Longtime political strategist and former Biden White House Chief of Staff Ron Klain threw cold water on Vice President Harris’ price-fixing plan during a recent appearance on CNBC’s “Squawk Box.”
After weeks of refusal to release specific policy plans, Harris announced a plan that would allow the Federal Trade Commission (FTC) and state attorneys general to impose hefty fines on grocers and suppliers whose prices are deemed to be too high. The Biden-Harris Administration has long blamed the nation’s inflation woes on “corporate price gouging.”
Harris’ plan has been compared to the policies of communist planned economies such as Venezuela and the Soviet Union and has been met with opposition from both sides of the political aisle, including Klain.
“Well, inflation came from a lot of places. And I think having a federal price gouging law was not going to solve inflation. But consumers deserve not to be gouged. That’s just fair,” he said during a recent appearance on “Squawk Box.”
“But where’s the evidence of gouging, Ron? When supply goes down, demand goes up — we’ve seen this movie before. I was around for Nixon’s price controls,” co-host Joe Kernen then pushed back. “It’s the worst thing you can do. If you artificially control a price and keep it low, then competitors don’t come in to increase the supply and it just exacerbates the situation.” […]
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