Harris Plans to Ban Grocery ‘Price Gouging.’ What Does the Evidence Say?

The New York Times ^ | Aug. 15, 2024Updated Aug. 16, 2024, 6:57 a.m. ET | Jim Tankersley and Jeanna Smialek

[E. Pluribus Unum]

In detailing her presidential campaign’s economic agenda, Vice President Kamala Harris will highlight an argument that blames corporate price gouging for high grocery prices.

That message polls well with swing voters. It has been embraced by progressive groups, which regularly point to price gouging as a driver of rapid inflation, or at least something that contributes to rapid price increases. Those groups cheered the announcement late Wednesday that Ms. Harris will call for a federal ban on corporate price gouging on groceries in an economic policy speech on Friday.

But the economic argument over the issue is complicated.

Economists have cited a range of forces for pushing up prices in the recovery from the pandemic recession, including snarled supply chains, a sudden shift in consumer buying patterns, and the increased customer demand fueled by stimulus from the government and low rates from the Federal Reserve. Most economists say those forces are far more responsible than corporate behavior for the rise in prices in that period.

Biden administration economists have found that corporate behavior has played a role in pushing up grocery costs in recent years — but that other factors have played a much larger one.

The Harris campaign announcement cited meat industry consolidation as a driver of excessive grocery prices, but officials did not immediately respond on Thursday to questions about the evidence Ms. Harris would cite or how her proposal would work.

[shotgun]

What a pant load. My wife works for national agricultural operation that sells fertilizer and other chemicals. The prices have skyrocketed to point that several large family farming operations have gone out of business or reduced their acreage to barely sustainable limits.

The company also reduced their margins to bare minimums, but they have been forced to close their local operational stores while maintain regional centers which increases logistical costs to transport the product to the farm. Now, any uptick in the supply chain can throw all of that out of balance.

[kaktuskid]

Look up “Nixon” and “Price Controls” …..didn’t work then.

[CIB-173RDABN]

When did the President become KING (or Queen)?

[Captain Peter Blood]

Grocery store margins are at best 2%, so how will they lower prices? Classic Marxist theory that does not work and never will. Massive shortages will occur , want fresh produce, it will not be there, want to pay $100 for a steak, you got it. $25 a Gallon for milk , it’s coming.

The only thing we will be able to afford is possible Ramen Noodles.

[Captain Peter Blood]

Wait until those EBT cards can only buy one day’s worth of food.

[woweeitsme]

Despite what Democrats say, grocery margins are not high. If their prices go up, chance are they are paying more for them.

[T.B. Yoits]

Every argument against price gouging applies to taxes because taxes are the ultimate form of price gouging.

[McGavin999]

Cheap and abundant fuel allow for cheaper production of food.
Moving that food from the fields to processing plants requires cheap and abundant fuel
Manufacturing and processing requires cheap and abundant fuel
Moving products from processing and manufacturing to warehouses requires cheap and abundant fuel
Moving product from warehouse to market requires cheap and abundant fuel

Beginning to see a pattern here?

[KarlInOhio]

Will I be arrested for gouging for changing too much for classic Whip Inflation Now buttons?

https://www.history.com/speeches/ford-pledges-to-whip-inflation-now

[slapshot]

one way to solve the obesity epidemic I guess- restrict food like Venezuela and North Korea

[KarlInOhio]

$100 for a steak, you got it. $25 a Gallon for milk , it’s coming.

And a denarius for a quart of wheat or three quarts of barley.

[eastexsteve]

The only grocery price gouging I’ve ever seen is when that store was 100 miles from civilization, and open when all others are closed. To me, that’s not price gouging. That’s paying a convenience fee.

[ridesthemiles]

WHO burned down the building with OVER 1 MILLION chickens ???

[ridesthemiles]

SHE TOTALLY FAILED AS BORDER CZAR

SHE WILL ALSO FAIL AS FOOD CZAR

[ridesthemiles]

THAT is why GOd made freezers.

[ridesthemiles]

Whole Milk—gallon—at Wal Mart used to be $2.83.... all day long.

Paid $4.04 10 days ago.

[bray]

Pretty much their solution to everything.

[Captain Peter Blood]

2 years ago Ice Berg Lettuce $0.99 a head, now $1.99. Can’t even make a cheap salad now.

[gitmo]

I wonder why they weren’t price gouging when Trump was in office? So strange.

[Glad2bnuts]

Why aren’t the Republicans pushing Biden out of office? Clearly he is demented, MAKE KAMALA OWN IT, replace her as VP by placing a Republican as VEEP.