Warren and Kernen Clash Over Harris’ Grocery Price Control Proposal: ‘It’s a Fool’s Errand’
By Jake Beardslee ·
August 25, 2024
Senator Elizabeth Warren (D-Mass.) found herself in a heated debate with CNBC host Joe Kernen on Friday regarding Vice President Kamala Harris' proposal to implement federal price controls on food and groceries. Jasper Colt-USA TODAY
Harris' plan, announced last week, aims to prevent corporations from exploiting consumers by artificially inflating food prices.
However, the proposal has drawn criticism from some economists, who argue that such controls have historically proven ineffective and could even exacerbate price increases. Richard Burkhart/USA Today Network / USA TODAY NETWORK
Kernen challenged Warren's support for the plan, calling it a "flawed idea" and stating, "Competition doesn’t come in. If the price of beef is too high, people don’t move the chicken. Competitors don’t come in to undercut where the beef prices are. Nothing works when you try to artificially control prices. It’s just a supply and demand issue." Financial Times / Wikimedia
He further argued that "It’s not price gouging that’s the issue" and accused Warren of using the plan as a distraction from the true causes of inflation. Karolina Kaboompics / Wikimedia
Warren countered by pointing to the success of anti-price gouging laws in numerous states and arguing that the federal plan is designed to prevent corporations from exploiting consumers, as she claimed they did during the pandemic. Steve Heaslip/Cape Cod Times / USA TODAY NETWORK
Warren cited the example of Cal-Maine, a large egg producer, stating, "Their profit margins increased by 718%. That’s not just passing along costs." Monserrat Soldú / Pexels
The debate grew increasingly contentious, with Kernen arguing that Warren’s examples were misleading and that she was misrepresenting the realities of the market.
He stated, "It’s just the way it is. And to think that the government can decide when prices are too high or too low — the grocery chains have a 2% profit margin. How about Apple with 50% or 40%? How do you decide?" Erik Scheel / Pexels
He went on to say, "This is not the government’s place to do these things. It’s a fool’s errand, and you're using it to divert from the real cause of inflation over the last four years," attributing inflation to pandemic-related supply chain issues and stimulus spending. Pixabay / Pexels
Warren maintained that corporate greed is a key driver of rising prices. Allan Jung/Telegram & Gazette / USA TODAY NETWORK
Warren stood firm in her defense of Harris' plan, arguing that it was not about implementing price controls, but rather about addressing situations where market forces are not functioning correctly. PETER PEREIRA/The Standard-Times / USA TODAY NETWORK
She emphasized the role of the FTC and state attorneys general in promoting market competition and stated, "We just want to put one more tool in the toolbox when CEOs are going on the phone saying, ‘Boy, inflation is great. Because it gives us a chance to raise our prices.'" Jasper Colt / USA TODAY NETWORK
