As soon as Democratic nominee Kamala Harris promised to ban price-gouging on groceries (if she were elected U.S. President in November), the blowback from critics was loud and fierce.
But 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.
Almost 30 years later, President Richard Nixon issued an executive order in 1971 that put a 90-day freeze on wages and prices, following the Economic Stabilization Act of 1970, according to the Cato Institute.
There are countless other instances of governments imposing such legislation as far back as the days of the Roman Empire, according to “Forty Centuries of Wages and Price Controls.”
Harris presented the price-gouging ban a week ago at a campaign rally in North Carolina. The plan includes sharper scrutiny on potential mergers between supermarkets and food producers, which leads to higher grocery prices as expenses are passed onto consumers.
Grocer association gave the proposal the cold shoulder. They argue that they face the same inflationary pressures that consumers do.
When enacted, price control legislation significantly impacts sectors that have a handful of dominant players, such as soda production, tire manufacture, wireless communications and retail.
Price Action: Soda producers saw gains and losses by Friday’s mid-afternoon trading.
- The Coca-Cola Company KO dipped 0.19% to $69.20
- PepsiCo, Inc. PEP declined 0.60% to $174.69
- Unilver PLC UL gained 1.42% to $63.41
Tire makers also went in both directions on Wall Street on Friday.
- The Goodyear Tire & Rubber Company GT jumped 5.12% to $8.93
- Bridgestone Corp. BRDCY gained 1.37% to $20.01
- Group Michelin MGDDY slipped 0.81% to $19.54
Wireless communications providers trended upward.
- Verizon Communications Inc. V gained 0.69% to $41.15
- AT&T Inc. T went up 0.82% to $19.67
- T-Mobile US, Inc. TMUS rose 0.73% to $197.88
Retailers also had a positive day into Friday’s mid-afternoon trading.
- Walmart Inc. WMT improved 0.19% to $75.43
- Amazon.com, Inc AMZN rose 0.47% to $176.96
- Target Corporation TGT climbed 0.68% to $157.88
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