Politics
Harris’ Plan To Stop Price Gouging Could Create More Problems Than It Solves
Food prices have risen by more than 20% under the Biden-Harris administration, leaving many people ready to stretch their expenditures at the grocery shop.
On Friday, Vice President Kamala Harris announced a solution: a government prohibition on price gouging in the food business.
“My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris stated during a campaign event.
Harris’ Plan To Stop Price Gouging Could Create More Problems Than It Solves
There is only one issue: some economists believe Harris’ idea will cause more problems than it will solve.
Gavin Roberts investigated anti-price gouging statutes enacted in several states during the outbreak. One of the most significant consequences he found, particularly at food stores, was that these laws encouraged people “to go buy goods more than they would if prices had risen.”
Roberts, chair of Weber State University’s economics department, told CNN that when prices are high, the best policy response is usually to do nothing.
This would cause consumers to put off by, say, high beef costs to buy another form of meat or protein instead. This helps keep beef on grocery store shelves for those willing to pay higher rates.
While Harris argues her idea “will help the food industry become more competitive,” Roberts believes it will accomplish the opposite. “It’s more likely to maintain that status quo,” he said because it would prevent new competition from entering to take advantage of the higher profit margins, which could have helped cut prices in the long run.
Jason Furman, the Obama administration’s senior economist, agreed with Roberts that anti-price gouging measures could accidentally harm consumers. “This is not sensible policy, and I think the biggest hope is that it ends up being a lot of rhetoric and no reality,” he told the newspaper. “There’s no upside here, and there is some downside.”
Rather than pursuing anti-price gouging policies, Roberts suggested that Harris look into what prevents new parties from joining concentrated industries.
According to a campaign fact sheet, Harris intends to increase resources so that “the federal government can identify and take on price-fixing and other anti-competitive practices in the food and grocery industries.”
Campaign officials declined to comment on criticisms of Harris’ proposed price-gouging ban, referring CNN to Harris’ speech and the information sheet sent before it.
What’s behind pricing hikes over the last few years
The jury is still out on how much price gouging has contributed to inflation in recent years.
According to the San Francisco Federal Reserve, reported business price gouging was not a significant cause for the inflation increase that began in 2021, although progressive think tanks have published data indicating a more direct link.
Harris’ Plan To Stop Price Gouging Could Create More Problems Than It Solves
Until late last year, firms typically stated on quarterly earnings calls with investors that customers continued to pay for items even when they raised prices. Demand remained robust, fuelled by higher salaries and economic stimulus that increased savings. Many economists believe supply and demand, rather than corporate greed, drove corporate profits.
In any case, the inflation that Americans have had to deal with in recent years is the result of factors such as the war in Ukraine, government spending, and pandemic-related disruptions throughout the economy. The enormous stress on supply systems during the epidemic, for example, contributed considerably to inflation rising in early 2021.
The Harris idea has some backers as well.
Lindsay Owens, executive director of the Groundwork Collaborative, a progressive think tank, praised the initiative. “I definitely don’t think that the price gouging statute will result in shortages,” she told CNN, adding that it would give government agencies like the Federal Trade Commission greater jurisdiction to “crack down on bad actors” that charge customers more money.
“It’s good to see this aggressive approach,” she told me.
SOURCE | CNN
Prime Minister Justin Trudeau expressed optimism Tuesday about working with U.S. President-elect Donald Trump, ramping up his rhetoric again by saying Canada has dealt with his trade threats before and can do so again.
Trudeau tried to play down possible retaliations by Trump over his past rhetoric, saying Trump’s trade threats are mostly aimed at China, and Canada has previously demonstrated a willingness to align with the United States against the Chinese if required.
Trudeau said that a concerted approach to Chinese trade and actions to address the country’s oppressive trade practices could help Canada win Trump’s favor.
For years, Trump has accused China of purposely weakening its currency and flooding the world with cheap items manufactured by low-wage workers, replacing American-made products and forcing jobs away.
The Trump administration is concerned about international pressures, particularly China’s overcapacity and unfair trade tactics. Canada is already aligned with the United States, and we can accomplish great things together,” Trudeau stated.
Trudeau’s allusion
Canada and the United States collaborated as “friends and partners” during Trump’s first term, “and we’re going to do that again,” Trudeau stated.
