Harris' plan to stop price gouging could create more problems than it solves

Food prices have increased by more than 20% during the current administration, prompting Vice President Kamala Harris to propose a federal ban on price gouging in the food industry. However, some economists argue that this solution could create more problems than it solves. Anti-price gouging laws implemented during the pandemic led to panic-buying, which exacerbated the issue. Additionally, the proposed ban could hinder competition and maintain higher prices. Rather than focusing on price gouging, experts suggest investigating barriers preventing new players from entering the concentrated industries. The extent to which price gouging has contributed to inflation is still debatable. While some believe it played a role, others attribute inflation to factors like geopolitical tensions and disruptions caused by the pandemic. Supporters of Harris’s proposal argue that it empowers government agencies to take action against price gouging.