Kamala's latest economic proposals fail to account for basic economic facts.
Source: Comrade Kamala? Assessing Three of Harris’s New Economic Proposals
Presidents aren't generally known for their economic genius. Or at least that's not what they base decisions on. Otherwise, there wouldn't be so many of them that are so stupid. This article goes over a few of the proposals Kamala Harris is supporting.
The first is the dumbest and the scariest. Kamala Harris has suggested putting price controls on groceries. This makes the 'comrade' label very apt. More importantly, it won't work. As the chart in the article shows, profit margins of grocery retailers is historically between 2 and 3 percent. More recently they are even lower at below 1.2 percent. This makes it pretty clear that grocery stores aren't "gouging" though they are certainly passing things like the higer cost of transport on to customers. They really have no choice. The best case scenario using price controls would be to put more grocery stores out of business and create shortages. Fewer grocery stores equates to less competition which leads to higher prices.
The second item mentioned in this article is a proposed to subsidy of $25,000 for new homebuyers. The most likely scenario in this case would be to see the aerage price of homes rise by about $25,000. That's break even for those getting the subsidy and a further impediment for those that don't qualify.
The last item discussed is a new child tax credit that would be temporary and only apply to newborns. This is probably the least bad of the three but it also doesn't really accomplish much. More importantly, like the other two items above, these things just put the government further into debt (future taxes) and contribute to inflation.
