J.D. FOSTER: Kamala Harris’s Stale Excuse For Policy Proposals: Price Controls

When leftists run out of alternative ideas, they dip into the stupid bucket to come up with such moldy oldies as price controls — which is just what Vice President Kamala Harris just proposed for groceries.

Price controls have been tried in many countries over many years and have consistently failed miserably. Whether on wages, gas prices, or food prices, the basic economics of price controls holds in each case and is inviolable. This is one conclusion on which virtually every reputable economist agrees regardless of political persuasion. Former Obama administration economist Jason Furman demonstrated a talent for understatement when he remarked, “This is not sensible policy.”

Harris is following in President Richard Nixon’s footsteps, though she probably does not know it. Inflation started to rise in the 1970s and Nixon responded with a temporary freeze on many wages and prices. As one would expect, the temporary freeze became an indefinite freeze and expanded in scope.

Over time, a growing gap developed between the frozen prices that were in effect and the prices that would obtain under normal market forces. This gap fouled the decisions of families and businesses, leading to distortions that led to growing complaints about resulting shortages and cascading economic weaknesses.

As the complaints grew cacophonous, the politicians relented, relaxing price controls on most things, which resulted in markets stabilizing, supplies replenishing, and prices normalizing. But price controls remained on energy, which led to President Jimmy Carter placing limits on gas purchases and famously long lines at gas stations. All goods and services are rationed, either by prices or quantities. Freeze the prices and rationing comes from quantities.

When President Ronald Reagan abolished