{"id":2325209,"date":"2024-08-15T15:45:02","date_gmt":"2024-08-15T19:45:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harris-campaign-grocery-price-control-proposal-could-cause-shortages-washington-examiner\/"},"modified":"2024-08-15T15:51:51","modified_gmt":"2024-08-15T19:51:51","slug":"harris-campaign-grocery-price-control-proposal-could-cause-shortages-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/harris-campaign-grocery-price-control-proposal-could-cause-shortages-washington-examiner\/","title":{"rendered":"Harris campaign grocery price control proposal could cause shortages &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fharris-campaign-grocery-price-control-proposal-could-cause-shortages-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2325209&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Vice \u200dPresident Kamala Harris\u200b has proposed\u2064 a\u2064 new initiative aimed at combating food inflation by implementing the first federal ban \u2063on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/president-biden-blames-vladimir-putin-for-record-high-inflation\/\" title=\"President Biden Blames Vladimir Putin For Record-High Inflation\">corporate price-gouging<\/a> within the grocery industry. Critics, \u2064including \u200deconomists and budget experts, have\u2062 derided the plan as a superficial election-year maneuver intended to divert attention from inflation\u2019s causes, such as government spending and regulations. They warn that penalizing companies for raising prices could inadvertently \u200clead to supply shortages, as price controls \u2063historically lead to increased demand without a corresponding increase in supply.<\/p>\n<p>Critics\u200c argue that \u200brather than address systemic issues behind inflation, the proposal scapegoats grocery companies. \u200bSome economists predict that \u2062if enacted, the\u2064 plan could exacerbate food deserts, where access to food is already limited, and create disparities in grocery availability, benefiting some stores over others. The\u2063 debate highlights the broader controversy over the causes of inflation, with Republicans attributing it to \u2064excess federal \u2064spending, \u2064while others \u200cblame corporate greed. the\u2064 proposal\u2019s potential consequences have raised concerns that it could\u2064 cause more problems than it aims\u200d to solve.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Harris campaign grocery price control proposal could cause shortages<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1727401\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>Vice President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/kamala-harris\" target=\"_blank\" rel=\"noopener\" title>Kamala Harris&rsquo;s<\/a> new proposal to prevent &ldquo;price-gouging&rdquo; in the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/food-and-drink\/\" target=\"_blank\" rel=\"noopener\" title>food<\/a> industry is drawing criticism from some economists who say it is an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-moved-on-the-border-will-it-move-voters\/\" title=\"Biden&#039;s Actions at the Border: Impact on Voter Support?\">election-year stunt<\/a> meant to address her vulnerability on the topic of inflation &mdash; one that, if implemented, would backfire and cause shortages.<\/p>\n<p>In its first major <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/economy\/\" target=\"_blank\" rel=\"noopener\" title>economic<\/a> policy rollout, the Harris campaign announced Thursday that in order to target food <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/inflation\/\" target=\"_blank\" rel=\"noopener\" title>inflation<\/a> at the grocery store, Harris would try to enact the &ldquo;first-ever federal ban on corporate price-gouging.&rdquo;<\/p>\n<p>The details of what such a proposal would look like haven&rsquo;t been released, although the campaign said Harris would give authority to the Federal Trade Commission and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dems-include-money-for-abortion-providers-in-1-9-trillion-covid-aid-package\/\" title=\"Dems Include Money for Abortion Providers in .9 Trillion COVID Aid Package\">state attorneys general<\/a> to &ldquo;investigate and impose harsh penalties&rdquo; on corporations who break the administration&rsquo;s &ldquo;price-gouging&rdquo; rules.<\/p>\n<p>Critics dismissed the plan as an election-year stunt. Brian Riedl, a budget expert at the Manhattan Institute, told the <em>Washington Examiner<\/em> he did not think it was a serious proposal that would come to fruition. He said the announcement is a deflection and the Biden administration has failed to own up to its role in pushing up inflation through &ldquo;runaway spending, deficits, tariffs, and regulation.