Few issues have gotten as much attention as inflation this election season.
That’s because during the last 4 years, soaring prices have touched nearly every a part of Americans’ day by day lives, from home prices and rent to food and energy bills. Based on the Department of Labor, overall prices have risen over 22% because the start of the COVID-19 emergency, creating considered one of the worst cost-of-living crises within the U.S. since World War II.
And lots of major day by day expenses have outpaced overall inflation. The value of groceries, as an example, has jumped nearly 26% over that very same time period. Housing costs are up over 24%, and the sticker price of vehicles has increased 25%.
While annual inflation has moderated near the Federal Reserve’s goal range of two% over the long term, Americans are reeling from the cumulative effects of years of price growth. In truth, most still cite inflation as crucial issue facing the country — above even immigration, political extremism and gun violence.
Here’s a have a look at how former President Donald Trump and Vice President Kamala Harris plan to tackle rising prices.
Trump’s plan to ‘defeat inflation’
Trump recently dedicated a campaign event in Asheville, North Carolina, to talking concerning the economy and rising prices.
“From the day I take the oath of office, we’ll rapidly drive prices down,” Trump said within the Aug. 14 speech. “We’re going to make America inexpensive again.”
He spent much of the event laying the blame for prime prices on the Biden-Harris administration, underscoring that inflation took off under current President Joe Biden.
On the campaign trail, Trump often tries to set himself other than Harris by saying there was “no inflation” while he was in office. (Prices did rise through the Trump presidency, by 7.7% — though much lower than under Biden.) He also vows that if he wins the election, inflation will disappear. (Based on economists, no inflation by any means is not necessarily an excellent thing.)
Trump’s platform includes five measures that he says will “defeat inflation.”
- “Unleash” U.S. energy: By lifting domestic oil and gas restrictions, Trump wants to extend energy production within the U.S. as a solution to bring energy prices down.
- Slash federal spending: With a view to “stabilize the economy,” a Trump administration would work to drastically lower federal spending while “promoting economic growth” — though a growing economy could possibly be a reason behind inflation, not an answer.
- End wars abroad: Wars can drive up supply costs, especially for oil. Gas prices skyrocketed after Russia invaded Ukraine, as an example. International conflicts can even hinder shipping routes, which could also hike the value of products. It’s not clear how Trump would end the newest Israel-Hamas war and the conflict in Ukraine or what direct effect that might need on consumer prices within the U.S.
- Cut regulations: A core promise for a second Trump presidency could be to finish a “regulatory onslaught” that the campaign says is costing American households $11,000, though which specific regulations Trump would end are unclear.
- Curb illegal immigration: Trump says that a wave of immigrants who entered the country illegally has driven up the fee of housing, education and health care, and that by securing the border, these services would decrease in cost.
Harris’ plans to lower costs for the center class
At Univision’s town hall earlier this month, a voter from California expressed frustration to Harris about prices rising on food, utilities, clothes and more.
“I do know prices are too high still,” Harris responded. “And we’ve to cope with it.”
Harris went on to overview her economic plan to construct what she calls an “opportunity economy,” but she also highlighted specific ways she hopes to lower prices on groceries, housing and health care — while touting proposals to expand the kid tax credit and supply down payment assistance to first-time homebuyers.
Here’s how Harris plans to drive down inflation:
- Ban price gouging on groceries: A part of what’s driving up the value of groceries, Harris says, is that some corporations used the pandemic as cover to “excessively and indefensibly” raise food prices. If elected, Harris says she’s going to call on Congress to federally ban price gouging during emergencies. But on condition that the pandemic is officially over, this could likely not apply to already-high prices.
- Lower health care expenses: A 2022 law implemented major subsidies for health care coverage through the Reasonably priced Care Act, or Obamacare, in lots of cases making coverage free for low-income households. These subsidies are slated to run out in 2025, but Harris desires to make them everlasting. She also plans to scale back drug prices by constructing on recent Medicare policies that reduced out-of-pocket drug costs for beneficiaries.
- Reduce energy costs: Harris desires to limit the U.S.’s reliance on foreign energy by making investments in clean energy while also expanding efforts to extend domestic natural gas production by fracking. Much of Harris’ energy plan relies on constructing on the Inflation Reduction Act, which included consumer tax credits for clean-technology upgrades. Despite the law’s name, research found that the law’s policies had little to no discernible impact on inflation overall.
- Eliminate junk fees: Harris says she’s going to proceed the Biden administration’s war on junk fees. These hidden charges are frequently tacked on to on a regular basis bills and services, reminiscent of bank overdraft fees, extra charges on cable or phone bills, and mysterious “resort fees” at hotels. The administration’s Council of Economic Advisers estimates these fees add as much as $650 annually for the standard household.
- Increase housing supply: The core way Harris says she’s going to rein in housing costs is by increasing the availability of recent housing units by 3 million her first yr in office. With latest homes in the marketplace, she says home prices and rent will come down. She also plans to create a down payment assistance program.
Which candidate’s plans will lower inflation more?
Each candidates have spent a big period of time campaigning about inflation.
Trump pins the recent inflation crisis on the Biden-Harris administration and vows to “make America inexpensive again.” His plan to tackle inflation is basically tied to his other key guarantees around deregulation and immigration. When it comes to policy proposals, though, the small print are sparse. Your complete Trump-endorsed Republican platform on inflation is about 320 words.
However, Harris’ proposals on combating prices tops 2,500 words. Nonetheless, lots of those initiatives are extremely specific, reminiscent of offering tax credits for home energy upgrades or cracking down on robocall scams.
Experts say each candidates are missing the mark when it comes to keeping inflation in check. Their proposals overall do in a roundabout way address the core supply or demand aspects that are inclined to drive consumer prices up across the board.
Underpinning much of Trump’s inflation plans are a separate initiative to impose harsh tariffs, that are a type of trade tax, on goods coming into the U.S. from other countries. The thought is to get businesses to make more products within the U.S., but the consequences are largely mixed.
Based on the conservative-leaning Tax Foundation, the tariffs put in place during Trump’s first term and kept in place through the Biden-Harris administration have had mostly negative results for economic growth, consumer prices and employment. Widely expanded tariffs are expected to extend the value of consumer goods, and economists warn that they may negate much of Trump’s other potentially inflation-reducing policies.
In a recent survey by the Wall Street Journal, 68% of economists said inflation could be higher if Trump’s policies were to enter effect, while only 12% said it could be higher under Harris’ plans. The opposite 20% said there could be no material difference.
Each candidates need to grow the economy and stimulate consumer spending — each of that are counterintuitive when attempting to keep prices low.
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