Kamala Harris announced plans to stop "price gouging" on groceries at a speech on Friday. This plan could lead to price controls for groceries for the first time since the 1970's.
Every time I go to the store, I'm shocked at the total. Harris isn't wrong that there's a problem.
But her solution will destroy this country. Price controls will result in empty shelves and hunger.
How It's Working in Venezuela
"Come on Francis, you're exaggerating, right?" Well, let's take a little trip southward to Venezuela and see how their price controls are working.
Prices at government-run stores in Venezuela are really low. But the problem is, there's nothing to buy.
Venezuelans stand in line for hours. When they're finally let inside, the shelves are bare.
If they're lucky, they get to take a couple cans of sardines and a few diapers. One mother NPR met in Caracas had to put back one of her cans of sardines — you're only allowed two.
I cannot imagine the heartbreak she felt at putting back that little can of food.
With no food in the stores, most Venezuelans go hungry. For millions, the solution has been emigration.
Where will Americans go?
No Bread Today, Comrade
Maybe it's just Venezuela. Has anyone else tried this?
In fact, one of the world's largest countries had price controls on just about everything. And it kept them for generations.
The Soviet Union controlled prices throughout its history. Soviet workers would get paid and try to go shopping — only to find the stores had nothing to buy.
The picture was a lot like Venezuela today: long lines and empty shelves.
Price Controls Here at Home
But hey, this is America! We can get price controls right…right?
Well as a matter of fact, America has tried price controls before. President Nixon imposed them in 1971.
The result was predictable: lines and shortages. People struggled to buy gas, heating oil, and many other necessities.
Nixon wound up abandoning price controls after a couple of years. It turns out, being able to buy at a high price is better than being unable to buy at all.
The Real Source of Inflation
Back to Kamala Harris. She's blaming grocery stores for inflation. But the real blame lies in Washington.
The government has increased the money supply by 40% since the beginning of 2020. That's more money chasing every loaf of bread, every stick of butter.
The result: higher prices.
Meanwhile, grocery margins remain razor thin: usually around 1-3%
Wrap-Up
Harris seems to think that corporations somehow got greedy around 2020. Newsflash: people have been greedy since the dawn of time.
Corporate greed isn't the cause of high prices. The real cause is government incompetence.
We can't afford any more "help" from Washington.
What do you think of Harris' price control plan?
More on politics:
Kamala's Extreme Agenda
Sacks at the RNC
114 Days
Save Money on Stuff I Use:
Fundrise
This platform lets me diversify my real estate investments so I'm not too exposed to any one market. I've invested since 2018 with great returns.
More on Fundrise in this post.
If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!
Misfits Market
I've used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!
I wrote a detailed review of Misfits here.
Use this link to sign up and you'll save $15 on your first order.
No comments:
Post a Comment