In a sharp critique of the Biden administration's economic policies, Jason Furman, a former economist for President Barack Obama, voiced his disapproval of Vice President Kamala Harris's proposal to impose federal price controls on consumer goods. Speaking to the New York Times on Thursday, Furman described the policy as “a lot of rhetoric and no reality,” signaling concern over its potential impact on the economy.
Harris's proposal comes as a response to rising food prices, which she attributes to corporate greed and consumer price gouging. The vice president's plan aims to curb these practices through stringent government-enforced price controls, echoing a socialist-style intervention in the free market. “This is not sensible policy, and I think the biggest hope is that it ends up being a lot of rhetoric and no reality,” Furman told the Times, emphasizing the risks associated with such measures. “There’s no upside here, and there is some downside.”.
Furman's critique is part of a growing chorus of voices from both the left and right who are skeptical of Harris's approach. Catherine Rampell, a columnist for the Washington Post, has been particularly vocal in her opposition. “It’s hard to exaggerate how bad this policy is,” Rampell wrote. “It is, in all but name, a sweeping set of government-enforced price controls across every industry, not only food. Supply and demand would no longer determine prices or profit levels. Far-off Washington bureaucrats would.”
Rampell warned of the potential for widespread economic disruptions, citing historical examples of price controls leading to shortages, black markets, and hoarding. She also highlighted the potential for the policy to inadvertently raise prices by eliminating quantity discounts and mandating the publication of detailed internal data by public companies. “Posting cost and pricing plans publicly is a fantastic way for companies to collude to keep prices higher — all facilitated by the government,” Rampell noted.
The Biden-Harris administration has faced increasing scrutiny over rising prices, with the Department of Labor reporting an approximate 20 percent increase in prices across the board since the start of their term. Grocery prices have seen an even steeper climb, with a 26 percent increase. Fast food chains, in particular, have been under pressure, as the cost of a typical "value meal" has skyrocketed by 33 percent since 2019. In some areas, a Big Mac meal has reached a staggering $18, up from $10 in 2018 when former President Donald Trump was in office.
Public sentiment reflects growing dissatisfaction with the administration's handling of inflation. A Monmouth University poll conducted in June found that 87 percent of Americans believe the current policies have either hurt or had no impact on inflation, which remains the top concern for voters.
The controversy over Harris's proposed price control policy comes at a critical time as the nation heads into the 2024 presidential election. According to a recent survey conducted by the Napolitan News Service, former President Donald Trump has gained momentum, with 46 percent of likely voters favoring him over Harris, who trails with 45 percent. When leaners are included, Trump’s lead increases to 49 percent compared to Harris's 47 percent. The poll shows a notable shift from a week ago when the candidates were tied.
“In the race for the White House, Donald Trump leads Kamala Harris 46% to 45%. When leaners are included, the … survey of 3,000 Likely Voters shows Trump ahead 49% to 47%,” reported the poll's sponsor, Napolitan News Service.
As the election draws closer, the economic policies of the Biden-Harris administration will likely remain a focal point of debate, with Furman and other critics questioning the viability and effectiveness of Harris's approach to addressing inflation and consumer costs.
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