How Kamala Harris played a key role in worsening America's inflation crisis

Vice President Kamala Harris voted in the U.S. Senate by a tie vote for the $1.9 trillion rescue plan for America. This massive spending package, which was signed into law shortly thereafter, was seen by economists and political analysts as a major catalyst for the inflation spiral that has gripped the country, leading to the highest inflation rates in over four decades.

The American Rescue Plan, passed without a single Republican vote in the House or Senate, was intended to cushion the economic fallout from the COVID-19 pandemic. But its consequences went far beyond its original intent. According to reports, prices for a wide range of goods began rising almost immediately after the bill was passed. Within a month, inflation rose from 2.6% to 4.2%, a level not seen in over a decade. By mid-2022, inflation had risen to over 8% on a monthly basis, peaking at 9.1% in June.

Data from the Bureau of Labor Statistics underscores the impact on Americans. The cost of essential goods has skyrocketed: food for K-12 schools has increased 65.5 percent, auto insurance has increased 54 percent, and gasoline prices have increased 50.5 percent. The inflation trend has spread to nearly every sector, making it increasingly difficult for families to make ends meet. To make matters worse, average weekly wages have fallen by nearly 4 percent under the Biden-Harris administration.

In response to the inflation crisis, the Federal Reserve has raised interest rates, making it more expensive for Americans to borrow for homes and cars. This has contributed to a housing affordability crisis: 77% of Americans cannot afford a median-priced home. For many, the dream of homeownership is now out of reach.

Critics argue that the Biden-Harris administration's actions, particularly the American Rescue Plan, were ill-timed and excessive. Economists across the political spectrum, including former Obama administration officials, warned that injecting such a large sum of money into an economy already on the road to recovery could have disastrous consequences. Olivier Blanchard, former chief economist of the International Monetary Fund, and Larry Summers, former Treasury Secretary, both warned that the stimulus plan would likely overheat the economy and trigger inflationary pressures not seen in a generation.

Adding to the economic woes, the government's regulatory policies towards the oil and gas industry have been criticized for driving up energy costs, which in turn leads to rising prices for goods and services. Critics also point to the government's foreign policy actions, particularly with regard to the Russian invasion of Ukraine, which have led to disruptions in supply chains and worsened inflation.

With inflation being voters' top concern ahead of the next election, Harris' campaign faces significant challenges. Her support for controversial policies such as the Green New Deal and proposed price controls have raised fears that her potential presidency could exacerbate the economic hardships already facing American families.

With an eye on the 2024 election, the Trump campaign is tapping into these themes, running ads that remind voters of the inflation crisis they blame on the Biden-Harris administration's policies. As the economy becomes the most important issue for voters, the administration's handling of inflation could prove to be a deciding factor in the upcoming race for the White House.