Grocery Rationing Could Happen Within Four Years
Kamala Harris's Call for Price Controls
Kamala Harris's call for price controls on groceries and rents has not received much public comment or debate. This proposal is quite significant and potentially alarming. Some may argue that Harris is not advocating for price controls per se, but rather a limit on excessive pricing, or "gouging", on grocery items. For rents, the proposed limit would apply to large-scale corporations with multiple units.
However, if a national price-gouging police were to be established, all grocery sellers, from small convenience stores to farmers' markets to chain stores, would be at risk. The fear of investigation would likely lead to compliance with de facto controls. The concept of gouging is not clearly defined.
The Impact of Price Controls
Price controls can lead to a decrease in amenities, new charges, and a reduction in services. They can also decrease the incentive to build new units. This could lead to an increase in subsidies, public housing, and government provision. The ultimate result could be the nationalization of housing and the rationing of groceries due to decreased availability.
If the odds favor Harris, there may be an incentive to raise prices as high as possible now in anticipation of price controls in the future. This could provide more apparent evidence for the need for more controls and a genuine crackdown.
Price controls can lead to shortages, especially in times of inflation. With the Federal Reserve potentially on the verge of cutting rates for no good reason, we might see a second wave of inflation next year.
Historical Precedent of Price Controls
This would not be the first instance of a ban on price gouging. During World War II, rationing tickets were issued for items such as meat, animal fats, foil, sugar, flour, coffee, and more. This was a time of extreme austerity, and people complied because they believed it was conserving resources for the war effort. The enforcement was similar to what we saw with covid lockdowns: a vast network involving state and local institutions, media, and private individuals ready to report non-compliance.
The Potential Future of Grocery Rationing
If such a situation were to occur today, it could potentially look like the SNAP program, the new name for food stamps. The money for those who qualify goes into a special account managed by the federal government. The recipient is sent an EBT (Electronic Benefits Transfer) card, which is used like a credit card in stores. It costs taxpayers some $114 billion a year, and works out as a huge subsidy to Big Agriculture.
Expanding this program to the general population would not be difficult. As shortages grow, so too could the program until the entire population would be on it and it would be mandatory. It could also be converted into a mobile app instead of a piece of plastic as a fraud-prevention measure.
The Supreme Court and Price Controls
The Supreme Court has previously ruled in favor of the government in cases involving price controls. In 1942, the Supreme Court heard the case of Albert Yakus, a Boston-based meat seller who was criminally prosecuted for violating the wholesale beef price ceiling. In Yakus vs. United States, the Supreme Court ruled for the government and against the meat-selling criminal. This ruling sets a precedent.
The Implications of Price Controls
The implementation of price controls does not have to happen immediately following the inauguration. It can occur as conditions worsen following anti-gouging edicts and when inflation worsens. A presidency that believes in central planning and forced economic austerity could last a full four years, and the coercion could grow month after month until we have comprehensively enforced deprivation by the end, and no one remembers what it was like to buy groceries at market prices with their own money.
Bottom Line
This warning is not outlandish or fear-mongering. It is a very realistic scenario based on repeated statements and promises plus the recent history of government management of the population. There is likely another wave of inflation coming. This time it will meet with a promise to use every coercive power of government to prevent increases in prices on groceries and rents.
The main legacy of the Covid years is that governments learned the fullness of what they could do under the right circumstances. That's the worst possible lesson but that is what has stuck. The implications for the future are grim.
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