Probable Democratic Presidential nominee Kamala Harris has a unique business and economic history within the Biden administration where she is currently Vice President. Harris, a self-proclaimed capitalist, is known for her assertive stance on key business issues. Her business and economic views are now being put under the microscope as she may soon become the Presidential nominee due to current President Biden opting out of the 2024 election.
This is significant to investors. Let’s examine Harris’ business activities, statements and possible risks to markets to highlight her actions and what she describes as her capitalist approach.
Advocate for Small Businesses
Kamala Harris has consistently championed small businesses. She believes they are the backbone of the American economy, even as far back as her tenure as California’s Attorney General. When she held this position, Harris launched initiatives to support minority-owned businesses. She emphasized the importance of providing resources and capital to help these businesses thrive. In one of her speeches, she stated, “Small businesses are the engines of our economic growth. We must ensure they have the support they need to succeed.”
Support for Innovation and Technology
Harris’s actions and words seem to support innovation. As Vice President, she supports the furtherance of the technology sector. She’s praised Silicon Valley’s contributions to the U.S. economy and advocated for policies that foster technological advancements. VP Harris highlighted the need for a regulatory environment that promotes innovation while ensuring consumer protection. “Innovation drives our economy forward, but we must balance it with regulations that protect consumers,” she said at a tech conference.
Environmental Sustainability
Environmental sustainability is another key area in which Harris has shown a strong passion and interest. Kamala supports green technologies and sustainable business practices. Harris has advocated for policies that encourage companies to adopt environmentally friendly practices. She believes investing in green technologies can create jobs and drive economic growth. “We must invest in green technologies to protect our planet and create jobs,” Harris exclaimed in a recent interview.
Focus on Workforce Development
Harris is considered a strong advocate for workforce development. She believes in equipping workers with the skills needed for the modern economy. Her support for policies that provide job training and education programs demonstrates this. The Vice President has emphasized the importance of preparing the workforce for the demands of the future economy. “Investing in our workforce is investing in our future,” Harris said during a business forum.
Corporate Responsibility
The Vice President has also focused on corporate responsibility. She believes that companies should be held accountable for their actions. Harris has pushed for stronger regulations to ensure that corporations act ethically. This includes her emphasizing the importance of transparency and accountability in corporate practices. “Corporations must be held accountable for their actions. Transparency and accountability are key to building trust,” Harris stated in a press release.
Kamala’s Risks to Markets
A Kamala Harris presidency could bring increased market volatility and uncertainty, particularly due to her untested stance on key economic issues.
The Bidenomics policies expected to continue as Kamala-nomics include the Inflation Reduction Act, which includes significant funds for anti-fossil fuel projects, increased IRS funding, and a 15% corporate minimum tax for large corporations.
Harris has never been able to develop a track record on critical issues like cryptocurrencies or blockchain technology. A few years back, she was appointed to lead the efforts toward responsible artificial intelligence (AI). Her role was to mitigate risks associated with AI, such as bias and misuse, while promoting innovation and competitiveness in AI development. Her work toward this end has been unimpressive.
Investors generally prefer stability and predictability, however, Biden’s departure injects less certainty into the markets. The unknowns surrounding Harris’ economic policies and her ability to quickly gain momentum against Republican candidate Trump could lead to sector weakness in areas such as green investing, and AI.
Then there is the fear of growing U.S. debt. Harris’ potential presidency could lead to a continuation of fiscal policies that are less aligned with deficit reduction or fiscal restraint, than her opponent. This layer of uncertainty will keep the U.S. Treasury markets volatile which could add to the stock market nervousness.
The “Trump trade,” which favors sectors benefiting from looser fiscal policy, higher trade tariffs, and weaker regulations, may face headwinds if Kamala does run a close race. This includes potential impacts on sectors like banking, health, energy, and cryptocurrencies, where Trump’s policies are known and market-friendly.
Key Takeaways
Kamala Harris’s business perspective is rooted in supporting small businesses, promoting innovation, advocating for environmental sustainability, focusing on workforce development, and ensuring corporate responsibility. Her capitalist approach emphasizes the importance of balancing growth with ethical practices.
Favored to be the Democratic candidate for President, her business views could significantly shape her campaign policies and strategies. Harris’s stance on these issues reflects that as a future President, Harris might be expected to foster a robust and ethical business environment in the United States.
