I’m an Economist: 3 Reasons Kamala Harris’ VP Pick Could Impact Your Wallet
It seems like all eyes are on Kamala Harris, the presumptive Democratic nominee. Everyone wants to know who she will choose for a running mate. This choice is usually viewed through the lens of who will increase her appeal and help her win votes. But the impact of this decision extends far beyond the ballot box.
The vice president serves as a key advisor to the president. Their advice can change how the country is run. The VP is also responsible for casting tie-breaking votes in the Senate. This means Harris’ choice for VP could really affect how much money people have in their pockets. The person she picks could help decide on laws that change things like taxes, jobs and healthcare costs for millions of Americans.
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“Kamala Harris’s VP pick will impact Americans’ wallets in several ways,” said Rick Kuci, COO of FundKite.
Each of her potential running mates brings their own economic philosophies and policy priorities to the table. It’s important to consider her choice and the potential impact they’ll bring with them.
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Raising the Minimum Wage
One of the most direct ways the VP pick could impact your wallet is through their stance on minimum wage increases.
Kuci pointed out that all of the names being discussed as Harris’ running mate support raising the minimum wage and that this could “potentially increase disposable income for lower and middle-income families, stimulate economic growth and reduce financial stress.”
The federal minimum wage has remained stagnant at $7.25 per hour since 2009. Many states and cities have taken matters into their own hands and have higher local minimums. The VP could have an effect on whether Harris’ administration chooses to push for a federal minimum wage hike.
For instance, if Harris selects a running mate from a state with a higher minimum wage, such as Michigan Governor Gretchen Whitmer, it could signal a stronger commitment to raising the federal minimum. Michigan’s minimum wage is currently $10.33 per hour, and Whitmer has been a vocal advocate for workers’ rights. This could lead to more aggressive policies aimed at boosting wages across the board.
If the minimum wage goes up, workers could get more money. This could help improve their quality of life and also increase consumer spending. But opponents worry it would mean fewer work hours or lost jobs. How the new VP thinks about this could change rules that affect how much money millions of workers make and their chances of keeping their jobs.
Even if you earn more than minimum wage, this affects you. When wages at the bottom go up, it can raise salaries across the board.
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Supporting Small Businesses
The choice of VP could also have an impact on policies affecting small businesses, said Kuci.
A VP like Josh Shapiro, governor of Pennsylvania — who has emphasized the importance of cutting red tape for small businesses — might push for policies that streamline regulations and reduce bureaucratic hurdles. For consumers, this might translate to more competition between local business options and potentially lower prices.
On the other hand, Roy Cooper, governor of North Carolina, has focused on attracting large corporations to his state. He might bring a different perspective to small business support. This could lead to more jobs at major employers, but it might also result in policies that favor big businesses over smaller ones. This could affect the landscape of local economies, impacting both jobs and the character of local communities.
Some VPs might want lower taxes for small businesses. They think this would help these businesses grow and hire more people. Other VPs might want higher taxes for all businesses, even small ones, and they might argue that the money could be used for programs that help workers more directly.
Expanding Affordable Healthcare
Healthcare costs are a major concern for many Americans. Kuci said that the VP pick could play a role in the policies that affect both the availability and affordability of healthcare.
Mark Kelly of Arizona has been vocal about the need to lower prescription drug costs. As Harris’ VP, he might push for policies to target those prices. This could save consumers hundreds or even thousands of dollars per year.
On the other hand, Whitmer might focus on helping more people to get health insurance. She has advocated for the Affordable Care Act and wants to make it stronger. If she’s picked, she might try to make health insurance cheaper for more Americans.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out I’m an Economist: Here’s How Trump’s VP Pick, JD Vance, Could Impact Your Wallet.
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This article originally appeared on GOBankingRates.com: I’m an Economist: 3 Reasons Kamala Harris’ VP Pick Could Impact Your Wallet