Kamala Harris Redefines Economic Message Amid GOP Criticism on Inflation

Kamala Harris has redefined her economic message, focusing on equity and opportunity, as Republicans intensify their critique of her record on inflation. Despite this, Harris remains steadfast in her vision for a fairer economy.

Kamala Harris Reframes Economic Agenda, Faces GOP Inflation Criticism as She Eyes Democratic Nomination

The economy of Kamala Harris has suddenly become a significant opportunity and a potential risk for the likely Democratic presidential nominee.

Harris began to develop her economic narrative shortly after President Joe Biden withdrew from the campaign a week ago. She prioritized the abolition of child poverty, the promotion of labor unions, the reduction of health and child care expenses, and the preservation of "dignity" in retirement.

She did not mention "inflation" in her Wisconsin, Indiana, or Texas speeches. This significant economic challenge plagued Biden's administration and compelled him to consistently acknowledge voters' pain as they navigated increased grocery, gasoline, housing, and auto expenses in his speeches.

Harris is prioritizing what she believes may loom ahead.

“In our vision of the future, we see a place where every person has the opportunity not just to get by but to get ahead — a future where no child has to grow up in poverty, where every senior can retire with dignity, and where every worker has the freedom to join a union,” Harris told the American Federation of Teachers on July 25.

However, Republicans have reacted promptly to attempt to attribute the inflation to Harris, which they had previously attributed to Biden. They are underscoring the cumulative effect of elevated prices during the Democratic administration.

According to data from the Labor Department, consumer prices have increased by 19.2% since Biden assumed office, while average hourly earnings have increased by 16.9%.

Republican leaders publicly assert that Harris was responsible for the inflation, but they have not provided any specifics regarding how she achieved this other than by serving as vice president.

“Vice President Harris owns this administration’s record,” said Senate Minority Leader Mitch McConnell, R-Ky. “Her fingerprints are all over the past four years of failure.”

In interviews, former and current officials who have collaborated with Harris have expressed the belief that criticism regarding inflation will not be directed at her, as she represents a new perspective for many voters after nearly eight years of either Republican Donald Trump or Biden in the Oval Office.

Harris is now required to articulate her policy stances regarding economic issues.

Some of those officials, who spoke on condition of anonymity because they were not authorized to discuss political matters publicly, stated that Harris is likely to adhere to Biden's 2025 budget proposal and its intention to raise the corporate tax rate from 21% to 28%, as outlined in Trump's 2017 tax overhaul.

The announcement of her candidacy as the Democratic nominee has coincided with favorable economic developments.

Economic Growth and Lower Inflation Bolster Harris Amid GOP Criticism and Policy Debates

The Commerce Department reported on July 25 that the economy expanded at an annual rate of 2.8% in the second quarter. On July 26, it was reported that the personal consumption expenditures measure of inflation decreased to 2.5% annually. Financial markets are now anticipating a Federal Reserve interest rate cut in September.

Her economic policy ideas were characterized by a sense of equity, according to those who have known Harris for years, as a result of her work as a prosecutor in California.

“She's a capitalist at heart — she wants businesses to do well,” said Yasmin Nelson, a former senior adviser to Harris. “But she recognizes that the scales have been tipped toward them during the Trump administration. In her view, she wants to even the playing field.”

To portray Harris as more liberal than Biden, Trump and his running mate, Sen. JD Vance, R-Ohio, emphasize that the former California senator would further restrict the use of fossil fuels in favor of solar, wind, and other renewable energy sources.

At a rally in North Carolina on July 24, Trump referred to Harris as "the most incompetent and far-left vice president in American history."

On July 26, during an interview on SiriusXM's Megyn Kelly's program, Vance criticized her policies.

“We cannot let people who are going to destroy the American manufacturing and energy economy take over the reins of power,” Vance said. “It’s going to be a lot worse when you get somebody who’s even more liberal than Biden in there.”

Harris' statements from her brief campaign for the 2020 Democratic presidential nomination have been promptly revived by the Trump campaign. In the swing state of Pennsylvania, she expressed her support for the prohibition of plastic straws, offshore oil extraction, and the use of fracking for oil and natural gas on CNN at the time. This stance was controversial.

Harris Faces GOP Tax Criticism, Inflation Concerns as Economic Models Favor Trump in 2024

Additionally, Republican legislators assert that Harris would increase taxes, a measure only implemented for corporations and households with higher incomes under Biden's 2025 budget proposal.

According to Harris's campaign, she opposed a moratorium on fracking and emphasized numerous times during the 2020 vice presidential debate that Biden would not halt it.

According to the Energy Information Administration (via ABC News), natural gas and oil production reached record levels during Biden's presidency, following a decline caused by the pandemic. However, the Biden administration's policies are more restrictive than those of the Republican Party.

The more significant risk for Harris may be the impact of inflation on voters' perceptions of the economy. Financial firms analyze this election using numerous economic models based on the incumbent's party rather than the candidate herself.

In an analysis released Monday, the consultancy Oxford Economics stated that the probabilities favored Trump. Economic data-driven models underpin the forecast, which does not inherently consider social issues, such as abortion and gun control, that Democrats claim will benefit them in the election.

The analysis emphasized the significant uncertainty and noted great potential for change in the months ahead. However, it is relatively straightforward to determine that inflation continues to burden the vice president.

“I doubt that Harris will significantly change how swing voters think of the economy,” said Bernard Yaros, an economist at Oxford Economics. “She still carries that same baggage of presiding over the high inflation of 2021 and 2022. Like Biden, her approval took a hit during that inflation surge.”