Harris’ plan to stop price gouging could create more problems than it solves

[variant]

Actually wouldn't that be Fascism?

Both right wing and left wing governments have nationalized corporations, but I don't think the label applies to ours at all.

 

[nhaas11]

So for 3.5 years they have created higher prices, ruined our economy, Now they are trying to fix it? Nope I am voting differently.

 

[eleos1954]

https://www.cnn.com/2024/08/16/business/harris-price-gouging-ban-inflation?cid=ios_app

Food prices have surged by more than 20% under the Biden-Harris administration, leaving many voters eager to stretch their dollars further at the grocery store.

On Friday, Vice President Kamala Harris said she has a solution: a federal ban on price gouging across the food industry.

“My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris said at a campaign event.

There’s just one issue: Harris’ proposal could create more problems than the one it’s trying to solve, some economists say.

Why pick on the grocery stores ... they are not price gouging ... it's inflation and we know this because everything has gone up.

 

[SavedByGrace3]

https://www.cnn.com/2024/08/16/business/harris-price-gouging-ban-inflation?cid=ios_app

Food prices have surged by more than 20% under the Biden-Harris administration, leaving many voters eager to stretch their dollars further at the grocery store.

On Friday, Vice President Kamala Harris said she has a solution: a federal ban on price gouging across the food industry.

“My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris said at a campaign event.

There’s just one issue: Harris’ proposal could create more problems than the one it’s trying to solve, some economists say.

Great! What are you waiting for? You are in office with the president's ear. Bring this up now in the daily meetings. Get a consensus in Congress and the Senate. I am sure many would back your idea, or at least threaten the food industry to regulate themselves - or else!
So,PLEASE, go for it!
What ARE you waiting for???

 

[HARK!]

Why pick on the grocery stores ... they are not price gouging ... it's inflation and we know this because everything has gone up.

It's a math thing. The truth doesn't win elections.

 

[BCP1928]

Both right wing and left wing governments have nationalized corporations, but I don't think the label applies to ours at all.

No, the assertion is that the Federal government owns controlling shares in all our major corporations. Strictly speaking that would be socialism, but not necessarily authoritarianism. Fascist governments are authoritarian, but the oligarchs still own the capital.

 

[BCP1928]

It's a math thing. The truth doesn't win elections.

Who is picking on grocery stores? It's wholesale greed, not retail.

 

[HARK!]

It's wholesale greed,

I believe that this Administration's policies are based on greed, now that you mention it

 

[HARK!]

No, the assertion is that the Federal government owns controlling shares in all our major corporations. Strictly speaking that would be socialism, but not necessarily authoritarianism. Fascist governments are authoritarian, but the oligarchs still own the capital.

It certainly isn't free market Capitalism when a government prints up the fiat currency to buy up the controlling shares of a nations businesses.

 

[BCP1928]

It certainly isn't free market Capitalism when a government prints up the fiat currency to buy up the controlling shares of a nations businesses.

About that, controlling shares in all the nation's businesses is a lot of power. Why aren't they using it?

 

[HARK!]

About that, controlling shares in all the nation's businesses is a lot of power. Why aren't they using it?

Why would you assume that they aren't?

 

[BCP1928]

Why would you assume that they aren't?

Well, since they could contribute to solving the nation's economic problems with that power, I must assume you have something more nefarious in mind. Like who gets to use what bathroom, maybe?

 

[RoBo1988]

Why pick on the grocery stores ... they are not price gouging ... it's inflation and we know this because everything has gone up.

It has to be a war on something BIG!!!
BIG oil
BIG pharma (now they play nice with the government)
BIG tobacco
And now BIG Food

One they will never be at war with...
BIG Government

 

[mark46]

I read the whole op-ed article and underneath i saw a video by Robert Reich on the same subject.
He talked about monopolies. 4 companies control 70% of the food market, making it easier for them to control prices.
I have seen graphs and stats elsewhere showing the record profits these companies realized when supply chain issues eased and prices were kept high.
We need competition, and we need to exert pressure on these monopolies by heavily publicizing their anti-consumer policies.
BTW, Reich's credit are way more extensive than an economist from "Weber University."

1) Price fixing or price cap don't work. By nature, they are inflationary. As a great economist once said, "I can forgive Nixon Watergare, bit no price controls".

2) Yes, four companies control 70% of the food market. So? You believe that this stifles competition? Perhaps, perhaps not. There are anti-trust laws to protect against a lack of competition.

That isn't what Harris wants to do. She wants to identify the areas of inflation where folks are concerns and try to punish those companies in those areas that are most successful. There are problems in the grocery industry. It certainly is NOT what Kroger choose to charge. Kroger charges what folks will pay, making more profits on some items and making less or none on others.

If Dems want an excess profit tax for those she defines as those in the food industry, OK. But this is a failed approach to regulation. WE NEED SENSIBLE REGULATION, but this isn't it.

If we want to break up the agricultural monopolies, OK. This might work. You might consider the role of agriculturl subsidies (and ethanol subsidies).

3) You say that the issue is more competition. If that is true, you need to allow companies to compete. Some items will have huge profits. Some companies will make huge profits. Other products will go down in price and be unprofitable. Let folks CHOOSE. If some one or two or three companies are conspiring to fix the price of eggs, prosecute them. If produce prices are too high, do SOMETHING to get more workers. Find ways to have more groceries stores in the central cities. That would have a huge effect on overall food prices.
=======
BOTTOM LINE
More sensible regulation is fine, as long as it promotes competition.
And Harris must tell us why some of this isn't being done under the current administration.

 

[BPPLEE]

I read the whole op-ed article and underneath i saw a video by Robert Reich on the same subject.
He talked about monopolies. 4 companies control 70% of the food market, making it easier for them to control prices.
I have seen graphs and stats elsewhere showing the record profits these companies realized when supply chain issues eased and prices were kept high.
We need competition, and we need to exert pressure on these monopolies by heavily publicizing their anti-consumer policies.
BTW, Reich's credit are way more extensive than an economist from "Weber University."

Reich is a left wing hack, I’d take anything he said with that in mind.

 

[iluvatar5150]

1) Price fixing or price cap don't work. By nature, they are inflationary.

Price caps are not inflationary. They’re problematic in other ways, sure, but not that way.

That isn't what Harris wants to do. She wants to identify the areas of inflation where folks are concerns and try to punish those companies in those areas that are most successful.

AFAIK, Harris hasn’t yet said what she wants to do, exactly.

 

[BPPLEE]

Price caps are not inflationary. They’re problematic in other ways, sure, but not that way.



AFAIK, Harris hasn’t yet said what she wants to do, exactly.

Price caps cause prices to be raised on other items, to make up for the loss.

 

[mark46]

Price caps are not inflationary. They’re problematic in other ways, sure, but not that way.



AFAIK, Harris hasn’t yet said what she wants to do, exactly.

fair enough

Are you saying that we should ignore what she is saying other than that these are the usual empty campaign promises trying to fix a problem important to voters?

 

[mark46]

Reich is a left wing hack, I’d take anything he said with that in mind.

Reich is what he is, an expert with lots of policy experience, and an economist who presents the view of the left wing of the Democratic Party.

Calling Reich a hack is meaningless and probably redundant for you, since you would likely all left-wing policy spokesmen as hacks.

 

[mark46]

Price caps cause prices to be raised on other items, to make up for the loss.

Please review the effect of Nixon's price caps. Price caps are highly inflationary.