The Harris Economic Plan
By Michael Charles Master
Well, on Friday, August 16, Que Mala Harris laid out her economic plan: price controls, $25,000 to first time new citizen home buyers, credits for children, and legislation against price gouging. Those are all band aids to problems of higher prices, but do not include even one fix for the root causes of higher prices.
Instead of paying new home buyers $25,000, why doesn’t the government just reduce down payments by 5 or 10% on home purchases that are under $300,000? That effectively reduces the need for cash from the buyer by around $25,000 and does not cost the government or tax payers anything. It could be done immediately without the need for legislation. And would not potentially be unconstitutional as the the Harris plan could be.
So why not lower down payments now? Because that would not get Harris any additional votes. It stops another Democrat give-a-way for votes. So of course Harris and the deep state will not do it, especially not now, for the same reason why they haven’t done it in the last 3 1/2 years… no political gain.
Harris compared prices now to the prices prior to COVID and shared how many food prices and other prices are up more than 40 and 50% since prior to COVID. Why prior to COVID? Because prices were actually much less after COVID when Biden/Harris took control and have increased even more than 40% since Biden/Harris took control.
Even with her comparison to prices before COVID, prices are up for food, housing, energy, and clothing more than 40% since Biden/Harris took control by her own admission.
Price gouging is not a cause of higher prices. That is just more class warfare by Democrats. The CPI has tracked exactly to PPI with a 90 day lag to PPI for the last 3 years. If price gouging was a problem, then CPI would be much higher than PPI.
So what are the root causes of price increases? What did Harris propose to fix those root causes? Nothing.
Why? Because government is the root cause. This Democrat run government caused the inflation with government spending that increased from a norm of 18% of GDP to this current record high of 25% of GDP (40% increase) and by limiting oil production which drove up oil prices and prices for every product that oil influences including costs for basic transportation to ship products.
OK, questions: How much will these programs of Harris cost? She doesn’t know. Many experts say trillions of dollars. And where does that money come from? tax payers. you and me. or more government debt. And what does that debt cause? more inflation.
None of these types of programs worked to lower inflation when Jimmy Carter was president. Rationing and price controls just caused product shortages when Nixon was president. None of these types of programs work. They exacerbate the problem by causing product shortages just like in Russia and China. They have not worked in socialist countries. Did Harris study any of that?
Robert Riech is an economic advisor to Harris and Democrats. He has continually pushed MMT (Modern Monetary Theory) which states that government should spend as much money as it wants to spend and then simply print more money since money is just fiat anyway. Maybe that is what Harris plans to do… just print more money to cover her increased spending. And then what happens when you pump more money into the economy? Just look at Venezuela. Incredibly more inflation. MMT has never worked anywhere. Never.
If Harris issues more debt to cover her increased spending, then what happens to interest rates? They increase to attract more bond purchasers. And when interest rates increase, then what happens to housing costs, credit card payments, and rents? They all increase.
The only ways to reduce inflation for average working Americans is to cut government spending to the traditional 18% of GDP and to increase oil production so that oil supply = demand. And that is the Trump plan, not the Harris plan.
Harris is economically stupid. A lawyer. A prosecutor by her own words. A government employee for her entire career with no actual private sector business experience. And her economic plan now proves it.
As a side note: in her address, Harris referred to “price gouging” as “price gaging.” Evidently, she was just reading from a teleprompter and read it incorrectly. She made no attempt to correct her words. That is just more evidence that she has no idea about what she is talking about. None. She just says what her handlers tell her to say.
©2024. Michael Charles Master, author of Trump the Disrupter. All rights reserved.
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