Vice President Kamala Harris is an anti-capitalist. She doesn’t understand the basics of economics. Her words and actions show this. She supports price controls and accuses companies of corporate greed and price gouging.

Price controls don’t work. Companies take prices, not set them. The free market sets prices where supply and demand for a good or service meet. This is a basic principle of economics. Price controls have been tried many times throughout history. Ultimately, they always fail. Price controls lead to shortages. Price controls create black markets. Price controls generate false price signals. Capital is destroyed.

Price controls on gasoline were imposed under President Richard Nixon, leading to long lines and fights. Today, President Joe Biden, with the full support of Vice President Harris, is celebrating price controls on prescription drugs. But economists tell us that pharmaceutical price controls will lead to less research and development spending on new, life-saving drugs.

Vice President Harris also supports rent controls. Experience from New York City and other municipalities that have implemented rent controls shows that rent controls lead to housing shortages, higher prices for existing housing, lower investment in new rental housing, and lower spending on housing maintenance.

There is plenty of evidence that price controls don’t work, so why are Biden and Harris pushing for price controls?

Quite simply. Because they want to buy the votes of people who do not understand or are not interested in basic economics. Biden and Harris are serving the ignorant and the selfish, not the national interest. Harris also accuses the supermarket and food industry in general of corporate greed, in other words price gouging.

But grocery prices in supermarkets are higher than they were before Covid-19, not because of greed or profiteering. They are higher because of investments in supply chain resilience, and wage inflation is due in large part to the policies of the Biden-Harris administration. The government pushed hard for higher wages for low-income earners. During the pandemic, the government has showered the economy with money.

The result was wage inflation. Supermarkets raised their prices to offset the increased labor costs. Wages and prices will converge. Supermarkets in the United States do not generate exceptionally high economic returns. The average return on capital in the supermarket sector is less than 11%, well below the average for the economy as a whole.

The supermarket sector is highly competitive, with Walmart driving down prices across the industry.

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Its strong focus on cost and price ensures low prices for everyone who shops at Walmart.

Harris is a left-wing extremist who doesn’t believe in capitalism. She believes in all-powerful big government. People know the importance of big government from the experiences they had in Cuba and Venezuela. Harris is the socialist wolf knocking on doors.