Former Trump Rival Warns Against Kamala Harris' 'Venezuelan-Style' Economic Policies: 'We've Seen Price Controls Fail In Every Other Major Country That Tried It'

Vivek Ramaswamy, a former Republican presidential candidate and Donald Trump rival, criticized Kamala Harris‘ economic agenda, particularly her proposed price controls, citing the failures of such policies in other countries.

What Happened: Ramaswamy voiced his concerns about the potential repercussions of price controls, as proposed by the Harris-Walz campaign, during CNBC “Squawk Box” on Monday.

“We’ve seen price controls fail in every other major country that tried it – Argentina, Venezuela,” he said.

Ramaswamy also criticized the campaign’s focus on the grocery sector, which he deemed a “plain weird fixation.” He suggested that the campaign’s defense of these policies is based on the assumption that they will never be enacted into law.

The former candidate also compared the economic policies of the Democrats and Republicans, asserting that the Democrats are adopting a “Venezuelan-style approach to controlling the economy.” He warned that this approach would be detrimental, especially to the lower-income groups.

See Also: Jim Cramer Predicts Market Slowdown, Says ‘We Got Too Hopeful’ And That Realty Has Now Set In: ‘Big Gains May Be Behind Us For A Bit’

Why It Matters: Harris’ proposed federal ban on corporate price-gouging within the food and grocery sectors has sparked significant debate. Critics argue that such legislation could have adverse effects on the economy, potentially leading to supply shortages and black markets.

Tesla CEO Elon Musk has also criticized Harris’s proposed economic policies, warning that they could lead to “bread lines and ugly shoes.” Musk specifically targeted Harris’s ideas around price controls and new taxes, sparking a conversation around the potential impacts of these policies.

Financial guru Dave Ramsey dismantled Harris’s price control plan, stating that it is not sustainable and would eventually lead to shortages and a collapse in the market.

Historically, price control legislation has been a contentious issue. Such laws, which put a floor and a ceiling on consumer goods and services through government mandate, are not new. For example, President Franklin D. Roosevelt signed into law the Emergency Price Control Act of 1942 to curb inflation during World War II. It was enacted on Jan. 30, 1942 and expired on June 30, 1947, according to the Library of Congress.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari