In a recent episode of CNBC’s Squawk Box, a lively debate unfolded between host Joe Kernen and Senator Elizabeth Warren over Vice President Kamala Harris’s proposal to implement federal price controls on food and groceries. This discussion touched on the thorny issue of government intervention in markets, particularly the regulation of prices to curb potential corporate exploitation.
The spark for this debate was Vice President Kamala Harris’s proposal aimed at curbing price gouging in the food industry. Her plan seeks to ban the practice of artificially inflating prices, a move designed to protect consumers from soaring costs. The proposal (better known as communism) has drawn criticism from economists who argue that price controls often fail to achieve their intended effect. Historically, such measures have been seen as counterproductive, leading to shortages or even higher prices, as seen in other countries where similar policies have been implemented.
Joe Kernen was quick to challenge the idea of federal price controls. He argued that such interventions disrupt the natural supply and demand mechanisms that govern market prices. According to Kernen, when prices are artificially suppressed, it deters competition—essentially, the market’s built-in method for keeping prices in check. He described the proposal as a “fool’s errand,” suggesting that it distracts from the real drivers of inflation, such as excessive government spending and lingering supply chain disruptions from the pandemic.
Kernen also pointed out that grocery stores typically operate on razor-thin profit margins, making the enforcement of price controls impractical. He highlighted examples from the food industry, like the egg producer Cal-Maine, to demonstrate that market forces, not corporate greed, often determine price fluctuations.
On the other side, Senator Elizabeth Warren staunchly defended the proposal.
WATCH: CNBC’s Joe Kernen cooked Elizabeth Warren.pic.twitter.com/JRAHX7K4Yk
— Steve Guest (@SteveGuest) August 24, 2024
The two went back and forth.
Well, Joe Kernen is at it again.
This time, he was speaking with Kamala’s economic advisor, Bharat Rama.
Kernen rolled his eyes and laughed at the idea of price controls while Rama just sat there.
NEW: CNBC host Joe Kernen rolls his eyes and laughs after Harris’ economic advisor Bharat Rama tries arguing in favor of Harris’ unrealized capital gains tax.
Rama sat in silence as the hosts poked fun after he tried saying that property tax was an unrealized gains tax.
“It’s… pic.twitter.com/lK4jGL6phz
— Collin Rugg (@CollinRugg) August 28, 2024
