Contrary to right-wing propaganda stories, the truth is that Democratic policies have been pivotal in driving wage growth and supporting low-income workers. Through targeted initiatives like the American Rescue Plan and Inflation Reduction Act, Democrats provided crucial economic relief during the pandemic, stabilizing the economy and empowering workers with increased leverage to negotiate higher wages. Strategic measures, such as enhancing unemployment benefits and expanding child tax credits, fostered a tight labor market that reduced job market frictions and boosted employment rates to record highs. Vice President Kamala Harris’s economic plan builds on these successes, advocating for higher minimum wages, stronger worker protections, and eliminating taxes on tips, ensuring continued prosperity and equity for all Americans.

Connection Between Democratic Policies and Wage Gains

1. Intentional Policy Decisions: An EPI report highlights that the fast wage growth for low-wage workers was not a matter of chance but the result of deliberate policy decisions made during the pandemic. The Biden administration and Democratic-led Congress passed several large spending bills, such as the American Rescue Plan, which provided enhanced unemployment insurance, economic impact payments, aid to states and localities, child tax credits, and temporary eviction protections. These measures were crucial in stabilizing the economy and giving low-wage workers the leverage they needed to negotiate better wages?.
2. Tightening Labor Market: Democratic policies played a crucial role in creating a tight labor market, significantly empowering workers. Through strategic actions during the pandemic, such as passing large-scale stimulus packages and providing enhanced unemployment benefits, Democrats reduced the financial pressures that often force individuals to accept lower-paying jobs out of necessity. As a result, by 2022, unemployment dropped to 3.6%, and the employment-to-population ratio for prime-working-age individuals reached record highs. This environment allowed workers, particularly those in low-wage positions, to leverage their increased bargaining power to demand better wages and working conditions. The reduction in job market frictions, enabled by these Democratic initiatives, provided workers with the flexibility to seek and secure higher-paying employment, ultimately driving significant wage growth across the board.
3. Policy Continuity and Future Challenges: The EPI report warns that the gains achieved could be jeopardized if current policies are not sustained or if the Federal Reserve continues to maintain high interest rates. The report also points out that the divided control of Congress might hinder the passage of necessary countercyclical measures should another economic downturn occur. This underscores the importance of continued Democratic leadership, and the need to take back control of Congress, in order to maintain and build upon the gains made by low-wage workers.

 

Need more proof that average wages kept up with inflation and the lowest paid workers benefitted the most? See here and here.

Kamala Harris’s Economic Plan

Kamala Harris has been an advocate for many of the policies that contributed to these wage gains. Her economic plan focuses on several key areas that would continue to support low- and middle-wage workers:

1. Raising the Federal Minimum Wage: Harris has been a strong supporter of increasing the federal minimum wage to $15 per hour. This aligns with the EPI’s findings that minimum wage increases have been a significant factor in driving wage growth for low-income workers. By continuing to push for this policy, Harris aims to ensure that all workers can earn a living wage.
2. Strengthening Worker Protections: Harris’s economic agenda includes robust support for unions and collective bargaining, which the EPI report identifies as critical for sustaining wage growth. She advocates for policies that make it easier for workers to unionize and protect their rights in the workplace, thereby empowering them to secure better wages and working conditions.
3. Investing in Workforce Development: Harris’s plan also includes significant investments in workforce development and education, particularly in underserved communities. This would help workers gain the skills needed to compete in a modern economy, further boosting their earning potential.
4. Economic Equity: Harris has consistently emphasized the need for economic policies that address racial and gender disparities. Her focus on inclusive economic growth aims to ensure that the benefits of a strong economy are shared equitably across all demographics, aligning with the EPI’s recommendations for reducing inequality.
5. Eliminating Taxes on Tips: Harris proposes eliminating federal income taxes on tips, specifically targeting this benefit to low-wage service and hospitality workers. This policy is designed to increase the take-home pay of workers who rely heavily on tips, many of whom earn less than $25 per hour. By including measures to prevent tax avoidance by high-income earners, Harris ensures that the policy truly benefits low-wage workers, further supporting her commitment to improving economic security for those at the bottom of the income scale.
6. Kamala Harris’s Plan to Curtail Price Gouging: Kamala Harris aims to tackle inflation by curbing price gouging, particularly in the food and grocery sectors. Her plan focuses on targeting companies that exploit consumers through illegal price hikes, rather than implementing “price controls,” as some right-wing media suggest. Harris emphasizes the importance of increasing competition within the grocery industry to prevent monopolistic practices that drive up prices. By enforcing transparency and accountability among corporations, her approach seeks to protect consumers from unfair pricing without distorting the market. This strategy aims to empower consumers and encourage fair business practices, ensuring that economic gains are widely shared.
7. Lowering Drug Prices: Kamala Harris’s economic plan also includes a strategy to lower drug prices, building on her recent success of negotiation with pharmaceutical companies under the Inflation Reduction Act. This negotiation has already resulted in projected savings of $6 billion for Medicare recipients by reducing costs on the first 10 drugs selected for price cuts. Harris aims to expand these savings by extending the $2,000 out-of-pocket cap to all Americans, not just those on Medicare. Her plan focuses on fair negotiations to reduce drug costs without stifling market competition or innovation.
8. Housing Affordability: Kamala Harris has made housing affordability a cornerstone of her campaign, pledging to end America’s housing shortage and make homes more accessible for all. Her comprehensive plan includes innovative solutions such as tax incentives for homebuilders to construct affordable starter homes, a $25,000 first-time homebuyer tax credit, and stronger regulations against corporate landlords who unfairly raise rents. Harris emphasizes increasing the supply of affordable housing to tackle rising costs, while her plan also addresses longstanding barriers such as outdated regulations. Her commitment to housing reform highlights her dedication to ensuring all Americans have a fair shot at homeownership and economic stability.
9. Retirement Dignity: Protecting the “dignity” of retirement is another key element of Harris’s economic vision. She advocates for policies that safeguard social security and other retirement benefits, ensuring that seniors can retire with financial security and dignity. This includes opposing any efforts to privatize or reduce benefits and instead strengthening the safety nets that millions of Americans rely on in their later years.
10. Clean Energy Transition: Although Harris does not support a total fracking ban, she is committed to a transition to cleaner energy sources. Her policies encourage the development of solar, wind, and other renewable energy sources, promoting a gradual shift away from fossil fuels to combat climate change and create new jobs in the green energy sector. This transition is framed as a balanced approach that supports both economic growth and environmental sustainability.
11. Child Poverty and Family Support: Kamala Harris has prioritized ending child poverty as a key part of her economic agenda. She is focused on implementing policies that provide financial support to families, such as expanding child tax credits and increasing access to affordable child care. Harris’s plan aims to reduce the financial burden on families, ensuring that no child grows up in poverty and that parents have the resources needed to raise their children successfully.

