Americans are concerned about the economy. The nation's financial landscape is poised between a soft landing and a potential recession. And prospective voters are concerned about how the economy's fate would affect their wages, monthly expenses, and lives. With so much at risk, most voters will voice their concerns come November. Vice President Kamala Harris and former President Donald Trump will face off for the presidency. As the two candidates describe their objectives in debates, rallies, and media appearances, their statements on the economy — from inflation to higher education and housing — will be closely watched.
The 2024 election comes at a critical juncture for the American economy, with voters grappling with the aftermath of the COVID-19 pandemic, ongoing inflation concerns, and shifting global economic dynamics. Both Harris and Trump are keenly aware of the economic anxieties plaguing many Americans, and their campaigns have made addressing these concerns a central focus. As the election draws nearer, the candidates' economic proposals will likely face increased scrutiny from voters, analysts, and the media alike.
For starters, inflation keeps the cost of living high in many US cities, while exorbitant property prices hinder ambitious homeowners from purchasing. Many voters prioritize issues such as abortion access and tax policies. With the election just over two months away, Business Insider examined Harris' and Trump's proposals for eight important economic categories that touch Americans' daily lives: domestic manufacturing, higher education, healthcare, housing, labor, taxes, tariffs, and trade.
Business Insider contacted both the Harris and Trump campaigns for this article. Spokespeople directed BI to the candidates' prior statements and policy proposals. This analysis is based on the candidates' historical political histories and promises made during the 2024 campaign.
Domestic Manufacturing
Federal labor and business policies will influence the future of domestic manufacturing. Although the president does not have complete power over the economy, the White House can influence issues such as job creation, tax incentives, and industry restrictions. According to a March report released by The Economist and YouGov, 22% of voters ranked inflation and the price of products as their most critical problems this November. The poll was based on 1,594 likely voter responses collected between March 24 and March 26.
The focus on domestic manufacturing has intensified in recent years, particularly in light of supply chain disruptions experienced during the pandemic. Both Harris and Trump have emphasized the importance of bolstering American manufacturing capabilities, albeit with different approaches. Harris has advocated for investments in clean energy and advanced manufacturing sectors, while Trump has consistently pushed for protectionist policies and the reshoring of manufacturing jobs. The candidates' divergent strategies on this issue could have significant implications for the future of American industry and its workforce.
Harris and Trump's policy ideas prioritize major industries such as auto manufacturing and steel, as well as small businesses. Harris is expected to continue Biden's auto agenda, which includes tighter pollution standards, infrastructure expenditures, and strong union support – Harris has stated that she is "proud" to have the support of the United Auto Workers Union (UAW). While Harris has yet to produce a specific auto sector plan, she stated during the debate that "building a clean energy economy includes investing in American-made products and automobiles," as well as expanding auto facilities to create manufacturing employment.
During the discussion, Trump also stated that he intends to safeguard American automakers while opposing the Mexican and Chinese auto industry. He has previously stated that he intends to hike tariffs on foreign-made cars and has predicted a "bloodbath" in the domestic auto industry if he is not re-elected. The UAW has condemned Trump for his anti-union stance.
As electric vehicles gain mainstream, Harris is likely to support the Biden administration's proposal to make EVs more cheap and invest in charging infrastructure across the country. Harris has not proposed any EV production standards, but she has previously advocated for clean school buses and mentioned her and Biden's recent sustainable energy initiatives during the discussion. Trump, on the other side, has stated that EVs could offer Mexican and Chinese manufacturers an advantage while cutting US car jobs.
In view of the upcoming $14.9 billion sale of US Steel Corp to Japan's Nippon Steel, Harris believes steel should remain domestically held. While in office, Trump worked to defend the US metals industry by imposing tariffs on steel and aluminum imports. Trump has also expressed opposition to the US Steel sale. The United Steelworkers Union has endorsed Harris.
The soundness of the country's domestic manufacturing industry has a direct impact on the labor market. During the epidemic, unemployment skyrocketed in several manufacturing areas, but those jobs recovered modestly over the course of Trump's presidency. Harris has been a staunch supporter of decent wages for American workers. Instead, Trump has suggested incentives and tax cuts for wealthy multinational firms. His proposal to impose wide taxes on foreign products may raise prices for small firms and American consumers.
In terms of environmental legislation, Harris has yet to present a comprehensive climate plan. She has previously supported the Green New Deal, renewable energy, and carbon pricing to combat climate change. "We know that we can actually deal with this issue. The young people of America care deeply about this issue," she stated prior to the discussion. Meanwhile, Trump has repeatedly claimed that the climate problem is a "hoax," advocating for the elimination of clean-energy and carbon-capture tax credits and increased investment in fossil fuels. Neither Harris nor Trump intend to ban fracking.
