Kamala can't even understand basic economics: “A loaf of bread costs 50% more today…”[VIDEO]

Vice President Kamala Harris is back in the headlines, this time with a proposal aimed at dealing with the very crisis her administration played a major role in creating: inflation.

The proposal, which centers around the imposition of federal price controls, has already drawn sharp criticism, and for good reason.

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To understand the flaws in his approach, it is essential to consider the economic context and historical precedents that highlight the potential consequences of this strategy.

Under former President Donald Trump, the inflation rate remained relatively stable, averaging just 1.9%.

However, in the 18 months after Joe Biden and Kamala Harris took office, inflation soared to 9.1%.

Kamala Harris and Joe Biden are the reasons why breadsticks and mincemeat are up more than 50% in this country. I'm glad he finally admitted his failures. pic.twitter.com/fQTZpBzzEk

— DEL (@delinthecity_) August 16, 2024

This sharp increase was fueled by a $5 trillion spending spree, paid for by debt and relentless money printing.

Undoubtedly, the tax policies of the Biden-Harris administration have played a large role in the current economic crisis, leaving Americans struggling with rising costs on all fronts.

Now, in an attempt to mitigate the damage, Vice President Harris is proposing a plan that many argue will only exacerbate the problem.

The centerpiece of her plan is the imposition of federal price controls on what she describes as “greedy corporations” who, she says, are “price gouging” consumers.

Specifically, Harris' proposal includes a cap on rent increases, limiting landlords from raising rents by more than 5 percent annually.

Price controls are not a new concept. They've been tried before, and the results have been consistently disastrous.

Even the leftists Washington Post criticized Harris's proposal, with a blunt reminder: “when your opponent calls you a 'communist,' you might not propose price controls.”

Kamala Harris has suggested she will look to use “price controls” to reduce rising costs.

Someone else tried… His name is Nicolás Maduro, the president of Venezuela.

Guess what happened to the prices after that pic.twitter.com/MQ3eArnAkY

— Young Americans for Liberty (@YALiberty) August 15, 2024

But beyond the political optics, the economic reality is stark. The idea that corporations engage in widespread price gouging is not supported by the data.

As the Economist of the Fundació Patrimoni EJ Antoni points out, production prices have increased by 19.5%, almost in line with consumer prices. This indicates that companies are not inflating prices to exploit consumers, but simply passing on the increased costs they face to stay afloat.

The San Francisco Federal Reserve echoes that sentiment, noting that “the aggregate margin across all sectors of the economy . . . has remained essentially flat during the post-pandemic recovery.”

Harris' plan fails to recognize a fundamental economic truth: Companies must raise their prices to cover rising costs if they want to stay in business.

Unlike the federal government, which can run $2 trillion in deficits indefinitely, businesses operate in a reality where financial sustainability is key to survival.

The concept of price controls as a solution to inflation is not only economically inadequate, but historically discredited.

I asked Grok to draw me a picture of Kamala Harris announcing price controls. pic.twitter.com/GLr8Pccjfh

— Frank J. Fleming (@IMAO_) August 16, 2024

In 1971, when the United States faced a similar inflationary crisis, President Richard Nixon tried to curb rising prices with an executive order that froze all prices and wages nationwide.

This 90-day freeze, enforced by a “Pay Board” and a “Price Commission”, turned out to be a total failure. Once the controls were lifted, inflation increased, worsening the economic situation.

Price controls have never worked, anywhere, at any time. They almost invariably lead to shortages, which in turn drive prices up even further, leaving consumers worse off.

This was the conclusion of a landmark study by Cliff Winston of the Brookings Institution.

Winston found that in industries ranging from oil and gas to banking, trucking and airlines, it was the removal of price controls and a return to free market principles that led to reductions significant price reductions (on average, a 30% decrease), thank you. to the competitive forces of the market.

One of the most significant historical examples of the failure of price controls can be found in the energy crisis of the 1970s. During this period, domestic oil and gas production plummeted and prices soared, benefiting foreign producers such as Saudi Arabia.

Kamala Harris talk of lowering prices is code for price controls and dictating pricing strategies for American companies.

We already know that it supports rental limits.

This is socialist garbage wrapped in centrist messages.

pic.twitter.com/MB3yIkTWYq

— Cryptid Politics (pro-DeSantis) (@CryptidPolitics) August 14, 2024

It wasn't until Ronald Reagan's first day in office, when he lifted all price controls on oil and gas, that the market began to stabilize and prices began to fall.

This move demonstrated the power of free market competition to lower costs and restore economic stability.

Kamala Harris' proposal isn't just an ill-conceived plan; it is a fundamental misunderstanding of basic economic principles.

The vice president's approach to solving inflation by imposing price controls will likely lead to the same problems that history has repeatedly shown to cause: shortages, higher prices, and economic instability.

In the end, Harris' plan offers no real blueprint for growth or prosperity.

Instead, it promises to expand government intervention at the expense of the free market, a strategy that history and economics warn against. If this were an economics exam, Kamala Harris would definitely get a failing grade.

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