Kamala’s joyful spin can’t hide economic doom

So far, Kamala Harris’ plans for the U.S. economy include creating food shortages, worsening the housing crisis, and crashing the stock market and the economy. Don’t worry, though, because it will be done with great joy.

The Harris-Walz campaign, which as of Thursday night had no official platform on its campaign website, is running a campaign of “feels” and “vibes.” But how much joy will it take, to the nearest dollar, to pay for food, fill up your gas tank, and pay for rent or a mortgage?

Any one of Harris’ proposals should be disconcerting. Taken together, they are a recipe for complete financial ruin.

Her entire approach to the economy is entirely unserious — but would be deadly serious if enacted.

Crazy economic proposals would be problematic at any time, but after an administration that has left Americans struggling with the cost of living and burdened the country with debt downgrades, nearly $2 trillion deficits, and an unsustainable 120% debt-to-GDP ratio, the timing couldn’t be worse.

Kamala Harris is trying to distance herself from the policies that helped create this economic mess, as if we all don’t know that she is not only the current administration’s vice president but she also was the tie-breaking vote for policies like the American Rescue Plan, which stoked historic inflation, and the Inflation Reduction Act, which created a deficit double the historic average (as a percentage of GDP).

The Biden-Harris administration’s claim of a historic number of jobs created is misleading. It counted people returning to work after pandemic shutdowns as new jobs. It's like rebuilding a house after a fire and calling it new construction.

Not to mention that a significant number of individuals are working multiple jobs to be able to afford the cost of living.

The Bureau of Labor Statistics has revised the jobs numbers down by a staggering 818,000, marking the second-largest downward revision ever, only behind one during the Great Recession.

These are the realities that Harris wants to evade.

As she tries to pretend that she doesn’t have a clear track record, her new economic proposals, leaking out from her campaign, are even worse.

Looking to find a place to shift the blame, she has trotted out the tired notion of “corporate greed.” She says food costs are high because of greedy corporations. Her fix? Going after “price gouging,” which likely means some type of price controls.

Her thesis is ridiculous. Corporations didn't suddenly become greedy over the last three and a half years. The grocery industry, for instance, operates on very thin profit margins. In 2023, the industry-wide net profit margin was just 1.6%, the lowest since 2019.

Moreover, the Producer Price Index, a measure of wholesale inflation related to the inputs for goods and services, has closely tracked the Consumer Price Index, the inflation paid by the consumer. If there was massive gouging, there would be a notable divergence between the two metrics.

Her fix to a wrongly labeled problem has been widely panned on a bipartisan basis, as price controls lead to shortages and rationing.

The only defense supporters offer is that the proposals wouldn’t pass Congress, despite Harris discussing executive action. This isn’t a strong endorsement. They’re effectively saying, “These proposals are just to buy votes, not serious plans.”

Other Harris proposals have been equally destructive and show a complete lack of economic insight.

On the housing front, Harris has said she would address the unaffordability in housing with $25,000 down payment support for “first generation” homebuyers. We have lived through the aftermath of giving money for homes to people who can’t afford them otherwise, and that didn’t work out well for any of us.

It’s also insane because the problem is one of undersupply. Adding more demand with taxpayer-funded down payments will only increase the price of housing and make it more unaffordable while also driving up the ancillary costs (from property taxes to insurance).

The Harris campaign noted her support for Biden’s tax plans, including raising capital gains to nearly 45% and imposing wealth taxes on “unrealized capital gains” — theoretical increases in asset value that haven’t been realized as income.

The immorality of taxing unrealized capital gains cannot be overstated. The after-effects would implode the stock market, crash the economy, and pave the way for the government to tax any theoretical increase in asset value, from homes to stocks.

The same people who requested $80 billion to expand the IRS and lowered the reporting threshold to $600 for Venmo and Etsy payments, claiming it was to target the ultra-wealthy, now want you to believe their new proposals do the same.

Any one of Harris’ proposals should be disconcerting. Taken together, they are a recipe for complete financial ruin.

There’s not enough joy in the world to polish up Harris’ disastrous economic proposals and track record. The economy is the top issue for voters. Let’s hope they remember to vote for good sense and not for “joy.”