Higher Education
Harris and Trump have very different views on education policy, notably student loan debt. Since Biden and Harris took office, the Education Department has implemented a number of improvements to student loan repayment programs. For example, after Trump's Education Department created a backlog of applications for the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after ten years of qualified payments, Biden's department issued a limited-time waiver. The waiver permitted students' past payments, which the government claimed were ineligible for the program after its inception in 2007, to qualify toward debt forgiveness.
Additionally, the Education Department is making one-time account changes for borrowers on PSLF and income-driven repayment plans to bring their payment status up to date. In July, it also adopted the new SAVE income-driven repayment plan, which contains a mechanism to cut borrowers' monthly pay over a shorter period of time. Two conservative groups have prevented aspects of the SAVE plan from being implemented.
So far, Biden and Harris have erased $168 billion in college debt for 4.7 million borrowers. And there's more to come -- in early April, Biden and Harris revealed information about a fresh student-loan forgiveness scheme after the Supreme Court rejected his initial attempt. However, that revised plan has already encountered legal challenges, with a federal court issuing a temporary restraining order on its implementation in early September. And if Trump wins the presidential election, Biden's aid efforts could be jeopardized.
The debate over student loan forgiveness and higher education affordability has become increasingly polarized, reflecting broader ideological divisions in American politics. Harris's support for debt relief and expanded access to higher education aligns with progressive calls for systemic reform in the sector. In contrast, Trump's approach, which emphasizes personal responsibility and market-driven solutions, resonates with conservative voters who are skeptical of government intervention in education. As the campaign progresses, both candidates will likely face pressure to articulate more detailed plans for addressing the rising costs of college and the long-term sustainability of the student loan system.
Following the Supreme Court's decision on debt relief, Trump said on his campaign website that the ruling was "only made possible through President Trump's strong nomination of three distinguished and courageous jurists to the Supreme Court." While in office, Trump attempted to undercut the borrower defense to repayment, which provided relief for thousands of students misled by the colleges they attended. For-profit colleges, such as Corinthian Colleges and ITT Technical Institutes, misrepresented their curriculum and forced students to incur debt they couldn't afford. While Biden's administration provided redress to misled borrowers, it is unlikely that those efforts would continue if Trump were reelected.
In general, student-loan debtors would likely have substantially different outcomes under a Harris or Trump president. While relief measures are expected to continue if Harris wins a second term, a Trump president could block the work already underway by Biden's Education Department, leaving debtors to repay their loans without fresh routes for relief.
Under Trump, the Education Department is expected to face additional budget cuts. While in power, Trump suggested reducing billions of funds from the department, including eliminating the PSLF. Trump did favor reducing the amount parents can borrow through PLUS loans, which allow them to borrow up to the full cost of their children's education. These loans have the highest federal student loan interest rate, making them difficult to repay. Trump's budget also included an extension of the Pell Grant, a grant for those who demonstrate financial need, to detained individuals.
Healthcare
Healthcare is one of the policy areas in which Harris and Trump disagree the most. Nonetheless, a Pew study conducted in May indicated that healthcare is one of the top agenda items for more than half of American voters. Harris intends to continue the Biden administration's efforts to expand the Affordable Care Act, or Obamacare, and make healthcare more accessible to families, the middle class, and individuals with preexisting illnesses. Trump has stated that he wants to "repeal and replace" the law and slash Medicare. However, Trump has not publicly articulated an alternative inexpensive healthcare plan: "If we can come up with a plan that's going to cost our people, our population less money and provide better healthcare than Obamacare, then I would absolutely do it," he stated during the September 10 debate.
At a rally in North Carolina in July, Harris and Biden emphasized their efforts to expand the 2022 PACT Act to provide healthcare to millions more veterans, including those who were exposed to toxins while training or serving in the Vietnam War, Gulf War, Iraq, Afghanistan, and post-9/11 combat zones. This follows a 2018 measure passed by President Trump that allows some veterans to get VA-funded care at community medical facilities. Trump has not addressed any new veteran healthcare measures as part of his reelection campaign, but he has previously taken credit for a private-sector veteran healthcare program implemented by former President Barack Obama.
The cost of pharmaceutical pharmaceuticals is also a concern for voters, as some Americans claim they are unable to obtain prescriptions due to high prices and supply shortages. Throughout her vice presidential and presidential campaigns, Harris claimed to make drugs cheap to all Americans, regardless of household income, in addition to her proposal to wipe off millions of dollars in medical debt. Harris intends to build on the 2022 Inflation Reduction Act, which contained provisions to reduce the cost of insulin to $35 per month. She is also involved in the Biden administration's negotiations with Big Pharma companies over the price of ten major drugs, including those used to treat diabetes, arthritis, and heart disease. "Access to healthcare should be a right, not just a privilege of those who can afford it," Harris stated during the debate.
If Trump is elected for a second term, the Inflation Reduction Act would oblige him to continue negotiating prescription prices. Trump has not made drug affordability a priority in his 2024 campaign.
