Economic Plan to Boost the Middle Class

By Nandita Bose and Gabriella Borter
PITTSBURGH, Pa. (Reuters) – U.S. Vice President Kamala Harris announced plans to offer tax credits to domestic manufacturers and invest in key sectors that will “define the next century” during her speech at the Economic Club of Pittsburgh. This initiative aims to bolster the U.S. middle class ahead of the Nov. 5 presidential election.

Harris emphasized her commitment to retooling or rebuilding existing factories and expanding “good union jobs,” with a goal of doubling the number of registered apprenticeships within her first term. Key sectors for investment include bio-manufacturing, aerospace, artificial intelligence, and clean energy.

In a speech lasting just under 40 minutes, Harris did not provide specific details on how these policies would be implemented but shared her personal story of being raised by a single mother, contrasting her background with that of her opponent, Donald Trump.

“I have pledged that building a strong middle class will be the defining goal of my presidency,” Harris stated, highlighting the upcoming election as a choice between differing economic visions.

As the election nears, both candidates focus on the economy, the top concern for voters according to recent polling. The growing divide between the rich and poor has led to a drop in the share of American households classified as middle class from around 62% in 1970 to 51% in 2023, according to Pew Research. Moreover, the income of middle-class households has not kept pace with that of the wealthiest.

Harris critiqued Trump, stating he is “only interested in making life better for himself and people like himself, the wealthiest of Americans.” She affirmed her willingness to collaborate with the private sector, acknowledging herself as a capitalist who supports “free and fair markets,” positioning her policies as pragmatic.

In recent months, Harris has narrowed the gap with Trump on economic issues, with a recent poll showing Trump’s lead reduced to just 2 percentage points, down from 11 points in late July.

Trump, meanwhile, criticized Harris’s role as vice president, suggesting that if she possesses a plan, she should act upon it rather than merely making speeches. He proposed tariffs on foreign-made goods, an idea that has garnered support from some voters. In contrast, Harris advocates for incentives to encourage businesses to retain operations within the U.S.

The Biden administration has prioritized boosting American manufacturing in various sectors, including semiconductors, as part of efforts to bring back jobs lost overseas. Significant pieces of legislation, such as the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act, passed between 2021 and 2022, provide funding for subsidies and tax incentives aimed at projects in disadvantaged regions.