Making Harris's Opportunity Economy Real

 Harris's "Opportunity Economy" Proposal

At last week’s debate, Kamala Harris presented the idea of an “Opportunity Economy,” as her approach to dealing with our country's serious economic problems. The specific proposals that she presented under that rubric had obviously been carefully chosen to appeal to the tiny minority of “moderate” voters who will decide the election in November and to counter the Republican assertion that she is too “radical.”  The proposals included:

• A tax cut for families with young children
• A tax cut for small-business startups
• A subsidy for first-time home buyers
• A commitment to go fight against price-gouging by businesses

The Proposal Does Not Go Nearly Far Enough

These are all worthwhile things to do, but they are very timid. Two of the proposals rely on tax cuts, which are right out of the Republican play book. Moreover, a tax cut for small-business startups feels suspiciously like trickle-down economics. The idea is that small businesses create jobs and therefore benefit workers. A subsidy for first-time home buyers sounds great, but it will benefit mainly real estate investors. The subsidy will probably drive up housing prices because it will increase the demand for houses without directly increasing the supply. 

Moreover, her discussion of the opportunity economy included no mention of several important issues that are related to making equality of opportunity real for working-class Americans. She said nothing about the cost of health care for working Americans. She said nothing about the way that the cost of childcare prevents working Americans from saving. She said nothing about the fact burden of student debt makes it difficult or impossible for many people to save enough to buy a house. So, her proposals, while worthwhile in themselves, will not be enough to build the Opportunity Economy.

Making the Opportunity Economy Real

In an earlier post on this blog, I argued that several progressive policies can easily be framed as policies to promote equality of opportunity, and everything that I said then fits well under the rubric of the “Opportunity Economy.” If we are serious about the idea of an opportunity economy, we will have to recognize that Harris’s proposals are far from a complete list of the things that need to be done. However, the idea of the "Opportunity Economy" is potentially broad enough to include much that needs to be done if the rubric is to be more than a slogan. Here are a few other things that we could do to turn our economy into a real economy of opportunity.

• Provide affordable childcare: If childcare were more affordable, working-class families would be able to save money to invest in their own and their children’s futures. 
• Forgive student loans and find a way to fund post-secondary education that does not require students to take on heavy debts: If people did not have to shoulder enormous debts to obtain college degrees or other advanced training, their education would bring a higher return, and they would have more money to invest in their own and their children’s futures. 
• Create a decent national health insurance system: If we had a national health insurance system, companies would not have to pay so much for their employees’ health insurance, and in that case, they would be able to pay higher wages which would in turn make it possible for workers to save money to invest in their own and their children’s futures.
• Make sure that abortions are available to those who need them: If abortions were legal in all states, working-class families would not have to fear the economic consequences of an unwanted pregnancy and could more easily save and invest for a brighter future.
• Provide Baby Bonds for all American Children: Baby bonds would go a long way toward equalizing opportunity across our social classes.

Each of these policies would make a difference by putting money into working-class people's pockets, and the money will enable them to invest in their futures and the futures of their children. Together, these policies would be a revolution in equality of opportunity. They would change the world for working-class Americans, and they might create a real Opportunity Economy. So, let's get on board with Kamala Harris's idea, and let's make sure that it is expanded to include the things that will be needed to make it more than a slogan.