Kamala Harris Is Promising Price Controls. Didn’t We Learn Our Lesson 50 Years Ago?
Vice president and Democratic presidential nominee Kamala Harris recently announced her plan to bring down grocery costs using price controls. As with many historic moments in recent years, this move is another strange echo of the late ‘60s and early ‘70s. Richard Nixon infamously implemented blanket price controls to address inflation, and when supplies faltered, long lines and shortages ensued. The resurrection of this economic zombie is a concerning move, especially to an economics nerd like me. I also happened to learn a thing or two about the American food system while producing “At the Fork,” a documentary on animal farming. The concept of “price gouging” is itself an incoherent rejection of the entire theory of supply and demand, and that’s especially true in the food market. Unfortunately, our policymakers have long treated America’s wealth of talent, productivity, and natural resources like trust fund kids. The money hasn’t run out, and it won’t for a long time, but eventually, we’ll have to wake up and bring back economic sanity.