Kamalanomics

Vice President Harris’ proposed economic plan essentially guarantees stagflation by both subsidizing demand and discouraging supply.

While Harris has been shy about her economic platform, her recent speech and prior campaigns suggest she would favor measures that discourage supply such as higher taxes and price controls. It also seems she would like to increase demand by subsidizing housing and forgiving some types of loans.

A combination of stronger demand amidst lower supply suggests a stagflationary economy, which has historically been bad for equities and - more importantly - bonds. While Harris should need the cooperation of Congress to realize her aspirations, the recent expansion of executive power implies she may have more influence than expected.

This post highlights the two aspects of Harris’ economic plan including subsidizing demand & discouraging supply, and suggests a Harris victory in November would be a market negative event.