Kamala Harris’s proposed price-gouging ban might irritate academics, but it makes sense to everyone else.
By Zephyr Teachout, Portside
Last week, the economics commentariat and much of the mainstream media erupted with contempt toward Kamala Harris’s proposed federal price-gouging law. Op-eds, social-media posts, and straight news reports mocked Harris for economically illiterate pandering and warned of Soviet-style “price controls” that would lead to shortages and runaway inflation.
The strange thing about these complaints is that what Harris actually proposed was neither radical nor new—and it certainly wasn’t price controls. In fact, almost every state already has a law restricting at least some forms of price gouging. Although Harris has not specified the exact design of her proposal, one hopes that it would follow the basic outline of state-level bans: forbidding unwarranted price hikes for necessary goods during emergencies.
Price gouging in the popular imagination has a “know it when you see it” quality, but it is actually a well-developed body of law. A typical price-gouging claim has four elements. First, a triggering event, sometimes called an “abnormal market disruption,” such as a natural disaster or power outage, must have occurred. Second, in most states, the claim must concern essential goods and services. (No one cares if you overcharge for Louis Vuitton handbags during a hurricane.) Third, a price increase must be “excessive” or “unconscionable,” which most states define as exceeding a certain percentage, typically 10 to 25 percent. Finally, the elevated price must be in excess of the seller’s increased cost. This is crucial: Even during emergencies, sellers are allowed to maintain their existing profit margins. They just can’t increase those margins excessively.
Recent Posts
New Poll: Democratic Socialism Is Now Mainstream
Take Action Now A national poll from Jacobin, DSA Fund, and Data for Progress finds broad support for democratic socialist leaders and left-wing…
Gerrymandering & The War On Democracy
Take Action Now It’s one piece of a much larger democratic breakdown.By RJ Eskow, The Zero Hour Report A few days before the Charlie Kirk…
What Happened To Silverio Villegas González
Take Action Now Immigration agents shot and killed an unarmed 38-year-old father outside Chicago on Friday—and their initial narrative of events was…
Talk World Radio: Sam Rosenthal On The Occupation Of DC And What’s The Matter With Democrats
Take Action Now War, peace, and politics with RootsAction’s Political Director Sam RosenthalBy David Swanson and Sam Rosenthal, Talk World Radio…