Investor and Shark Tank star Kevin O’Leary recently criticized Vice President Kamala Harris’ proposal to tackle price gouging at grocery stores, calling it “beyond crazy.” Speaking on Fox News’s Jesse Watters Primetime, O’Leary raised alarm over the Democratic front-runner’s plans amid ongoing inflation affecting essential goods.
He stated, “As an investor, I want the next president to succeed for the sake of the economy,” but expressed skepticism about the effectiveness of the policy. O’Leary noted that the proposed increase in corporate tax rates from 23% to 28% could severely hamper America’s global competitiveness.
Without sounding partisan, O’Leary remarked, “I don’t want to be seen as for or against Harris or Trump. There’s just bad policy and good policy.” He recalled the 1970s price-fixing attempts that led to significant economic issues, saying, “Imagine a grocery price ministry dictating apple prices. That’s a nightmare scenario.” He linked such policies to failed economies like Venezuela and Cuba, stressing that price fixing only exacerbates supply shortages.
What is the Harris Plan?
Harris’s initiative aims to eliminate price gouging as she stated that many consumers are experiencing unfair grocery prices that don’t reflect business costs. “The rising meat prices have significantly impacted grocery bills, even as meat processing companies report record profits post-pandemic,” she noted.
Although inflation has decreased to 2.9% for the year ending in July, grocery prices have surged by 21% during the Biden-Harris administration. This has led some to view the proposal as a strategic move to gain voter support amidst inflation concerns.
Critics argue that while limiting prices seems appealing, the complexities of legislation may hinder its implementation. “Historically, it’s often more beneficial for the market to self-correct rather than intervene,” remarked industry expert Beene. Grocery stores, which typically operate on slim profit margins of 1-3%, have expressed apprehension about the plan’s viability.
Harris has highlighted the harsh realities consumers face, pointing out that items like loaves of bread and ground beef have both seen price increases of nearly 50% since the pandemic, while some food companies enjoy record profits. “Some grocery chains are unfairly raising prices, and that needs to stop,” she concluded.