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Vice President Kamala Harris’ idea to impose price controls on food manufacturers and grocers as her response to inflation has been attacked by a former top staffer for President Joe Biden, who implied that the socialist policy would not only not address the issue but also make things worse for Americans.
Harris announced a plan that would give state attorneys general and the Federal Trade Commission (FTC) the power to sanction grocery stores and suppliers heavily if it determines that their prices are too high. The Biden-Harris administration has continuously denied any role in the country’s inflationary pressures, attributing them instead to “corporate price gouging” and their economic policies of large expenditure during periods of supply chain disruption.
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Ron Klain, the former White House Chief of Staff under Biden, mentioned on CNBC’s Squawk Box that inflation has multiple causes. He acknowledged that a federal price gouging law may not completely address the issue but stressed that consumers have a right to be protected from unfair pricing, underscoring that it’s ultimately about fairness.
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Co-host Joe Kernen challenged Ron Klain by asking, about where’s the evidence of gouging, he pointed out that when supply decreases and demand increases, prices naturally rise, a scenario seen before. Kernen referenced Nixon’s price controls, arguing that artificially controlling prices and keeping them low discourages competitors from increasing supply, which ultimately exacerbates the situation.
Even though former President Trump’s initiatives reduced inflation, increased wages for the majority of American workers, and expanded the economy, Klain retorted that his economic plans would be detrimental to the nation.
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Klain agreed, stating that the focus should be on further smoothing out supply chains. He noted that during the Biden-Harris administration, efforts were made to fix supply chain problems by improving the efficiency of Western ports to ensure they operate more effectively, allowing goods to enter the country more quickly. He also highlighted President Biden’s role in preventing issues like the freight rail strike.
Klain mentioned that the administration aims to reduce costs and increase disposable income for middle-class families. Meanwhile, some left-leaning critics have questioned Harris’ approach. CNN economics reporter Elisabeth Buchwald noted that food prices have soared by over 20% during the Biden-Harris administration, leading many voters to seek ways to make their grocery budgets go further.
Roberts, chair of the economics department at Weber State University, told CNN that in many cases, the most effective policy response to high prices is to do nothing. This approach would encourage consumers who find beef too expensive to choose other types of meat or protein, which could help keep beef available for those willing to pay the higher prices, according to Buchwald.
Buchwald noted that while Harris claimed her proposal would help the food industry become more competitive, Roberts argued that it would do the opposite.
The Washington Post Editorial Board was also critical. On Friday, they stated that Vice President Kamala Harris’s speech was an opportunity to provide voters with specifics on how a Harris presidency would manage an economy that many feel isn’t working well for them. However, they felt that instead of delivering a substantial plan, she squandered the moment on populist gimmicks.
The editorial board proposed that a more transparent approach could have involved explaining to voters that the inflation surge in 2021 was largely due to pandemic-related supply chain disruptions and that the Federal Reserve’s policies, backed by the Biden-Harris administration, are aimed at curbing it. However, they noted that the vice president opted for a different tactic, placing the blame on big business instead.
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