Home
All updates- EDGE Insights
Industries
Company Search
My Watchlists (Beta)
EDGE Insights
Filter
By Ruvini Perera · Sep 29, 2024
2024 US elections impact on emerging industries: Winners and losers of a Democratic presidency
Disclaimer: The following report neither endorses any US presidential candidate nor condemns or condones any policies thereof
Table of contents
- Introduction: Decoding the Democratic blueprint for the future
- Climate and sustainability: Championing a greener, more sustainable future
- Technology and innovation: Igniting innovation while safeguarding the digital future
- Healthcare and security: Building a healthier and safer society
- The “Opportunity Economy:” Homes, skills, and prosperity for all
- The interaction of policies
- Conclusion: Navigating the economic landscape of 2024
Introduction: Decoding the Democratic blueprint for the future
In August, Kamala Harris was confirmed as the Democratic presidential nominee following the conclusion of the 2024 Democratic National Convention (DNC). The convention also marked the release of the Democratic Party Platform, outlining its key economic policy priorities, which are examined in this report.
Though the Democratic Party Platform's policy recommendations were developed while Joe Biden was the presidential nominee, Harris' public statements on economic policy generally align with this platform, specifically emphasizing areas like housing and small businesses.
The overarching themes that connect the Democratic Party's policy proposals include 1) championing a greener, more sustainable future; 2) igniting innovation while safeguarding the digital future; 3) building a healthier and safer society; and 4) homes, skills, and prosperity for all.
This report examines these policy proposals, focusing on their implications for business-related industries, excluding any exploration of socio-cultural policies.
Democratic Party policy themes and their impact on industries
Industry impact intensity map (sector-based classification)
The following table identifies varying degrees of impact (high, medium and low) —both positive and negative—affecting each industry.
Climate and sustainability: Championing a greener, more sustainable future
The Democratic Party has long been a proponent of sustainability and a shift toward clean energy. These policies reflect a commitment to combating climate change, promoting clean energy, and ensuring environmental justice. The party aims to reduce emissions, transition to sustainable energy sources, and protect natural resources, fostering a healthier environment and a more resilient economy.
The party’s sustainability policies encompass initiatives aimed at 1) accelerating the clean energy revolution and 2) protecting the planet by encouraging climate-smart practices.
1. Accelerating the clean energy revolution
The transition to clean energy is vital for the US to achieve its goal of net-zero emissions by 2050. These policies promote a shift from fossil fuels, lower energy costs, and establish the US as a global leader in clean energy innovation and sustainability.
Policies that accelerate the clean energy revolution and how they impact industries
2. Protecting the planet and encouraging climate-smart practices
Alongside the shift to clean energy, the Democratic Party promotes policies to protect natural resources and sustainable practices. These are especially significant for the 2 million farms in the US and more than half of the country’s land dedicated to agricultural use—an industry highly vulnerable to climate changes—underscoring the importance of a dual approach that reduces emissions and promotes climate-smart farming practices.
Policies that encourage climate-smart practices and how they impact industries
Technology and innovation: Igniting innovation while safeguarding the digital future
The Democratic Party seeks to foster innovation in AI while upholding data protection and ethical standards. Its technology and innovation policies encompass initiatives aimed at 1) harnessing the power of AI and emerging technologies and acting as 2) guardians of cybersecurity and data privacy.
1. Harnessing the power of AI and emerging technologies
The Democratic Party policies seek to promote growth and competition in AI and emerging technologies, such as quantum computing and biotechnology, to maintain the US' technological edge globally.
Policies aimed at harnessing AI and emerging tech and how they impact industry
2. Guardians of cybersecurity and data privacy
A majority of organizations across various industries have integrated AI into their operations and processes. At the same time, there has been a growing need for data protection, as highlighted by a recent survey in which 78% of leaders expressed support for greater government regulation of AI. Concerns such as these form the basis for Democratic policies that aim to promote responsible AI innovation while ensuring robust safeguards for data privacy.
