You’re pushing your shopping cart down the aisle at the local grocery store, loading up with usual staples: milk, eggs, bread, fruits and vegetables. But when you reach the check out, you’re shocked to see the total is much higher than last week! What’s going on here? Simply put: inflation has hit your wallet.
Between 2020 and 2024, inflation rapidly increased. After the COVID lockdown was lifted, people had excess money and spent it, which led to an increase in both supply and demand. Consequently, the federal tax refund (IRS) contributed to the rising inflation, causing economic issues such as the cost of living and food prices. However, as people began to spend less, the IRS lowered interest rates to stabilize the economy. This issue is central to the upcoming election, so let’s see what each candidate says about inflation. (source)
What Will Trump Do?
Trump’s plan to take care of inflation is to extend the individual income tax provision of TCJA, which stands for Tax Cuts and Jobs Act. As claimed in DonaldTrump.com he states that Republicans will keep the economy going by getting rid of wasteful spending by the government and starting to promote economic growth. Trump also promotes crypto as a form of currency. Trump will increase energy production and end market-distorting restrictions which are rules that affect prices. He will do this on oil, natural gas and the coal market.
Trump has a different plan of action for the cost of housing. Trump’s main goal is to reduce the cost of housing, education, and healthcare to ensure a safe economy. Trump’s plan to reduce mortgage ratings by withering inflation and cutting unnecessary regulations that raise the housing cost. Stated in DonaldTrump.com he will also push economic plans to diminish the cost of housing for and for goods and services. He will then enlarge access to affordable housing and perceptions. Trump will make sure that senior citizens will obtain the needs that they acquire without such an expensive cost.
What Will Harris Do?
According to her official website, Harris’s goal for the 2024-2025 election is to boost the middle class so everyone can experience economic growth. Vice President Harris and Governor Walz aim to address two key issues during their administration: the cost of housing in the United States and inflation, both of which are crucial for the economic success and wealth-building of the middle class.
Harris has proposed a two-part plan to address inflation. The first step involves building strong supply chains that encourage small farm growers and new suppliers to participate in multiple food chains, diversifying the supply in case of a chain failure. Secondly, she will concentrate on arranging a nationwide ban on price gouging. Price gouging is when companies unreasonably raise the price of food and groceries.
Harris aims to reduce the cost of living through a two-part plan. First, the vice president proposes to create a new tax credit to rehabilitate inexpensive housing for homeowners. According to kamalaharris.com, “Harris would fill this gap by creating a new Neighborhood Homes Tax Credit, which would support the new construction or rehabilitation of over 400,000 owner-occupied homes.” Secondly, she would aid first-time homebuyers with a $25,000 down payment assistance with any home purchase.
How does this issue impact us locally?
This issue impacts us locally because of Housing affordability:lack of affordable housing forces difficult choices between essentials. Across New York, half of all households are rent-burdened meaning that more than 30% of their household income goes to rent. Spending so much on rent can leave too little money for food and other essentials.
