After weeks of speculation regarding their economic policies, it looks like the Harris-Walz campaign’s economic platform is set to have a considerable impact on foreign direct investment (FDI) and domestic business dynamics if their ticket gets punched in November. With manufacturing set at its core, their strategy builds on the Biden Administration’s goals, stitching together their ambitions for manufacturing, clean energy, and resilient growth.
At its heart, the Harris-Walz economic platform is a commitment to clean energy and infrastructure development. Prioritizing federal investments in renewable energy and advanced manufacturing, the campaign seeks to attract both domestic and foreign investments into sectors that are critical for long-term sustainability. Companies specializing in renewable energy technologies and infrastructure improvements are likely to benefit from these initiatives. The broader objective is to enhance the resilience of the economy, making it more attractive to both foreign investors and domestic enterprises. For economic developers and private firms, it will be imperative to assess how these policy measures might alter investment patterns and affect the competitive standing of various regions.
Reshaping State Competition for Business Attraction
Reshaping state competition for business attraction is one of the most transformative elements of the Harris-Walz platform. The campaign outlines a clear vision to reduce aggressive interstate competition by proposing federal oversight and the potential standardization of tax incentives. “We cannot afford to let states engage in a race to the bottom, offering ever-larger tax breaks at the expense of their own infrastructure and services,” Vice President Harris emphasized in a recent interview. This reflects the campaign’s goal to create a more equitable business landscape where states are encouraged to shift their attention from financial incentives to more sustainable, long-term strategies.
The Harris-Walz platform emphasizes “leveling the playing field,” aiming to reduce the dependency on tax cuts and instead prioritize building competitive advantages through investments in local assets. As Governor Walz stated, “We’ve seen success in Minnesota by investing in people—whether it’s workforce development, education, or innovation ecosystems. These are the tools that will attract businesses in the long run.” This approach reflects the platform’s commitment to fostering regional strengths, such as workforce readiness, robust infrastructure, and innovation hubs, as opposed to relying solely on financial incentives to lure businesses.
Impact on Economic Development Organizations
By focusing on assets like workforce development, innovation ecosystems, and infrastructure, the Harris-Walz campaign seeks to reshape state competition, fostering long-term economic resilience while reducing the pressure on states to sacrifice local resources for short-term gains.
For economic developers, the Harris-Walz policies suggest a rethinking of traditional business attraction methods. Federal incentives may become more standardized, reducing the effectiveness of state-level tax breaks. In response, EDOs will need to focus on building and marketing regional strengths—highlighting sectors that have local expertise, a skilled workforce, and proximity to innovation hubs. States like Minnesota, under Gov. Tim Walz’s leadership, have already implemented policies such as universal free meals and paid family leave, which enhance workforce stability and attractiveness, offering a glimpse into how this strategy could be applied nationwide.