Two years after the Supreme Court overruled Roe v. Wade, Harris is highlighting abortion access: "The freedom to make decisions about one's own body, should not be made by the government," she stated during the discussion. The Democratic nominee stated that she strongly supports reproductive autonomy, including a restored constitutional right to abortion and protections for medication and emergency abortion services. Harris is also the only incumbent vice president or president to have visited a Planned Parenthood clinic while in office, and she has previously defended reproductive healthcare when serving as California's Attorney General.
Following state court rulings earlier this year that declared frozen embryos to be people, Harris and Trump both expressed support for IVF and fertility treatments. Trump has also advocated for nationally sponsored IVF, a controversial notion among Republicans. If re-elected, Trump has stated that he would not sign a countrywide abortion ban if it were passed by Congress, but his personal attitude on the topic has shifted throughout his time in the spotlight – and many Americans are concerned about GOP efforts to restrict reproductive healthcare access. At the September 10 debate, Trump stated that he is proud of overturning Roe v. Wade. "I did a great service in doing it. It took courage to do it. And the Supreme Court had great courage in doing it," he said.
Trump has maintained that abortion should remain a state issue, allowing state legislatures to continue adopting restrictions on abortions and putting doctors who perform the practice at danger of punishment. In an April interview with Time Magazine, Trump also stated that he would "let red states monitor women's pregnancies and prosecute those who violate abortion bans." Project 2025, a policy plan developed by Trump supporters, also asks for severe nationwide limits on abortion and birth control.
Trump has also stated that if he is re-elected, he will prohibit all gender-affirming healthcare including hormone therapies for kids. However, Harris has spoken out against anti-LGBTQ legislation and is expected to build on Biden's earlier work to defend transgender children and adults' access to healthcare. Since her early career, she has advocated for transgender people's rights.
Housing
Housing expenses provide a significant obstacle for both Harris and Trump, as millennials and Generation Z are priced out of many markets. Two convincing data summarize the current status of the housing market. A Gallup poll of 1,001 adults conducted in May 2024 found that only 21% of Americans thought it was a good time to buy a home, while 76% said it was a horrible time. Millennials will play a critical role this November, as voters in their 30s and early to mid-40s with growing families are unable to live in the places where they grew up due to a lack of available homes and rising prices.
Affordable housing has been a primary concern for Harris, who understands the importance of an issue that may make or break her presidential campaign. The current 30-year fixed-rate mortgage is less than 7%, with rates falling in recent months, yet many potential purchasers are simply not purchasing homes and are continuing to rent. For decades, housing has failed to meet demand. The problem worsened following the Great Recession and during the COVID-19 outbreak. Many would-be sellers have now elected to stay put, worsening the housing scarcity, which has emerged as one of the most serious public policy challenges at the local, state, and federal levels.
Biden spoke earlier this year in Nevada, a battleground state that Harris hopes to win this November, about the administration's efforts to address the housing crisis, particularly the 1.7 million housing units presently under construction. He also stated that the administration intended to build an additional 2 million inexpensive houses, with thousands of those units planned for the Silver State. However, there is no formal date for when these residences will be finished.
During the discussion, Harris stated that if elected, she plans to work with builders and the private sector to create 3 million new homes by the end of her first term. Housing affordability will be a major problem in other battleground states such as Arizona, Georgia, North Carolina, and Pennsylvania.
Last year, the Biden-Harris administration also advocated for more office-to-residential conversions, stating that it would establish a program to "help communities build and renovate housing or convert housing from empty office spaces into housing." Such conversions have gained popularity in recent years. With legions of staff able to work remotely during the pandemic, many companies have decided not to renew their office leases.
Harris' economic strategy includes a $25,000 tax credit for first-time home purchasers, which she emphasized during the debate. As part of her vow to create a "opportunity economy," Harris also proposed a $6,000 child tax credit, which she claimed would assist young families in purchasing needs such as cribs and clothing for their children.
Trump has also focused on the subject of housing. While campaigning in Iowa last year, he stated that the answer to lowering home expenses was to reduce energy expenditures. "We'll get the prices way down," he said, referring to energy expenses. "And then the interest rates will go down, and the home builders will start building again."
Trump's record on affordable housing is mixed. In 2019, he established a White House group to reduce barriers to the construction of affordable homes. However, throughout his presidency, Trump advocated for significant cuts to the Department of Housing and Urban Development's budget. In 2020, he proposed eliminating the Community Development Block Grant program, which provides annual funds to states and local municipalities to fund redevelopment and community services, from the following year's budget, stating that housing regulations were best handled at the state and local levels.
A second term for Trump would most likely mean that the federal government would be less involved in determining housing policy than a future Harris administration.
The housing crisis has far-reaching implications beyond just homeownership, affecting rental markets, urban development, and even demographic trends. Both candidates will need to address not only the immediate affordability concerns but also long-term issues such as zoning laws, urban sprawl, and the impact of climate change on housing. As the campaign progresses, voters will likely demand more concrete plans from Harris and Trump on how they intend to balance the needs of current homeowners, prospective buyers, and renters while also addressing broader economic and environmental concerns related to housing policy.
