Janice R. Andrews
Goya Foods CEO Bob Unanue has delivered a scathing attack of Vice President Kamala Harris’s recent economic plans, charging that the government is launching a “war” on the middle class. Unanue’s comments are a reaction to Harris’ policy speech, in which she detailed strategies to establish a “opportunity economy,” one of which is a federal prohibition on price gouging in the food sector.
In an interview with Fox News, Unanue, the head of the biggest food firm in the US owned by Hispanics, shared his worries. He contended that Harris’s recommendations, especially the ones pertaining to regulating supermarket prices, may have disastrous effects on both consumers and companies. Drawing attention to the economic policies of the Biden-Harris administration, Unanue remarked, “They’re using a nail gun to put the last nails in the coffin of this economy and this country.” The government, he said, has been on a “disastrous path,” harming the middle class with executive orders since the very beginning.
In her first policy speech as the Democratic presidential contender, Harris highlighted the need to stop the food industry’s practice of price gouging. She cited the COVID-19 pandemic as an example of a period when supply chain interruptions caused food prices to skyrocket. Harris pointed out that prices are still unduly high despite improvements in supply chains. Her plan seeks to solve this problem by prohibiting businesses from taking advantage of customers in difficult circumstances.
On the other hand, Unanue rejects the idea of price manipulation by the government. He compared the state of affairs to a kid’s lemonade stand, where companies can be forced to sell goods at a loss due to government rules. “If you had a lemonade stand and it cost $0.10 for the glass, the straw, the product, and then the government comes along and says, I want you to sell that lemonade for a penny, you’d have to fold up your lemonade stand and go home,” he said.
The CEO of Goya Foods went on to say that grocery stores usually have low profit margins, frequently between one and two percent. He issued a warning that these companies may go bankrupt due to government price regulation, which would result in job losses and unstable economic conditions. “By controlling pricing, we’re going to put them out of business,” said Unanue.
Former President Donald Trump repeated Unanue’s comments, denouncing the economic policies as well. According to Trump, if grocery prices were controlled, there would be “rationing, hunger, and skyrocketing prices.” His comments underscore the larger apprehensions held by conservative leaders over the potential for unforeseen outcomes from government involvement in the free market.
Experts in the field and economics disagree about Harris’s economic suggestions. Some contend that rather than resolving the issue, attempts to stop price gouging can make it worse. The chair of Weber State University’s economics department, Gavin Roberts, told CNN that in situations where costs are high, doing nothing may be the wisest course of action. He proposed that letting customers have different choices about what to buy may aid in price stabilisation without the need for government involvement.
Additionally, Roberts cautioned that Harris’s proposal may inhibit competition in the food sector, thereby upholding the status quo rather than encouraging innovation and cheaper costs. He contended that controls by the government would deter new competitors from emerging in response to larger profit margins.
However, several experts have commended Harris’s suggestions as an essential step in safeguarding consumers. The federal prohibition on price gouging, according to Lindsay Owens, executive director of the research tank Groundwork Collaborative, would enable government agencies to take tough measures against “bad actors” who take advantage of helpless Americans in times of need, she told CNN. “It’s encouraging to see this proactive strategy,” Owens remarked, praising the administration’s initiatives to combat food sector pricing manipulation.
It is unclear how Harris’ economic ideas will affect the supermarket business and the overall economy while the discussion over them rages on. The conflict between proponents of government action and free-market supporters like Unanue emphasises how difficult it will be to control inflation and price stability in the wake of the outbreak.
