Democratic vice presidential running mate Minnesota Governor Tim Walz speaks during a campaign event in Eau Claire, Wisconsin, U.S., August 7, 2024. REUTERS/Kevin Mohatt/File Photo
Kamala Harris Chooses Tim Walz as Running Mate: A Focus on Progressive Economics
Vice President Kamala Harris’s selection of Minnesota Governor Tim Walz as her running mate for the upcoming U.S. presidential election on November 5 places “progressive economics” at the forefront of the political debate. Walz, a 60-year-old former high school teacher and advocate of progressive values, has a track record of implementing policies in Minnesota that align with progressive ideals, such as free school meals, greenhouse gas reduction goals, expanded paid leave, and protections for collective bargaining and overtime.
What is Progressivism?
Progressivism, akin to European social democracy, advocates for strong government oversight to prevent the exploitation of workers and the environment by companies. It challenges the notion that free-market capitalism is self-correcting and emphasizes the need for government intervention to ensure fairness and protection for vulnerable groups. Michael Linden, a senior fellow at the Washington Center for Equitable Growth, explains that “progressive economics” values markets but recognizes the necessity of public intervention to make them function equitably. This approach contrasts sharply with the “trickle-down economics” favored by Republicans and some Democrats, which posits that tax cuts and policies benefiting corporations and the wealthy will eventually benefit everyone through increased spending and job creation.
Criticism of Progressive Policies
Critics argue that progressive policies, such as government assistance programs and strong union protections, can undermine work ethics, stifle innovation, and slow economic growth. Michael Strain, Director of Economic Policy Studies at the American Enterprise Institute, cautions that such policies could be inflationary, pointing to government mandates for universal pre-kindergarten care as an example that might raise service prices without necessarily increasing availability due to labor shortages.
Concerns about the economic impact of progressive policies are not limited to Republicans. Senators Joe Manchin and Kyrsten Sinema, both of whom have shifted away from the Democratic Party, have opposed expansions of the child tax credit, citing fears of economic instability. The National Bureau of Economic Research found that a temporary child tax credit during the pandemic had no significant effect on employment or labor force participation after six months.
Challenges to Advancing Progressive Policies
The implementation of progressive policies faces substantial hurdles. Heidi Shierholz, President of the Economic Policy Institute, notes that while progressive economics is gaining attention in public discourse, significant obstacles remain, as evidenced by recent Supreme Court challenges to reforms enacted by the Federal Trade Commission (FTC), such as the ban on non-compete clauses.
Evolution of the Democratic Party
Progressivism has deep roots in the Democratic Party, dating back to President Franklin Delano Roosevelt’s New Deal in the 1930s. However, it was sidelined in the 1980s, only to resurface with renewed interest after the 2008 financial crisis. The election of progressive candidates like the “Squad” to Congress in 2018 and the 2020 presidential campaigns of Senators Elizabeth Warren and Bernie Sanders further revitalized progressive ideals within the party. President Joe Biden, traditionally seen as a centrist, has surprised many by appointing progressive advisers to his economic team, signaling a shift in the party’s approach.
Harris and Walz’s Progressive Platform
Harris and Walz are expected to advocate for “pragmatic progressivism,” a strategy focused on addressing the local problems faced by families. While Harris has yet to unveil a comprehensive platform, she has reiterated some of Biden’s promises, such as combating price gouging, making the expanded child tax credit permanent, and increasing access to child care. In Minnesota, Walz has implemented progressive measures like free school meals for all students and paid family and medical leave. However, enacting these policies at the national level will be challenging without Democratic control of Congress.
Industry Opposition to Progressive Policies
Despite their stance against “corporate greed” and their push for stricter regulations, Harris and Walz may face opposition from influential industry leaders and wealthy individuals. Although some anti-Trump billionaires, such as LinkedIn co-founder Reid Hoffman and Hyatt Hotels’ John Pritzker, support the Biden-Harris administration, they have expressed concerns about the direction of the FTC under Lina Khan, particularly her efforts to limit corporate monopolies and combat price gouging.
Minnesota’s Experience Under Walz
Under Governor Walz, Minnesota has seen significant progressive reforms, including enhanced worker safety laws, improved nursing home standards, and expanded bargaining rights for university employees. However, Minnesota’s economic performance has been mixed. The state ranks 29th in growth among U.S. states, with nonfarm payrolls growing by less than 1% since Walz took office in 2019, compared to the 5.8% national average. On the other hand, Minnesota’s unemployment rate during the COVID-19 crisis was lower than the national peak, and incomes have grown by 30% since 2019. Additionally, inflation in Minnesota’s largest metropolitan area has eased more quickly than the national average.
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