that is backed by a slim majority of voters.

Trump has tried to pin on Democrats inflation that popped globally as the Covid-19 pandemic shutdowns eased and has made the still-high cost of groceries, particularly bacon, a rally speech staple. From 2019 to 2023, the food consumer price index rose by 25 per cent, reported the US Department of Agriculture.

Harris gains on economy 

Republicans have traditionally polled better on the economy than Democrats, and Trump beat Mr Biden and then Ms Harris on the topic earlier in 2024.

Some polls, however, are shifting in her direction.

A Financial Times-Michigan Ross poll in September showed that 44 per cent of registered voters trusted Ms Harris’ economic stewardship, compared with 42 per cent who backed Trump, and Reuters/Ipsos polling in August showed her narrowing the gap on the economy.

The Federal Reserve’s decision to cut interest rates by half a percentage point last week, reflecting the belief that inflation risks have fallen, could lower some costs for consumers.

Some of Ms Harris’ supporters have urged the campaign to double down on the economic message that is already out there instead of rolling out new ideas.

Ms Donna Brazile, a long-time Democratic strategist, said: “My recommendation is to do more show-and-tells. Rather than address this with endless white papers, go to grocery stores and apartment buildings and more.

“Inflation may have gone down, but the cost of living hasn’t changed. Some of this is post-pandemic and that still must be addressed.”

Others believe more economic policy is not a priority. Mr Adam Newar, a money manager and a donor of Ms Harris, said “it’s a character election” and not a policy election.

“I’m not sure what more policy information actually brings to the table. She really has to continue articulating a vision, communicate that vision to people who really feel like they’ve been left behind,” Mr Newar said.

Many of Ms Harris’ proposals would require congressional approval, and would be unlikely to pass unless Democrats win both the House and Senate. REUTERS, BLOOMBERG