Will Trump and Harris's Plan to Combat Inflation Fall Short?

As the 2024 presidential campaign heats up, candidates on both sides of the aisle are honing in on the issue of inflation. The two prominent figures in this arena are GOP contender Donald Trump and Democratic candidate Kamala Harris. While the goal is to curb rising prices, their proposed initiatives seem destined to fall short of this objective.

Trump’s Anti-Inflation Agenda:
Donald Trump is adamant about combating inflation, even vowing to drive overall prices down. However, his strategies may inadvertently exacerbate the issue. Here’s how:

Tax Cuts: Trump’s proposed tax cuts, including plans to make the 2017 Tax Cuts and Jobs Act permanent, could cost trillions. While this might stimulate spending, it could also fuel inflation.
Tariffs: The imposition of tariffs under Trump’s plan would likely drive up consumer prices, thereby contributing to inflation.
Immigration: Trump’s stance on immigration, including the deportation of millions of immigrants, could hinder the labor supply, leading to higher wages and subsequently pushing prices up.
Federal Reserve: Trump’s contentious relationship with the Federal Reserve could complicate efforts to manage inflation through interest rate adjustments.

Harris And Inflation:
Kamala Harris’s approach to tackling inflation involves focusing on specific sectors such as housing, healthcare, childcare, and groceries. While her intentions are noble, the impact on inflation remains uncertain:

Housing: Harris aims to incentivize builders to boost supply while providing housing subsidies, which could have a mixed effect on home prices.
Health care: Negotiating drug prices under Medicare might cut costs for consumers, but could drug companies counteract this by raising prices elsewhere?
Children: Increasing tax credits for parents could potentially drive up demand for childcare products, leading to price hikes.
Groceries: Harris’s plan to ban price gouging could inadvertently decrease supply, resulting in higher prices for consumers.

While both candidates are resolute in their fight against inflation, the effectiveness of their proposed solutions remains questionable. History serves as a stark reminder of the challenges associated with managing price levels. The true test lies ahead, as voters evaluate these strategies in the run-up to the election.