WASHINGTON (NEXSTAR) – In the closing weeks of the political campaigns, polls show many voters will make their decision in the presidential election based on the economy.
Vice President Kamala Harris has proposed $25,000 in down payment assistance for first time homebuyers and set a goal to build three million new homes by the end of her first term.
Professor Steven Hamilton from George Washington University said building new homes is good, but down payment assistance could increase the price of homes.
“You are putting in the pockets of first-time homebuyers more money. They’re going to bid more money for houses. Housing prices are going to rise,” Hamilton said. “The big focus needs to be on expanding supply.”
The Harris campaign said the purpose of the housing policy is to help people in the middle class.
“What our policy does is make sure that we are easing the burden for working people to not worry about jacked-up rent prices,” said Harris Campaign Spokesperson Kevin Munoz.
Former president Donald Trump, meantime, has focused on foreign-made goods. He proposed a 10-20% tariff on all foreign goods and up to 60% tariffs on imports from China.
“These tariffs are paid for by the abusing country, NOT THE AMERICAN CONSUMER. They do not cause inflation,” Trump posted on his Truth Social platform.
Hamilton said tariffs could increase costs for the average American family by thousands of dollars.
“They’ll either buy domestically produced goods and they cost more. Or they’ll pay more to buy foreign goods. There’s no other way,” said Hamilton.
Economists warn, proposals from both campaigns would add to the national debt.