Grocery CEO on Harris’ Price Control Plan: ‘No Idea How Government Can Regulate This’
By Jake Beardslee ·
August 24, 2024
In a recent interview with Fox Business, Stew Leonard Jr., CEO and President of Stew Leonard's Farm Fresh Foods, offered his insights on Vice President Kamala Harris' proposed price control plan and the factors driving price increases in the grocery industry. Josh Morgan, Josh Morgan / USA TODAY NETWORK
Vice President Harris has outlined a strategy that includes introducing new consequences for companies that take advantage of crises and violate regulations.
This initiative is designed to address the concerns of voters frustrated by the increasing price of everyday items like milk. Megan Smith / USA TODAY NETWORK
Her political rival, Donald Trump, has criticized the proposal, likening it to "Soviet-style price controls." Owen Ziliak/The Republic / USA TODAY NETWORK
Leonard, who oversees a popular grocery store chain in the New York, New Jersey, and Connecticut area, expressed skepticism about the effectiveness of government-imposed price controls.
"I don't know anybody price gouging. I haven't heard of it," he stated. "I have no idea how the government can regulate this." JJBers from Willimantic, Connecticut, USA / Wikimedia
The grocer explained that price fluctuations often result from market conditions, such as weather affecting crop yields. Stas Knop / Pexels
"If banana prices go up because of some weather situation or tomato prices go up, I can understand the retailers... we have to raise our price of those items," Leonard said. Karolina Kaboompics / Pexels
When asked about the root causes of recent inflation, Leonard pointed to multiple factors. Labor costs have been a significant contributor, with the average wage at Stew Leonard's increasing by $5 per hour over the past three years. Karolina Kaboompics / Pexels
"We can't unreel that and say to our people, you know, we have 3000 people at Stew Leonard's now. We can't tell them you're going to earn less next year," he explained. Tim Mossholder / Pexels
Energy costs and rising feed prices for livestock have also played a role in driving up food prices.
Leonard noted, "I've been in the business now 50 years with our family, and I've always seen corn prices for a bushel bag was around, you know, 2 or $3 a bag, and now it's like 4 to $5 a bag." Matthias Zomer / Pexels
It's worth noting that many states already have legislation in place to prevent price gouging during emergencies like hurricanes or pandemics.
However, a benefit of implementing federal-level control on price gouging is that it would grant national authorities enhanced capability to address and potentially penalize large multinational companies, which often prove challenging for individual states to effectively regulate or prosecute. Anna Nekrashevich / Pexels