 

Paying for it is simple, if Republicans can’t protect their billionaire buddies from fair taxation when the people take back Congress!

1. Increasing the Corporate Tax Rate and Stock Buyback Tax: Kamala Harris supports raising the corporate tax rate from 21% to 28%, projected to generate $1.3 trillion over ten years. Additionally, she endorses raising the tax on stock buybacks from 1% to 4%, which was initially introduced in the Inflation Reduction Act. These changes aim to ensure that large corporations contribute a fairer share to the federal budget, reducing their ability to minimize tax liabilities through deductions and credits.
2. Higher Taxes on Wealthy Individuals: Harris’s plan includes raising the top marginal income tax rate to 39.6% and increasing Medicare surtaxes for those earning over $400,000 to 5%. She also proposes taxing investment income for individuals earning over $1 million at the same rate as regular income and eliminating the “step-up in basis” loophole that allows inherited wealth to avoid capital gains taxes. These measures target the wealthiest Americans, aiming to generate significant revenue without impacting those earning less than $400,000 per year.
3. Implementing a Billionaires’ Minimum Tax: Harris endorses a new “billionaires’ minimum tax” that would require individuals with over $100 million in wealth to pay at least 25% on a combination of their income and unrealized capital gains. This tax is designed to ensure that the ultra-wealthy, who often derive much of their wealth from stock holdings and other assets that are not immediately taxable, contribute a fair share to federal revenues.

As I dug deeper into Kamala Harris’s economic policies, it became clear that I am not just voting for the lesser of two evils this year. Kamala Harris, Joe Biden, and their teams represent some of the most brilliant, fair, and empathetic people in the world. Their economic strategies aren’t just competent—they are visionary plans to uplift those most in need, fostering a fairer and more prosperous society for everyone. I can only imagine how much easier it would be to show the average person just how competent and brilliant these ideas are if right-wing media hadn’t distorted America’s perception. Harris is an all-star, and I am excited to vote for her. I believe in lifting up the least among us because it makes the world a better place for all of us.

 

Seriously? You need more proof that wages rose in line with inflation?

Ok, let’s look at private sector non-governmental data from ADP:

Employee pay up 5.1% in 2024
Employee pay up 7.3% in 2023
Employee pay for job stayers rose 7.6% in 2022. I believe it was higher for those leaving jobs for higher pay. Gains were fastest in the 16-24 year ago group, in the leisure/hospitality industry and from larger firms (500+ employees).

Isn’t it incredible how right-wing media convinced their viewers of an alternate reality simply because prices rose, without ever showing them a world where their incomes increased more than inflation?

 

What are some other reasons that Trump is fiscally incompetent for Americans?

Trump’s plans would cause an inflation bomb on the middle class by reducing taxes for the rich and trying to pay for some of it with a 60% tariff on everyday purchases.
Trump budget would spike deficits by nearly 5 times Harris proposal, says Penn Wharton.

An analysis on September 3rd from Goldman