Harris’ Price Gouging Ban: Trump Calls it ‘Soviet-Style,’ Republican States Disagree
By Jake Beardslee ·
August 25, 2024
Former President Donald Trump has sharply criticized Vice President Kamala Harris's proposal for a federal ban on price gouging in the grocery sector, labeling it as "Soviet-style" control.
While Harris argues this measure is necessary to protect consumers from exploitative practices, critics contend it would stifle the market and harm businesses. Jasper Colt-USA TODAY
Despite Trump's critique, the concept of regulating excessive price increases isn't new or strictly partisan.
Across the U.S., 37 states already have laws in place to combat price gouging, particularly during emergencies, according to the National Conference of State Legislatures. Adam Vander Kooy/Special to the Daily / USA TODAY NETWORK
In Texas, Republican Attorney General Ken Paxton took legal action against an egg supplier for a 300% price hike during the 2020 lockdowns. Mikala Compton/American-Statesman / USA TODAY NETWORK
Similarly, Kansas's Republican Attorney General Kris Kobach is challenging a natural gas company for alleged price gouging post a 2021 winter storm. Evert Nelson/The Capital-Journal / USA TODAY NETWORK
Meanwhile, Republican officials, like Florida Attorney General Ashley Moody, argue that Harris' plan is far too broad and would disrupt the free market. ERNST PETERS/ THE LEDGER / USA TODAY NETWORK
Moody emphasizes that Florida's price gouging laws, enacted to protect consumers during emergencies, are fundamentally different from the national-level proposal.
"There is no comparison between Florida's price gouging laws and what Harris is proposing," she told POLITICO. She further attributes the rising cost of groceries to the Biden-Harris administration's policies and not to price gouging. ERIC HASERT/TCPALM / USA TODAY NETWORK
Harris's plan for a national policy might represent a significant expansion of government oversight into pricing, potentially beyond emergency situations. Josh Morgan-USA TODAY
Economists and industry experts have mixed reactions.
While some support the idea of protecting consumers, others, including Michael Strain from the American Enterprise Institute, express concerns over the lack of detail in Harris's plan, fearing it could lead to broad government price controls. Mike De Sisti/USA TODAY / USA TODAY NETWORK
Strain opined in an interview with POLITICO that the vague nature of Harris' proposal “opens the door to concern that she’s actually talking about letting the government engage in price controls.” AEI Digital Strategy / Wikimedia
The lack of clarity surrounding Harris' plan, including the specific triggers for the ban and its potential impact on businesses, has also fueled skepticism. Megan Smith / USA TODAY NETWORK
Despite this opposition, Harris' plan has found support among some Democrats, who see it as a necessary step to address corporate power and protect consumers. Mike De Sisti / USA TODAY NETWORK
Senator Bob Casey (D-PA) argues that large corporations are manipulating food prices to their advantage, harming families.
Economists, however, have voiced concerns about the potential unintended consequences of such a federal ban.
They argue that government intervention in market-set prices can cause shortages, discourage investment, and ultimately harm consumers. Jasper Colt-USA TODAY
Harris, drawing from her tenure as California's attorney general, has positioned her proposal as a crackdown on corporate greed, arguing that it's necessary to address food price inflation. Jasper Colt-USA TODAY
Harris's plan, while still vague on specifics, aims to introduce what her campaign calls the "first-ever federal ban on corporate price-gouging" in food sectors, echoing legislation proposed by Senator Elizabeth Warren (D-MA). Jasper Colt / USA TODAY NETWORK
