Quick Hit:

Vice President Kamala Harris is set to outline a limited economic plan on Friday, which has already drawn sharp criticism for its reliance on government-imposed price controls. Critics argue that Harris's approach mirrors failed Soviet-style policies that "will result in scarcity and higher costs," with even the Federal Reserve having previously published reports discrediting such measures during her administration.

Key Details:

• Harris’s plan includes pushing for a federal ban on price gouging by food corporations, with enforcement by the Federal Trade Commission (FTC) and state attorneys general.

• Critics have slammed the proposal, comparing it to Soviet-era price controls that led to shortages and higher costs. "Kamala Harris is literally proposing price controls on food," said RealClearPolitics senior writer Mark Hemingway.

• Just two years into her administration, the St. Louis Federal Reserve explicitly warned that price controls often do more harm than good, stating in a 2022 report that "price controls have a very long but not very successful history," adding that such measures "can lead to costly shortages and inefficiencies."

Diving Deeper:

Vice President Kamala Harris is set to advocate for a federal ban on price gouging as part of a limited economic plan aimed at lowering grocery prices, according to a report by POLITICO. The proposal, to be announced during a speech in North Carolina on Friday, forms part of Harris’s strategy to address high everyday costs that have plagued the Biden-Harris administration since the onset of the pandemic. However, the plan has been met with fierce criticism, with some commentators likening it to failed Soviet-style economic policies.

Conservative critics were quick to condemn Harris's approach, arguing that government-imposed price controls have historically led to shortages and worsened economic conditions. "Kamala Harris is literally proposing price controls on food," remarked RealClearPolitics senior writer Mark Hemingway, who highlighted the potential for scarcity and even higher costs as a result of such policies. Helen Raleigh, an immigrant from communist China, echoed this sentiment, warning that "government-imposed price control is a terrible idea because it makes the economy worse by causing shortages." Former congressional candidate David Giglio also weighed in, saying, "Kamala Harris was, is, and always will be a communist," and predicting that these types of policies could lead to "breadlines" similar to those seen in socialist countries.

Further complicating the vice president's position, the Federal Reserve, just two years into her administration, explicitly warned that price controls often do more harm than good, stating in a 2022 report that "price controls have a very long but not very successful history" and noted that such measures "can lead to costly shortages and inefficiencies."

In announcing price controls, Harris is also expected to criticize former President Donald Trump’s economic plans, including his threats to impose new tariffs on U.S. imports, arguing that such measures would only increase costs for food and other essential items. “Kamala Harris can’t hide from her disastrous record of skyrocketing inflation, resulting in a 20 percent increase in prices since she took office,” said Trump spokesperson Steven Cheung in response, who accused Harris of attempting to mislead the American public about the administration's economic failures.

“Kamala Harris” by Gage Skidmore is licensed under CC BY-SA 2.0 DEED.