Food prices have surged by over 20 % under the Biden-Harris management, pushing some Americans to stretch their budgets more at the grocery store. At a campaign event on Friday, Vice President Kamala Harris made the announcement that a national ban on cost cutting would apply to all branches of the food industry.
According to Harris, “my plan will add new penalties for unscrupulous businesses that break the rules.”
Yet, some economists warn that Harris ‘ plan may create new problems. Gavin Roberts, couch of Weber State University’s economics department, studied anti-price gouging laws enacted during the epidemic and discovered that such measures often prompted consumers to purchase more than they normally would, aggravating shortages.
According to Roberts,” the best coverage activity is often no action at all” when prices are high, according to Roberts, who reported to CNN. He explained that consumers who are deterred by high prices of goods like beef may switch to another proteins, helping to maintain stock levels for those willing to pay more.
Harris claims her proposal will encourage competition in the food sector, but Roberts contends that it may rather maintain the status quo by deterring fresh competition that might lead to lower prices over the long run. Jason Furman, a former top scholar in the Obama administration, echoed this problem, labeling the proposal as” no wise plan” with potential downsides for customers.
Despite the criticisms, Harris ‘ campaign fact sheet indicates that the program also includes more resources for national authorities to combat anti-competitive practices and price fixing. Harris ‘ speech and the fact sheet were referenced otherwise, but Campaign staff chose not to post on the accusations.
The subsequent inflation debate is still unresolved. Progressive consider vehicles contend there may be a strong relationship between price cutting and inflation, despite the San Francisco Federal Reserve finding no conclusive evidence linking the two.
Lindsay Owens, executive chairman of the liberal Groundwork Collaborative, supports Harris ‘ plan, stating that it would enable companies like the Federal Trade Commission to” break down on poor actors” and maintain good pricing for consumers. ” It’s great to see this violent approach”, Owens told CNN.
As the conversation around Harris ‘ plan continues, the issue remains: does this new policy curb rising food prices or make more financial hurdles?
