Harris, Biden should look in the mirror to see why consumers are hurting the economy

The torch was officially passed to Kamala Harris by Joe Biden in Chicago, but little will change in the Democratic political agenda. The latest proposals reveal that the two politicians are in agreement, believing that the federal government knows how to best manage private sector operations.

This is a policy direction that should send shivers down the spines of every small business owner in the country.

Last week, Harris proposed a sweeping plan to ban “corporate price gouging in the food and grocery industries.” The government’s price-control ploy is designed to give voters the appearance that Harris is taking the offensive to combat high consumer prices. On average, costs are up 20 percent since Harris began his term as vice president.

But Americans — Democrats and Republicans — should be skeptical. The Biden-Harris administration’s policy agenda, particularly unchecked government spending and efforts to undermine domestic energy production, has helped create this inflationary mess. And manipulating the free market with government price controls never ends well.

As a columnist in The Washington Post reacting to Harris’ proposal, he put it this way: “It’s hard to overstate how bad this policy is.” Price controls inevitably lead to shortages because companies are forced financially not to engage with the market. It’s a dynamic that will first hit the small-business community, which has the least room to maneuver fiscally.

Meanwhile, earlier this month, the Biden-Harris administration unveiled another regulatory bill that would put small businesses in the crosshairs of government bureaucrats.

Instead of taking action to prioritize Americans suffering from high gas prices and rent, the administration is focusing on the nitty-gritty of canceling a magazine subscription or a gym membership. Under the new rules, customer service platforms for businesses from community pharmacies to airlines will be micromanaged.

Why? Because apparently the ease of canceling a Netflix subscription is more important than implementing a policy that lowers the cost of living.

This proposal is beyond stupid. The federal government is not needed to hold “companies that provide bad service accountable,” as the White House website puts it. The mechanism already exists. It’s called free-market competition. If customers are unhappy with a product or service, there are plenty of alternatives.

The federal government is the last institution that should be policing how businesses interact with consumers. Not only is it arguably beyond the scope of the executive branch, but Uncle Sam’s history of administering its own services is problematic at best.

The failed implementation of Obamacare’s patient platform in 2013 or the Internal Revenue Service’s consistently poor customer service are prime examples. Perhaps federal officials should get their act together before they start attacking private industry.

The new spool of government bureaucracy is expected to come back to bite small businesses and struggling American families. Additional hiring, rebuilding consumer-facing systems, or restructuring processes come at a price. And the additional compliance costs associated with the regulations will fall on consumers.

It’s a domino effect that Biden and Harris should be aware of.

A report from my Job Creators Network, published in May, estimates that the new regulations finalized by the Biden-Harris administration will cost taxpayers—businesses and individuals—an additional $1.6 trillion. Another analysis from the American Action Forum puts the price tag at almost $1.4 trillion.

Both Biden and Harris share the belief that government intervention through price controls and regulations is necessary to keep businesses in line. But that doctrine couldn’t be further from the truth. Instead of playing the blame game, Joe Biden and Kamala Harris should look in the mirror to see why consumers are feeling the economic pain.

Elaine Parker is president of the Job Creators Network Foundation.