Vice President Kamala Harris is facing backlash from Republican leaders and economists over her proposed plan to lower food prices, which they argue will lead to disastrous economic consequences.
The plan, set to be officially announced during a rally in North Carolina, includes a federal ban on “price-gouging” for food and groceries, aimed at combating rising consumer prices.
Critics have been quick to denounce Harris’ proposal, labeling it as “economic lunacy” and a form of “communism-style price controls.” They argue that such measures, which would grant the federal government extensive control over the food industry, have historically failed in other countries and would likely do more harm than good in the United States.
Price gouging is currently illegal, but the Biden-Harris administration has argued that corporations have taken advantage of rising inflation to raise prices even higher.
Sen. Ron Johnson (R-WI) took to X, formerly known as Twitter, to express his concerns, stating, “Price controls might sound good to some, but they do not work. They lead to supply shortages and in the end, higher prices. Looks like Kamala Harris is a communist at heart.”
Sen. Rick Scott (R-FL) echoed these sentiments, warning that Harris’ plan could have severe implications for American businesses.
“Tomorrow, Vice President Harris, a person who has never built a business, doesn’t understand profit and loss, has never met payrolls, and who has never competed in a consumer market, is going to propose federal price controls,” Scott, said in a statement.
“That should terrify every American. She claims that Congress needs to ban ‘price gouging,’ which is already widely illegal and not the cause of high prices. The skyrocketing prices created by the Biden-Harris administration aren’t price-gouging, it’s inflation,” Scott added.
Economists have also weighed in on the debate, with many agreeing that price controls would likely worsen the situation rather than improve it.
Jared Walczak, vice president at the nonpartisan Tax Foundation, pointed out that the grocery industry operates on slim profit margins, making it difficult for businesses to absorb the impact of price controls.
“Attempting to combat the effects of these policy choices with penalties for high prices will only distort markets further, and consumers will once again be the losers,” Walczak said.
Samuel Gregg, an economist at the American Institute for Economic Research, was particularly blunt in his assessment of Harris’ plan, calling it “economic lunacy.” He warned that price controls would lead to shortages and misallocations of resources, ultimately causing more harm than good.
“Price controls are a SERIOUSLY bad idea,” Gregg wrote on X. “They lead to shortages, severe misallocations of capital, and distort the ability of prices to signal the information we all need to make choices.”
The criticism from Republicans and economists highlights the broader concerns about Harris’ economic agenda as she prepares for a potential presidential run. With inflation continuing to be a top concern for voters, particularly in key swing states, the debate over Harris’ plan is likely to intensify as the 2024 election approaches.