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The Economic Consequences of Raising the Federal Minimum Wage

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Kamala Harris has taken a bold stance in advocating for a federal minimum wage increase to $15 per hour, a policy intended to benefit low-income Americans by giving them a “living wage.” However, beneath the promise lies a series of economic implications—some predictable, others less so—that could leave Americans with unintended consequences like inflation, job cuts, and business closures. Rather than doubling wages for entry-level positions, why not consider solutions that build skill sets, enabling workers to move beyond minimum-wage jobs and pursue stable, well-paid careers?

How Many People Benefit from a Federal Minimum Wage Increase?

The Congressional Budget Office (CBO) estimates that about 17 million workers would directly benefit if the federal minimum wage were raised to $15 per hour, with another 10 million potentially experiencing “ripple effect” increases as businesses adjust their wage structures to maintain pay equity. However, this benefit comes with underlying issues. Doubling wages may improve hourly income for these workers, but it may not enhance their long-term economic stability if price inflation erodes their increased purchasing power.

Moreover, most minimum-wage jobs were originally designed as stepping stones for young or inexperienced workers entering the workforce, not as positions to support families long-term. Today, rather than inflating wages for entry-level positions, wouldn’t it be more effective to equip workers with marketable skills through vocational training? This approach offers a sustainable solution that allows people to climb the career ladder, increasing their earning potential without risking economic strain.

Hidden Costs: Will Higher Wages Mean Higher Prices for Everyone?

When labor costs account for 50% to 70% of the cost of sales (COS), a federal minimum wage increase inevitably impacts the entire supply chain. This rise in expenses can drive up the cost of goods and services, affecting everyone’s budget—from groceries to home essentials to dining out. Businesses, particularly in sectors like retail, hospitality, and manufacturing, may not have the profit margins to absorb such a sharp increase in expenses, even if they’re large corporations. And for smaller businesses, absorbing these costs is hardly an option.

So, who ends up paying for the wage increase? Consumers. Price hikes follow as businesses adjust to cover their bottom line. Although a higher minimum wage sounds appealing on paper, it could ultimately lead to a reduction in purchasing power if the increased wages are offset by inflation—a situation where everyone loses.

Small Businesses Under Pressure: How Will They Survive?

Small businesses, which employ roughly 47% of the American workforce, face an uncertain future if a minimum wage hike is mandated. Unlike large corporations, which may have some leeway to absorb labor costs, small businesses often operate on slim margins and cannot afford to double their wage expenses. Proponents of a federal minimum wage increase argue that tax breaks and other concessions for small businesses can help ease the burden, but these temporary measures are not long-term solutions.

In practice, small businesses may have to resort to cutting hours, reducing hiring, or raising prices just to stay afloat. And if even these measures aren’t enough, some businesses might close altogether, particularly in rural or low-income communities that rely heavily on local commerce. This means fewer job opportunities, reduced economic mobility, and potentially an increase in small business closures—hardly the intended outcome of a policy meant to “help” workers.

Automation: The Unseen Consequence of Wage Increases

One of the most overlooked consequences of raising the minimum wage is that it encourages automation. As labor costs climb, many businesses will consider investing in technology to reduce dependence on human labor. In recent years, industries from fast food to retail to logistics have experimented with automation to manage operational costs. With rising labor costs, this trend is likely to accelerate.

Self-checkout kiosks, robotic food preparation, and automated warehouse systems are just a few examples of how technology could replace minimum-wage jobs. For workers whose positions are replaced by automation, the minimum wage increase is a moot point; they are left without a job. A 2021 report by the Brookings Institution predicted that automation would disproportionately impact workers in low-wage jobs, such as food service and retail. Raising the wage to $15 an hour could accelerate this shift, leaving millions unemployed and dependent on government support.

Inflation: An Economic Domino Effect

If minimum wage increases lead to price hikes, inflation is almost inevitable. The resulting higher cost of goods and services doesn’t just impact minimum-wage workers; it affects everyone. For middle- and lower-income families, the rising cost of living can be especially burdensome. And since inflation tends to rise faster than wages, the potential benefits of a wage increase could evaporate as expenses climb, leaving workers in the same financial position as before or even worse off.

Proponents of a federal minimum wage increase argue that low-income families need a living wage to thrive. However, if inflation climbs in response to higher wages, the benefit is likely to be short-lived. Instead of promoting economic growth, an inflated minimum wage risks eroding the purchasing power of wage earners across all income brackets.

Government Subsidies: Short-Term Fixes with Long-Term Consequences

To counteract inflation and ease the burden of rising living costs, Harris and other advocates propose increased government subsidies for essentials like housing, food, and healthcare. However, this approach is fraught with issues. Subsidies require funding, which could come from either tax increases or by printing more money—both options with significant economic implications.

Taxing businesses and high earners might sound reasonable, but it reduces funds available for business expansion, hiring, and wages. Alternatively, printing more money risks inflationary pressure, further raising the cost of living. These subsidies might help low-income families in the short term, but they create dependency rather than fostering independence. Instead, a long-term solution, like investing in skills development and vocational training, would create sustainable change without adding to the national debt or inflation.

Higher Interest Rates and the Risk of Recession

The Federal Reserve has already raised interest rates in response to recent inflation, and a federal minimum wage increase could lead to even higher rates. If inflation rises again due to wage increases, the Fed may continue to increase interest rates to stabilize prices. However, this strategy has a ripple effect: higher interest rates slow down spending, borrowing, and investment, which could tip the economy into recession.

Americans are still feeling the impact of recent rate hikes, which have made mortgages, credit cards, and car loans more expensive. A wage hike that triggers further rate increases could push the economy toward recession, affecting job growth and investment in all sectors.

Training Programs: A Practical Solution for Economic Mobility

So, if raising the minimum wage carries so many risks, what’s the alternative? One solution lies in vocational training and skills development. Programs that teach practical skills for well-paying fields, such as healthcare, construction, and technology, can offer long-term benefits for workers, equipping them for careers that pay well above minimum wage. This approach also supports economic mobility and growth, reducing reliance on entry-level jobs and creating more high-quality positions.

