Inflation has been a major issue lately, affecting everything from groceries to housing. With the 2024 election just a day away, some voters are curious about how the candidates plan to deal with this economic challenge and how their ideas will impact us everyday Americans. Money Magazine recently looked at the economic plans of former President Donald Trump and Vice President Kamala Harris, showing how they differ and what they might mean. This blog post we’ll attempt to break down some of their proposals and see how they might affect us and our wallets.
The Current Situation with Inflation and Its Impact
Before we look at the candidates’ plans, it’s important to understand how bad inflation has been. Since the start of the COVID-19 pandemic, some prices have gone up by over 22%! Keep in mind, While inflation continues to be a significant concern for many Americans, it’s important to note that it has begun to come down and moderate. As mentioned in the source article, annual inflation is currently nearing the Federal Reserve’s target range of 2% over the long run. This suggests that while the overall effects of years of price growth are still being felt, the rate at which prices are increasing has slowed down considerably. Although people are struggling with the high prices that resulted from inflation previously, the rate of inflation is not as high as it once was.
Some of the areas that have been hit especially hard:
Groceries: Prices have jumped almost 26%
Housing: Costs are up over 24%
Vehicles: Sticker prices have increased 25%
These increases have made it challenging for some Americans to afford basic things, and inflation still remains one of the top concerns for voters. This topic is even more important than issues like immigration, political extremism, and gun violence.
Trump’s Plan is to “Make America Affordable Again”
Trump’s main goal in his campaign is to make America affordable again. He says the Biden-Harris administration is the reason for the current inflation problem. He claims there was no inflation during his presidency, but prices did go up by 7.7% during his time in office.
Trump’s plan to fight inflation is:
1. Unleashing U.S. Energy: Trump wants to lift restrictions on domestic oil and gas production to lower energy prices.
2. Slashing Federal Spending: He wants to cut back on federal spending to stabilize the economy, even though this can sometimes cause inflation.
3. Ending Wars Abroad: Trump thinks that ending international conflicts, like the Israel-Hamas war and the conflict in Ukraine, will lower prices because supply costs and shipping routes will be more stable. However, he doesn’t say how these conflicts would be resolved or how they would affect U.S. consumer prices.
4. Cutting Regulations: Trump promises to get rid of a lot of rules that he says cost American households $11,000, but he doesn’t say which rules would be targeted.
5. Curbing Illegal Immigration: Trump says that a lot of undocumented immigrants have made housing, education, and healthcare more expensive. He thinks that if they’re stopped from coming into the country, demand will go down and prices will go down too.
But economists are worried that Trump’s plan, especially his idea of putting taxes on imported goods, could actually make inflation worse. Tariffs are like taxes on things that come from other countries. They’re supposed to make people in the U.S. make more stuff, but they often end up making things more expensive for consumers. The Tax Foundation says that tariffs that Trump put in place during his first term hurt the economy, made prices go up, and didn’t create many jobs. Economists say that if Trump puts up even more tariffs, they could cancel out any good effects of his other inflation-fighting plans.
Harris’s Plan is to Build an “Opportunity Economy”
Harris knows that high prices are putting a strain on people, and she’s committed to fighting inflation. Her plan is to create an “opportunity economy” that helps the middle class save money and get financial relief.
Here are some of her main ideas:
1. No More Price Gouging on Groceries: Harris thinks that companies taking advantage of emergencies to raise prices has made grocery prices too high. She wants to make it illegal for them to do this, but it’s not clear if this will help with the current high prices since the pandemic is over.
2. Lowering Healthcare Costs: Harris wants to make sure that everyone can afford healthcare. She plans to keep the Affordable Care Act subsidies that make healthcare more affordable, especially for low-income families. She also wants to build on recent Medicare policies that lowered out-of-pocket drug costs for people who get Medicare.
3. Saving on Energy Costs: Harris wants to reduce our reliance on foreign energy by investing in clean energy and expanding domestic natural gas production through fracking. She plans to build on the Inflation Reduction Act, which gave people tax credits for buying clean-tech upgrades. But some experts say that the Inflation Reduction Act hasn’t really helped with inflation.
4. No More Hidden Fees: Harris promises to keep going with the Biden administration’s efforts to get rid of hidden fees, like bank overdraft charges and resort fees. These fees add up to a lot of money for the average household, about $650 a year!
5. More Houses: Harris thinks that building more houses will lower home prices and rent. She wants to add 3 million new houses in her first year in office. There would also be the creation of a program to help people with down payments.
While Harris’s plan has a bit more detail than Trump’s, some economists say it still doesn’t really address the main reasons why inflation is so high.
Both candidates have been criticized by economists for their inflation-fighting plans.
Here’s a breakdown of how their plans might affect everyday Americans
Energy: Trump wants to increase domestic oil and gas production, which could lower energy prices in the short term. But this might go against his goal of fighting climate change. This also could have bad effects on the environment in the long run. Harris wants to focus on clean energy. Clean energy could help keep prices stable in the long run. It’s typically better for the environment. However, clean energy would most likely cost more money up front.
Healthcare: Harris wants to expand Affordable Care Act subsidies and lower drug prices. This could help a lot of people who can’t afford healthcare. But it’s not clear if these programs will be able to pay for themselves in the long run.
Housing: Harris wants to make it easier to get a mortgage, which could help people buy houses. But it might take a while to build enough new houses to make a big difference. The success of her down payment assistance program will depend on how it’s set up and how it’s run.
Groceries: Harris wants to stop people from raising prices too much during emergencies. This could help protect people from getting ripped off. But it’s not clear if this will really make a difference in everyday grocery prices.
In the end, how well either candidate’s plan works at fighting inflation will depend on a lot of things. We’d need to see how the specific policies are put in place. As well as how the Congress works with them, and how the global economy is doing.
The 2024 election is a big choice for voters about how to deal with inflation. Both Trump and Harris have plans to fight rising prices, but economists are not sure if they’ll work. Voters need to carefully think about each candidate’s plan and how it might affect them personally. It is also important to think of the economy as a whole. Regardless who you vote for please keep those horns up and go vote! m/ m/
The post How Trump and Harris’s Economic Plans Could Affect Inflation and Your Wallet appeared first on Heavy Metal Money.