Previously published on July 23, 2024 in
How Biden Stepping Down as the Democratic Nominee Could Impact Your Wallet
On July 21, news broke that President Joe Biden would be dropping out of the 2024 presidential race. Biden endorsed Vice President Kamala Harris to replace him. Many voters are wondering which candidate in the 2024 election will be better for their cost of living.
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Milton Ezrati, the chief economist at Vested, said prices are likely to go up.
“I think [Biden’s] withdrawal will have no effect,” Ezrati said. “What will have an impact is who replaces him on the ticket.”
California Gov. Gavin Newsom and Michigan Gov. Gretchen Whitmer are two high-profile Democrats some consider options to be the nominee instead of Harris — although neither has expressed that interest at this point.
“The first two are big spenders,” Ezrati said of Harris and Newsom. “The prospect of either in power will create expectations of an acceleration in inflation and, as people position themselves for those expectations, we could see a modest pickup in actual inflation.”
Ezrati said Whitmer is the most moderate of the trio, so there could be less chance of inflation with her on the ballot. Ezrati added that inflation might be inevitable, no matter who is on the ballot.
“On the fiscal side, much depends on the shape of Congress in 2025,” he said, “and that has only marginally to do with Biden’s withdrawal.”
Schultz agreed and said inflation will still be an issue no matter who wins in November.
“Regardless of Trump or someone else,” he said, “increased spending — or spending at the same pace — along with tax cuts will possibly continue to fuel inflation and do nothing to address a growing national debt.”