Investing in skill-building programs, rather than short-term wage increases, allows workers to develop expertise in fields with high demand and good pay. For example, fields like electrical work, plumbing, and coding all offer substantial wages without requiring a college degree. By empowering workers with skills, the economy grows without risking inflation, job cuts, or unsustainable government spending.

Conclusion: A Sustainable Path to Economic Growth

While raising the federal minimum wage to $15 per hour may appear to be a quick fix, it risks long-term harm to the economy. From price inflation and increased unemployment to the strain on small businesses, the policy comes with considerable trade-offs. Rather than relying on wage mandates and government subsidies, we should consider investing in skill-building programs that empower workers to transition out of entry-level jobs into meaningful, high-paying careers.

In the end, building a self-sufficient workforce is not just better for individual workers; it’s better for America’s economy. A federal minimum wage increase may benefit some in the short term, but a skilled, independent workforce offers a far more sustainable and prosperous future for all Americans.

References:

  1. Congressional Budget Office. (2021). The Effects on Employment and Family Income of Increasing the Federal Minimum Wage. Retrieved from https://www.cbo.gov/publication/56975
  2. U.S. Small Business Administration. Small Business GDP: 1998–2014. Retrieved from https://www.sba.gov/advocacy/small-business-gdp-1998-2014
  3. Brookings Institution. (2021). Automation and Artificial Intelligence: How machines are affecting people and places. Retrieved from https://www.brookings.edu/research/automation-and-artificial-intelligence-how-machines-affect-people-and-places/
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Rachel Morin’s Tragic Death and Kamala Harris’s Misleading Deflection

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In the wake of Rachel Morin’s tragic death—a woman who was brutally beaten, raped, and murdered—Vice President Kamala Harris expressed sympathy but quickly shifted the blame to former President Trump’s border policies. This moment highlights a concerning tendency for Harris’ misleading deflection, and responsibility, and misrepresent the implications of current immigration policies. Instead of acknowledging the failures that led to such heinous crimes, Harris’s attempt to point fingers raises serious questions about her leadership and the Biden-Harris administration’s approach to public safety.

K Harris – CNN 2024

Shifting the Blame

Rachel Morin’s death was devastating, and as more details emerged about her attacker, the implications of weak border security became glaring. Harris, in her typical fashion, expressed remorse but quickly pointed fingers at Trump, blaming his immigration policies for the state of affairs at the border.

This is a dangerous and dishonest deflection. Trump’s policies were built on the principle of deterrence—strengthening the border, implementing the “Remain in Mexico” policy, and pushing for the construction of a border wall. These measures were meant to prevent exactly what happened to Rachel Morin: dangerous criminals slipping through the cracks. Yet, under the Biden-Harris administration, the border crisis has worsened. Illegal crossings have reached record highs, and the administration’s lax approach to enforcement has allowed many dangerous individuals to enter unchecked.

The tragic result? Crimes like the murder of Rachel Morin—preventable, had our leaders taken a tougher stance on border security.

The “Remain in Mexico” Policy: A Missed Opportunity

One of Trump’s most effective border strategies was the “Remain in Mexico” program (officially known as the Migrant Protection Protocols). This policy required asylum seekers to wait in Mexico while their claims were processed in the United States, dramatically reducing the number of unchecked migrants entering the country. It was a strong deterrent for illegal crossings and ensured that only vetted individuals could await legal decisions on U.S. soil.

The Biden-Harris administration, however, terminated this program shortly after taking office. The result has been chaos at the border, with overwhelmed immigration authorities and a surge of unvetted migrants flooding into the country. This policy reversal has opened the floodgates to criminals entering the U.S., contributing to tragedies like the one that took Rachel Morin’s life.

Had the “Remain in Mexico” policy been left in place, it’s possible that Rachel Morin’s attacker would never have been able to enter the United States. This is a direct failure of the Biden-Harris administration’s border policies, and Harris’s attempt to blame Trump for this tragic crime rings hollow.

The Facts on Border Security

Trump’s border policies were not without controversy, but they were effective in controlling illegal immigration. His administration reduced illegal crossings to their lowest levels in years through a combination of physical barriers and agreements with Mexico to manage asylum seekers. The “Remain in Mexico” policy, for example, required migrants to stay in Mexico while their asylum claims were processed, reducing the flow of unchecked individuals into the United States.

These policies were working—until the Biden-Harris administration came into power and systematically dismantled them. They promised a more “humane” approach to immigration, but the reality has been a humanitarian and security disaster. With record numbers of migrants flooding across the border, law enforcement is overwhelmed, and the process of vetting individuals has broken down. This has allowed criminals to enter the country, resulting in tragedies like the murder of Rachel Morin.

Harris’s Tough-on-Crime Stance: Gangs, Cartels, Drugs, and Missing Children

Harris has tried to portray herself as tough on crime, especially when it comes to combating gangs and drug cartels. However, her administration’s policies do not align with this narrative. The rise in illegal immigration has enabled criminal organizations to expand their operations, trafficking drugs and contributing to the crisis of missing children.

The surge in drug trafficking has been particularly alarming. With the Biden-Harris administration’s focus on dismantling enforcement measures at the border, drugs like fentanyl have flooded into the U.S., causing countless overdoses and deaths. Families are devastated as they lose loved ones to this epidemic, and the connection to border security cannot be ignored. Weakness in border policies has allowed drug cartels to operate with impunity, further exacerbating the violence and chaos at the border.

Moreover, the issue of missing children is a critical concern tied to this crisis. Human trafficking has skyrocketed, and vulnerable children are often the first victims. When Harris deflects responsibility for the state of the border, she ignores the broader implications of her administration’s policies, which have made it easier for predators to exploit these vulnerabilities.

Her failure to address these interconnected issues raises serious questions about her commitment to truly being tough on crime. Instead of confronting the reality of the situation, she chooses to blame others while vulnerable Americans suffer.

Misrepresenting Trump’s Stance on Law and Order

In her interview, Harris also mischaracterized Trump’s approach to law enforcement, claiming that he would use the military to imprison rioters. This is a gross distortion of Trump’s actual position. Trump never advocated for widespread military intervention to round up citizens en masse. Instead, his administration emphasized the need for law enforcement to protect public safety and federal property during periods of unrest, such as the riots in Portland and Minneapolis.