&rdquo;<\/p>\n<p>&ldquo;And rather than take responsibility, they&rsquo;re scapegoating evil, price-gouging grocery companies in order to avoid the blame,&rdquo; he said. &ldquo;I don&rsquo;t think there&rsquo;s anything that&rsquo;s going to come of this initiative. I think it is entirely a rhetorical way of taking the heat off them for the inflation that they made worse.&rdquo;<\/p>\n<p>Penalizing companies for raising prices would likely have the unintended consequence of disrupting supplies, experts said. <\/p>\n<p>&ldquo;Price controls have never worked in any instance &mdash; they only create shortages that eventually result in prices skyrocketing when the price controls are finally surrendered,&rdquo; Riedl told the <em>Washington Examiner<\/em>.<\/p>\n<p>Ryan Young, senior economist at the Competitive Enterprise Institute, also said politics were behind the proposal and compared it to other election-year ideas, such as former President Donald Trump&rsquo;s suggestion of a new across-the-board tariff regime.<\/p>\n<p>&ldquo;It&rsquo;s posturing,&rdquo; he told the <em>Washington Examiner<\/em>.<\/p>\n<p>Grocery prices have caused consumers pain for years now, and are one of the most noticeable aspects of inflation, given that everyone has to eat. Grocery prices have only increased by 1.1% since last year, according to the consumer price <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/cpi.pdf\" target=\"_blank\" rel=\"noopener\" title>index<\/a>, but since January 2021, when President Joe Biden was sworn in, they have increased a whopping 21%.<\/p>\n<p>Casey Mulligan, an economics professor at the University of Chicago who served as chief economist for the Council of Economic Advisers during the Trump administration, said access to groceries would diminish if Harris&rsquo;s plan were to be implemented. He said &ldquo;food deserts,&rdquo; or neighborhoods that lack grocery stores, would only get drier.<\/p>\n<p>&ldquo;There would be some locations with empty shelves, and there&rsquo;d be other locations with full shelves,&rdquo; Mulligan said.<\/p>\n<p>Price controls or anti-gouging measures are thought to create shortages by pushing up demand, as customers look to load up on the goods that are subject to the government-imposed discount. At the same time, suppliers are less willing to offer the goods, as they no longer command higher prices. The result would be shortages at grocery stores across the country.<\/p>\n<p>So for instance, if bacon is one of the goods subject to such price parameters, instead of having to pay expensive inflated bacon prices, consumers might not be able to buy it at all, some economists contend.<\/p>\n<p>Mulligan told the <em>Washington Examiner<\/em> that, historically speaking, somebody always benefits from price controls. He predicted that if the plan were to be implemented, some grocers would actually do very well.<\/p>\n<p>&ldquo;They will try to structure the price controls so that they harm some of the groceries more than the others, and the ones who are harmed less actually come out ahead because they get customers from the ones who are harmed the most,&rdquo; Mulligan said.<\/p>\n<p>Economists raised other objections to the plan as well.<\/p>\n<p>Republicans and Trump have argued that the country&rsquo;s yearslong bout with inflation is due in big part to excess federal spending by the Biden administration. But liberals of the Left have placed the blame on corporate greed and accused companies of running up prices to turn a profit.<\/p>\n<p>Young noted that a problem with the idea that companies are price gouging is that grocery stores typically have a very low-profit margin.<\/p>\n<p>&ldquo;Grocery stores usually have a 1-3% profit margin, which is really low. High-end organic stores might have about a 5% profit margin, but for reference, the stock market averages an 8% return per year,&rdquo; he said. &ldquo;One- to three-percent compared to 8% &mdash; there&rsquo;s not a lot of room for price gouging when profit margins are that low.&rdquo;<\/p>\n<p>Young also said the policy could be contradictory for the FTC because if stores need to save money and make do with lower profit margins, there will probably be mergers and consolidations. Notably, the FTC under Biden is currently suing grocery giants Kroger and Albertsons over their proposed merger.<\/p>\n<p>&ldquo;It directly contradicts what the FTC is already doing in antitrust,&rdquo; he said.<\/p>\n<p>Harris is set to preview the plan and other economic policy positions during a Friday campaign speech.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><\/strong><\/a><\/p>\n<p>Mulligan said, policy aside, he isn&rsquo;t even sure if announcing such a proposal is a good political move because he thinks voters realize that price controls don&rsquo;t work.<\/p>\n<p>&ldquo;I&rsquo;m not a politician, but I think a lot of people understand this. That price controls, they hurt the people they are supposed to help,&rdquo; he said.