Harris Casts Herself as Pro-Labor ‘Capitalist’ in Economic Pitch
(Bloomberg) -- Vice President Kamala Harris vowed to be an ally to both corporate executives and the employees who work for them, as the Democratic presidential nominee outlined her vision for an “opportunity economy” that funds new industry investments and builds the middle class.
Most Read from Bloomberg
For Harris, casting herself as an economic pragmatist who would seek to boost business – and worker protections – in her presidency is a bid to reverse voter skepticism on one of the campaign’s key issues. She pledged to support investments in manufacturing and small businesses, as well as tax benefits for families and subsidies for childcare, as a way to build a strong middle class to power economic growth.
“I have always been and will always be a strong supporter of workers and unions, and I also believe we need to engage those who create most of the jobs in America,” Harris said Wednesday in an economic address in Pittsburgh. “I’m a capitalist. I believe in free and fair markets. I believe in consistent and transparent rules of the road to create a stable business environment.”
Harris pledged to support the sectors that will “define the next century,” including bio-manufacturing, aerospace, artificial intelligence, blockchain and nuclear energy, and vowed to cut the red tape that delays the creation of new projects.
Her campaign offered more details in an 82-page economic policy book released as she finished speaking. In it, Harris backs a “America Forward” tax credit, which would provide tens of billions of dollars to position the US to compete against China and other competitors. It would also include extra benefits for investments companies make in existing manufacturing, farming and energy communities, and for engaging with workers and unions to protect jobs.
The plan also calls for incentives to cut emissions in steel and iron production, the creation of data centers for AI and additional support for the domestic semiconductor industry. Harris also vowed to create a national stockpile of critical minerals, saying a cache of the materials used in everything from batteries to defense systems was needed for economic and national security.
The document couples Harris’ spending proposals with accompanying taxes, promising that her administration will be committed to “fiscal responsibility” and intends to pay for its plans and work to reduce the deficit. In addition to measures Harris has already rolled out on the campaign trail — including raising the corporate tax rate to 28% — it confirms her support of a minimum income tax on billionaires, though it does not specify whether it would apply to unrealized gains.
Harris’ manufacturing plan would cost roughly $100 billion, her campaign said in a fact
sheet, and could be funded with a portion of the proceeds of Harris’ proposal to overhaul the international tax system.
The document is much about politics as it is about policy. There are critiques of how her opponent Donald Trump handled issues as president. And there are boasts about the Biden-Harris administration’s accomplishments that are often coupled with acknowledgments that there’s more work for Harris to do on those issues. Taken together, Harris’ speech and the policy book are intended to blunt voters’ complaints that they don’t know enough about her agenda or how it differs from President Joe Biden’s.
Polls show voters disapprove of Biden’s handling of the economy after four years where job and wage growth have been overshadowed in the minds of many by post-pandemic inflation. By contrast, surveys show Trump has the support of more voters on his handling of the economy.
Aides said the speech was intended less as a roll-out of new politics than an opportunity for the vice president to outline the pillars of her economic philosophy as voters begin to finalize their decision ahead of Election Day.
Trump has spent recent weeks on the campaign trail casting the vice president as “Comrade Kamala” and denouncing the her proposal to limit price gouging by food suppliers as rooted in communism.
But Harris has improved her standing on economic questions in recent weeks, which allies argue shows the resonance of her proposals to tackle soaring drug and food prices and provide government assistance to Americans opening new businesses or purchasing a first home.
On Wednesday, Harris expanded her pitch to business leaders, saying she would work with them to grow the economy. Still, she stressed that she would hold accountable those who did not “play by the rules, respect the rights of workers and unions and abide by fair competition.”
Economic Fight
The fight between Trump and Harris over the economy has intensified this week with a series of dueling events.
In Georgia on Tuesday, Trump said he would personally recruit foreign companies to shift their operations to the US, offering tax incentives and even federal land. But he’s also warned of sweeping tariffs impacting those who make products elsewhere and seek to sell into the US.
For More: See {ELEC GO} on the Bloomberg Terminal for US election news
Harris cast Trump’s proposed overhaul of the tax code as a boon only for the wealthiest Americans.
“For Donald Trump, our economy works best if it works for those who own the big skyscrapers. Not those who build them. Not those who wire them. Not those who mop the floors,” Harris said.
Still, Harris has struggled to retain some of the union support that long has served as the bedrock of Democrats’ electoral coalition. Earlier this month, the Teamsters announced they would not endorse any candidate for president and released polling suggesting that while rank-and-file members preferred Biden to Trump, that sentiment flipped in the new match-up between Trump and Harris.
“I think what we’ve seen with this outpouring of union workers’ support for our campaign is the people are waking up to the fact that while Kamala Harris talks a big game about standing up for workers, her policies have made it unaffordable for workers to actually live the American dream,” Trump’s running mate JD Vance told reporters earlier Wednesday.
One Harris aide, speaking on the condition of anonymity ahead of the speech, said internal research done by their campaign suggested voters are drawn to Harris when they learn about her policies through her own voice – underscoring both the challenge and potential of the closing six weeks of the campaign.
“While 40-some days seems short, it’s still a long time to be able to communicate,” billionaire entrepreneur Mark Cuban, who attended the speech, said Tuesday on a Harris campaign call with reporters.
Sign up for the Washington Edition newsletter to find out how the worlds of money and politics intersect in the US capital.
--With assistance from Hadriana Lowenkron and Ari Natter.
(Updates with details throughout about policy specifics)
Most Read from Bloomberg Businessweek
This Camera Went Viral Two Years Ago. You Still Can’t Buy One
Palantir’s CEO and Wall Street Annoy Each Other Straight to the Bank
Five Reasons to Be Optimistic About the Entertainment Business
©2024 Bloomberg L.P.