When local governments failed to stop rioting and protect their communities, Trump supported the National Guard’s presence as a last resort—not to imprison peaceful protestors, but to restore order where chaos had taken over. Harris’s attempt to twist this into something nefarious only serves to distract from the failures of her own administration, which has seen crime soar and borders weakened.

Voter Backlash: The Consequences of Deflection

Harris’s tendency to deflect questions and avoid direct answers is beginning to take a toll on her standing with voters. Americans are looking for leaders who will take accountability and address pressing issues head-on, particularly regarding public safety and border security.

Instead of providing solutions or engaging in meaningful dialogue, Harris often redirects the conversation to blame her predecessor. This strategy may play well in a partisan context, but it alienates voters who want to see genuine leadership. The continued deflection has left many feeling frustrated, as they crave a vice president who acknowledges the current crises and works towards practical solutions.

As crime rates rise and issues like drug trafficking and human trafficking grow more severe, voters are losing patience with Harris’s avoidance tactics. They want a leader who will stand up and take responsibility, not one who merely points fingers at others while the problems continue to escalate.

Conclusion

Rachel Morin’s death is a tragedy that should have sparked a deeper conversation about border security and public safety. Instead, Kamala Harris used the moment to deflect blame and misrepresent her predecessor’s policies. While Harris offers condolences, her refusal to take responsibility for the failures of the Biden-Harris administration’s border policies is clear.

It’s time for Harris and her administration to own up to the consequences of their actions. The safety of Americans, like Rachel Morin, is on the line. Instead of blaming the past, we need leaders who will address the real issues at hand and prioritize the protection of our borders and citizens.

References

  1. “Rachel Morin’s Murder Investigation.” Fox News, October 2024. This segment provided updates on the tragic case of Rachel Morin, discussing the law enforcement response and public outcry surrounding the crime. Available at: Fox News
  2. “Remain in Mexico Policy Explained.” The Heritage Foundation, 2023. An analysis of Trump’s Migrant Protection Protocols (MPP) and how the Biden-Harris administration’s reversal of the policy has impacted border security. Available at: Heritage Foundation
  3. “Kamala Harris on Border Security and Immigration.” Blaze Media, October 2024. In this interview, Harris responded to questions about border control and pointed to Trump’s policies, emphasizing her administration’s approach to immigration reform. Available at: Blaze Media
  4. “Surge of Illegal Immigration Under Biden Administration.” Center for Immigration Studies, 2024. This report discusses the increase in illegal border crossings and its impact on public safety, as well as the role of drug cartels and human trafficking in the crisis. Available at: Center for Immigration Studies
  5. “Crime and Immigration: The Link.” National Review, 2024. A detailed look at how lenient border policies have allowed criminals to enter the U.S., highlighting the failures of the Biden-Harris administration in addressing the issue. Available at: National Review
  6. “Trump’s Law and Order Stance During Riots.” The Federalist, 2020. This article examines Trump’s position on using the National Guard and federal law enforcement to manage rioting and public unrest, countering claims that he advocated mass imprisonment. Available at: The Federalist

The Truth Behind Kamala Harris’s Healthcare Claims: Temporary Fixes, Long-Term Problems

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In Part 5 of A New Way Forward, Kamala Harris claims to have fought tirelessly for healthcare reform, lowering costs for consumers by taking on Big Pharma and insurance companies, defending the Affordable Care Act (ACA) from Republican attacks, and even removing medical debt from credit reports as Vice President. These bold claims, though compelling, deserve a closer look. A more careful examination reveals that many of her so-called “victories” in healthcare are either overstated or reliant on temporary fixes—far from the long-term, sustainable reforms our country needs.

Taking on Big Pharma and Insurance Companies: A Hollow Victory?

Harris claims that as California’s Attorney General, she took on Big Pharma and insurance companies to lower costs. The reality, however, tells a different story. While it’s true that Harris spearheaded lawsuits against opioid manufacturers, including Purdue Pharma, and took a stand against the industry’s role in the opioid crisis, these efforts had little impact on healthcare costs for the average Californian.

Most notably, Harris’s office blocked the merger between Anthem and Cigna in 2017, citing potential harm to competition and consumer choice. On the surface, this action may appear to align with her claim of fighting against insurance giants. However, blocking corporate mergers does not directly translate into lower premiums or reduced out-of-pocket costs for healthcare services. In fact, many would argue that robust competition could have spurred more innovation and cost-efficiency in the healthcare marketplace, potentially leading to lower prices.

The conservative argument here is straightforward: Harris’s efforts as Attorney General were focused on niche areas of healthcare reform—opioid litigation and corporate mergers—that, while necessary, did little to address the root problems of high healthcare costs or make a meaningful difference to most consumers.

Her Role in Defending the ACA: More Rhetoric than Action

As a U.S. Senator, Harris paints herself as a champion who fought off the Trump administration’s attempts to repeal the ACA. But while she was indeed vocal in her opposition, her actions were largely symbolic. Republicans attempted to dismantle the ACA in 2017, and although Harris co-sponsored several bills aimed at protecting key provisions of the law, her efforts didn’t include introducing significant legislative reforms herself.

From a conservative point of view, this is where her rhetoric begins to unravel. Although she stood alongside fellow Democrats in voting to preserve the ACA, Harris hasn’t offered substantive reforms to address its many flaws. The ACA has been criticized for reducing competition in the insurance market, leading to fewer choices for consumers and skyrocketing premiums. While Harris was content to defend the status quo, the truth is that many Americans have seen their healthcare costs rise under the ACA, particularly those who do not qualify for government subsidies.

Harris’s “defense” of the ACA can be viewed as more of a political stance than meaningful reform. Conservatives argue that while the ACA expanded coverage, it did so at the expense of affordability and choice, leaving middle-class families with higher premiums and fewer options. Harris’s fight to preserve it doesn’t address these deeper systemic issues—issues that conservatives believe could be mitigated through market-driven reforms.

Expanding the ACA: Empty Promises and Vague Plans

Photo by Павел Сорокин

Harris often speaks about expanding the ACA to ensure more Americans have access to affordable healthcare. But when pressed for details, her plans remain vague and undefined. She has thrown her support behind initiatives championed by President Biden, including expanding subsidies to middle-income families and capping premiums at 8.5% of household income.

