Kamala Harris is wrong about price controls

Kamala Harris says that, as president, she would pass “the first-ever federal ban on price gouging on food,” which would include penalties for businesses that break the rules.

Price controls might sound like a good idea, but here’s the truth: When prices can’t rise and fall naturally as a function of supply and demand, all sorts of bad things tend to happen. #history #historyfacts #economics #economy

[DIEGO_L_S]

Whe bout to get another "Great moments in unintended consequences"

[lukeprocida]

Price gouging is a solution to a government caused problem of artificial scarcity among most consumer items, precipated by the creation of legal privileges and financial aid for corporations, who then became monopolistic in nature. This is best represented by Housing, Colleges, and Banks who "Are too big to die". Hence why Blackrock, Vanguard and the others have ownership in the majority of each of those domestic markets.

[notisac]

I think there's a middle ground that could be looked into. The price of insulin in the US for instance, is so vastly removed from the price of manufacture, storage, distribution, etc, that it is devoid of logic surrounding mere supply & demand.

Before folks reply about how people who need insulin should've made better choices... It is possible to develop or be born with diabetes regardless of diet & lifestyle. All the while insulin is needed for some diabetics to even live; I thought humans have the right to life.

But please do take my words with a grain of salt, for I am a young and naïve individual who is very much not a professional in health nor wealth.

edit: Some good points raised in the replies here. Too few companies here produce insulin and have come to a mutual understanding: That if none of them lower prices, they can all benefit from charging consumers more for what's a necessity to some. If you ask me, that's far from the ideal of a free market.

[aygwm]

When people forget middle school economics

[jakechapman]

Too bad the majority of Americans will look at her quote and say “that’s a great idea”. Not realizing our economy is about to be more messed up than ever before

[joshitheyoshi]

ReasonTV is from the Reason Foundation, whose largest funder is the Koch Family which has interests in petroleum, minerals, polymers, intermediates, fertilizer - all the things most effected by price control regulation. You should make that clear before you give an opinion on this.

[williamknox]

Pause you right there. These prices aren't moving naturally. If businesses wanna raise prices then they should be able to prove it's needed for continued operation

[dakotacarpenter]

Prices already can't rise and fall naturally due to regulation protecting big business from competition.

[phillipwombacher]

The idea that price gouging is based off supply and demand is hilariously naive

[σεα-ψε]

Sounds like a great idea, with the best of intentions

[wizzotizzo]

She's not banning price changes though, she's banning price gouging which is an excessive raising of prices that is caused by, in most cases, nothing at all.

[carsonmcmahon]

Price gouging is a law in the People's Republic of Texas and 33 other states. Price gouging laws are fighting collusion which is exactly what Adam Smith is most concerned with.

[petersmybro]

Good point on price controls on food, but what would make this video even better would be to provide other solutions to the very real problem of food prices. Maybe something like breaking up the big food companies that control most of our food, or encouraging more food suppliers to increase competition in a more free market way.

[CJ-prnp]

Lies …. Stopping price gouging is NOT PRICE CONTROLS.

[Tomatooooooooooo]

The problem is “ban on price gouging” doesnt imply price controls. Price gouging is already illegal in most states, she is just passing a federal law. These laws don’t tell companies what prices they can and can’t set, they set guidelines to stop companies from raising prices for profit in times of crises when consumers have no choice. What would happen, as already happens on the state level, is that when price gouging occurs, it can be reported and investigated and will be pursued legally only if the company was, indeed, acting in bad practice.

[imcannabess]

A basic economics class should be required for everyone running for office.

[kinglegault]

Most price gouging banned would most affect small business who have to keep their costs low

[Disheartened]

That's not really what price gouging means! Price gouging is when companies raise their prices unnecessarily even after compensating for costs. Perhaps call it price loading. It costs me 10 cents to make this item, but my costs have gone up it now costs me 60 cents but
I've got no real competition so I'm going to charge 2 dollars now. That's what price gouging is charging far too much for a product far over what
Compensating for inflation would be ? Companies just being overly greedy! Happens a lot such as during and after a pandemic. Think of hand sanitiser for example. Before COVID costs were perhaps 1 dollar the n companies thought whoppee doo going to charge 30 dollars just because I can . So charging well over any costs to make and ship product.

[markslade]

For someone who has a dad as a economist she sure isn’t good with economics 😂

[johnl]

These shortages will generally only happen to a severe degree if the price controls are actually eliminating their profit margins on products… guess we will see who is right on the price gauging