close
close

Kamala Harris and business newspapers slam her plan to control food prices: “Soviet and harmful”

Vice President Kamala Harris' proposal to impose nationwide food price controls has sparked a wave of criticism from economists and media outlets including CNN, Newsweek and the New York Post. These critics claim that the proposal, described as a “Soviet-style plan,” could lead to severe shortages of essential goods like those seen in the 1970s.

What Kamala Harris' plan envisages

Harris' plan calls for a nationwide ban on “excessive pricing” of food and groceries, with the stated goal of protecting consumers from unfair business practices. The proposal also calls for directing the Federal Trade Commission (FTC) and state attorneys general to investigate companies that do not comply with pricing regulations.

The plan appears to be an evolution of a bill introduced by Senator Elizabeth Warren, whose team recently joined the Harris campaign. However, many experts doubt the effectiveness of these measures, arguing that it is virtually impossible for the federal government to set a “fair” price for consumer goods such as eggs and bread.

Criticism from media and economists

The New York Post quoted economists who called Harris' plan “vague” and “misguided” and suggested it could lead to severe food shortages. Brian Riedl, a senior fellow at the Manhattan Institute, compared the plan to the price controls imposed under communist regimes, arguing that “anyone who lived through or studied the 1970s knows that price controls are disastrous because they lead to supply shortages.”

Jason Furman, a Harvard economist and former chairman of the Council of Economic Advisers under the Obama administration, called the policy “nonsensical” and pointed out that it could have more downsides than benefits. Furman also pointed out that the proposal does not address the root of the inflation problem, which has been fueled by a variety of factors, including government spending and pandemic-related disruptions.

Possible consequences of the plan

Critics say Harris' proposal could exacerbate supply problems because lower prices could lead consumers to buy more goods than they need, quickly emptying supermarket shelves. This scenario has already been observed during the pandemic, when similar “overpricing” laws led to increased demand and shortages of certain products.

In summary, while Kamala Harris presents her plan as a necessary response to rising living costs, criticism from economists and the media suggests that the proposed solution may create more problems than it intends to solve.

You may also like...