What Kamala Harris Doesn’t Get about Food Costs

[KenH]

“Inflation is generally a macroeconomic issue, driven by broad monetary and fiscal policies, not the choices of individual corporate actors. Food prices in particular are shaped by volatile forces—weather, geopolitics, natural disasters—beyond government control or influence, which is why economists’ “core inflation” metric omits them. As economics textbooks and centuries of experience teach us, limiting the amount that companies can charge is more likely to reduce supply by discouraging investment and production: a recipe for both shortages and higher, not lower, prices in the long term.”

- rest of column at https://www.cato.org/commentary/what-kamala-harris-doesnt-get-about-food-costs

 

[Van]

Here is the claim, "Food prices...are...beyond government control or influence.

Totally false, aimed at shifting the blame from the Biden/Harris administration failed polices to anything or anybody else.

If you cause a shortage in energy supply, energy costs rise, and that contributes to the cost of food when delivered to the market place.

Or how about reducing the water supply to farmers to protect the environment of "endangered species."

Bottom line, high regulation equals high prices. It stifles innovation. We know what "central command and control" governance produces, 70 years of misery in the Soviet Union. No need to look at Cuba or Venezuela.