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From Fox News: A Harvard economist who worked in President Obama’s administration ripped Vice President Kamala Harris’ price control plan to curb inflation as not based in “reality.”
“This is not sensible policy, and I think the biggest hope is that it ends up being a lot of rhetoric and no reality,” Jason Furman told The New York Times in a report published Friday. “There’s no upside here, and there is some downside.”
The Harris campaign announced on Wednesday she would institute a federal price-fixing plan for corporations, as president, to stop “big corporations” from taking advantage of consumers.
The proposal would give authority to the Federal Trade Commission and state attorneys general to impose harsh penalties on companies for setting excessively high prices.
“Egg prices went up last year — it’s because there weren’t as many eggs, and it caused more egg production,” Furman explained.
However, he warned that policies intended to prevent corporate price gouging could instead keep the economy from adjusting, noting that if prices are not allowed to rise in response to high demand, there may be no incentive for new companies to jump into the market to with more supply.
Harris Plans to Ban Grocery ‘Price Gouging.’ What Does the Evidence Say? https://t.co/NIPSDHcpm6
— Kai Ryssdal (@kairyssdal) August 16, 2024
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