However, conservatives argue that expanding subsidies is a temporary solution, not a long-term fix. Harris’s proposal to continue and expand ACA subsidies under the American Rescue Plan may sound like a step forward, but it merely prolongs the current system’s underlying issues. Subsidizing premiums is not a substitute for real reform, and it doesn’t address the fundamental problems of rising healthcare costs. Instead, it shifts the financial burden from individual consumers to taxpayers, creating a system where government intervention continues to grow without solving the root causes of inefficiency and price inflation.

The Temporary Nature of ACA Premium Reductions

This brings us to one of the core issues with Harris’s healthcare record: the ACA premium reductions she touts were not the result of lasting policy changes. Rather, they were temporary measures enacted through the Biden-Harris administration’s American Rescue Plan in response to the pandemic.

The American Rescue Plan, passed in 2021, temporarily increased subsidies for individuals and families buying insurance on the ACA marketplace. It expanded eligibility and capped premiums, ensuring that no household would spend more than 8.5% of their income on insurance. These changes helped lower premiums for millions of Americans during a time of economic instability.

However, these premium reductions were designed as emergency relief measures, not permanent fixes. The increased subsidies are set to expire, and without congressional action to extend them, healthcare premiums will likely return to pre-pandemic levels, leaving many Americans facing higher costs once again. In essence, Harris is claiming credit for a temporary solution that doesn’t address the systemic problems driving high healthcare costs.

A conservative critique could focus on the fact that Harris’s defense of these short-term subsidies ignores the long-term fiscal implications of expanding government spending. Instead of relying on temporary financial assistance, conservatives argue for market-based solutions that increase competition, lower costs, and reduce the need for such heavy government intervention. Without a long-term strategy for reform, Harris’s healthcare “victories” appear fleeting at best.

Removing Medical Debt from Credit Reports: An Overstated Achievement

Another bold claim Harris makes is that as Vice President, she removed medical debt from credit reports. In reality, this policy change was not the result of executive action by the Biden-Harris administration but rather a decision made by the three major credit reporting agencies—Equifax, Experian, and TransUnion—in 2022. These agencies announced that paid-off medical debt would no longer appear on credit reports, and medical debt under $500 would also be excluded.

While Harris and other lawmakers did exert pressure on the industry to address the financial burdens of medical debt, it’s misleading to credit her with single-handedly removing this debt from credit reports. Conservatives could argue that this is another example of Harris overstating her influence. Furthermore, removing medical debt from credit reports, while helpful for many Americans, does not address the underlying issues of why medical debt is so pervasive in the first place—rising healthcare costs and lack of affordability.

The Broader Conservative Critique: A System in Need of Reform

Taken together, these claims from Harris paint a picture of a politician who has been content to defend a broken system rather than pursue meaningful reform. From a conservative perspective, Harris’s healthcare approach relies too heavily on government intervention, subsidies, and temporary fixes, while ignoring the deeper systemic problems that drive high healthcare costs.

While temporary subsidies may offer short-term relief, they are not sustainable without substantial government spending, which could lead to higher taxes and increased national debt. Moreover, expanding the ACA without addressing its inefficiencies—such as the lack of competition, rising premiums, and limited choices—only serves to perpetuate the current system’s problems.

Conclusion

Kamala Harris has made bold claims about her role in healthcare reform, but upon closer examination, many of her achievements seem overstated or based on temporary measures. From blocking insurance mergers as California’s Attorney General to defending the ACA and promoting temporary subsidies as a senator and vice president, Harris has relied on stopgap solutions rather than the long-term reform our healthcare system desperately needs.

Conservatives argue that instead of doubling down on a system that has already shown its flaws, we should be looking for market-driven solutions that increase competition, lower costs, and reduce the need for government intervention. Harris’s healthcare approach, while politically expedient, does little to solve the real problems facing American consumers today.

References:

  1. California AG and Big Pharma
    Harris’s role in suing Purdue Pharma and blocking insurance mergers:

  2. Kamala Harris and ACA Defense
    Her opposition to ACA repeal efforts:

  3. ACA Premium Reductions
    The temporary nature of ACA premium cuts:

  4. Medical Debt Removal
    Credit agencies removing medical debt from reports:

Kamala Harris’ Small Business Record: More Fiction Than Fact?

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Kamala Harris has made small business support a cornerstone of her presidential platform, presenting herself as a key advocate for entrepreneurs and innovators. From tripling lending to minority-owned businesses to driving venture capital to rural America, Harris has painted a picture of her leadership in this area as both Senator and Vice President. But how much of this is rooted in fact? A closer examination reveals that many of Harris’ claims are exaggerated or misleading, relying on broad economic trends rather than her direct influence. This post uncovers where Harris’ small business platform falls short, showing that her record is more fiction than fact.

K. Harris

Nathan Howard/AP Photo

Harris’ Leadership on Small Businesses: A Rhetorical Stretch

Kamala Harris claims to have led the Biden-Harris administration’s efforts to increase access to capital for small businesses. This gives the impression that she was at the forefront of economic initiatives designed to support entrepreneurs. However, her involvement seems to be more about promotion than policy-making.

The real driving forces behind small business relief during the pandemic were the Small Business Administration (SBA) and the Treasury Department, with significant input from Congress. The Paycheck Protection Program (PPP), for example, was established under the CARES Act and expanded by subsequent relief bills. Harris, while a vocal supporter, was not directly responsible for these initiatives. Her claims of leading the effort should be seen as overstated.

Even the American Rescue Plan Act (ARPA), which Harris supported, was a collective legislative achievement. The administration as a whole worked on these programs, and Harris’ specific contributions were largely in promoting them rather than designing or implementing them. If Harris is to be credited for supporting these efforts, it’s in the context of a team effort, not individual leadership.

A Senatorial Record Lacking in Substance for Small Businesses

Harris also claims to have been a champion for small businesses during her time as a U.S. Senator (2017-2021). But a review of her legislative record tells a different story. While Harris co-sponsored a number of bills supporting small business owners, particularly minority and women-owned businesses, she was far from a key player in crafting small business legislation.

Harris served on the Senate Judiciary Committee and focused more on issues like criminal justice reform, not economic policy. While she supported broader Democratic initiatives to assist small businesses, she wasn’t at the forefront of these efforts. Other lawmakers with long-standing roles on the Small Business Committee did more of the heavy lifting when it came to actual policy formation.

