The media would have you believe that Harris is invincible. But she has a huge problem.
As a Trump campaign advisor just dropped the hammer on her in this Fox News appearance.
Concerns Over Kamala Harris’ Economic Agenda Amid Market Decline
Steve Moore, an economic adviser for the Trump campaign, voiced concerns on Monday regarding Vice President Kamala Harris’ economic agenda, attributing a sharp decline in U.S. stock markets to these apprehensions. The market experienced its worst opening since 2021, with the Dow Jones Industrial Average and the S&P 500 dropping by 3% and 3.4%, respectively. This downturn followed a Friday jobs report revealing a rise in the unemployment rate to 4.3%.
Moore linked the 1,000-point market drop to growing political worries about Harris’ candidacy. “In the last two weeks, Kamala has been rising in the polls, making it a tied race,” Moore remarked. “People on Wall Street are concerned about the agenda she might bring to the White House.”
Moore criticized Harris’ proposal to increase the capital gains tax and her support for President Joe Biden’s economic policies, suggesting these factors could negatively impact her election prospects. During a Saturday rally, Republican nominee Donald Trump labeled the recent economic downturn as the “Kamala Economic Crash,” drawing parallels to the Stock Market Crash of 1929.
“Kamala and Biden have been promoting the economy based on its performance in the first half of the year,” Moore noted. “However, recent trends indicate a decline. Elections often hinge on economic perceptions, and with rising inflation and a softening labor market, Harris faces significant challenges.”
Trump campaign adviser Steve Moore says Americans are "worried" about Kamala Harris' agenda as markets plummet pic.twitter.com/P0KyWrk0Lx
— Daily Caller (@DailyCaller) August 5, 2024
Since Biden’s inauguration in January 2021, the Consumer Price Index has risen by over 20%, according to Bureau of Labor Statistics data. Moore argued that the economy is struggling due to excessive government spending, amounting to $2 trillion that the country cannot repay.
The Federal Reserve, maintaining its federal funds rate at a 23-year high, had been expected to lower rates in September. Most investors anticipate a 0.5% rate cut, reflecting recession fears among Americans, as indicated by CME Group’s FedWatch tool.
In response, Harris’ campaign attributed the economic challenges to the Trump administration’s policies. “Donald Trump failed Americans, leading us to the brink of recession,” stated Harris campaign spokesperson James Singer. “While we have made significant progress, Vice President Harris recognizes the need to further reduce costs for families.”
Fox Business anchor Charles Payne contrasted the Trump administration’s handling of the “shortest recession in history” caused by the COVID-19 pandemic with the current administration’s economic policies, which he argued are contributing to an economic decline. Payne echoed economists’ views that the Inflation Reduction Act, passed in August 2022, has not effectively curbed inflation.
Economy Still The Biggest Election Success Indicator
Generally, if the economy is struggling, people tend to blame the party in power. If the incumbent president’s party is associated with economic problems, voters might be inclined to vote for the opposing party. For example, if there’s high unemployment, inflation, or a recession, it can be a significant disadvantage for the incumbent party.
Economic hardship often makes voters more receptive to messages of change and improvement. Candidates from the opposing party can capitalize on this sentiment by promising economic reforms or improvements. A negative economic outlook can thus boost the chances of the challenger.
Historical trends support this connection. For example, in 1980, President Jimmy Carter faced significant economic challenges, including high inflation and unemployment. Voters’ dissatisfaction with the economy contributed to Ronald Reagan’s victory. Similarly, in 1992, President George H. W. Bush was hurt by a recession, which played a role in Bill Clinton’s win.
The Donald Trump campaign will want to try and focus the attention of American voters on the extreme volatility of the market and the overall economy ever since Joe Biden has taken office in January of 2021. Kamala Harris can only run from that record but so much since she is the current Vice President.
As Steve Moore points out, Donald Trump has a strong point to stand on that Americans are spending upwards of 20-50% more on their groceries than just three years ago and good housing at a fair price is getting harder and harder to secure for millions of Americans.
Many Americans will remember that this simply wasn’t the case four years ago and may be wanting that back even if they voted for Joe Biden in 2020.
Stay tuned to the DC Daily Journal.
