Harris and Trump both hate inflation. Their economic proposals could cause prices to go higher

Inflation in the US is rising after the post-pandemic surge in price hikes, causing concern for many Americans. Both Vice President Kamala Harris and former President Donald Trump have proposed plans to lower costs, but economists warn that these plans could potentially increase prices. Both candidates’ proposals would likely increase the deficit and demand through government spending and tighter labor markets. However, some economists believe that Trump’s plan carries higher risks and could lead to permanent inflation. Analysts estimate that Harris’ policies could increase deficits by $1.7 trillion over a decade, with the bulk of the costs coming from the expansion of the Child Tax Credit. Trump’s economic plan is less detailed, but one analysis suggested it could cost $1.6-1.8 trillion. Both plans raise concerns about higher debt, which leads to higher interest rates. Harris plans to make housing more affordable, but economists are uncertain about the stimulus efforts. An expanded child tax credit could boost inflation, but it also helps families with child care costs. Harris’ proposal for a federal ban on price gouging raises concerns, as similar laws may motivate more purchases. Trump’s economic proposals, such as tariffs on imported goods and tax cuts, have drawn criticism from economists and Nobel laureates who warn of reigniting inflation and negative impacts on the economy. Trump’s immigration proposals could lead to higher wages and prices as businesses struggle with labor market consequences.