Harris to Propose Food Price Gouging Ban in Major Economic Policy Shift

In a significant move towards economic populism, Vice President Kamala Harris is set to announce a proposed ban on "price gouging" in the food and grocery industries tomorrow. This initiative, along with plans to lower prescription drug and housing costs, marks her most substantial economic policy declaration since becoming the Democratic Party's nominee.

The proposed ban, described as the "first-ever federal ban" on food price hikes, would grant sweeping new powers to federal authorities. Harris aims to implement this ban within the first 100 days of her potential presidency, partly by directing the Federal Trade Commission (FTC) to impose strict penalties on firms that violate new limits on "price gouging."

This move represents a significant escalation in economic populism, even compared to President Biden's policies, which had already shifted the Democratic Party leftward on economic issues. The proposal comes in response to growing voter frustration over rising prices, particularly in groceries.

However, the plan has faced criticism from Republican and some Democratic economists. Brian Riedl, a senior fellow at the Manhattan Institute, likened it to the "lazy, failed economic policies of the 1970s," warning that price controls could prove disastrous for the economy.

Harris's economic team is taking shape, with potential advisers including Deputy Commerce Secretary Donald Graves, Deputy Treasury Secretary Wally Adeyemo, and former Biden administration officials Brian Deese and Gene Sperling. The vice president has also been reaching out to business leaders, meeting with JPMorgan CEO Jamie Dimon and maintaining relationships with other finance executives.

"Under Kamala Harris, everything costs 20 percent more than it did under President Trump. ... America cannot afford another four years of Kamala's failed economic policies."

Despite these business connections, Harris has been a strong ally of labor unions, making one of her first campaign stops with the United Auto Workers. She has also advocated for reducing medical and student debt and supported efforts to crack down on "junk fees."

Some tensions remain within the Democratic Party regarding Harris's potential divergence from Biden's policies, particularly in areas such as antitrust policy and tech regulation. Her long-standing ties to California tech executives have raised concerns among critics of Silicon Valley about potential shifts in the tough approach to the industry.

As the campaign progresses, Harris's policy considerations will likely be driven by the goal of winning the presidential election. While some advisers suggest embracing tax cuts for small businesses or signaling a warmer view of the crypto industry, most experts expect Harris to largely follow the economic course charted by Biden, with some potential divergences.