Important Voter Issues 2024: The Economy

Introduction of the Issue

As the 2024 U.S. Presidential Election approaches, economic issues continue to take center stage in public discourse. Voters are concerned with the nation’s economic recovery, inflation, job creation, wage growth, and the stability of financial markets. The policy proposals put forth by the presidential and vice-presidential candidates will significantly shape the trajectory of the nation’s economy over the next several years. With inflation still a concern, debates over taxation, government spending, and economic equity have become critical. In this article, we will examine the economic policy positions of key candidates—including Kamala Harris, Tim Walz, Donald Trump, and JD Vance—while also reflecting on their past legislative actions and positions.

Definition and Context

Economic policy refers to the strategies employed by government leaders to manage a country's economy. This includes fiscal policy (taxation, government spending) and monetary policy (interest rates, money supply). Economic policy affects everything from inflation to job creation, wage levels, and long-term growth. Given the backdrop of global challenges like supply chain disruptions, energy crises, and geopolitical tensions, the economic policies that candidates propose will be central to discussions as voters weigh their options.

Explanation of the Issue

The U.S. economy is facing several significant challenges as it emerges from the economic turmoil caused by the COVID-19 pandemic. Inflation has remained persistently high, although it has shown signs of easing in recent months. In response, the Federal Reserve has aggressively raised interest rates to cool off the economy and bring inflation down. However, this has also raised concerns about potential economic slowdowns, including job losses in sectors sensitive to interest rate hikes, such as real estate and construction.

At the same time, the labor market remains relatively strong, with unemployment rates near historic lows. However, wages have not kept up with the rising cost of living, particularly for lower-income workers. The gap between the wealthy and the middle class has also been exacerbated by the pandemic, leading to discussions about wealth redistribution and the role of government in ensuring a more equitable economic future.

Candidates’ economic policies will play a key role in addressing these issues, with varying approaches to taxation, government spending, and regulation.

Historical Background

In the years following the 2008 financial crisis, economic recovery was slow, but the economy regained stability during the Obama administration. With the election of Donald Trump in 2016, the focus shifted to deregulation and tax cuts, particularly with the passage of the Tax Cuts and Jobs Act (TCJA) in 2017. The TCJA significantly lowered the corporate tax rate and offered temporary tax cuts for individuals, but its long-term impact on job creation and wage growth is still debated.

The COVID-19 pandemic brought a dramatic shift in U.S. economic policy, as government spending skyrocketed to fund relief measures, such as the CARES Act, which provided direct stimulus payments to Americans and expanded unemployment benefits. Under President Biden, the American Rescue Plan was passed in 2021, further expanding government support during the pandemic and continuing efforts to stimulate recovery.

The recovery has been marked by significant federal spending, but also by persistent inflation, supply chain disruptions, and a shift in labor market dynamics, with a rise in remote work and changing job expectations.

Scope of the Issue

The current economic debate encompasses several broad areas:

• Inflation: How to control inflation while ensuring economic growth.

• Job Creation and Labor Market Stability: Ensuring continued employment growth while addressing wage stagnation.

• Tax Policy: Whether to reduce taxes for corporations and the wealthy or increase taxes on the highest earners to fund social programs.

• Social Safety Nets and Healthcare: The role of government in providing healthcare, childcare, and other social services.

• Climate Change: Integrating sustainable practices into economic growth strategies and jobs.

Each of these areas is shaped by candidates’ personal ideologies, legislative experience, and proposed solutions. Let’s now look at the economic policies and past legislative actions of each candidate.

Ideological Viewpoints and Candidates' Stances

Kamala Harris

As Vice President under President Joe Biden, Kamala Harris has championed policies designed to support working families and marginalized communities. Her focus is on equitable economic recovery, climate justice, and expanding access to healthcare and education.

Past Legislative Actions: Harris has a long history of advocating for progressive economic reforms. As a Senator from California, she pushed for the For the People Act, which sought to address voting rights and election reforms, but also included provisions aimed at economic equity. Harris also co-sponsored the Green New Deal and worked on legislation aimed at raising the federal minimum wage. Her stance on taxing the wealthy to fund social programs is well known, and she was instrumental in supporting the expansion of the Affordable Care Act under the Biden administration.

Key Economic Proposals:

• Expanded Child Tax Credits & Paid Family Leave: Harris has been a strong advocate for raising the Child Tax Credit (CTC) and implementing national paid family leave. She supports making the CTC expansion permanent to help reduce child poverty, providing direct financial assistance to working families.

• Progressive Taxation: Harris has voiced support for increasing taxes on the wealthiest Americans, including those earning over $400,000 per year, to fund social programs like education and healthcare. She has also advocated for strengthening the estate tax to target the ultra-wealthy.

