Kamala’s Price Controls

During the Democratic National Convention, Kamala Harris pledged to reduce the price of groceries in order to eliminate what she calls “price gouging”.

Such a plan shows just how little she knows about economics.

First of all, the price of groceries (as well as gas and everything else) has increased due to inflation, not so-called greedy businessmen.

Second, Kamala’s plan involves price controls, which would ruin the American economy, just like Cuba, Venezuela, Argentina, or the former Soviet Union.

According to Thomas J. DiLorenzo’s book The Politically Incorrect Guide to Economics, government setting prices for goods and services as opposed to them being set by buyers and sellers is the worst economic idea in the world.  He goes on to say that government-mandated price controls will increase the number of products consumers want to buy, but at the same time, decrease the amount of such products.  The result is a shortage of products.  Thus, when government officials mandate a decrease in prices when the demand for products are increasing, those officials eliminate any chances of a greater supply of products to remain on the market.  So it is basically government interference of the concept of supply and demand.  The demand is high, but the supply is low.

Price ceilings (another term for price controls) are presented as a way of keeping prices down.  But in the long run, they actually increase prices by making markets less profitable and thus inhibiting any desire to produce and sell.

Sometimes government officials make matters worse by imposing even more price controls, which will result in further shortages, while such officials (believing that more price controls will result in higher profits for the sellers) refuse to take responsibility for the matter.  And if government officials continue to impose even more price controls, the end result is socialism (under the guise of government controlling the means of production).

Contrary to what some people, socialism is not a desirable for any nation’s economy.  It is basically communism with manners (i.e. government control of the economy is done via laws and regulations as opposed to violent revolution).  At any rate, socialism (and communism for that matter) have failed in various nations.  Examples include the former Soviet Union, China, North Korea, and Venezuela.  The former Soviet Union, China, and North Korea have suffered the most under their socialist/communist ideologies, due to the purges and famines resulting in millions of deaths.  Venezuela has also suffered by means of shortages of food, toilet paper, and energy.

Needless to say, Kamala Harris’s price control plan will be a complete disaster.

All the more reason to vote for Donald Trump.