For example, Harris co-sponsored the Small Business Access to Capital Act, aimed at expanding lending opportunities for minority businesses, but this was part of a broader legislative package and not unique to her efforts. Simply supporting these initiatives is not the same as spearheading them, and there’s little evidence to suggest that Harris played a leading role in any landmark small business legislation.

The 19 Million Business Applications Claim: A Result of Circumstance, Not Policy

One of the cornerstones of Harris’ economic platform is the claim that the Biden-Harris administration drove 19 million new business applications during their time in office. While the number is accurate, the context behind this surge is less about innovative policy and more about pandemic-driven necessity.

According to the U.S. Census Bureau, business applications surged during the pandemic as individuals sought new ways to make a living after job losses or reduced work hours. This wave of entrepreneurship was driven more by economic desperation than by any specific policies Harris promoted. It’s misleading for Harris to take full credit for this surge, which was largely due to external forces rather than direct intervention from her office.

Additionally, the bulk of these applications came from solopreneurs and gig workers—businesses that may not contribute significantly to long-term economic growth. While these applications reflect the resilience of the American spirit, they cannot be fully attributed to Harris’ work in government.

Venture Capital for Middle America: Lofty Promises, Limited Results

Harris’ platform also highlights her efforts to direct venture capital investment to Middle America and rural areas—regions often overlooked by Silicon Valley investors. While this goal is admirable, there is little evidence that Harris has made meaningful progress in this area.

Venture capital typically flows to high-growth industries concentrated in urban innovation hubs like San Francisco, Austin, and New York City. While the Biden administration has promoted programs aimed at supporting rural entrepreneurs, there’s scant data to suggest that significant venture capital investment has been directed to these areas as a direct result of Harris’ involvement. Harris’ rhetoric on this issue outpaces the reality.

The Biden-Harris administration’s efforts to distribute more economic resources to underserved areas are commendable, but Harris has not been at the center of these initiatives. Much of the work in driving investment to rural America is part of broader infrastructure and economic programs that she has supported, but not led.

Federal Contracts for Minority-Owned Businesses: A Long-Standing Effort

Another area where Harris claims success is in expanding federal contracts for minority-owned small businesses. The administration has set a goal of increasing federal contracts to small, disadvantaged businesses to 15% by 2025. This goal, while important, is not unique to Harris or the current administration.

Previous administrations, particularly the Obama administration, laid the groundwork for expanding federal contracts to minority businesses. Harris’ support for this effort is part of a larger, ongoing trend that predates her tenure as Vice President. While she may have promoted the initiative, it’s not a new or groundbreaking effort under her leadership.

This claim, like many others, reflects Harris’ tendency to present long-standing government programs as personal achievements. The increase in contracts for minority-owned businesses is a positive step, but it’s part of a larger bipartisan effort that extends across multiple administrations.

Harris’ Distancing from Biden: An Inconsistent Strategy

As Harris gears up for a potential 2024 presidential run, she’s attempting to distance herself from Biden’s policies, yet her platform on small business development is heavily intertwined with the work done under the Biden-Harris administration. This contradiction undermines her attempt to carve out an independent identity.

If Harris is to take credit for the administration’s successes—whether in small business lending, increasing federal contracts, or driving business applications—she must also take responsibility for the policies and failures associated with Biden’s presidency. Trying to promote successes while distancing herself from the administration’s challenges creates an inconsistent narrative that weakens her credibility.

Conclusion: More Fiction Than Fact in Harris’ Small Business Record

Kamala Harris’ platform on small businesses paints her as a leader in driving economic opportunity, but the facts reveal a different story. Many of her claims—whether it’s leading small business efforts during the pandemic, supporting minority-owned businesses, or increasing venture capital in rural America—are exaggerated or lack substantive backing.

While Harris has certainly supported small business initiatives as part of the broader Democratic agenda, her actual leadership role is minimal. Much of the progress she touts can be attributed to larger economic forces or collective efforts by the Biden administration. Her attempts to distance herself from Biden while taking credit for shared accomplishments only further complicates her narrative.

In the end, Harris’ small business record is more fiction than fact. As voters consider her for the presidency, they should take a closer look at the reality behind her claims and ask whether her leadership truly delivered for small businesses—or whether it was just another political talking point.

References:

  • “Paycheck Protection Program” — U.S. Small Business Administration: SBA.gov
  • “American Rescue Plan Act” — U.S. Department of the Treasury: Home.Treasury.gov
  • “Business Applications Surge Amid Pandemic” — U.S. Census Bureau: Census.gov

Why the Harris-Walz Tax Plan Will Harm the Economy and Middle-Class Americans

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The key elements of the Harris-Walz tax plan are designed around restoring and expanding two major tax credits: the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). Additionally, they aim to raise taxes on high earners and corporations by rolling back Trump-era tax cuts and increasing capital gains taxes for wealthier Americans. Specifically, the Harris-Walz plan proposes to:

            • Expand the Child Tax Credit to provide a $6,000 tax cut to families with newborns.
            • Restore and increase the Earned Income Tax Credit for working families.
            • Raise taxes on wealthy individuals and corporations, reversing Trump’s tax cuts, enacting a billionaire minimum tax, and increasing taxes on stock buybacks.

While this plan might seem beneficial on the surface, a deeper analysis reveals a significant issue: these tax cuts and credits come at the expense of the very policies that foster long-term economic growth. Rather than focusing on stimulating job creation and promoting business investment, the Harris-Walz platform is built on redistribution, which has historically done little to create sustainable economic prosperity.

Tax Credits Don’t Solve the Real Problem

Tax credits, such as the CTC and EITC, have been central to many liberal tax plans. Harris and Walz are doubling down on this approach, but it is important to understand that tax credits do not stimulate real economic growth. While they provide temporary financial relief to families, they do not address the larger systemic issues that encourage job creation, business investment, and wage growth.

