Media outlets from CNN to The Washington Post have criticized Kamala Harris after she unveiled parts of her economic plan this week, including a proposal for price controls. While these outlets have generally been lenient on Harris in the past, her socialist-style policies appear to have crossed a line.
For instance, a CNN contributor noted that Harris’s proposal to combat “price gouging” on food could lead to shortages, as grocery stores typically operate on slim profit margins of around 1-3%.
Economist and political commentator Catherine Rampell discussed Harris’s plan on CNN, warning that banning “price gouging” could lead to policymakers deciding what prices are “too high,” a strategy that has failed in countries like Venezuela, Argentina, and the Soviet Union. Rampell also penned an op-ed in The Washington Post titled, “When your opponent calls you ‘communist,’ maybe don’t propose price controls?”
Elizabeth Buchwald of CNN echoed these concerns in an opinion piece titled, “Harris’ plan to stop price gouging could create more problems than it solves.” The article quoted Gavin Roberts, chair of Weber State University’s economics department, who explained that “price gouging” laws could encourage people to buy more goods than they would otherwise, potentially leading to shortages.
The Washington Post Editorial Board also criticized Harris’s policies in an editorial titled, “The times demand serious economic ideas. Harris supplies gimmicks.” The board argued that Harris failed to “level with voters” during her North Carolina speech, where she blamed inflation on “big business” and proposed a “vaguely defined ‘federal ban on price gouging.'”
The editors added, “Thankfully, this gambit by Ms. Harris has been met with almost instant skepticism, with many critics citing President Richard M. Nixon’s failed price controls from the 1970s. Whether the Harris proposal wins over voters remains to be seen, but if sound economic analysis still matters, it won’t.”
The Wall Street Journal also weighed in, comparing the economic policies of both Donald Trump and Harris. The WSJ report noted that most economists dismiss Harris’s claim that the COVID-19 pandemic led to widespread price gouging by companies. Instead, they attribute inflation to the massive government stimulus efforts and the strain on global supply chains during the pandemic.
The WSJ further noted that it’s unclear how Harris’s proposed ban on price gouging, a term without a clear definition, would function in practice.
The New York Times also explored Harris’s price control proposals in an article titled, “Harris plans to ban grocery ‘price gouging.’ What does the evidence say?” Reporters Jim Tankersley and Jeanna Smialek suggested that Harris’s claims of corporate greed driving up prices are more complex than she portrayed in her speech.