Notable & Quotable: Gimmicky Price-Gouging Proposals

May 22, 2022 4:17 p.m. ET

President of the Council of Economic Advisers Jason Furman speaks at the White House, February 9, 2016.


Susan Walsh / Associated Press

Margaret Brennan interviews Harvard economist and former Obama adviser Jason Furman on CBS‘S

“Face the Nation”, May 22, 2022:

Furman: I don’t think. . . that these anti-dumping bills will do much to reduce inflation. They only increase the kind of shortage that consumers probably hate more than the high prices.

Brennan: You are quoted as saying that corporate greed is a bad theory of inflation. Is that another way of saying that what Democrats are talking about is just a gimmick?

Furman: I think it’s pretty gimmicky, these hole-in-the-wall bills, because, you know, [President Biden’s] there are many additional needs. What happens when demand increases? Prices increased. There is an old saying that the cure for high price is high price. It’s a bit of a problem to deal with, but it’s what creates the additional supply. It attracts more manufacturers into the market and that’s what drives prices down and we need to make that process work. You try to interfere with it, you will make things worse. We tried that in the seventies, it was a huge failure. We should not repeat it again.

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Appearing on 23 May 2022, print edition is ‘Notable & Quotable: Gimmicky.’ Notable & Quotable: Gimmicky Price-Gouging Proposals

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