Kevin O’Leary, best known as “Mr. Wonderful” from “Shark Tank,” voiced strong concerns about Vice President Kamala Harris’ recently unveiled economic plan.
The businessman expressed his concerns with the Democratic candidate for president’s proposal on Fox News’ “Jesse Watters Primetime,” on August 19, 2024.
In an appearance on CNN, O’Leary criticized several key aspects of Harris’ proposals, particularly her efforts to combat price gouging and her plan to provide down payment assistance to first-time homebuyers. These measures, according to O’Leary, could have severe unintended consequences.
Harris announced her economic plan during a rally on Friday, August 16, in North Carolina, outlining a broad range of policies aimed at alleviating financial pressure on American families. Key components of her plan include federal measures to curb grocery price gouging, tax credits for homeowners and families with children, and an ambitious goal to construct three million new housing units over the next four years.
However, O’Leary was not convinced that these policies would work. On the subject of price gouging, he pointed out the historical failures of similar strategies in other countries. His concerns reflect the broader skepticism among economists about the effectiveness of price controls in addressing inflation without leading to shortages or black markets.
O’Leary also addressed Harris’ proposal to assist first-time homebuyers with a $25,000 down payment. He argued that in a constrained housing market, this policy could exacerbate inflation by driving up home prices. “When you give $25,000 to anybody in a constrained market, you cause inflation,” O’Leary stated, adding, “If there’s three houses for sale on the street and everybody bidding on it gets another $25,000, all of that attributes to the seller, and you cause the price of the house to go up because there’s no supply.”
This criticism aligns with concerns raised by other financial experts, who have noted that increasing demand without addressing supply constraints could lead to higher housing costs. Harris’ proposal to build three million new homes aims to tackle these supply issues, but O’Leary questioned its feasibility. “[Real estate] is not controlled by a federal mandate; housing is state-by-state,” he argued. “She can do nothing to solve that problem. There’s no way she’s building 3 million houses. Which state is going to give her that mandate?”
The economic plan has been a focal point for both supporters and critics in recent weeks.
Harris’ supporters argue that her policies could provide much-needed relief to American families, particularly those struggling with high housing costs and rising grocery prices.
Despite his criticisms, O’Leary expressed a desire for Harris to succeed if she were to win the presidency.
As the debate over Harris’ economic plan continues, the stakes are high. The policies she’s proposing could significantly impact the U.S. economy, particularly in areas like housing and consumer prices. However, the challenges of implementing such sweeping changes, especially in the face of strong opposition, remain a critical hurdle.
O’Leary’s critiques underscore the broader debate within the business and investment communities about the direction of U.S. economic policy.
More on Key Aspects of Harris’ Economic Plan
Harris has outlined her plan to address rising grocery prices by proposing a federal ban on price gouging at grocery stores. In a statement released by her campaign, Harris emphasized the distinction between fair pricing and the excessive costs Americans have faced, particularly in the food and grocery industry. She pointed out that soaring meat prices, which have significantly contributed to higher grocery bills, have occurred even as meat processing companies reported record-breaking profits following the pandemic.
Despite overall inflation dropping to 2.9 percent for the year ending in July, grocery prices have surged by 21 percent during the Biden-Harris administration. This has led some to view Harris’ plan as an attempt to appeal to voters concerned about the administration’s handling of inflation.
Grocery stores, operating on thin margins of 1 to 3 percent, have expressed particular concern over Harris’ plan. While Harris has not publicly addressed these margins in her price-fixing proposal, she has criticized certain grocers for unfairly raising prices to boost profits. “A loaf of bread costs 50% more today than it did before the pandemic, and ground beef is up almost 50%,” Harris remarked last Friday. “Meanwhile, many big food companies are enjoying their highest profits in two decades, and while some grocery chains pass along savings, others still do not.”
To help American families buy homes, Harris has proposed the construction of three million new housing units over the next four years. This is part of her broader effort to address the housing affordability crisis in the United States.
To encourage the development of affordable housing, Harris’s plan includes the “first-ever” federal tax incentive specifically aimed at building starter homes for first-time homebuyers. This incentive is designed to make it more financially viable for developers to construct lower-cost housing.
Harris also plans to expand existing tax credits for affordable rental housing, further increasing the availability of affordable living options for low- and middle-income families.
There is also a proposal on the table to bring back the COVID-19-era child tax credit policies, which were $3,600 for qualifying children under age six and $3,000 for other qualifying children under age 18.
Harris’s plan includes a $35 price cap on insulin for Medicare recipients, with a $2,000 annual out-of-pocket limit extended to all Americans, not just seniors. It also proposes stricter regulations and stronger antitrust enforcement to prevent consumer price increases on drugs and food.