Former Biden Chief of Staff Ron Klain criticized Vice President Kamala Harris’s proposal to impose price controls on grocers and food makers, arguing it would worsen inflation rather than solve it. Harris suggested hefty fines for “excessive” prices, blaming inflation on corporate price gouging rather than government spending or supply chain disruptions.
Klain told CNBC that inflation stems from various factors and that price controls wouldn’t resolve it but emphasized fairness for consumers. Co-host Joe Kernen pushed back, citing historical failures of such policies, like Nixon’s price controls, which discouraged competition and worsened supply issues.
Klain pivoted, defending the administration’s supply chain efforts and criticizing Trump’s economic plans, despite his record of low inflation and economic growth.
Critics across the board, including CNN and The Washington Post, slammed Harris’s plan. Economists noted it could encourage panic buying and disrupt supply further, while the Post labeled her approach a “populist gimmick” that failed to address inflation’s root causes, such as pandemic-driven supply chain issues.
