Vice President Kamala Harris is set to address the high costs of food and housing in her upcoming economic policy speech on Friday in North Carolina. Her speech will advocate for a federal ban on price gouging for groceries and propose measures to reduce living costs, aiming to tackle key voter concerns.
Despite a decrease in year-over-year inflation, food prices are still 21% higher than three years ago, and housing costs remain a significant contributor to inflation. To address these issues, Harris plans to propose the construction of 3 million new housing units, legislation to curb rent increases, and $25,000 in down-payment assistance for first-time homebuyers. Her housing strategy includes a tax credit for builders of starter homes and doubling the $20 billion “innovation fund” for housing construction. The down-payment assistance aims to build on an existing Biden initiative.
Harris’s proposals seek to extend President Joe Biden’s economic and legislative achievements. At a Maryland event on Thursday, Biden and Harris highlighted their success in lowering prescription drug prices through the Inflation Reduction Act. This act will reduce costs for 10 of Medicare’s most expensive drugs, a measure for which Harris cast the decisive Senate vote.
Current polling shows a divide in trust, with 45% of voters preferring former President Donald Trump over Harris to handle the economy, while 38% support Harris. Trump has criticized Harris’s proposed measures as “communist price controls,” claiming they could worsen shortages and inflation.
Harris’s housing plan also includes cracking down on rent-setting tools and removing tax incentives for investment firms that buy large quantities of housing. Consumer confidence surveys reflect ongoing frustration with high prices, particularly among lower-income Americans. Despite a cooling inflation rate, overall prices remain about 21% higher than pre-pandemic levels, with meat prices seeing significant increases.
The Biden administration attributes rising meat prices partly to corporate consolidation in the processing industry, while some economists suggest companies may have exploited pandemic disruptions. Critics argue that Harris’s proposed ban on price gouging may not address the broader inflationary pressures affecting various sectors.