Trudeau’s allusion to being “aligned” with the Americans refers to Canada’s decision in August to join the US in imposing punishing tariffs on Chinese-made electric vehicles to preserve the country’s young EV industry.
As of October 1, Canada imposed a 100% surtax on Chinese-made EVs, doubling the cost of those imported vehicles and making them significantly less appealing to Canadian buyers.
According to a readout of Trudeau’s first contact with Trump since the election, the two discussed “addressing unfair trading practices in the global economy. While Canada and the United States agree on EVs, there may be difficulty with Mexico, the third member in the continental free trade agreement.
Trump has threatened to impose heavy tariffs on Mexico, with up to 200 percent levies on vehicles imported from the nation, to make it less appealing for automakers to build operations there.
In recent years, there has been a significant increase in automotive manufacturing in Mexico; most of that product is bound for the United States. Chinese EV manufacturer BYD has been seeking areas for a Mexican facility that may supply the US market.
“All I’m doing is saying… I’ll put a number where they can’t sell one car,” Trump said of Mexico in October about promised tariffs.
“I don’t want them hurting our car companies.”
Canada-U.S.-Mexico Trade Agreement
He has also threatened Mexico with high tariffs if it does not do more to stem the flow of migrants entering the United States. Kelly Craft, Trump’s former ambassador to Canada, has claimed the president-elect is also concerned about transshipments.
That is the practice of countries such as China shipping goods to Mexico so that they may be sold tariff-free in Canada and the United States under the Canada-U.S.-Mexico Trade Agreement, which Trump renegotiated during his administration.
“There are manufacturers producing products for the U.S. and Canada in Mexico, and he wants to reduce that, he wants us to have indigenous manufacturing capability,” Craft said of Trump in an interview with Radio-Canada before last week’s presidential election.
Meanwhile, Ontario Premier Doug Ford expressed similar concerns Tuesday, suggesting that Canada and the United States should negotiate a future free trade agreement alone and exclude Mexico.
“Since signing on to the new NAFTA, Mexico has allowed itself to become a backdoor for Chinese cars, auto parts and other products into Canadian and American markets,” Ford told reporters.
“If Mexico won’t fight transshipment by, at the very least, matching Canadian and American tariffs on Chinese imports, they shouldn’t have a seat at the table or enjoy access to the largest economy in the world.”
Regarding Trump’s pledge to impose a minimum 10% tariff on all imports — a policy that could be applied to Canada — Trudeau said Tuesday that he is working to persuade the incoming president that the approach would be terrible for businesses and the workers they employ on both sides of the border.
During Trump’s first term, Canada was subjected to tariffs on steel and aluminum from the United States, which was an economically destructive policy. Canada replied with dollar-for-dollar retaliatory tariffs, forcing the United States to back down.
Trudeau stated that if necessary, Canada may undertake this strategy again.
“We responded to tariffs he brought in with a demonstration that the interdependence of our economies means there are great jobs on both sides of the border that rely on the smooth flow of goods,” he told reporters. “That’s going to continue to be the case.”
However, trade experts believe that even the possibility of tariffs might be detrimental to Canada since it may cause corporations to reconsider investing here.
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Former NDP Leader Says Trudeau is Top on Trumps Hit List
According to Canada’s former NDP leader, Thomas Mulcair, Trump’s strained relationship with Justin Trudeau has the potential to exacerbate the country’s already challenging social, economic, and environmental situation.
When Trump was last in office, he began making it much more difficult for asylum seekers in the United States. Justin Trudeau saw a political advantage in the contrast and memorably tweeted #WelcometoCanada.
What followed was a tremendous inflow of asylum seekers, most of whom arrived via an unlawful border crossing on Roxham Road south of Montreal. It immediately became a political flashpoint, escalating tensions between the Quebec provincial administration and Ottawa.
After years of refusing to acknowledge the problem, Trudeau was eventually obliged to respond, but the unplanned enormous rise in new arrivals, especially those now arriving from the United States, became a key cause of his electoral fortunes deteriorating across our country.
Trudeau believed that Canada should aim for a population of 100 million by the end of the century. The problem was that this massive increase in our population (from 36 million when Trudeau took office in 2015 to nearly 42 million today) occurred without any planning for health and educational services, especially without considering the impact on the availability and affordability of housing in Canada.
