6 Concerns Middle-Class Earners Should Have About a Harris Presidency, According to Experts
Written by
Sean Bryant
Edited by
Molly Sullivan
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Since President Joe Biden announced on July 21 that he would end his presidential reelection campaign and endorsed Vice President Kamala Harris as the Democratic nominee, voters have been looking closer at Harris’ campaign proposals. While the Democratic party generally has policies that benefit middle and lower-class Americans, there are some items that middle-class earners might have concerns about with a Harris presidency.
“A Harris presidency will see an expansion of the policies of the last 3+ years,” said Rod Skyles, founder at The Unconventional Economist. “Middle-class Americans must then ask themselves, are they better off today than they were at the beginning of 2021?”
Keep reading as we explore six concerns about a Harris presidency you might have if you’re a middle-class voter in November.
Federal Spending
Harris has a proposed presidential agenda that prioritizes federal spending on things like social services, climate change, infrastructure, healthcare and education. While these things can help middle-class citizens, it can also end up costing them more in taxes. There could also be long-term implications of too much federal spending, like inflation. If inflation rises significantly, the cost of living may increase, making things more difficult for middle-class earners whose wages can’t keep up with inflation.
“At some point, reckless deficit spending will do serious damage to the economy, and when that happens unemployment will surely rise, hurting middle-class families both by higher costs of goods and services, along with having their jobs at risk,” Skyles said. “An economic downturn would also likely result in a stock market correction, hurting 401(k) and other assets held by middle-class Americans.”
Effects on Healthcare
Harris wants to expand access to healthcare for Americans and reduce healthcare costs for families. Even though government-funded healthcare options might seem beneficial for the middle class, they could lead to higher taxes, premiums or out-of-pocket costs. Government-funded healthcare could also potentially mean fewer choices for healthcare services for Americans.
“Harris has been a strong advocate for expanding access to healthcare, which could involve policies like strengthening the Affordable Care Act or pushing for a public option,” said Edward Hones, founder of Hones Law PLLC. “While these reforms aim to make healthcare more accessible and affordable in the long term, the transition period could bring about higher taxes or premiums to fund these changes.”
Tax Reform
Harris’ proposed tax reform includes increasing taxes on high-income earners and corporations. Other changes could include increasing tax rates or removing some tax deductions. These could affect middle-class taxpayers if they were previously eligible for the removed deductions or moved into a new tax bracket. Some taxpayers also worry that taxes will be increased in other ways to pay for the other social programs that Harris has proposed.
Loss of Oil Jobs
Harris has proposed a $10 trillion climate change plan. She wants to institute a “climate pollution fee” and end federal subsidies for fossil fuels. She has also called for a ban on fracking. All of this points to the fact that under a Harris presidency, there would be fewer oil jobs. If you are a middle-class household that relies on these industries for work, you may face some changes or even hardships under Harris. Although Harris has said that she wants to expand job training and retention programs for these workers, the programs might not do enough or work fast enough to make up for the loss in wages.
“Kamala Harris’ administration would likely push for aggressive climate policies aimed at reducing greenhouse gas emissions,” Hones added. “While this shift is essential for combating climate change, it could lead to higher energy costs in the short term as the country transitions from fossil fuels to renewable energy sources. Middle-class households might face higher utility bills and gas prices during this period. Workers in traditional energy sectors such as coal, oil, and natural gas might experience job losses, leading to economic uncertainty in regions dependent on these industries.”
Education Policy
Harris has proposed reforms to education policy, including making community college tuition-free and expanding access to higher education. While these efforts could benefit some middle-class households, others might be concerned about the costs to the country as a whole and who will pay for these education subsidies. Plus, unless you are going back to school for a career change or have a child who is graduating high school soon, you likely won’t be able to take advantage of these education subsidies as a middle-class earner already in the workforce.
Business Regulations
Harris is generally in favor of tighter regulations on businesses. These regulations are designed to protect consumers and workers. However, these regulations may lead to higher operational costs for businesses. This could affect middle-class workers, who may have reduced job opportunities due to stricter regulations. Regulations on certain industries could also affect the prices of goods and services, as businesses may be forced to pass on the increased costs to customers.
The Bottom Line
Federal spending, effects on healthcare, tax reform, loss of oil jobs, education policy and business regulations are six areas where a Harris presidency might have negative implications for a middle-class earner. However, it’s important to remember that many of these policies are speculative based on what she has said during the campaign. Putting these policies into place also depends on who controls the Senate. Regardless, voting for a presidential candidate that aligns with your personal beliefs, interests and priorities is important.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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