The hashtag “Kamunism” trended on X on Saturday morning following Kamala Harris’s announcement of her economic policies, some of which drew comparisons to communist-style price controls on food and other services in the U.S.
During a rally in North Carolina this week, Harris introduced her economic plan, which includes measures such as providing up to $25,000 in taxpayer subsidies for first-time home buyers and implementing price controls on groceries, housing, and prescription drugs.
At the event in North Carolina, Harris emphasized that reducing prices would be a top priority if she became president. She specifically targeted landlords and grocery chains, accusing them of “price gouging.” However, grocery stores typically operate on thin profit margins of 1-3%, as the food market is highly competitive and food supply in the U.S. is abundant.
“I will go after the bad actors, and I will work to pass the first-ever federal ban on price gouging on food,” Harris declared.
Harris attributed the inflation crisis to the COVID-19 pandemic, stating that the initial breakdown of supply chains caused prices to rise, but acknowledged that prices remain “too high” even as supply chains have improved. “We all know that prices went up during the pandemic when the supply chains shut down and failed, but our supply chains have now improved, and prices are still too high,” she said.
Harris’s plan also includes a proposal to cap prescription drug costs, ensuring that annual expenses for all Americans do not exceed $2,000. Additionally, she has expressed a desire to eliminate medical debt nationwide, according to The Hill.
Ryan McMaken, Executive Editor at the Mises Institute and a former economist for the State of Colorado, noted the historical parallels to the Soviet Union’s attempts at price controls in the mid-1900s. In a 2022 article, McMaken explained that during the Soviet era, efforts to control prices without fiscal discipline led to widespread shortages. “Prices were kept under control not through fiscal discipline, but through price controls. This led to shortages because, if wages were rising while goods prices could not, demand quickly exceeded supply. Soviet citizens often found they had very little to spend their money on, resulting in the long queues and empty store shelves we now associate with the Soviet economy,” McMaken wrote.