Dave Ramsey Dismantles Kamala Harris's Price Control Plan – 'It's Not Sustainable'

Personal finance expert Dave Ramsey said examining what happened in the 1970s reveals why Vice President Kamala Harris's economic plan is flawed.

Appearing on "The Ingraham Angle," Ramsey noted that widespread price controls at the time were an attempt to curb rampant inflation.

"It's not sustainable because it's artificial," Ramsey said. "It's been tried. It does not work."

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Ramsey made his comments ahead of Harris unveiling her economic plan in anticipation of the November presidential election. Harris's proposals include cutting taxes, boosting housing construction, and enacting a federal ban on grocery price gouging.

The plan, described as the "first-ever federal ban on price gouging on food and groceries," doesn't detail how it would be implemented but is part of a larger effort to lower grocery costs and tackle inflation.

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"There's a big difference between fair pricing in competitive markets and excessive prices unrelated to the costs of doing business," the Harris campaign team said shortly after announcing the policy proposal.

However, Ramsey said that history proves that Harris's plan is unrealistic.

"When you insert government in it and try to artificially cramp [prices] down, it simply does not work because you can only hold that hose for so long until the pressure builds up, and then it blows on you," Ramsey said.

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Ramsey said the solution is to flood the market with supply. More oil means lower oil prices and more labor means lower labor prices.

"Lots of whatever means lower prices," Ramsey said. "It's a simple supply-and-demand curve. It's called economics, and it's called free market economics."

Harris's plan also aims to build three million new housing units over the next four years and introduces what is described as the "first-ever" tax incentive for constructing starter homes for first-time buyers.

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The proposal includes expanding an existing tax credit for businesses that build affordable rental housing and establishing a $40 billion federal fund to boost construction. It also proposes making certain federal lands available for repurposing into new affordable housing developments.

Additionally, the plan advocates for the Stop Predatory Investing Act, which targets tax breaks for investors who buy 50 or more single-family rentals to address rising home prices. It also supports the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, which would grant the Federal Trade Commission greater authority to combat rent price coordination among property managers and landlords.

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