Source: Wall Street See

Harris's economic policy emphasizes government intervention and will support the American manufacturing industry through the tax offset plan to ensure national economic security.

On Wednesday, September 25, Vice President of the USA and Democratic presidential candidate Harris pledged in her campaign speech that if elected president, she would use government power to support the American manufacturing industry, making federal intervention the core policy of her economic plan.

Specifically, Harris will support a new tax offset plan by increasing taxes on American companies' overseas earnings to provide funding for the $100 billion tax offset for the next ten years. The offset plan will invest billions of dollars in the American manufacturing industry, aiming to stimulate the next-generation industries critical to economic development and national security, including biotechnology, aviation, artificial intelligence, quantum computing, and other cutting-edge industries, as well as traditional industries like steel manufacturing.

The Biden administration has long advocated for such policies, investing billions of dollars to support the domestic production of computer chips, electric vehicles, batteries, and other high-tech commodities in the USA. Harris's plan is essentially a continuation of Biden's years of efforts, aiming to use government tools and financial means to drive the development of key economic sectors. This approach, known as industrial policy, has gradually gained support from some Republicans.

Economist Robert Barbera from Johns Hopkins University believes that Harris's inclination towards implementing this industrial policy is somewhat justified, as certain industrial manufacturing capabilities are crucial for national economic security.

Economics professor Michael Hicks from Ball State University in Indiana also stated that industrial policy often costs taxpayers more than benefits because high-tech factories are highly automated, resulting in relatively few jobs created by such projects. However, this approach is useful when it comes to matters related to national security.

In recent years, the employment situation in American factories has shown an unstable trend, with the manufacturing sector currently accounting for only 8.1% of total employment in the United States.

Trump also placed American manufacturing at the core of his economic plan, aiming to support domestic producers in the United States through import tariffs and targeted corporate tax cuts. Harris's campaign team criticized Trump's proposal, stating that it only focuses on the wealthy and corporations, rather than middle-class families. The costs of new tariffs may be passed on to American consumers, leading to price increases.

Editor / jayden