Last week, during a rally in Pittsburgh, Vice President Kamala Harris launched an unusually sharp attack on former President Donald Trump over his commitment to small businesses. Her salvo is part of a line of arguments about the economy and economic policies that influence the lives of American workers, who are a great number of small business owners.
Harris’ economic vision
In her speech, Harris took pains to stress her pro-business credentials, saying, “I am a capitalist,” but defined her vision of an economy that would lift up small businesses and the middle class. She touted federal incentives for firms to produce goods in America, everything from biomanufacturing to clean energy, in an apparent bid to win over voters who feel Trump’s policies have left them behind-especially in states like Pennsylvania, once heavy with manufacturing jobs.
Harris blamed Trump for his economic record, pointing out that since he has become President, the country has lost almost 200,000 manufacturing jobs. She said his administration is working in the interest of the wealthy and big corporations-not small business owners. Harris framed her agenda as one supporting everyday Americans, as she tries to draw the starkest contrast between her policies and Trump’s.
The impact of Trump’s policies on small businesses
Yet critics say that Trump’s policies have not been friendly to small businesses-as he usually claims. For instance, the Tax Cuts and Jobs Act of 2017 was designed to give a bigger advantage to large corporations compared to small businesses, say many analysts. Of course, a majority of the tax benefit passed on to pass-through entities-businesses that report income on their owners’ personal tax returns-of which it often benefited more in larger firms than with small businesses battling in desperation to survive.
On the other hand, Trump’s administration has been deemed to favor an uneven playing field through deregulation and tax cuts that have benefited more the wealthy and large corporations. This has made a number of small business owners feel like Trump only speaks to his personal business interests and that very few people actually believe him when saying that he cares about the small business community.
Harris’ direct critique of Trump
Harris minced no words in her speech to address what she described as Trump’s failures. She added, “He’s only interested in making life better for himself and people like himself,” suggesting his policies widened inequity, not bridged it. That assertion resonates with voters who feel economic marginalization during his presidency.
Harris also highlighted specific failures of Trump to live up to the promise. One example is the job offshoring at companies like Carrier. During the 2016 campaign, he said that wouldn’t happen, and that was proved untrue-many jobs lost after all. In these ways, Harris hopes to undermine Trump’s credibility to represent the interests of small businesses in particular.
The politics to come
With the on-the-ground politics now starting to shift toward the 2024 election cycle, both parties are making plays for the loyalty of small business owners-a constituency that has come to be particularly important in the economic recovery from the pandemic. It seems that Harris is trying to appeal to these voters by touting a pragmatic approach: investing in American industries and protecting American workers.
That the vice presidential candidate focused so much on Pennsylvania-a state pivotal in both the 2016 and 2020 elections-speaks volumes about how her campaign has taken into consideration local economic concerns. Presenting herself as a protector of small businesses from what she characterizes as Trump’s self-serving policies, Harris expects to activate a political base which may feel disappointed by promises not kept.