Policies that promote cybersecurity and data privacy and how they impact industries
Healthcare and security: Building a healthier and safer society
The Democratic Party envisions a future with a robust, accessible healthcare system and a secure, resilient nation. It seeks to achieve this through policies that encompass 1) transforming healthcare access and affordability and 2) strengthening the nation and pioneering frontiers.
1. Transforming healthcare access and affordability
Democratic healthcare priorities include safeguarding women’s health; addressing mental health disorders, which affect one in five US adults; and increasing funding for cancer research, which claims ~600,000 lives annually. These initiatives aim to provide equitable healthcare access, reduce costs, and alleviate financial burdens, ultimately decreasing disparities among citizens and nurturing a healthier nation capable of contributing more effectively to the economy.
Policies aimed at transforming healthcare access and affordability and how they impact industry
2. Strengthening the nation and pioneering frontiers
Democratic measures to strengthen national security include directing US defense expenditures—13.3% of federal spending in 2023—toward military modernization. As the US experienced 2,365 cyberattacks in 2023 and has seen a 72% increase in data breaches since 2021, enhancing cybersecurity has become a critical defense priority. These policies reflect Harris’ commitment to maintaining the world's most powerful and effective military force, capable of countering evolving global threats.
Policies aimed at strengthening the nation and pioneering frontiers and how they impact industry
The Opportunity Economy: Homes, skills, and prosperity for all
Harris has pledged to build an "Opportunity Economy," which is focused on fostering an environment that supports the growth and prosperity of the middle class. The overarching goal is to strengthen economic resilience and advance social equity by addressing critical needs in housing and education. Policies in this regard encompass 1) creating affordable housing, inclusive communities and 2) preparing a future-ready workforce.
1. Creating affordable housing, inclusive communities
In January 2023, 653,104 individuals were experiencing homelessness across the US, marking an increase of 12% compared with 2022. Thus, the “Opportunity Economy” hones in on policies that expand tax credits, funding, and support for affordable housing.
These policies aim to create stable living conditions and prevent homelessness, driven by the belief that secure housing is a foundation for economic mobility, offering individuals economically productive opportunities.
Policies that create affordable housing, inclusive communities and how they impact industries
2. Preparing a future-ready workforce
In 2021, 10.5 million students were enrolled in high-poverty public schools, representing one-sixth of the total public school population. Hence, Democratic policies on access to quality education and training are crucial for reducing income inequality—where the gap has been widening—and equipping individuals with the skills needed for the job market.
Policies that prepare a future-ready workforce and how they impact industries
The interaction of policies
These policies are interconnected and may reinforce each other in various ways, with their overall impact depending on the complex interplay of multiple factors, including their influence on one another and the effects of social and cultural policies beyond the scope of this report.
For example, initiatives to create affordable housing and foster inclusive communities may benefit from investments in workforce training, as a more skilled labor pool can help meet the demand for construction, healthcare, and other essential services. Similarly, policies to transform healthcare access and affordability may complement efforts to prepare a future-ready workforce by ensuring that workers have the health support they need to remain productive. Investing in clean energy and sustainable practices may also create new job opportunities, aligning with workforce development goals to train individuals for high-skilled, high-paid roles in emerging green industries.
However, other policies, including those relating to socio-cultural or geopolitical matters, may have unforeseen impacts across sectors. For instance, policies to redirect critical supply chains to the US and reduce dependency on foreign countries, particularly with regard to advanced technology development, could result in higher costs or supply shortages for industries like clean energy, AI, and biotech that depend on foreign-sourced materials or components. Additionally, geopolitical tensions could impact global trade dynamics, potentially affecting the availability of affordable goods and resources needed to implement policies around affordable housing, healthcare, and workforce development.
Conclusion: Adapting to a Democratic vision of the future
As the Democratic Party continues to advance its platform, its policies aim to create a more sustainable, innovative, and equitable future for all Americans. With a focus on clean energy, technological innovation, healthcare accessibility, and economic opportunity, these initiatives present opportunities and challenges for businesses, communities, and individuals. While the long-term impacts are yet to be fully realized, these efforts lay the groundwork for a future that prioritizes environmental stewardship, technological leadership, social justice, and economic resilience.
