Former President Barack Obama's chief economist has joined a chorus of experts criticizing Vice President Kamala Harris' proposed plan to lower housing and grocery costs, The Washington Post reported Friday.

Jason Furman, a former vice chairman of the National Economic Council under the Obama administration, expressed concern about Harris' proposal to impose fines on companies that “price goug” food and grocery items., They warn of the policy's negative impact on the economy, as prices need to be kept in check to some extent., According to According to the Washington Post, Harris blamed corporate greed for rising prices. speech on Friday in lieu of massive government spending under the Biden administration that some economists say has spurred inflation. (RELATED: 'Kamala, check it out': Steve Forbes criticizes Harris for 'modern socialism', says she doesn't want to 'liberate' America)

“The good news is that price gouging is a message, not a reality. The bad news is that this is a real proposal,” Furman told The Washington Post. “If they try to actually enforce this, they risk increasing shortages, reducing supply, ultimately raising prices and creating bad outcomes for consumers. We don't know if they will.”

The San Francisco Federal Reserve released a study in May showing that corporate greed is not the main driver of inflation, and said price increases seen after the COVID-19 pandemic are comparable to those seen after other economic recoveries that did not have similar inflation levels.

“This is economic madness. Price controls are an extremely bad idea,” said Samuel Gregg, the Friedrich Hayek Professor of Economics and Economic History at the American Institute of Economic Research. said About X. “They lead to shortages and serious misallocation of capital, and distort the ability of prices to convey the information needed to make choices.”

Harris' proposal would have the Federal Trade Commission impose fines on companies that “excessively” raise prices on food products, her campaign told The Washington Post. While price controls can initially lower prices for consumers, many economists argue they also “create shortages, lead to arbitrary rationing, and reduce product innovation and quality over time.” According to He will serve as Republican member of the Joint Economic Committee in 2022.

price Since Biden took office, prices have risen 19.4%, including food prices. Elevated According to the Federal Reserve Bank of St. Louis (FRED), it is 21%.

“Harris has made a series of policy choices in recent weeks that make it clear that the Democratic Party is committed to policies that favor working families. The days of 'what's good for free enterprise is good for America' are over,” Felicia Wong, president of the left-leaning think tank Roosevelt Forward, told The Washington Post.

Under Biden, inflation is expected to peak at 9% in June 2022, the first time it has fallen below 3% since July. Under former President Donald Trump, inflation rose just 7.8% from January 2017 to 2021. According to To Fred.

According to the Washington Post, Governor Harris also proposes using federal funds to forgive medical debt for health care providers, a price cap for prescription drugs, a $25,000 grant for first-time homebuyers, and a $6,000 child tax credit for families for the first year after a baby is born.

“The days of moving to the center to win on economic policy, when there are good economic reasons to do so on economic policy, particularly fiscal policy, are over,” former Clinton adviser Bill Galston told The Washington Post.

Furman, the Harris campaign and Democratic economists Jay Shambaugh and Lawrence Summers did not immediately respond to requests for comment from the Daily Caller News Foundation. Democratic economist Sandra Black declined to comment.

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