Harris to propose ban on 'price gouging' in food industry

Vice President Kamala Harris is set to unveil a sweeping economic policy proposal that includes a controversial ban on "price gouging" in the grocery and food industries.

The announcement, scheduled for Friday, represents a significant shift towards economic populism, even surpassing the already left-leaning policies of President Joe Biden, the Washington Post reports.

The Harris campaign stated late Wednesday that if elected, the Vice President would push for the "first-ever federal ban" on food price hikes, granting extensive new powers to federal authorities.

The plan aims to address voter frustration over rising prices, particularly in groceries, with a far-reaching proposal that signals a departure from traditional Democratic economic policies.

"[The plan will include] setting clear rules of the road to make clear that big corporations can't unfairly exploit consumers to run up excessive corporate profits on food and groceries," the campaign said in a statement.

Harris intends to enact the ban within her first 100 days in office, partly by directing the Federal Trade Commission to impose "harsh penalties" on firms that violate new limits on "price gouging." However, the campaign has not yet provided specific definitions for terms such as price gouging or "excessive" profits.

The proposal has already drawn criticism from both Republican and many Democratic economists, who view mandatory price controls as counterproductive government intervention.

Brian Riedl, a senior fellow at the conservative-leaning Manhattan Institute, called it a "return to the lazy, failed economic policies of the 1970s."

In addition to the price gouging ban, Harris plans to announce measures to lower prescription drug and housing costs. These policies suggest a continuation and potential expansion of the Biden administration's approach to economic intervention.

While Harris has been cultivating relationships with business leaders, including meetings with JPMorgan CEO Jamie Dimon and other executives, her latest proposal indicates a willingness to challenge corporate interests. This stance has raised concerns among some liberals about potential conflicts with the administration's tough approach to industries like Big Tech.

Despite these bold policy proposals, many experts anticipate that Harris will largely follow the economic course set by the Biden administration, with some potential divergences. Mark Zandi, chief economist at Moody's Analytics, stated, "I would be surprised if there were going to be big policy differences between the two. My sense is her policies will be similar to Biden's."