Kamala Harris's Lead Over Trump On Economy Was Positive For The Last Three Months, Notes Paul Krugman: 'The Trend Was Already Pro-Democratic'

Nobel Prize-winning economist Paul Krugman highlights a Michigan survey revealing that Vice President Kamala Harris is leading Former President Donald Trump on economic issues.

What Happened: The latest Michigan survey indicates that Harris is favored over Trump on the economy by a margin of 41-38. This survey compares with the three-month average from earlier surveys.

Krugman noted that the survey does not emphasize the emerging pro-Democratic trend over the past three months. He pointed out that within those three months, the trend was already shifting in favor of the Democrats.

“What it doesn't point out is that within those three months the trend was already pro-Democratic,” Krugman wrote on X.

The latest Michigan survey shows Harris preferred to Trump on the economy, 41-38, which it compares with the three-month average from earlier surveys. What it doesn't point out is that within those three months the trend was already pro-Democratic pic.twitter.com/bP6Bde7Ase

— Paul Krugman (@paulkrugman) August 26, 2024

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The survey results and Krugman’s analysis suggest a growing preference for Harris on economic matters, reflecting a broader shift towards Democratic economic policies.

Why It Matters: The Michigan survey’s findings align with a broader trend observed in recent months. On Aug.15, a poll conducted for the Financial Times and the University of Michigan Ross School of Business revealed that 42% of Americans trust Harris more to handle the economy, compared to 41% for Trump. This marked the first time in nearly a year that the Democratic candidate led on this issue.

Krugman has previously criticized Trump’s economic policies, particularly his tariffs. In an early July op-ed, Krugman argued that Trump’s tariffs would hurt 80% of Americans and benefit only the top 1%, with the burden falling on the working class and the poor.

However, Harris’s economic proposals have not been without controversy. Former Trump administration economist Kevin Hassett recently expressed strong opposition, calling her plans “chilling” and likening them to “communism plain and simple.”

Investors are also closely watching the potential market implications of a Harris presidency. Her policies could lead to higher corporate taxes and impact consumer staples, while potentially boosting the solar energy sector. This has intensified the competition against Trump following President Joe Biden‘s withdrawal from the race.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote