Dave Ramsey, a prominent personal finance expert, has criticized Vice President Kamala Harris’s economic plan, arguing that its reliance on government intervention and price controls is destined to fail based on past experiences. During an appearance on “The Ingraham Angle,” Ramsey drew a parallel to the 1970s, a period marked by rampant inflation that saw the government attempt to control prices. He asserted that these measures were ultimately ineffective, stating, “It’s not sustainable because it’s artificial. It’s been tried. It does not work.”
Harris’s plan, unveiled ahead of the November presidential election, includes proposals such as tax cuts, increased housing construction, and a federal ban on grocery price gouging. The plan aims to tackle inflation and lower grocery costs, but details on its implementation remain unclear.
Ramsey, however, maintains that history provides clear evidence that Harris’s approach is misguided. He emphasizes that attempting to artificially suppress prices through government intervention is futile. “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.
Instead, Ramsey advocates for a free market approach, emphasizing the importance of increasing supply to address rising prices. He argues that an abundance of goods and services leads to lower prices due to basic principles of supply and demand. “More oil means lower oil prices and more labor means lower labor prices. Lots of whatever means lower prices. It’s a simple supply-and-demand curve. It’s called economics, and it’s called free market economics,” Ramsey explained.
Harris’s plan also includes initiatives to address housing affordability, such as building three million new housing units over the next four years and introducing a tax incentive for constructing starter homes for first-time buyers. The plan further proposes expanding an existing tax credit for businesses building affordable rental housing, establishing a $40 billion federal fund to boost construction, and making certain federal lands available for repurposing into new affordable housing developments.
To address concerns about rising home prices, Harris’s plan also supports legislation targeting tax breaks for investors who buy 50 or more single-family rentals. It also advocates for granting the Federal Trade Commission greater authority to combat rent price coordination among property managers and landlords.
Despite these efforts, Ramsey remains skeptical about the effectiveness of Harris’s plan, arguing that it relies on outdated and ineffective policies. He believes a free market approach, focused on increasing supply, is the key to tackling inflation and ensuring long-term economic stability.
