Kamala Harris and Energy: Price Control Prospects

In recent discussions, First Lady Jill Biden praised Vice President Kamala Harris, suggesting that she is a compassionate and decisive leader capable of lowering prices. Harris's intention is to fight against corporate greed and price gouging, particularly concerning grocery bills that had spiked during the pandemic. However, economist John Lonsky challenges the feasibility of such promises. He argues that prices began to rise due to unnecessary government spending rather than solely pandemic-related issues. Lonsky warns that merely investigating perceived price gouging will not effectively reduce prices. He emphasizes that the grocery industry is competitive, with retailers generally aiming to keep prices low to capture market share. The dialogue shifts towards energy costs, with former President Trump asserting that the U.S. has plentiful oil resources that could lead to a significant reduction in prices. Yet, Lonsky responds that achieving such drastic cuts in gas prices would likely require either a severe economic downturn or wage reductions, both of which are undesirable outcomes. This discussion reflects a significant debate on the complexities of managing inflation and the economic realities that politicians must navigate when making promises to alleviate financial pressures on the public.