Biden’s inflation orphans

One key word was missing from Kamala Harris’ DNC acceptance speech last night: inflation.

In her speech, despite not directly addressing inflation head on, she discussed her intent to lower the costs things like housing and groceries. Some of her proposed policy changes, such as attempting to eliminate price gouging, eliminating federal taxes on tips, and increasing the minimum wage, are policies with a populist tint, aimed at winning over the American public when it comes to the economy.

Harris is trying to move beyond the Joe Biden presidency and the historic inflation that has marred it. She must address it to win in November. Her policy proposals and speeches have reflected this.

Below are five charts on the economy, Harris’ proposal to eliminate federal taxes on tips, and where that might land her on the economy.

1. Inflation remains top of mind. Yes, the rate of inflation is down, but prices are still up from where they were a few years ago. Consumers haven’t yet adjusted to these higher prices. Economists’ battle with inflation might be nearing its end, but for many Americans, the impact is still around.
2. Harris is still behind on the economy. Trump outperforms both Biden and Harris when it comes to the economy. Despite the hype, Trump still leads Harris when it comes to the fundamentals. For Harris, the economy is an uphill battle.
3. Biden’s inflation orphans. Several key demographics that view the economy as the main issue have lower approval ratings of Biden. This is especially true for younger, lower income, and less educated Americans. These are the groups Harris is battling to win over.
4. No taxes on tips? Though it was a plan that Trump proposed first, Harris’ support for ending federal income tax on tip income could be a way to improve her economic chops in the eyes of the public. Similarly, majorities approve of plans to increase the minimum wage, though there’s a larger partisan gap here. No one wins this one. Pure populism.
5. Can Harris dodge Biden’s economic baggage? Less than half of Americans think Harris had a good or great deal of influence on Biden’s economic policy, including voters of Harris and voters of Trump. Can Harris’ newly proposed policies help her steer clear of Biden’s economic baggage? We will see.

The candidate that is strongest at the main issue wins an election roughly 85% of the time. Right now, the economy is squarely the number one issue. Harris’ electoral success may be determined by whether she’s able to improve her standing in the public’s eye on the economy.

That said, there are signs that Americans might not pin all their grievances with the Biden administration on Harris, which could allow her to forge her own path on the economy. However, Trump still has the upper hand. Watch this space.