With only 80 days left until the 2024 US presidential election, the campaign is heating up, with financial security and inflation remaining the top concerns for voters. During this period, Vice President Harris and former President Trump have laid out different visions and perspectives on how to strengthen the American economy.
On Friday, Harris is set to unveil a comprehensive economic plan that includes policies aimed at lowering consumer living costs and curbing price gouging.
Her campaign team announced on Wednesday that she plans to introduce a federal ban on “price gouging in the food and grocery industry” if elected for the first time.
On Thursday, the Biden administration announced a deal with pharmaceutical companies to reduce the prices of 10 expensive prescription drugs covered by federal health insurance.
Meanwhile, Trump has been focusing on prices and affordability in his presidential campaign activities.
In a speech on Wednesday, Trump promised to prioritize oil and natural gas drilling to reduce energy costs. He also said he would direct the cabinet to “beat” inflation and lower consumer prices. In a press conference on Thursday, he emphasized reducing grocery costs and meeting America’s energy needs.
Data released by the US Department of Labor this week shows that the annual inflation rate has dropped below 3% for the first time since March 2021. For Biden and Harris, this report comes timely as they aim to shift voter sentiment from negative to positive.
Biden stated in a statement on Wednesday, “Today’s report shows that we continue to make progress in combating inflation and lowering costs for American families.”
Despite the easing of inflation, consumers are still struggling with rising prices, increased lending rates, and a slowing job market.
Since Biden took office in January 2021, overall prices have soared by over 20%. According to the US Bureau of Labor Statistics, gasoline prices have risen by nearly 50%, while food and housing prices have spiked by 22% each.
Furthermore, there are signs indicating a slowdown in the US manufacturing sector. According to the latest New York Empire State Index released by the New York Federal Reserve, manufacturing activity in the region has weakened.
This monthly report shows a slight decrease in new orders for manufacturing in New York, with shipments stagnating. Meanwhile, the labor market remains soft, with a slight decrease in employment and a significant reduction in work hours. Input prices are rising at a slower pace, and there is minimal change in sales prices.
Like consumers, businesses are also grappling with high costs in labor, energy, and materials. The Producer Price Index (PPI) measures the prices businesses pay for goods and services and has risen by 25% since January 2021.
In a poll conducted from August 11 to 13 by The Economist and the UK market research company YouGov, 74% of respondents considered employment and the economy as “very important” issues facing the US. Additionally, the largest proportion of respondents (24%) rated inflation/prices as the most critical issue for America.
This poll confirms previous studies that repeatedly show the economy is the top concern for Americans leading up to the November election.
Voters will head to the polls in three months, with both campaign teams promoting their strategies to address the affordability crisis in America.
On Thursday, Biden and Harris co-hosted an event in Maryland, highlighting the federal government’s achievements in lowering prescription drug costs.
Both spoke at a gathering at Prince George’s Community College in Maryland, marking Biden’s first such event since endorsing Harris after his withdrawal from the race.
They discussed the government’s agreement with pharmaceutical companies, successfully lowering the prices of 10 prescription drugs used to treat heart failure, blood clots, diabetes, arthritis, and Crohn’s disease.
Biden told supporters in Maryland, “We have fundamentally changed the way we look at the economy.”
He criticized “trickle-down economics” and argued that Trump and congressional Republicans increased middle-class expenses while cutting taxes for billionaires and large corporations.
Trickle-down economics suggests that economic policies that reduce taxes for the wealthy and corporations will ultimately benefit everyone, including the general public. In the past, even some Democratic presidents have accepted this viewpoint.
However, Biden stated, “I have not noticed a single cent trickling down to my father’s kitchen table.” He praised his economic agenda, focusing on developing the economy from the middle and bottom up.
The White House announced that the new drug prices will take effect in 2026, with an estimated $1.5 billion in out-of-pocket savings for seniors and other Medicare beneficiaries in the first year of implementation.
The event held in Maryland outlined Harris’s campaign focus for the coming weeks: holding businesses accountable for rising prices.
Harris emphasized that major pharmaceutical companies have inflated the cost of life-saving medications, often charging multiples of production costs to boost profits. This message is expected to be a recurring theme in her campaign speeches.
Addressing supporters in Maryland, she said, “Two years ago, as vice president, I proudly cast a tie-breaking vote that put pharmaceutical companies’ price-gouging on the president’s desk.” She referred to the Inflation Reduction Act signed into law in August 2022.
Harris is expected to call for a federal ban on price gouging as part of her plan to lower food and grocery costs, during her speech in North Carolina on Friday.
She will also emphasize efforts to ensure all Americans, not just seniors, can afford lower prescription drug costs in the coming years.
In two events on Thursday, the Trump campaign team also discussed high prices and energy production issues. These events took place at a press conference held by Trump at Bedminster Club in New Jersey and a rally led by his running mate JD Vance in New Kensington, Pennsylvania.
Standing beside two long tables filled with coffee, cereals, bagels, bacon, and other groceries, Trump highlighted the burdens faced by everyday Americans due to soaring food prices.
“Grocery prices are skyrocketing,” Trump cited the rising costs of bread, butter, baby formula, eggs, and other groceries.
Trump also criticized Harris’s plan to ban price gouging, suggesting it could lead to food shortages and long-term price hikes.
Apart from inflation, the core attack point of the Trump team on the economic affordability crisis is energy production. Both Trump and Vance emphasized this topic in their speeches.
Trump believes that by increasing oil and natural gas drilling, prices could be lowered “immediately.” Vance echoed this sentiment, highlighting the efforts of energy workers in western Pennsylvania.
Vance stated regarding oil and gas, “Let these people take the oil and gas out.”
He argued that increased energy production provides “economic opportunities for people,” lowers manufacturing costs, makes winter heating easier, thus putting more money in consumers’ pockets for other expenditures.
Both Trump and Vance criticized the Biden-Harris administration’s approach to energy production, suggesting they prioritize agendas to restrict drilling and hydraulic fracturing.
Last week, US crude oil production set a record of 13,300 barrels, surpassing the record of 13,000 barrels set in February 2020 during the Trump administration. Data indicates that oil production has steadily increased after a decline during the COVID-19 pandemic.
Trump also criticized Harris for casting the decisive vote in the US Senate for the American Rescue Plan Act, a $1.9 trillion economic stimulus bill aimed at promoting post-pandemic economic recovery but is also believed to have fueled inflation.