  • Impact on Investment: One of the most damaging aspects of the Harris-Walz tax plan is the proposed increase in capital gains taxes, particularly the hike to 28% for those earning over $1 million. Capital gains taxes are essentially a tax on investment, and when you increase the tax burden on those making these investments, you discourage them from taking risks and putting their money into businesses. This leads to reduced economic activity, fewer new businesses, and ultimately, fewer jobs. Wealthy investors are crucial to driving innovation, creating startups, and growing the economy. Without them, the economy stalls.
  • Impact on Job Creation: Similarly, Harris and Walz’s plan to reverse Trump-era tax cuts for businesses will hurt job creation. When businesses are faced with higher taxes, they are left with fewer resources to invest in hiring, expanding, or increasing wages for their workers. Rather than providing an incentive for businesses to grow and create more jobs, this plan imposes additional costs on them, limiting their ability to hire more workers. This will ultimately harm the middle class, who depend on these businesses for employment.

The Trump Tax Cuts Spurred Economic Growth—Reversing Them Would Set Us Back

Under the Trump administration, the U.S. saw a period of robust economic growth thanks in large part to tax reforms aimed at reducing the tax burden on individuals and businesses. The 2017 Tax Cuts and Jobs Act lowered the corporate tax rate from 35% to 21%, creating a more competitive business environment, which encouraged domestic and international investment. Additionally, it reduced income taxes across the board, allowing more Americans to keep a larger portion of their income and spurring consumer spending. According to the Tax Foundation, the Trump tax cuts led to significant business expansion, wage growth, and job creation .

Reversing these tax cuts, as proposed by Harris and Walz, would set us back. By increasing the corporate tax rate and raising taxes on capital gains, the Harris-Walz tax plan would undo much of the economic progress made in recent years. Businesses, particularly small businesses that benefited from Trump’s tax cuts, would face higher operating costs, limiting their ability to expand, hire, and innovate.

Furthermore, the reduced corporate tax rate was instrumental in attracting foreign investment to the U.S., making it a more competitive destination for global businesses. By increasing taxes, the Harris-Walz plan would make the U.S. less attractive to these businesses, leading to reduced investment and fewer job opportunities for Americans. The American Enterprise Institute noted that lowering corporate taxes increases GDP growth by creating a more favorable environment for investment and entrepreneurship .

The Harris-Walz Tax Plan Could Fuel Inflation

Another major concern with the Harris-Walz tax plan is its potential to further fuel inflation. Their expanded tax credits for families may sound like a welcome relief, but it will inject more money into the economy at a time when inflation is already a significant issue. As we’ve seen in recent years, when there’s an increase in demand for goods and services without a corresponding increase in supply, prices go up.

  1. Higher Consumer Prices: The Harris-Walz tax plan includes significant tax hikes for businesses, particularly those that rely on investment to grow. Faced with higher taxes, these companies will pass the additional costs onto consumers. As businesses increase prices to cover their tax liabilities, middle-class families will end up paying more for everyday goods and services, effectively canceling out the benefits of the tax credits they receive.
  2. Inflationary Pressures: The expanded tax credits will also put more disposable income into the hands of consumers, increasing demand for goods and services. However, with businesses facing higher taxes, the supply side of the economy won’t be able to keep up. The result? Higher prices across the board. This inflationary cycle will hit working families the hardest, as their purchasing power will erode in the face of rising costs for everything from groceries to gasoline .

Reagan’s Warning: Government Has a Spending Problem

While the Harris-Walz tax plan focuses on raising revenue by increasing taxes, it completely ignores one of the most important factors contributing to our economic challenges: government spending. As President Ronald Reagan famously said, “Government doesn’t tax too little; it spends too much.” This is truer today than ever before. The national debt has ballooned to over $33 trillion, and much of that is due to uncontrolled government spending.

Rather than focusing on cutting taxes and reducing the size of government, the Harris-Walz plan proposes new programs and expanded tax credits that will require even more government spending. This will only exacerbate the debt crisis, leading to higher interest payments and fewer resources available for critical programs like Social Security and Medicare.

The National Debt: A Ticking Time Bomb

One of the most alarming aspects of the Harris-Walz tax plan is that it does nothing to address the rapidly growing national debt. In fact, by expanding tax credits and proposing new government programs, their plan would only add to the deficit. According to the Congressional Budget Office, the national debt has nearly doubled in the past decade, reaching unsustainable levels. Without significant cuts to government spending, we are heading towards a fiscal crisis that will have long-term consequences for future generations.

Conservatives believe that fiscal responsibility is the key to long-term economic stability. Rather than raising taxes to fund more government programs, we need to focus on reducing spending, balancing the budget, and reducing the national debt. The Harris-Walz plan, by ignoring these issues, is simply kicking the can down the road and placing a heavier burden on future generations.

The Conservative Solution: Empowering the Private Sector

Conservatives understand that economic growth comes from empowering the private sector, not expanding government control. Instead of expanding government programs and increasing taxes, we should focus on policies that allow businesses to thrive, create jobs, and raise wages. The conservative approach to tax policy is built on the following principles:

  • Lowering Taxes for Individuals and Businesses: When individuals and businesses are allowed to keep more of their hard-earned money, they are more likely to invest, expand, and innovate. This leads to higher wages, more job opportunities, and overall economic growth. Rather than penalizing success with higher taxes, we should be encouraging entrepreneurship and investment.
  • Cutting Government Spending: The key to reducing the national debt and stabilizing the economy isn’t raising taxes—it’s cutting unnecessary government spending. By reducing the size of government, we can lower the tax burden on Americans and ensure that future generations aren’t saddled with unsustainable debt. Fiscal responsibility and balanced budgets are the cornerstones of conservative economic policy.
  • Encouraging Investment and Innovation: By keeping taxes on investment low, we create an environment where businesses can grow, innovate, and create jobs. Instead of raising capital gains taxes and discouraging investment, we should be incentivizing wealthy individuals to invest in new ventures, which leads to job creation and economic prosperity for all Americans.

Conclusion: The Harris-Walz Tax Plan is the Wrong Path Forward

While the Harris-Walz tax plan promises middle-class relief, its real-world consequences will harm the very people it claims to help. By raising taxes on businesses and investors, discouraging job creation, and fueling inflation, their policies will stifle economic growth. Conservatives know that the path to a prosperous future lies in lowering taxes, cutting government spending, and empowering the private sector to do what it does best: create jobs and grow the economy.

