Staff Reports
Ron Klain, the former chief of staff for President Biden and a seasoned political strategist, recently threw a spanner in the works when Vice President Kamala Harris unveiled her latest plan to tackle rising prices. In a moment sure to delight economists and business owners alike, Klain expressed skepticism about Harris’ proposed price-fixing scheme during his chat on CNBC’s “Squawk Box.” It’s refreshing to see a Democrat stepping back from the murky waters of government intervention, if only for a moment.
Under Harris’ ambitious proposal, the Federal Trade Commission (FTC) and state attorneys general would be granted the power to slap enormous fines on grocery stores and suppliers if their prices are found to be “too high”—as if that’s going to solve the inflation crisis. The Biden-Harris administration appears to be on a corporate blame spree, insisting that the majority of financial woes can be pinned on “corporate price gouging.” As if high prices are a simple case of greedy corporations acting out of turn, rather than a multifaceted issue influenced by supply chains, energy costs, and market demands.
“NOT GOING TO HAPPEN": @kevinolearytv blasts Kamala Harris’ price fixing plan on @MariaWallStreet and warns that it would lead to hyperinflation if implemented. Watch his full interview on @foxbusiness tonight at 7p ET. pic.twitter.com/pBoQHr3oAx
— Fox News (@FoxNews) August 23, 2024
Klain’s thoughtful yet firm counter to Harris’ plan is reminiscent of a cautious adult warning a child not to touch the hot stove. He noted that inflation derives from a host of factors, and relying on federal price gouging laws would not magically reverse soaring costs. It seems like Klain has seen enough of these price control disasters to know that simply wishing angry grocery store owners into compliance won’t fix the underlying issues. One can’t help but remember the infamous days of Nixon’s price controls—a textbook example of what happens when government tries to outsmart the free market.
Things heated up when co-host Joe Kernen chimed in, reminding everyone that artificially controlling prices doesn’t just make friends with consumers; it sows chaos among suppliers. What’s the point of controlling prices if it leads to shortages? Kernen’s challenge to Klain’s reasoning was spot on—people have lived through past price controls, and the results were as effective as a screen door on a submarine.
Klain didn’t shy away from the broader context either, contrasting Harris’ plans with those of former President Trump. He threw in his lot with ideas about “improving the efficiency of western ports” to help smooth out those pesky supply chain issues. Yet, it raises the question: could that be a clever distraction from the undeniable fact that soaring costs often result from poor government policies, not from employees earning too much or grocery stores making a profit? The Biden-Harris administration is trying hard to present itself as the hero in this tale, vowing to cut costs and put more dollars in middle-class pockets, but many are skeptical if this will ever materialize.
Even more revealing is the chorus of dissent emerging from the Democratic side. Notable figures like Harvard economist Jason Furman, once an advisor to Obama, have weighed in to suggest that Harris’ approach lacks the merit it pretends to uphold. He stated the obvious: trying to put a government price tag on every staple might only lead to more trouble than it’s worth, which paints a stark picture of Harris’ proposal on the national stage. As the curtain rises on this drama, the audience is left wondering whether this will play out as an overhyped farce or a genuine attempt to steer the economy back into calm waters.
