DAVE RAMSEY:
It's not sustainable because it's artificial. If you just put a lid on something and if you want to explore what really happens, just go back to the 1970s. We tried it. There was a whole movement for price controls across everything, because inflation was out of control and rampant, just like it is now. And so it's been tried. It does not work. What works is to flood the market with supply. Lots of oil means lower oil prices. Lots of labor means lower labor prices, lots of whatever means lower prices. It's a simple supply and demand curve. It's called economics, and it's called free market economics. When you insert government in it and try to artificially cramp it down, it simply does not work, because you can only hold that hose for so long until the pressure builds up, and then it blows on you.
An opinion piece in the New York Post
Kamala Harris facing backlash for ‘cost-capping’ price controls to curb inflation
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.
"There’s a big difference between fair pricing in competitive markets and excessive prices unrelated to the costs of doing business," the Harris campaign said in a statement. "Americans can see that difference in their grocery bills."
It's not sustainable because it's artificial. If you just put a lid on something and if you want to explore what really happens, just go back to the 1970s. We tried it. There was a whole movement for price controls across everything, because inflation was out of control and rampant, just like it is now. And so it's been tried. It does not work. What works is to flood the market with supply. Lots of oil means lower oil prices. Lots of labor means lower labor prices, lots of whatever means lower prices. It's a simple supply and demand curve. It's called economics, and it's called free market economics. When you insert government in it and try to artificially cramp it down, it simply does not work, because you can only hold that hose for so long until the pressure builds up, and then it blows on you.
An opinion piece in the New York Post
Kamala Harris facing backlash for ‘cost-capping’ price controls to curb inflation
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.
"There’s a big difference between fair pricing in competitive markets and excessive prices unrelated to the costs of doing business," the Harris campaign said in a statement. "Americans can see that difference in their grocery bills."
