Harris

VP Harris unveiled her economic plan and surprised some by moving to the left rather than to the center. The biggest move involves the government to intercede in the price of commodities with food at the head of the list. The most recent attempt by government affecting prices happened when Nixon put a 90 day freeze on wages and prices to control inflation. High prices do not cause inflation rather inflation causes high prices. Inflation happens when demand exceeds supply. Harris then says that she will offer $25,000 in cash to first time home buyers which will increase demand. There are 1.8 million people who qualify as first time home buyers and if they all take advantage of this it will cost the government $45 billion which would put upward pressure on inflation. She proposes that the government finance the building of 3 million starter homes which means more government spending which means more upward pressure in inflation. Her plan calls for the expansion of existing tax credits for businesses to build affordable rental housing along with $40 billion to boost construction. Add to this elimination taxes on TIPS will cost $15 billion per year, increasing the child tax credit to $3,600 would cost $240 billion, forgiving medical debt would cost $220 billion and then add to this the cost of forgiving student debt which stands at $1.7 trillion. The country is already facing inflation pressures as the reshoring of jobs will continue as the US doubles its industrial base. Over the past few years as millions of Americans got free money from the government they didn't think of how this money would lead to inflation. Will these government programs be so popular that once again people will not consider the long term effects on inflation.