There’s been a lot said about Kamala Harris’s battle on “price gouging”. Let’s look into the whys and wherefores of what Harris might be getting at in an effort to control prices since Harris wo n’t offer many hints on how such a program might work.
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This presupposes that Harris is really trying to control the rising food prices. Many of us cynics think that no one is that terrible and that her “price gouging” suggestions are merely a way to exploit the voter’s misunderstanding and ignorance in order to win the election.
Never overlook the passion of a left-wing extreme. Kapala Harris may actually think that punishing businesses for making money during an inflationary spiral is” social justice” in action, as opposed to” social justice” in practice.  ,
As mentioned, the Harris strategy has given some hints about how this anti-price measuring program do work. They claim to offer” support for small businesses trying to advance,” but they left out any details about the nature of that support. Did the support be in the form of tax cuts? Grants?  ,
And who exactly does she mean by” small businesses” in the grocery industry? The old” Mom and Pop” model has gone the way of horseshoes and carriages. Convenience stores like White Hen and 7-11 profit from franchising ( spreading costs across dozens or hundreds of locations ) and using their increased purchasing power to lower costs for their owners.
A smaller grocery store could not realistically compete with a large supermarket chain. Therefore, the idea of a stronger contest for Kroger or another major stores is a pipe dream.
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Food companies have retaliated against Harris ‘ allegations of allegedly frauding. They assert that the rise in food prices is the result of a number of supply-chain issues, which the Trump administration initially poured onto the market with the first wave of government funding, and the Biden administration. These theories are in line with those provided by the majority of business and scientific economics. They are strengthened by the fact that food cost inflation has decreased by 2.4 % annually as the economy has put those events behind it, which is not significantly faster or slower than consumer prices in general.
Harris is never referring to shaming businesses to lower their costs. She does n’t mention providing subsidies for large grocery stores ‘ completion.
Kamala Harris is talking about rate settings. It’s the only way to lower meal prices. And she intends to travel all the way to the White House on that mindless idea.
Price controls are a “been there, done that” idea that did n’t work when Nixon tried it in 1971. Nixon also instituted an import tax and, most importantly, canceled the strong international conversion of the United States dollars to gold, slapping income and price controls on the economy. Not so much income and price controls, but that is what shocked the earth in 1971.
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The inflation rate in 1971 was 5.84 %. And this is when the “market box” used to calculate prices contained fuel and food. Poverty was over 6 % and Nixon panicked. His salary and value handles were quite well-liked, but the Bretton Woods agreement that ended the world financial system at the end of World War II was a disaster. The pay and price controls caused a severe downturn from 1973-1975 and a stagnant generation, all of which were combined with Middle Eastern sheik oil shocks.
Price controls are common on the left because they think businesses should n’t be profitable. They think that businesses really volunteer their efforts for the good of the world and the brotherhood of men.  ,
Owing, but I’ll go on that.
