Kamala Harris: Business Leaders See Potential Ally in Biden’s Successor
As Vice President, Kamala Harris was a key player in Joe Biden’s progressive administration. This administration took a strong stance against mergers, Big Tech, and corporate greed. Now, as the presumptive Democratic nominee for president, Harris faces a new challenge: defining her own economic agenda.
Some business leaders and wealthy donors hope Harris will adopt more centrist policies, especially by dialing back Biden-era antitrust crackdowns. This tug-of-war places Harris at the center of a debate on major issues like taxes, trade, and regulation.
Harris and Business Leaders: A New Hope?
Business leaders are cautiously optimistic about Harris’s potential shift towards the center. Jeffrey Sonnenfeld, founder and president of the Yale Chief Executive Leadership Institute, shared with CNN that CEOs are excited about Harris. They believe she will protect the rule of law and recalibrate trade, regulatory, and tax policies.
- CEOs’ Confidence: There’s a sense of optimism among business leaders that Harris might offer a more balanced approach compared to Biden.
- Potential Shift: This optimism stems from the belief that Harris will moderate some of the more aggressive regulatory stances taken during the Biden administration.
Progressives vs. Business Leaders: The Lina Khan Debate
A significant battleground in this debate is the future of Lina Khan, the head of the Federal Trade Commission (FTC). Khan is known for her tough stance on antitrust issues, targeting giants like Big Tech, Big Oil, and even Big Mattress.
- Khan’s Impact: Under her leadership, the FTC has launched unprecedented antitrust crackdowns, making her a hero for progressives but a foe for many business leaders.
- Business Leaders’ Pushback: Democratic megadonor Reid Hoffman suggested Harris should replace Khan, arguing that her approach is too disruptive. Hoffman, who sits on the board of Microsoft, has a vested interest in this debate as the FTC has challenged several Microsoft deals.
Harris: A Blank Slate on Business Policy
Harris has remained relatively silent on her stance regarding business policy, making her somewhat of an unknown commodity.
- Balancing Act: Greg Valliere, chief US policy strategist at AGF Investments, noted that Harris can’t afford to go too far to the left as it would erode business confidence.
- Economic Confidence: Valliere emphasised that much of the economy hinges on confidence, suggesting that Harris’s economic policies will be closely scrutinised.
The Antitrust Battle: Business Leaders vs. Progressives
The debate over Lina Khan’s future is emblematic of the larger battle between progressive groups and business leaders.
- Reid Hoffman’s Stance: Hoffman, a prominent Democratic donor, has openly criticised Khan, suggesting she should be replaced.
- Barry Diller’s Critique: Another Democratic donor, Barry Diller, also criticised Khan, calling her “a dope” in a CNBC interview. Diller later clarified, saying she is smart but overreaches in her regulatory approach.
- Progressive Support for Khan: An alliance of more than 20 pro-consumer groups has rallied behind Khan, urging Harris to publicly support her.
CEOs Eye Harris’s Stance on Taxes and Energy
Beyond antitrust issues, CEOs are eager to see Harris’s positions on taxes and energy.
- Tax Policy: Former President Donald Trump has proposed lowering the corporate tax rate, while Biden suggested raising it. Harris’s stance remains unclear, though she previously supported higher corporate taxes.
- Energy Policy: Harris’s past support for a fracking ban has been a point of contention. Trump has used this to criticise the Biden-Harris administration during periods of high gas prices.
Navigating the Economic Landscape
Harris’s campaign spokesperson, Lauren Hitt, defended the administration’s record, highlighting record-setting domestic energy production under Biden-Harris.
- Climate and Energy: Hitt pointed out that the administration has not only passed significant climate change legislation but also achieved record oil and natural gas production.
- Balancing Environmental and Economic Goals: Sonnenfeld suggested that Harris’s campaign should emphasise these achievements to counter criticisms from Trump and others.
Conclusion: Harris at the Crossroads of Business and Progressivism
Kamala Harris’s potential presidency represents a crucial juncture for both business leaders and progressives. As she crafts her economic agenda, Harris must navigate the delicate balance between maintaining business confidence and continuing the progressive legacy of the Biden administration.
- Building Trust: Transparent and ethical policies can help build trust with both business leaders and the public.
- Long-Term Impact: Harris’s decisions on key issues like antitrust, taxes, and energy will shape the economic landscape and her political future.
Photo credit: CNN