References:

  1. Tax Foundation – Economic Impact of Capital Gains Tax
  2. National Bureau of Economic Research – Investment and Taxes
  3. Heritage Foundation – Impact of Corporate Taxes
  4. Tax Foundation – Analysis of the 2017 Tax Cuts and Jobs Act
  5. Federal Reserve Bank of St. Louis – Causes of Inflation

Project 2025 – Exposing the Rhetoric: How Democrats Weaponize Conservative Policy

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Introduction: Project 2025 – How Democrats Weaponize Conservative Policy

Project 2025 has ignited a firestorm in the media and political circles, portrayed by Democrats as a threat to democracy. But is this portrayal grounded in reality, or is it a calculated political weapon designed to demonize Donald Trump and conservative values?

Let’s set the record straight: Project 2025 is not an extremist manifesto but a well-thought-out plan to restore American governance to its constitutional roots—less government, fewer regulations, and more power to the people. Yet Kamala Harris and her Democratic allies continue to link Trump to the project, despite Trump’s own statements that he was not involved in drafting it. What’s happening here is clear—this is election rhetoric at its most deceptive, and we need to cut through the noise to focus on the facts.

In this post, we’ll take a closer look at how Democrats are twisting the narrative, why Trump’s distance from Project 2025 is politically smart, and how this entire episode reflects a larger pattern of manipulation by the Left to scare voters with baseless accusations of “extremism.”

Project 2025: The Blueprint for a Conservative Comeback

At its core, Project 2025 is a comprehensive guide prepared by conservative organizations like the Heritage Foundation to ensure a future GOP administration can make immediate strides in dismantling the administrative state and restoring executive authority. The goal is clear—streamline the federal government, slash burdensome regulations, and put America First, ensuring that the people’s voices are heard, not bureaucratic elites’.

The Left’s outcry over Project 2025 tells us something important: They fear its success. They know that a smaller, more efficient government means less room for their bloated, nanny-state policies. They understand that a Republican victory in 2024, armed with this roadmap, could undo the damage inflicted by the Biden administration’s regulatory overreach.

But instead of engaging with these ideas on their merits, Democrats have launched a campaign to label the entire project as “extremist.” That word—extremist—has become the go-to tactic for the Left. It’s designed to scare voters away from rational debate, making it easier to vilify conservatives rather than address their arguments head-on.

Trump’s Wise Move: Distancing from the Left’s Trap

One of the most strategic moves Trump has made in recent months is to distance himself from the specific drafting of Project 2025, even though many of its principles align with his America First agenda. Trump knows that Democrats, led by Kamala Harris, are desperate to tie him to any policy they can weaponize as “radical” or “dangerous.”

Let’s be clear: Trump’s distancing doesn’t mean he disagrees with the values espoused in Project 2025. On the contrary, Trump’s administration exemplified many of the policies the project supports—cutting taxes, deregulating industries, bringing jobs back to the U.S., and restoring law and order. But by maintaining some distance, Trump cleverly avoids playing into the Left’s narrative. It gives him the flexibility to champion these ideas without getting mired in the Democrats’ desperate smear campaigns.

Trump has always been a master of political maneuvering, and this is no different. He knows the Left will stop at nothing to paint him as a threat to democracy, so why give them more ammunition by embracing a document they are already mischaracterizing?

Harris’ Campaign of Fear: Manipulation Masquerading as Concern

Kamala Harris has seized on Project 2025 as a centerpiece of her attacks, despite having little to no understanding of its true content. She calls it a dangerous plan that would dismantle democracy—though, notably, she never delves into specifics. Instead, Harris uses sweeping, baseless accusations that appeal to fear rather than facts.

What Harris is doing is classic left-wing fearmongering. Instead of discussing the merits of limiting government or decentralizing power, she paints any attempt to do so as “extremism.” But let’s be honest, the real extremism comes from those who wish to expand the federal bureaucracy beyond recognition, forcing socialist policies down the throats of Americans without regard for liberty, economic growth, or the Constitution.

This isn’t about Trump, Project 2025, or even the conservative agenda. Harris and her Democratic allies are fighting to maintain their grip on power by manipulating voters with lies about what conservatives truly stand for. It’s an effort to create an emotional response rather than an informed one, and it’s deeply dishonest.

The Real Extremism: The Left’s Attack on Conservative Values

Harris’ attacks on Project 2025—and by extension, Trump—are emblematic of a larger problem: the Left’s outright refusal to engage with conservative ideas in good faith. Every time conservatives put forth a policy that challenges their vision of a bloated government, the Democrats cry “extremism,” hoping to scare voters into submission.

We’ve seen this tactic over and over again. When Republicans call for fiscal responsibility, the Left brands it “austerity.” When we demand secure borders, they scream “racism.” And now, when conservatives propose limiting the government’s overreach through Project 2025, it’s painted as a threat to democracy. This is not a genuine debate about the future of America; it’s political theater aimed at suppressing any opposition to the Left’s ever-expanding agenda.

The truth is, Project 2025 offers a vision of government that empowers Americans—not bureaucrats. It’s about getting Washington out of the way so that families, small businesses, and communities can thrive without the constant interference of an out-of-touch federal government. But to admit this would force Democrats to engage in actual debate, something they seem wholly unwilling to do.

Cutting Through the Election Rhetoric

So what’s the truth about Project 2025, and why should Trump supporters care? The truth is, this plan offers the tools needed to restore order, economic vitality, and national sovereignty. It’s the antidote to years of failed left-wing policies that have bloated the government and eroded the freedoms of everyday Americans.

Yet, the Democrats, led by Kamala Harris, want you to believe it’s a radical document written by extremists. They want you to think that Trump, by mere association, is endorsing an agenda that will destroy America. Nothing could be further from the truth.

Trump’s smart distancing from Project 2025 is not an abandonment of conservative values but a calculated move to avoid giving Democrats more opportunities to mischaracterize his positions. What matters most is the principles at play: reducing government overreach, protecting American jobs, securing the border, and returning power to the people.

Conclusion: Don’t Fall for the Left’s Rhetorical Games

As we head into the 2024 election, we can expect more of the same tactics from the Democrats—fearmongering, distortions, and outright lies. They will continue to try to paint conservatives, Trump, and Project 2025 as radical threats to democracy, all while ignoring their own reckless expansion of government power.