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1727401\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1727401\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vice President Kamala Harris&#8217;s recent proposal aimed at curbing &#8220;price-gouging&#8221; in the food sector is facing backlash from several economists. They argue that it appears to be a political maneuver designed to mitigate her weaknesses regarding inflation, and they warn that its implementation could lead to shortages. In her campaign&#8217;s first significant economic policy announcement, Harris revealed plans for what would be the &#8220;first-ever federal ban on corporate price-gouging&#8221; to tackle rising grocery prices. However, specifics of this proposal have not yet been disclosed. The campaign indicated that Harris intends to empower the Federal Trade Commission and state attorneys general to investigate and impose severe penalties on companies violating these new rules.<\/p>\n<p>Critics have dismissed this initiative as merely a tactic for election year. Brian Riedl from the Manhattan Institute expressed skepticism about its seriousness, suggesting it serves as a distraction from the Biden administration&#8217;s responsibility for inflation caused by excessive spending, deficits, tariffs, and regulations. He believes this initiative will not yield tangible results but rather deflects blame onto grocery companies.<\/p>\n<p>Experts caution that penalizing businesses for raising prices could inadvertently disrupt supply chains. Riedl noted that price controls historically lead to shortages and ultimately result in skyrocketing prices once those controls are lifted. Ryan Young from the Competitive Enterprise Institute echoed similar sentiments, labeling it as political posturing akin to other election-year proposals.<\/p>\n<p>Grocery prices have been a significant concern for consumers over recent years; while they rose only 1.1% since last year according to consumer price index data, they surged by 21% since President Biden took office in January 2021. Casey Mulligan, an economics professor at the University of Chicago who previously served under Trump\u2019s administration, warned that if implemented, Harris\u2019s plan could worsen access issues in areas already lacking grocery stores.<\/p>\n<p>Mulligan explained how such measures might create disparities where some locations experience empty shelves while others remain stocked due to increased demand driven by government-imposed pricing limits\u2014leading consumers unable even to purchase certain items like bacon despite lower advertised prices.<\/p>\n<p>He also pointed out historical patterns where certain grocers might benefit disproportionately from price controls based on their ability or strategy during such regulatory changes.<\/p>\n<p>Economists raised additional concerns about blaming corporate greed versus recognizing federal spending as a primary driver of inflation\u2014a point made by Republicans including Trump\u2014while acknowledging low profit margins typical within grocery retailing make accusations of widespread gouging less plausible.<\/p>\n<p>Young highlighted how low profit margins (typically between 1-3%) leave little room for gouging compared with average stock market returns around 8%. He also mentioned potential contradictions arising within FTC policies regarding mergers amidst ongoing antitrust actions against major grocery chains like Kroger and Albertsons under Biden\u2019s administration.<\/p>\n<p>Harris is expected to elaborate further on this plan along with other economic strategies during an upcoming campaign speech; however Mulligan questioned whether announcing such proposals resonates positively with voters who may recognize their ineffectiveness historically\u2014suggesting they often harm those intended beneficiaries instead<\/p>\n","protected":false},"author":3360,"featured_media":2325210,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/harris-price-controls.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[38253,35844,5210,7601,32076],"class_list":["post-2325209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-grocery-price-control","tag-harris-campaign","tag-proposal","tag-shortages","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/harris-price-controls.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2325209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2325209"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2325209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2325210"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2325209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2325209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2325209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}