President Joe Biden’s term unfolds, his administration’s handling of the economy has faced scrutiny, particularly regarding inflation and federal spending. Recent analyses suggest that if Vice President Kamala Harris were to lead the nation, her economic policies might exacerbate current challenges, potentially making the situation worse than under Biden.
Biden’s approach to spending has been criticized for contributing to rising inflation. Since his administration began, excessive spending has led to higher prices and reduced the purchasing power of everyday Americans. The Congressional Budget Office (CBO) data reveals that federal spending during the Biden-Harris administration has remained at crisis-response levels long after the COVID-19 pandemic’s immediate threats had subsided.
From fiscal years 2021 through 2024, the administration is projected to spend an additional $5.9 trillion beyond pre-pandemic 2019 levels, resulting in deficits totaling $7.7 trillion. This surge in expenditure, combined with unprecedented monetary stimulus from the Federal Reserve, has driven inflation upward since Biden and Harris took office.
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In early 2021, inflation was relatively tame, with the Consumer Price Index for Urban Consumers (CPI-U) showing modest annual increases of 1.4 percent in January and 1.7 percent in February. However, by March 2021, inflation had jumped to 2.6 percent, and by December, it had soared to 7 percent. The situation worsened through 2022, with inflation peaking at 9.1 percent in June and remaining high at 6.5 percent by year-end. Although inflation dipped slightly to 2.9 percent by July 2024, it still exceeded the Federal Reserve’s target of 2 percent, marking 41 consecutive months of missing this goal.
Looking ahead, Harris’s economic agenda raises concerns about a continuation or worsening of these trends. Unlike Biden, who has faced pressure from the progressive left, Harris is deeply entrenched in this faction and is expected to push for even more ambitious spending plans.
One significant example of Harris’s economic vision is her strong support for the Green New Deal, a comprehensive environmental and economic reform package she cosponsored in the Senate. Harris was an early advocate for the Green New Deal during the 2020 Democratic presidential primary, reflecting her commitment to its costly and ambitious goals.
The Green New Deal is estimated to cost between $52 trillion and $93 trillion over ten years, according to former CBO director Doug Holtz-Eakin. For context, the U.S. GDP in 2023 was $27 trillion. Thus, the projected costs of the Green New Deal could amount to two to four times the nation’s annual economic output. Given the inflationary environment of the past four years, these estimates may be conservative, indicating that Harris’s economic policies could impose even greater financial burdens on the country.
As the U.S. contemplates its economic future, the possibility of a Harris-led administration raises significant concerns. With spending plans that far exceed Biden’s, the potential for increased inflation and economic instability looms large, leading many to question whether Harris’s economic stewardship could indeed prove worse than Biden’s.