But here’s the reality: Project 2025 represents a return to the values that made America great—limited government, free markets, and individual liberty. Trump’s distancing from the project is not an indication of disagreement but a refusal to let the Left control the narrative. And the more we allow ourselves to be distracted by the rhetoric, the more we lose sight of what’s really at stake.

The 2024 election is about one thing: reclaiming America’s future from those who seek to undermine it with lies and manipulation. Don’t let the rhetoric fool you—conservative principles, embodied in Project 2025, are the path forward.

Higher Taxes: A Short-Sighted Strategy That Will Hurt Everyone Except the Government

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The debate around taxation has heated up once again, with proposals on the table that would impose new taxes on businesses, the wealthy, and even on unrealized capital gains—essentially taxing wealth before it is actually earned or sold. While the rhetoric behind these policies is framed around fairness and economic equality, a deeper dive into the economics suggests that these taxes will do far more harm than good.

In fact, these policies are likely to have damaging effects on economic growth, consumer spending, and job creation. Ironically, even the government itself may not see the tax windfall it expects, as these measures can stifle the very economic activity that generates tax revenue in the first place. Let’s explore why higher taxes may ultimately hurt all levels of society and fail to deliver the expected benefits.

The Tax Burden Always Falls on the Consumer

At first glance, higher taxes on corporations and the wealthy seem like a way to raise revenue without hurting the average citizen. However, this approach ignores a fundamental truth about how the economy works: businesses don’t just absorb additional costs—they pass them on to consumers.

Whether it’s through higher prices for goods and services or reduced wages and benefits for employees, corporations will find ways to maintain profitability. In the end, it’s not the corporations that suffer, but ordinary consumers, especially those who are already struggling to make ends meet. Every additional dollar in taxes can translate into higher grocery bills, pricier gas, and fewer job opportunities.

Capitalism and Economic Growth Depend on Reinvestment

Capitalism thrives on the reinvestment of earnings. Companies that are allowed to retain more of their profits are more likely to reinvest in their operations, whether that means upgrading equipment, expanding into new markets, or hiring additional employees. These actions spur economic growth, create jobs, and improve living standards for everyone involved.

When taxes are increased, however, businesses have fewer resources to reinvest. This slows down economic growth, and the job market weakens as companies cut back on expansion. In this environment, it’s not just the wealthy who feel the pinch; it’s also the workers who depend on a robust economy for employment.

Unrealized Capital Gains: A Dangerous Precedent

One of the most troubling aspects of the current tax proposals is the idea of taxing unrealized capital gains. Typically, capital gains are taxed when an asset is sold, meaning that the owner actually receives a profit. Unrealized capital gains, however, are merely paper gains—an increase in the value of an asset that hasn’t been sold.

Taxing these unrealized gains is not only unprecedented but dangerous. Markets are volatile, and what looks like a gain today can easily turn into a loss tomorrow. By taxing paper gains, the government is essentially demanding money that the taxpayer doesn’t even have in hand. This could force individuals and businesses to sell off assets prematurely to cover their tax bill, distorting markets and damaging long-term investment strategies.

The Ripple Effect: Less Investment, Fewer Jobs

In an interconnected economy, every action has a ripple effect. Higher taxes on businesses and the wealthy reduce their ability to invest in new ventures, cutting off a key source of capital for job creation. Small businesses, which often rely on investment from wealthier individuals and large corporations, will be particularly hard hit.

As investment dries up, so does innovation. Fewer startups will be able to get off the ground, and existing businesses may struggle to remain competitive. The result is fewer jobs, less upward mobility, and ultimately, less economic freedom for everyone.

Consumer Spending: The Real Engine of the Economy

At the heart of any thriving economy is consumer spending. When people have disposable income, they spend it on goods and services, which in turn stimulates production and job growth. Conversely, when taxes go up and people are left with less money in their pockets, they spend less.

The danger here is clear: if consumer spending falls, businesses see their revenues drop. This leads to lower profits, further job cuts, and a slowdown in the overall economy. In such a scenario, the government may not even see the tax windfalls it expects from these new levies. After all, if businesses aren’t making money and consumers aren’t spending, there’s very little taxable income left to draw from.

Government Spending vs. Private Sector Growth

Proponents of higher taxes often argue that government programs funded by these taxes can help spur economic growth and benefit the wider population. However, history has shown that government spending is rarely as efficient or effective as private sector investment.

While there are certainly areas where government intervention is necessary, an over-reliance on tax revenues to fund massive spending programs often leads to waste, inefficiency, and bureaucracy. In contrast, private companies operate in a competitive environment where inefficiency is punished, and innovation is rewarded.

Simply put, private sector growth is a far more reliable engine for long-term prosperity than government spending.

The Inevitable Consequences of High Taxes

The consequences of higher taxes are predictable. When businesses are taxed more, they invest less, hire fewer workers, and raise prices to cover their costs. When the wealthy are taxed more, they invest less in the economy, reducing the capital available for startups and business expansion. When consumers are left with less disposable income due to higher prices and stagnant wages, they spend less, further slowing the economy.

In the end, it’s not just the wealthy who suffer under these policies—it’s everyone. Job creation slows down, wages stagnate, and the cost of living rises. All the while, the government may find itself collecting less revenue than it anticipated as the economy contracts.

A Better Path Forward: Low Taxes, More Growth

Rather than pursuing short-sighted policies that punish success and stifle economic growth, a better approach is to foster an environment where businesses and individuals are encouraged to invest, spend, and create jobs. This can be achieved through a combination of lower taxes, deregulation, and policies that encourage entrepreneurship and innovation.

The evidence is clear: economies grow best when individuals and businesses are free to keep more of their hard-earned money and reinvest it in the economy. High taxes, on the other hand, are a recipe for stagnation and decline.

Conclusion: The Perils of Over-Taxation

While the rhetoric surrounding higher taxes may sound appealing to some, the economic reality is far different. These taxes may provide a temporary boost in government revenues, but they will ultimately lead to slower growth, fewer jobs, and lower living standards for everyone.

Rather than looking to the government for solutions, we should trust the free market and the power of capitalism to create the jobs and opportunities that lead to prosperity. In the end, a strong economy benefits everyone—not just the government.