National Review Online
Tuesday,
October 01, 2024
After being
ridiculed for not having a policy platform, the Kamala Harris campaign released
an 82-page document outlining the vice
president’s ideas on the economy. No longer suffering from lack of detail, it
still suffers from lack of good sense.
The
Harris view of economics is that the United States is a single-player video
game, and the federal government is the player. Creating a thriving economy is
simply a matter of pressing the right buttons in the right order.
Harris
has replaced her formerly far-left economic views with minutely technocratic
ones. Democrats want to use their freshly expanded IRS to micromanage flows of
money in the economy through an even more invasive and convoluted system of tax
credits than already exists.
She
wants to make permanent and expand Obamacare premium tax credits set to expire
at the end of next year. She thinks the budget-busting green-energy tax credits
from the so-called Inflation Reduction Act have been a roaring success and
wants them continued and expanded.
Harris’s
housing policy is a slew of tax credits, for homebuyers and homebuilders alike.
The platform cites praise from the National Association of Homebuilders as
though it means something more than that its members would be grateful to
receive billions of taxpayer dollars during a Harris presidency.
Small
businesses also would be recipients of new and expanded tax credits, government
loans, and government contracts. Never mind that when the National Federation
of Independent Businesses asks small-business owners which of 75
problems are the most severe, access to loans and government contracts are near
the bottom. The No. 1 concern is the cost of health insurance, in large part
due to Obamacare. Economic uncertainty, the tax and regulatory burdens, and
energy costs also rank highly.
Harris
claims multiple times she wants to cut red tape, in areas such as small
business, housing, and energy. We’re wondering where her deregulatory efforts
have been as vice president. The Biden-Harris administration so far has added $1.7 trillion in regulatory costs.
She’d have to be the biggest red-tape cutter in American history just to get
back to where this administration started in 2021.
Market
prices are generally a problem to Harris. Aside from overriding them with tax
credits, she wants a federal law against price-gouging and believes government
can better direct investment than capital markets. She reiterates the
“greedflation” story of rising prices that Biden and the media have
popularized.
The
platform villainizes “Wall Street investors” while also proudly touting that
Goldman Sachs estimates higher economic growth from Harris’s plans than from
Trump’s. It attacks “big corporations” while noting that nearly 100 business
leaders have endorsed Harris for president.
All
these policies accumulate points in the video game’s scoring system, courtesy
of Moody’s Analytics, which is led by Mark Zandi, Democrats’ go-to economist. Consistent with Zandi’s corpus,
major themes of which include “spending good” and “Republicans bad,” Harris’s
economic plans would lead to strong growth and job creation, while Trump’s
would cause a recession almost immediately.
Maximizing
her spending rating, minimizing her taxation damage, playing her middle-class
power-ups, and making sure to hit the swing-state boosts no doubt earn Harris a
good score in the video-game economy. But in real life, things don’t work the
same way.
The
government faces major budget questions next year when the individual
provisions of the Tax Cuts and Jobs Act expire and the debt limit will need to
be raised. Harris still does not have a plan to deal with those looming
deadlines.
More
fundamentally, in real life the government is not the only player, and it
shouldn’t be the most important player. The American people are not NPCs that
passively respond to the government’s moves. They have the potential to
innovate and provide for themselves, and to interact with each other in
productive ways no government can foresee.
Neither
far-left 2019 Harris nor technocratic 2024 Harris believes that to be true.
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