USA/ BEIJING – The U.S. government has often touted its success in controlling inflation in recent years, even though many Americans still feel the pinch of rising prices and high living costs. An American family of four now has to spend roughly 2,500 U.S. dollars a year more on groceries than in 2022, with house prices up by nearly a quarter and real wages in decline, according to U.S. media. As the 2024 U.S. presidential election approaches, inflation has emerged as a central concern for voters. A recent poll jointly conducted by The Economist and YouGov revealed that nearly 40 percent of American voters rank prices, inflation, jobs and the economy as the most critical issues in this election.
To gain more votes, Democratic and Republican presidential candidates have made sweeping promises to tackle inflation. However, many experts remain skeptical about their efficacy and sustainability, citing vague funding plans and the potential strain on a debt-reliant federal government.
To address soaring prices, one of the major policies proposed by Democratic candidate Kamala Harris is to impose a federal ban on “corporate price-gouging” on food and groceries. Economists, however, argue that the fundamental reason for soaring prices is limited supply rather than corporate price hikes.
Harvard economics professor Kenneth Rogoff told CNN he did not think corporate price gouging had “all that much to do” with inflation. Similarly, Bloomberg research indicated that U.S. manufacturers have raised prices primarily to maintain profits in the face of rising costs and supply chain disruptions rather than inflate prices. Imposing restrictions on corporate pricing would disrupt the supply-demand balance and harm the economy.
As for Republican presidential candidate Donald Trump, he proposed expanding fossil fuel extraction to reduce energy costs to tame overall inflation. Yet experts cautioned that this plan may fall short of its promises. “It’s mostly just bluster because the president actually doesn’t have any direct control,” said Michael Webber, a professor of energy resources at the University of Texas at Austin.
Many of the largest shale drillers hesitate to ramp up production due to the uncertain global economic outlook. “There is nothing that you could wave your magic wand at from a political perspective and get that kind of an increase in production,” said Adam Rozencwajg, managing partner at the natural-resource investment firm Goehring & Rozencwajg. (XINHUA)…[+]
