The price ceiling for grocery stores proposed by US presidential candidate Kamala Harris will surely lead to shortages, The Wall Street Journal says in an editorial article titled “Kamala Harris endorses Nixonomics.”
The authors accuse the US VP of having a poor understanding of how the economy works and dubbed her stance left-wing populism that has never worked out.
“If Ms. Harris really believes in this price-fixing, she lacks the most basic understanding of economics,” the article reads.
According to the outlet, Richard Nixon, the 37th POTUS, was the only other president who attempted to introduce a price ceiling, and the policy ended badly.
“He [Nixon] had to stage a humiliating retreat amid shortages and market dislocations, and prices immediately soared when controls were lifted,” they recalled.
Kamala Harris is not learning from her own mistakes, the article suggests. During her term as second-in-charge after Joe Biden, inflation has soared, and as a result, Americans are struggling with high prices. Yet Kamala Harris believes the situation can be fixed with more cash injections into the US economy – a move that could cause prices to skyrocket, including the real estate market.
“The Biden-Harris inflation has made homes unaffordable for most young families, and her brainstorm for that is . . . more subsidies,” the article says.
However, the authors suggest Kamala Harris may have said what she did simply in order to buy public support – and if that is the case, “her cynicism is also telling.”
But if she plans to walk the walk apart from talking the talk, her intentions reveal “a candidate whose economic judgment is deeply flawed,” the article concludes.