That surge into Canada, sparked by Trump and amplified by Trudeau, could become a tsunami of new arrivals during Trump’s second term. If Trump, as promised, closes his southern border and begins deporting illegal immigrants and asylum seekers, Canada may witness an increase in the number of people crossing our borders.
Trump has also pledged to raise tariffs on manufactured products entering the US. This could harm all provinces, but Quebec and Ontario could be especially badly struck. This is not good news for Trudeau, who keeps saying he’ll run in the next election.
The Beauce region of Quebec, south of Quebec City, extends to the United States border. It has traditionally voted more conservatively than the rest of the province. This region’s peculiarity stems partly from its proximity to the United States and a strong entrepreneurial mindset.
Several Liberals believe Canadians would prefer to keep Trudeau as prime minister because he strongly contrasts Trump. That is wishful thinking. When Trump made his one-and-only trip to Canada for a G-7 conference in Charlevoix, Quebec, Trudeau took potshots at him shortly after he left, according to Thomas Mulcair.
The problem for Trudeau was that Trump was still on Air Force One and could hear his words. He mocked Trudeau (opens in a new tab) for being kind to him in person but then complaining about him behind his back.
Trump has many opponents, and Trudeau has always been on it. Stephen Maher, Trudeau’s biographer, accurately defined Trudeau’s predilection for “pious scolding.” The notion that Trudeau’s ongoing criticism of Trump and his actions could benefit Canada is naive.
Canada and the United States have unique, highly close histories and geographies. Our economies are also very interconnected.
Trump’s disregard for environmental protection would, naturally, clash with Trudeau’s meager efforts to cut greenhouse gas emissions in Canada. Trump will see our fossil fuel resources as his own, and Trudeau will be woefully unable to address the situation.
Mulcair believes that the coming months will provide crucial indicators of what is to come in Canada-United States ties.
Meanwhile, pressure will mount for Trudeau to step down and allow a new Liberal leader to try to build a more trusting relationship with the new American administration.
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Prime Minister Justin Trudeau prohibited news source Australia Today from airing External Affairs Minister S Jaishankar’s joint press conference with his Australian colleague Penny Wong over the Attacks on Hindu Temples in Canada.
The move left the Australian news outlet perplexed and astonished the Indian Ministry of External Affairs, which condemned Canada’s attempt to silence varied viewpoints.
Jitarth Jai Bharadwaj, Editor-in-Chief of Australia Today, described Canadian Prime Minister Justin Trudeau’s government’s conduct as “dictatorial”. Bharadwaj said his group was still investigating why the video was blocked in Canada.
Bharadwaj stated that the Indian diaspora in Australia, New Zealand, Fiji, Canada, the United Kingdom, and the United States is Australia Today’s primary target demographic. The news platform focuses on stories regarding the Indian diaspora and ethnic communities.
On Friday morning, Australia Today shared footage from Wong and Jaishankar’s joint news appearance, during which the diplomats discussed the precarious plight of Indians and their diplomats in Canada.
Around four hours later, the source also posted a seven-minute interview clip with Jaishankar, in which the Indian external affairs minister stated that surveillance of Indian diplomats in Canada is “unacceptable”.
Shortly after their release, both the press conference tape and the interview became inaccessible in Canada, and many people shared images of the restricted message on Facebook.
The Indian foreign ministry slammed the move as the Trudeau government’s “hypocrisy” over free expression.
“We hear that the social media handles and pages of this particular source, a major diaspora outlet, have been blocked and are inaccessible to readers in Canada.
This occurred shortly after this handle covered EAM Dr. S Jaishankar’s press appearance with Penny Wong. We were startled. “It appears strange to us,” MEA spokeswoman Randhir Jaiswal stated.
While recounting the entire scenario, Bhardwaj expressed surprise that people in Canada could not see the recordings.
“They began providing screenshots with us demonstrating that this content is not available for viewing in Canada due to a government order. What had transpired caught me off guard.
So I inquired about other cities across Canada where we have friends or are following, and everyone stated they couldn’t view it. And that’s how we found out. Bhardwaj informed Firstpost News on Friday.
He recalled that the two films first appeared in Canada and quickly went viral. Bhardwaj further stated that the videos elicited strong reactions from Indians in Canada before their suspension.
