Vice President Kamala Harris recently unveiled her economic agenda during a visit to Raleigh, North Carolina, as part of her presidential campaign. The plan centers on reducing the cost of essential needs, including housing, food, and childcare.
Harris’s agenda seeks to address basic survival needs but notably leaves out clothing, a key component of Maslow’s Hierarchy of Needs and a major factor in retail economics. This oversight raises concerns about the plan’s ability to fully address the everyday expenses of American consumers.
Critics from the retail sector argue that the Harris campaign’s approach may not adequately reduce the actual cost of essential goods. Instead of lowering prices, the focus appears to be on controlling price hikes.
The distinction between curbing inflation and cutting costs seems to be lost on the administration, reflecting a broader pattern within the Democratic party. While inflation can be managed, lowering prices requires a deeper understanding of retail dynamics, something the current policies have not effectively addressed.
Republicans have traditionally taken a more trade-focused approach to reducing living costs, promoting international commerce as a way to lower prices. However, the trade wars initiated by former President Trump, particularly with China, led to significant supply chain disruptions that worsened inflation.
Despite these setbacks, Trump’s administration made some strides in trade agreements, like the USMCA, and aimed to boost international commerce. In contrast, the Biden administration has been criticized for its lack of action in expanding trade opportunities.
Biden’s continuation of Trump-era tariffs, along with the failure to renew key trade programs such as the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP), has left the retail sector struggling.
Ethiopia and Haiti, important clothing exporters, have seen opportunities diminish due to stalled trade initiatives. These decisions have kept retailers burdened with higher costs, as potential avenues for affordable sourcing remain closed off under the current administration.
As the Democrats prepare for their upcoming convention, the opportunity to reshape federal trade policy presents itself. A return to free trade could help lower the cost of goods, easing the burden on both retailers and consumers.
Republicans, despite proposing some extreme trade measures, are at least engaging with the issue. If Harris and her team are to make real progress on reducing costs, they will need to consider international trade as a critical factor in improving the U.S. economy and lowering the everyday expenses that their plan aims to address.
