Harris sets out pro-business economic philosophy in swing-state speech

Unlock the US Election Countdown newsletter for free

The stories that matter on money and politics in the race for the White House

Kamala Harris used a major speech in Pennsylvania on Wednesday to make a direct appeal to businesses, describing herself as a “capitalist” who believes in “free and fair markets” and an “active partnership between government and the private sector”.

In her most extensive comments on the US economy to date, the Democratic presidential candidate also sought to draw a sharp contrast between herself and her Republican opponent, Donald Trump.

In the speech at the Economic Club of Pittsburgh in Pennsylvania — a critical battleground state — Harris painted herself as a champion of the working and middle class and insisted Trump was more focused on the wealthiest Americans.

“He has no intention to grow our middle class. He’s only interested in making life better for himself and people like himself, the wealthiest of America,” Harris said.

“For Donald Trump, our economy works best if it works for those who own the big skyscrapers, not those who actually build them, not those who wire them, not those who mop the floors.”

Harris criticised Trump’s trade policies later in the day in an interview with MSNBC. While the Biden administration has backed the bulk of Trump’s tariffs on Chinese imports and added some new ones, Trump has proposed sweeping tariffs on all imports of up to 20 per cent as part of a far more aggressive trade agenda. Harris said Trump was “just not very serious” in floating such “across the board” tariffs. 

Trump and his allies have sought to paint Harris as a California liberal and Marxist, referring to the vice-president as “comrade Kamala”.

But Harris rejected that characterisation on Wednesday, saying that while she was a “devout public servant” and a “strong supporter of workers and unions” she recognised the “limitations of government” and believed policymakers needed to engage private-sector job creators.

“I believe that most companies are working hard to do the right thing by their customers and the employees who depend on them, and we must work with them to grow our economy,” she said. “An active partnership between government and the private sector is one of the most effective ways to fully unlock economic opportunity.”

With a month-and-a-half to go until November’s presidential election, Wednesday’s speech marked Harris’s fourth visit to Pittsburgh in Pennsylvania — potentially the most important state in her bid to succeed Joe Biden as president — since she launched her campaign in July.

With polls showing Harris and Trump in a dead heat both nationally and in key swing states, the vice-president has been under mounting pressure to spell out her economic agenda and articulate in far greater detail where she might differ from Biden. Polls consistently show that voters consider the economy their number-one policy issue heading into November.

The vice-president’s speech came a day after Trump outlined his plan for a “new American industrialism” and warned trading partners that he would lure jobs and manufacturers away from them to the US. The Republican candidate has touted a protectionist economic strategy, sweeping tax cuts and high tariffs.

Karoline Leavitt, a spokesperson for the Trump campaign, said in a statement after Harris’s speech that the vice-president was “right” that it was “time to turn the page”.

“She’s had three-and-a-half years to prove herself, and she has failed,” Leavitt added. “Personal savings are down, credit card debt is up, small business optimism is at a record low, and people are struggling to afford homes, groceries, and gas. Every time Kamala speaks, it becomes increasingly clear that ONLY President Trump will Make America WEALTHY Again.”

Harris has proposed raising the corporate tax rate from 21 per cent to 28 per cent, as well as efforts to boost housing supply. She has also proposed more tax breaks for families with children and first-time homebuyers.

However, her plans to crack down on price-gouging in the grocery sector have drawn criticism from economists across the political spectrum who warned that the proposals could lead to damaging market distortions.

The economy has been a political weakness for Biden and Harris after inflation hit multi-decade highs in 2022. Just 17 per cent of registered voters in the most recent Financial Times-University of Michigan Ross School of Business poll said they were financially better off since Biden became president.

But inflation has cooled and the labour market has remained strong in recent months, and there are signs that voters are growing more favourable to Harris on the economy.

The latest FT-Michigan Ross poll found that 44 per cent of voters said they trusted Harris on her handling of the economy, compared with 42 per cent who put their faith in Trump.