"Harris Economic Policy on the Table: 'Price Controls' vs 'Setting Road Rules'"

"A terrible idea." "This is not price intervention, but setting road rules."

Controversy has continued for several days over some economic policies proposed by U.S. Democratic presidential candidate Vice President Kamala Harris. Her pledge to legally crack down on price gouging by large corporations has drawn criticism even within the Democratic support base, being labeled as "price controls unfit for market democracy" and "populist gimmicks." Vice President Harris's close aides immediately defended the policy and sought to clarify the issue.

[Image source=AP Yonhap News]

Vice President Harris's economic policy was first unveiled as the "First 100 Days Economic Plan" during a campaign rally in North Carolina on the 16th (local time), ahead of this week's Democratic National Convention. The plan focuses on middle-class voter appeal through tax cuts for ordinary citizens, support for new homebuyers, expansion of housing supply, and regulation of large corporations' food price increases. Among these, the regulation of price hikes has come under scrutiny. Vice President Harris previously announced that she would ban food price gouging at the federal level, imposing regulations on companies and granting the Federal Trade Commission (FTC) and state attorneys general the authority to investigate and punish these companies.

The intention was to take drastic measures to curb the heavy burden of grocery prices on American households, but this immediately sparked controversy over "communist-style price controls." Former President Donald Trump, the Republican presidential nominee, criticized by saying, "Harris is proposing communist price controls," warning that it would lead to food shortages, rationing, and starvation.

Criticism also poured in from within the Democratic support base. It was said to recall the failed price control cases under President Richard Nixon in the 1970s. Jason Furman, who served as chairman of the White House Council of Economic Advisers during the Barack Obama administration, told The New York Times (NYT) that it was "not a reasonable policy" and expressed concern that it could harm supply. He added that "the only hope is that (such pledges) mostly remain rhetoric" and hoped it would not materialize. Even the progressive media outlet The Washington Post (WP), which has supported Democratic presidential candidates for decades, criticized in an editorial that "instead of presenting a substantive plan, time was wasted on populist gimmicks."

Economic scholar Professor Kenneth Rogoff of Harvard University appeared on CNN and pointed out that there is little correlation between large corporations' price increases and inflation. He criticized, saying, "I hope Harris cancels this pledge," calling it a "terrible idea." Gavin Roberts, head of the Economics Department at Weber State University, who studied laws related to price gouging bans, also warned that "when prices are high, the best policy is for the government not to intervene," and that such food price controls could actually worsen the problem.

Close aides of Vice President Harris within the Democratic Party, who were once considered vice presidential candidates, collectively moved to clarify the issue. Kentucky Governor Andy Beshear appeared on CBS on the 18th and explained, "It is about keeping capitalism within a support framework," adding, "The goal is not to control prices but to ensure the economy operates properly." On the same day, Illinois Governor JB Pritzker defended the policy in an interview with CNN, saying, "Companies are raising prices higher than the inflation rate," and that "it is not unreasonable for Harris to say the federal government should focus on price increases like many other states do." Michigan Governor Gretchen Whitmer, when asked on NBC whether Harris's economic pledge was wise, said, "People are taking the announced content too seriously."

Adam Green, a supporter of Vice President Harris and co-founder of the Progressive Change Campaign Committee, rebutted, saying, "This is not price control at all," but rather "setting road rules to encourage good behavior." Democratic House Majority Whip Hakeem Jeffries said, "It is reasonable to look into what can be done to prevent price gouging."

Locally, there are also criticisms that Vice President Harris's economic policies have not yet been concretized in many areas. Yahoo Finance pointed out that the biggest interest lies in what approach she will take regarding tax cuts such as corporate tax, unlike former President Trump, amid the rapidly increasing national debt.

Concerns have also been raised about the impact on government finances as candidates from both parties continue to propose populist pledges. Bloomberg News predicted that if social security taxation is ended as per former President Trump's pledge, $1.8 trillion in funding would be required, ultimately putting the fund itself at risk. The Committee for a Responsible Federal Budget (CRFB) estimated that the government deficit would increase by $1.6 trillion over the next decade. Additionally, CRFB projected that if Vice President Harris's various tax credits and housing support pledges materialize, the deficit would expand by $1.7 trillion.

This content was produced with the assistance of AI translation services.