“It appears like the Canadian government is clamping down on the press. As of now, they have not lifted the prohibition or restriction, whatever you want to call it,” he stated.
When asked if the news organization had contacted the Canadian government to express its concern, Bharadwaj replied that an email had been sent to the Canadian Ministry of Communication.
“They haven’t responded to our email, which we wrote to the Canadian Ministry of Communication about this section ban, asking why it has been placed since diverse views have a place in a democracy,” he told me.
Bharadwaj expressed his disgust and bewilderment over the situation, saying, “It looks like Justin Trudeau and his government are behaving like dictators.”
Trudeau is a Dictator
He further stated that Meta informed the Australian site that the “restriction was imposed under the Canadian government’s direction,” implying that the Trudeau administration objected to the content of the video in which Jaishankar explained India’s perspective on the ongoing issues.
“The Indian diaspora is suffering as a result of the actions of the Canadian government.”
When asked about the impact of such restrictions on the Indian diaspora’s access to information, Bhardwaj stated, “The Indian diaspora in Canada is certainly suffering because of the behaviour and acts of the Canadian government.”
“Every hour, they repeat the Western democracy charter, which states that every citizen has the right to free information to make educated decisions regarding political, social, cultural, or religious problems, as well as any other decision they wish to make. “It has to be an informed decision,” Bhardwaj declared.
“The free press and media are two means for providing that knowledge so people can make informed decisions. “The Canadian government does not want its citizens to hear diverse or critical views,” he told FirstPost.
While emphasizing that they are still looking for explanations as to why the films were prohibited in Canada, Bhradwaj suggested that the Trudeau government may not be open to hearing critical viewpoints.
He explained, “I have no idea why they made the decision. However, it appears that they dislike any minister from India or Australia who is critical of them.
I mean, there was a simple question asked in the press conference by me, how do you react to attacks on Canadian Hindus by Khalistani groups or Hindu temples in Canada?”
The Australia-based journalist said that Wong had spoken about Canberra’s concerns. “It’s unparalleled.
Trudeau Selectively Uses Freedom of Speech.
If you get provoked by a few ministers of different countries criticizing your actions or non-actions, then it’s on them that they have to learn a few things about politics, diplomacy and press freedom,” he said.
The ‘Canadian government has been selectively using freedom of speech.’
One of the core arguments put forth by the Trudeau administration to defend their alleged support of the pro-Khalistani movement in the country is that they are ensuring freedom of speech.
When asked about Canada’s stance on the matter, Bharadwaj said that the “Canadian government has been selectively using freedom of speech” to further its political agenda.
He mentioned two situations. One of them involved Pro-Khalistani terrorist Gurpurwat Singh Pannun threatening Australia Today journalists.
“Sikh for Justice’s Gurpurwat Singh Pannun made a video with the photographs of my team, our editors and gestured like this, a gunshot and said, fix these people in Punjabi. Canada did nothing,” he told Firstpost.
“We have complained to Canada that Mr Pannun has been doing this and inciting hate or violence towards us, but they haven’t done anything. What kind of government are they? What kind of press protecting Western democracy do they claim to be,” he asked.
Bharadwaj also recalled how the Trudeau administration cracked down on trucker strikes in the country a couple of years ago.
“Two years back when truck strikes were happening on the roads of Canada, they clamped down on Canadian citizens disregarding freedom of speech, disregarding [their] right to protest,” Bharadwaj said.
“They also blocked their financial bank accounts. So, these truckers had to go back to their places, stopping their protest. If that is not hypocrisy, what it is, I can’t say more,” he said.
Bharadwaj emphasized that the Indian and Canadian governments need to resolve their issues. “Canada cannot ignore the way it is ignoring the Khalistani, pro-Khalistani groups who are threatening violence, who are attacking Hindu temples, who are even threatening the press,” he said.
With the Canadian elections on the horizon, Bharadwaj said, “Things probably won’t change much until Trudeau is at the helm of things in Canada.”
Trudeau has been under immense political pressure back home after the New Democratic Party broke its alliance with his Liberal Party, bringing the government to a minority in the Canadian parliament.
Trudeau has survived two trust votes, and Canada observers say he may not get another term with the election due next year.
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