The Hidden Costs of Harris' Economic Proposals | Saturday Extra

Vice President Kamala Harris has put forward various economic proposals intended to address specific issues but economic analysis suggests that her plans may come with significant downsides.

Harris's policy plans would likely lead to lower GDP, reduced economic activity, and wage reductions, according to economic analysis.

An analysis conducted by the Penn Wharton budget model has examined Harris's proposals, and findings indicate a potential negative impact on the U.S. economy. Key components of her economic strategy, including implementing price controls, instituting new homebuyer subsidies, and introducing taxes on unrealized capital gains, could collectively lead to lower gross domestic product (GDP), a reduction in economic activity, and subsequent wage reductions.

Harris's proposed $50,000 tax deduction for small business startup costs is more of a "gimmick" than a meaningful savings.

In addition to these measures, Harris has proposed a $50,000 tax deduction for small business startup costs as a way to spur entrepreneurship and economic growth. However, this particular measure is seen ...

Thomas Savage provides insights into Harris's proposal for a $25,000 down payment credit for first-time homebuyers and a policy of taxing unrealized capital gains, examining their potential effects on the housing market, investment, and the economy.

Harris's plan to offer a $25,000 down payment credit for first-time homebuyers is unlikely to make housing more affordable.

Savage explains that while tax dollars could assist with a down payment, this measure on its own will not make housing more accessible or affordable. Instead, by increasing demand without addressing the housing supply constraints like zoning and property tax reforms, the policy is likely to drive up home prices even further. Savage stresses that meaningful reforms are necessary at various levels of government to improve housing affordability.

Taxing unrealized capital gains would create barriers to investment and deter private investment, which is crucial for business growth and job creation.

Savage raises concerns that a policy taxing unrealized capital gains, although initially promised to target only the wealthiest, could extend to impact ...

The economy is under scrutiny as households across the United States grapple with the effects of inflation, which is placing a substantial burden on low-income Americans.

Inflation is acting as a regressive tax, hitting low-income Americans the hardest by eroding their purchasing power.

Inflation has emerged as a regressive tax, disproportionately affecting those at the lower end of the income spectrum by diminishing their ability to afford goods and services. The reduction in real wages, coupled with ascending levels of household debt, underscores the adverse consequences of inflation on family finances.

Declining real wages and increasing household debt, including record credit card delinquencies, demonstrate the detrimental impact of inflation on household finances.

Households are facing a financial squeeze as their wages fail to keep pace with escalating prices, effectively slashing their earnings in real terms. Additionally, there is a worrying rise in household debt, marked by unprecedented levels of credit card delinquencies, signaling that many are struggling to manage their finances amidst an inflati ...

With inflation on the rise, there is a growing emphasis on the importance of restoring a rules-based monetary policy and reining in government spending.

Restoring rules-based monetary policy and constraining government spending are crucial to combat inflation.

In light of contemporary economic challenges, particularly inflation, there is a call for a return to a rules-based approach to monetary policy and for the constraint of excessive government expenditure. Such strategic shifts are believed to be central to controlling inflation and stabilizing the economy.

Credible commitments to these policy approaches from political candidates would be essential to providing a path forward.

For these economic strategies to be effective, credible commitments from political candidates to uphold these policy approaches are critical. Such commitments would provide a clear path forward and could inspire confidence in the populace and the markets about the direction of economic policy.

The current administration's heavy-handed regulations and ESG priorities have contributed to rising gas prices by constraining domestic energy production.

The discussion ...

The conversation underscores that amidst pressing economic challenges, businesses are dialing down on their commitments to environmental, social, and governance (ESG) initiatives as they turn their focus toward core activities that directly contribute to profitability.

With economic concerns taking priority, businesses are scaling back on ESG initiatives that do not contribute to profitability or achieve stated social goals.

Companies are reconsidering and often curtailing their ESG efforts due to a lack of evidence that these initiatives are meeting their social objectives or yielding financial returns. Consequently, businesses and investors are starting to view them as non-essential expenditures.

However, the decline of ESG may be temporary, as such initiatives could resurface in the future when economic ...