Catherine Rampell uses her latest Washington Post column to react to the Harris campaign economic plan which includes a proposal for a subsidy for first-time homebuyers and restrictions on “price gouging”:
So what actually happened with grocery inflation, if not “price gouging” (however defined)? Superstrong consumer demand plus major supply disruptions (the coronavirus pandemic, bird flu, Russia’s invasion of Ukraine, etc.) pushed prices and profits up. Once those shocks abated and consumers started spending down their pandemic savings, price growth cooled.
These are the kinds of facts the Harris campaign should be explaining to consumers, not exploiting for demagogic gain because push-polling suggests people are mad about “greed.”
But more to the point: If your opponent claims you’re a “communist,” maybe don’t start with an economic agenda that can (accurately) be labeled as federal price controls. We already have plenty of economic gibberish coming from the Republican presidential ticket. Do we really need more from the other side, too?
I think this illustrates how much better off the Harris campaign was when it focused on memes, photo ops, and graphics than when it tried to explicate actual policy positions. I’ll have more to say about subsidies for first-time homebuyers in a later post.
I’ve always said, the way to make housing more affordable is to subsidize demand for housing, creating upward pricing pressure.
FWIW – Like any good businessman we did everything we could in our portfolio companies to raise prices ahead or coincident with input cost increases. But we are now lowering prices, or allowing cost increases to catch up. Markets are speaking.
This current notion of sudden “corporate greed” is just for dim bulbs or demagogues. Corporations are always greedy. And so are consumers. Markets sort that out.
The only markets that facilitate price gouging are subsidized, monopolized or have third party payers. You know, like medicine.
but its authentic politician gibberish, the finest kind.
However, unsurprised there was no verbiage about raising the minimum wage, reforming gig work, expanding SNAP benefits and other measures that affect corporate bottom line. Democrats seem scared to talk about these issues. On the flip, wheat prices are falling so many grocery prices will too,
Don’t think all of the details were released yet but if it’s really price controls it’s stupid. I hope it’s just pandering which does seem to be reaching new heights this election.
Let’s see, raise prices then wait for the market to catch up. Make lots of money while the market catches up while blaming the price increases on inflation. I don’t think Drew is this honest very often. As Drew just admitted, this really happened at some companies but it was not the root cause of inflation.
Steve
If only that were as rare as “authentic frontier gibberish”!
I think you’re right that carefully crafted media exposure is the best option for Harris, maybe a music video with a new celebrity endorsement releasing each week, I’d avoid Q&A as her popularity swells, the price control comments are the reason why.
Price controls will always resonate with consumers who have no idea what they are so they’re gonna let that pass, but she needs to refrain from verbalizing policy positions and her unpredictable popularity will carry her over the finish line at which point it will be too late and she will be untouchable.
Does look like a good 12 year slide into Marxism.
Probably the only person who could stop it at this point is Joe Biden, who knows better but he’s let himself be trapped by greed and fears for his family if he steps out of line.
You obviously are an incompetent manager, Steve. Any good manager gets out ahead of issues. It’s their job, and fiduciary responsibility. Because sometimes you will make an error, and you won’t…..or the other side of the cycle will not be kind.
Oh, I forgot, you are a doctor, not really a manager…..in a subsidized industry. Makes room for a lot of incompetence.