After having reviewed Komrade Kamala’s just-revealed economic plan to combat inflation I understand why she has been loath to speak out in public about specific policies. As long as she remained quiet most of the electorate was not aware of her far-left predilections. Now, she has delineated a suggested economic plan that is fatuous, pandering, and demonstrates a complete lack of comprehension of economics. More specifically, parts of her plan, such as a centralized system of price controls, are reminiscent of Josef Stalin’s and Chairman Mao’s five-year plans for the Soviet Union and China, respectively.
Those plans were self-destructive for reasons that I will outline below. Similarly, some of you may recall President Nixon’s temporary wage and price controls in 1971. They were a desperate attempt to control the runaway inflation that had plagued the economy for several years. They didn’t work either. They resulted in shortages and supply chain disruptions and failed to rein in inflation. A more recent example would be the Venezuelan experience under Maduro, which has wreaked havoc on that country. These plans to artificially control inflation and the economy have never worked. They’ve always ended up in disaster. As anyone who understands economics knows once inflation becomes embedded in the economy it is very difficult and painful to dislodge.
The central and most controversial feature of KK’s plan is to institute price controls to curtail what she terms as “price gouging.” Her primary target is the retail food industry. In her mind demonizing it will win her votes.
However, few, if any, legitimate economists of any political stripe support her opinion. (I was unable to find any.) For example, Scott Lincicome, vice president of general economics at the Cato Institute opined that KK’s plan makes “little sense.” He added that “there is not really any indication out there of price gouging.” Jason Furman, a Harvard University economist who was chairman of Obama’s Council of Economic Advisors, diplomatically told the NY Times price controls were “not a sensible policy.” He added, “there is no upside here, and there is some downside.” Critics even included the Washington Post, which diplomatically opined “when your opponent calls you a communist maybe [you] don’t propose price controls.” I could cite many more examples, but you get the point.
In point of fact, as KK should know but apparently does not, in a free-market economy such as the US, prices are determined by supply and demand. The root causes of higher prices currently can be traced to the Biden-Harris runaway spending of the last 3 1/2 years. This, in turn, has led to supply chain disruptions, and higher costs for things like raw materials, fuel, transportation and employees’ wages. If she really wants to reduce prices for food or anything else she has to figure out a way to control inflation. Her proposed plan, which is rife with pandering giveaways, would do the opposite.
Typically, KK’s plan is filled with vague generalities and short on specifics. For example, who will decide a “fair “price for a quart of milk or a dozen eggs? Will it be some bureaucrat in some federal government agency who knows little about the food service industry or markets, in general? Will there be a standard price list for all locales, or will it vary according to cost of living or other local factors? How will it be policed? By which agency(ies)? What will be the role of federal, state and local law enforcement. One can easily foresee a massive and wasteful bloating of government bureaucracy. The government does not exactly have an exemplary record for running things. How have things worked out for the Postal Service?
Former President Trump has derisively labeled KK’s plan the “Madura Plan” after Venezuela President Nicolas Madura. Madura is an avowed socialist whose economic policies have ruined the country’s economy. This label has resonated with many Hispanics who fled Venezuela and Cuba to escape such policies and fear a reappearance in the US.
In a separate matter, Tampon Tim is continuing to cause problems for the ticket. In selecting a running mate one of the primary goals is to choose someone who will not cause controversy, problems or distractions. TT continues to do just that. First, it was the weird decision to place tampons in boys’ restrooms. Then it was the “stolen valor” matter, which has continued to resonate. Then, it was the matter of his “longstanding and cozy” relationship with China, which is being investigated by a congressional committee. Now, the latest is the COVID issue. It seems that Governor TT mandated placing COVID patients in nursing homes, despite warnings by the CDC and other medical personnel. The inevitable consequence was that Minnesota had the highest rate of COVID-related deaths in long-term care facilities in the country. I don’t know if TT’s issues will cause the Dems to lose the election, but KK’s choosing him as her running mate certainly appears to indicate a serious lack of judgment.
CONCLUSION
It appears that maybe the Dems’ carefully constructed election plan is falling apart. KK’s and TT’s socialist predilections are beginning to leak out into the consciousness of the mainstream of the electorate. When CNN, the NY Times, the Washington Post, and former Obama officials levy criticisms it is a clear danger sign.
Trump and Vance have been omnipresent and relentless with denoting their socialist policies and their flip-flopping. This is absolutely the correct strategy. Perhaps, it is beginning to infiltrate the minds of the electorate. The debates will be critical. Much of the world will be watching.
We Built It Blog by Larry Jacob 