WaPo’s Catherine Rampell on how the Economy is Helping Harris (A Little)
Oct 27, 2024
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Catherine Rampell, an economic columnist for the Washington Post, delves into the implications of economic policies on the upcoming election. She critiques Trump's tariffs, emphasizing their potential to increase consumer costs, particularly affecting lower-income households. Rampell also highlights a successful program in Flint, Michigan, providing cash grants to families of newborns—a concept that Kamala Harris is embracing for her campaign. The conversation reveals the challenges families face and the innovative solutions that could reshape national policy.
Kamala Harris's campaign incorporates successful initiatives like Flint's cash grant program for newborn families to combat child poverty.
Recent economic trends show wage growth surpassing inflation, positively influencing voter perceptions despite previous concerns about Trump's policies.
Deep dives
Economic Optimism Amidst Polling Trends
Americans are showing a brighter outlook on the economy as recent data reveals positive trends, including wage increases outpacing inflation. This shift has occurred despite former President Trump's initial polling advantage on economic trust, which has diminished as people reassess his economic agenda. Factors contributing to this change include easing inflation rates approaching the 2% benchmark and declining interest rates, fostering a more favorable economic environment. The conversation highlights how political narratives can shape public perception, particularly as significant figures from Trump's administration question his leadership and economic policies.
The Misconceptions of Tariffs
Trump's proposed policies, particularly regarding universal tariffs, illustrate significant misconceptions about their economic impact. The tariffs would result in higher costs for consumers, directly contradicting Trump's assertion that China would bear these expenses. As observed, any tariffs imposed on imported goods ultimately affect the downstream businesses and consumers in the U.S., leading to increased prices. Economic analyses, such as those by the Peterson Institute, suggest that Trump's tariffs could effectively raise household costs, particularly for low-income families, emphasizing the disconnect between his policies and their real-world consequences.
The Effect of Wage Growth on Public Sentiment
Recent economic data indicates that wage growth has consistently outpaced inflation, leading to improved public sentiment regarding the economy. This change is critical as it influences voter opinions, lessening the economic burdens experienced during previous inflationary peaks, and contributing to a more stable employment landscape. Although Americans remain frustrated by high prices, the adjustment to elevated costs combined with wage improvements is gradually changing perceptions. As employment metrics improve and inflation settles, people are becoming more acclimated to the current economic situation, possibly translating into political advantages for those in power.
Innovative Approaches to Addressing Poverty
Dr. Mona Hanna-Attisha's innovative initiative in Flint, Michigan, aims to directly alleviate child poverty through unconditional cash grants for families with newborns. This program provides substantial financial support to new parents, addressing the significant expenses associated with raising children during critical early years. Preliminary results show promising outcomes, including improved health indicators and a noticeable decrease in eviction rates among participating families. The program seeks to not only provide material support but also to foster a sense of community and trust in local institutions, highlighting the potential for compassionate policies in public health and economic stability.
The economy is always one of the most important issues in any election. So how does Kamala Harris's vision for America's economy stack up against Donald Trump's? Catherine Rampell from the Washington Post joins us to discuss. Trump's economic plan seems to revolve around tariffs, an issue that he seems to have a hard time understanding. Not only that, his threat to deport millions of undocumented workers will undoubtedly drive up the cost of goods around the country. It's clear that Trump cannot be trusted on this issue. Plus, Catherine tells us the story of Flint, Michigan and a program that is aimed to give money to families of newborn babies. It's a plan so successful and so popular that Kamala Harris has adopted a version of it for her campaign platform. Can it work on the national level?
LAST CHANCE: Get tickets to see a live taping of the Al Franken Podcast in NYC on October 28th! https://www.alfranken.com/appearances