• Green New Deal & Renewable Energy Investments: Harris has endorsed Biden’s climate agenda and has been a strong supporter of green energy jobs. She aims to accelerate the transition to renewable energy and infrastructure improvements that would create millions of high-paying jobs while combating climate change.

• Labor and Wage Growth: As part of her economic platform, Harris is pushing for a $15 minimum wage at the federal level and supports measures to expand labor rights, such as empowering unions. Her policies emphasize job creation in sectors like clean energy, infrastructure, and technology.

• Healthcare Expansion: Harris is a proponent of expanding access to affordable healthcare, advocating for further expansion of the Affordable Care Act (ACA) and considering pathways toward Medicare for All or public option healthcare plans for all Americans.

Donald Trump

Donald Trump’s economic policies, characterized by tax cuts, deregulation, and protectionist trade policies, aimed to foster a pro-business environment and reduce the regulatory burden on American companies.

Past Legislative Actions: Trump's signature legislative achievement was the Tax Cuts and Jobs Act (TCJA) of 2017, which lowered the corporate tax rate from 35% to 21% and introduced temporary tax cuts for individuals. He also renegotiated trade agreements, most notably replacing NAFTA with the USMCA (United States-Mexico-Canada Agreement) and imposing tariffs on Chinese goods to protect U.S. manufacturing jobs.

Economic Campaign Policies:

Key Economic Proposals:

• Tax Cuts & Deregulation: Trump supports permanent tax cuts, particularly for businesses and high earners. He aims to reduce corporate taxes, which were lowered during his administration through the Tax Cuts and Jobs Act (TCJA). Trump also advocates for reducing regulations that he believes stifle business growth, particularly in the energy, manufacturing, and tech sectors.

• Job Creation & Manufacturing Revival: A core element of Trump’s platform is the revitalization of American manufacturing, including bringing jobs back from overseas through tax incentives for domestic production and further protectionist tariffs on foreign goods. Trump is particularly focused on bringing manufacturing back from China and other countries that have offshored jobs.

• Trade Policies & Tariffs: Trump’s “America First” trade policies focus on reducing trade deficits and imposing tariffs on countries like China to protect American industry. He has expressed the need to renegotiate trade agreements like the USMCA and focus on bilateral deals that prioritize American jobs and industries.

• Immigration Reform: Trump advocates for stricter immigration policies, with the belief that reducing the flow of low-wage immigrant labor will protect American jobs. He supports measures to secure the southern border and reform the legal immigration system to favor high-skill workers.

• Energy Independence: Trump continues to push for increased domestic energy production, including oil, natural gas, and coal. His policies would roll back regulations on fossil fuels and allow for more drilling on federal lands, aiming for greater energy independence and job creation in energy industries

Areas of Debate

The primary areas of debate around the candidates’ economic policies include:

• Tax Policy: Whether tax cuts for corporations or increased taxes on the wealthy can best promote growth and address income inequality.

• Trade and Manufacturing: How to strike the right balance between global trade and supporting domestic manufacturing.

• Climate Change vs. Economic Growth: The debate over how to transition to a greener economy without hindering economic growth.

• Labor Rights: How to balance job creation with fair wages and benefits for American workers.

Bibliography

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2. “American Rescue Plan.” The White House, The United States Government, 8 Oct. 2021, www.whitehouse.gov/american-rescue-plan/. 

3. “The Budgetary and Economic Effects of Permanently Extending the 2017 Tax Cuts and Jobs Acts’ Expiring Provisions.” Penn Wharton Budget Model, Penn Wharton Budget Model, 30 May 2024, budgetmodel.wharton.upenn.edu/issues/2024/5/22/effects-of-permanently-extending-tcja-expiring-provisions. 

4. “The 2024 Trump Campaign Policy Proposals: Budgetary, Economic and Distributional Effects.” Penn Wharton Budget Model, Penn Wharton Budget Model, 26 Aug. 2024, budgetmodel.wharton.upenn.edu/issues/2024/8/26/trump-campaign-policy-proposals-2024. 

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6. Hlávka, Jakub, and Adam Rose. “Covid-19’s Total Cost to the U.S. Economy Will Reach $14 Trillion by End of 2023.” USC Schaeffer, 25 May 2023, healthpolicy.usc.edu/article/covid-19s-total-cost-to-the-economy-in-us-will-reach-14-trillion-by-end-of-2023-new-research/. 

7. “About the Cares Act and the Consolidated Appropriations Act.” U.S. Department of the Treasury, 13 Apr. 2021, home.treasury.gov/policy-issues/coronavirus/about-the-cares-act.