Harris hit for pushing price controls

 DC Daily Journal:

The reality is that severe government involvement in a free market ends in disaster, especially in a prime case study like central governments capping or fixing prices of goods and services. Kamala Harris and her allies are trying to sell it as “helping out” the little guy by putting caps on market goods, but it will end in shortages and end up being a total disaster.

This week, a former George W. Bush administration official, Karl Rove, took the opportunity in a Fox News appearance to call out how truly shortsighted and idiotic these economic proposals are from the Harris campaign. He called them a “wonderful opportunity” for Donald Trump to hit her hard on the campaign trail.

He also pointed out the fact that Harris’s plan to increase the corporate tax rate will end up hurting the jobs market, which only hurts Americans, not the corporations. Corporations will want their profit margins to remain the same, they simply won’t just take a corporate tax rate hit and do nothing about it. Employees will be laid off.

“It makes us uncompetitive, talk about creating jobs, let’s make it more difficult for American businesses to compete with people around the world who tax their corporations at zero, 15, 20, 25%. Let’s raise our tax rates higher,” Mr. Rove said criticizing the Harris proposal to increase the corporate tax rate.

“I mean, the great thing about the past couple of days is that economic speech by the vice president was an utter unmitigated disaster,” he added before putting her “price controls” policy in view.

“Price controls, I mean, when you lose the editorial board of The Washington Post as a Democrat, who says it is populist gimmickry, you’re in trouble, and this would have been a wonderful opportunity for Trump,” the George W. Bush official added in the Fox News interview.

It’s ironic that Kamala Harris and Tim Walz are trying to sell themselves as candidates who want government out of the lives of Americans, but they are now literally promoting a new level of government control over the market that has scarcely been seen before in history.

Rove was referring to the Washington Post editor, Catherine Rampell, who shared in an op-ed that the new economic policies from Harris and company are so bad that it’s “hard to exaggerate” how bad they truly are. She lamented the idea of federal price controls “across every industry”, as suggested by Harris and her allies.
...

History shows that price controls don't work that well.  They lead to a shortage of supply and increasing taxes make it harder for businesses to survive.   This is a further indication that Harris is not that versed in the economy or is not that smart.

See also:

Food Industry Execs Decry Harris' Price Control Plan

...

Food executives told The Wall Street Journal that high inflation has driven up labor and raw materials costs and spurred price increases. They also said that healthy profit margins are needed to finance the development of new products.

"We understand why there is this sticker shock and why it's upsetting," Andy Harig, a vice president at FMI, a food retailer and supplier trade group, said. "But to automatically just say there's got to be something nefarious, I think to us that is oversimplified."
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