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Kamala Promises What?

On Wednesday afternoon, Vice President Kamala Harris will outline her economic agenda, focusing on pragmatism as her core guiding principle.

Big Picture: Harris’s speech in Pittsburgh aims to assure voters that she is not an economic radical, but a leader who supports capitalism while advocating for moderation in its excesses.

Business Leaders’ Concerns: Many business leaders have criticized the Biden administration’s stance on issues like antitrust enforcement, securities regulation, consumer protection, and energy permitting. Harris’s speech is expected to signal a different tone, though the specifics of her policy remain unclear.

What She’s Saying: Harris plans to emphasize that, as a capitalist, she recognizes the limitations of government and seeks innovative, practical solutions regardless of political ideology, according to a campaign official.

Economic Philosophy: Harris will describe her approach as “pragmatic,” focusing on realistic, practical solutions rather than being constrained by ideological beliefs.

State of Play: Economic policy has not been central to Harris’s political identity, given her background as a prosecutor and attorney general. In the Senate, she served on committees focused on judiciary and intelligence rather than finance or banking.

Key Policies: On the campaign trail, Harris has embraced policies that support entrepreneurship, such as a proposed $50,000 tax credit for small business startups. While she aligns with much of Biden’s fiscal policy, she has proposed a 28% top capital gains tax, lower than Biden’s 39.6%.

Cryptocurrency: Harris has signaled a willingness to collaborate with the industry on cryptocurrency regulations, which contrasts with the current administration’s regulatory crackdown.

Unclear Areas: It’s uncertain how Harris would approach key business concerns, such as whether she would retain figures like FTC chair Lina Khan, SEC chair Gary Gensler, or Consumer Financial Protection Bureau head Rohit Chopra, who are seen as business-unfriendly.

Macroeconomic Policy: There is little information on how Harris’s economic appointments, such as to the Treasury or Federal Reserve, would differ from those made by Biden or Obama.

Challenges in the Senate: If Republicans win the Senate, it could limit her ability to appoint officials perceived as hostile to business interests.

The Bottom Line: The Harris campaign is positioning her economic approach in contrast to former President Trump’s, and polling shows some improvement in public opinion for Democrats on economic matters. However, how her rhetoric translates into governance remains to be seen.


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