Council of Financial Advisers Chairman Jason Furman speaks on the White Home, Feb. 9, 2016.
Picture:
Susan Walsh/Related Press
Margaret Brennan interviewing Harvard economist and former Obama adviser
Jason Furman
on
CBS’s
“Face the Nation,” Could 22, 2022:
Furman: I don’t suppose . . . that these anti-price gouging payments would do a lot to convey inflation down. They only improve the kind of shortages that buyers in all probability hate much more than the excessive costs.
Brennan: You have been quoted as saying company greed is a foul principle of inflation. Is that one other approach of claiming that what Democrats are speaking about is only a gimmick?
Furman: I believe it’s fairly gimmicky, these value gouging payments, as a result of, you recognize, [President Biden’s] obtained a whole lot of further demand. What occurs when demand goes up? Costs go up. There’s an outdated saying the remedy for prime costs is excessive costs. That’s a bit of little bit of a painful factor to take care of, nevertheless it’s what elicits the extra provide. It brings extra producers into the market, and it’s what brings costs down and we have to let that course of work. You attempt to intrude with it, you’re going to make issues worse. We tried that within the seventies, it was an enormous failure. We shouldn’t be repeating it once more.
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Appeared within the Could 23, 2022, print version as ‘Notable & Quotable: Gimmicky.’
