Vance to head to Hamptons for high-dollar fundraiser next weekend
(WASHINGTON) — Republican vice presidential candidate JD Vance is set to attend a high-dollar fundraiser in the Hamptons next weekend, according to a copy of the invitation obtained by ABC News.
The event is set to be hosted by a number of big-name Trump donors, including billionaire hedge-fund manager John Paulson and Omeed Malik, the president of the investment firm 1789 Capital.
Trump’s former secretary of commerce, Wilbur Ross, is also listed as a host for the fundraiser, which is billed as an “afternoon event with next Vice President of the United States.”
The fundraiser is set to be held in Southampton, New York, next Sunday, the invite said. Tickets to the roundtable event cost $25,000, with an “attendee” ticket going for $5,000. Inclusion in the host committee costs $50,000 per person, the invite said.
A person familiar with the event said it is expected to raise somewhere in the millions.
Notably, the event is also set to be cohosted by two former George W. Bush appointees. Cliff Sobel was the ambassador to the Netherlands under Bush, as well as ambassador to Brazil under the Bush and Obama administrations. Jeffrey served as Under Secretary, Economic, Energy and Agricultural Affairs after being nominated by Bush in 2007.
The event comes as both Trump and Vance have been on an aggressive fundraising blitz in recent weeks, with under three months to go until the election. Vance has been crisscrossing the country, raising money in California, Texas, North Carolina, Missouri, Oklahoma, and Minnesota.
Trump’s fundraiser at the home of billionaire financier Howard Lutnick’s home in Bridgehampton, New York, earlier this month was similarly backed by wealthy allies including Malik, Paulson and Richard Kurtz. Lutnick said that event brought in $15 million for the campaign and the Republican Party.
Trump’s campaign and the Republican National Committee’s joint fundraising operation together raised a total of $138.7 million in the month of July — an uptick from their June fundraising total — and entered August with $327 million in cash on hand, the campaign said.
It trailed the $310 million the Harris campaign said it raised in July, as they entered August with $377 million cash on hand. That haul was buoyed by the $200 million the campaign said it raised within a week of President Joe Biden dropping out of the race.
It’s unclear how much the operation had raised before Harris took over the campaign. The money was raised by the Biden and Harris campaigns, the Democratic National Committee, and their joint fundraising committees.
(WASHINGTON) — Vice President Kamala Harris is back in Washington and is preparing to roll out her economic plan on the road in North Carolina on Friday, which will mark her first major policy rollout since becoming the Democratic nominee. As Donald Trump looks for a campaign reset, he spoke with Elon Musk live on Tuesday and will deliver remarks on the economy in North Carolina on Wednesday.
Here’s how the news is developing:
Trump attacks Harris on the economy, but talking little policy
Trump is in North Carolina to deliver remarks on the economy, but his speech so far has not revealed any new or detailed policy positions and instead is focused on bashing Harris on inflation and immigration.
“With four more years of Harris, your finances will never recover, they’re never going to recover. Our country will never recover, frankly, more importantly. It will be unrecoverable,” he said. “Vote Trump, and your incomes will soar, your savings will grow, young people will be able to afford a home and we will bring back the American dream bigger, better and stronger than ever before.”
Trump votes in Florida primary, speaks to reporters
Trump participated in early voting in Florida’s primary election at a polling location near his home in Palm Beach.
“Well, thank you very much, great honor to vote, done a fantastic job here, and we appreciate it,” Trump said as he walked out of the polling site.
Asked by reporters what the FBI had told him about the purported hack of his campaign’s email, Trump said, “They’re looking at it, and they’re doing it very professionally.”
He then insisted “it looks like it’s Iran,” while declining to say whether the FBI had told him it was Iran that hacked his campaign.
Trump also dodged questions about falsely accusing the Harris campaign of using AI-altered images to manipulate crowd sizes.
“I can’t say what was there, who was there. I can only tell you about ours,” he said. “We have the biggest crowds ever in the history of politics. We have crowds that nobody has ever seen before, and we continue to have that. We have a level of enthusiasm that nobody has seen before. They want to make America great again.”
Trump to hold press conference on Thursday
The former president announced Wednesday morning that he will hold a press conference in Bedminster, New Jersey, on Thursday.
The presser is scheduled to begin at 4:30 p.m. ET.
Trump held a press conference last week at his Mar-a-Lago estate in Florida, where he repeated numerous falsehoods as he criticized Harris.
Walz falsely claims he is first union member on presidential ticket since Reagan
Speaking to AFSCME members in Los Angeles on Tuesday, Minnesota Gov. Tim Walz claimed he was the “first union member on a presidential ticket since Ronald Reagan.”
That claim is false: former President Donald Trump was a SAG-AFTRA member until he resigned in 2021 after the union’s national board found probable cause that Trump violated the group’s constitution by his actions on Jan. 6.
Trump was for years a member of the union, which represents more than 160,000 performers across a variety of media platforms, by virtue of his various appearances in films and television shows. He reported earning a pension from the union in his financial disclosures.
At a fundraiser later Tuesday, Walz repeated the claim, apparently unaware it was false.
Prior to his two terms as California governor, Reagan served twice as president of the Screen Actors Guild.
ABC News has reached out to the Harris-Walz campaign for comment.
Harris, Walz to tour Pennsylvania ahead of the DNC
Vice President Harris and Minnesota Gov. Tim Walz will take a bus tour through Pennsylvania on Sunday right before their appearance at the Democratic National Convention (DNC), ABC News has confirmed.
Sunday’s tour, first reported by CNN, will begin in Pittsburgh and will be the first time Harris, Walz and their spouses will appear on the campaign trail together. According to the campaign, they aim to have a cluster of intimate events with voters, ranging from canvass kick-offs to stops at local retail shops.
Trump to deliver remarks on economy in North Carolina
Former President Donald Trump is set to deliver remarks on the economy in North Carolina on Wednesday as the campaign works to recenter its campaign against Vice President Kamala Harris.
“The election’s coming up, and the people want to hear about the economy,” Trump said during an interview with Elon Musk on X Monday, directly blaming the Biden-Harris administration for the current state of the economy.
The economy has been one of the Trump campaign’s central election issues this cycle — the former president often spending a considerable amount of time discussing inflation, gas prices and the job market.
“I just ask this: Are you better off now, or were you better off when I was president?” Trump said Monday night as he was wrapping up his conversation with Musk.
Omar decries ‘shameful’ opponents in primary race
Following her Tuesday night primary victory, Rep. Ilhan Omar told supporters: “We run the politics of joy, because we know it is joyful to fight for your neighbors.”
“We know it is joyful to want to live in a peaceful and equitable world,” she added, per ABC News’ St. Paul affiliate KSTP-TV.
Omar also had harsh words for her main primary opponent Don Samuels, though did not mention him by name.
“I hope that they reflect in the shameful way they decided to divide our district and the incredible people we are grateful to represent,” she said of her challengers.
Squad member Rep. Ilhan Omar wins primary
Rep. Ilhan Omar has won her Congressional primary in Minnesota, multiple media outlets projected Tuesday night.
Omar’s win follows defeats by two of her fellow squad members in their primaries — Cori Bush from Missouri, and Jamaal Bowman of New York.
Omar had been expected to win in her district despite a challenge from former Minneapolis city council member Don Samuels.
Bush lost her primary earlier this month to St. Louis County prosecutor Wesley Bell. He was backed by more than $8 million from the pro-Israel United Democracy Project.
Bowman lost to Westchester County Executive George Latimer in June. Per AdImpact, the race was the most expensive House primary on record, with most of the funding coming from the American Israel Public Affairs Committee’s (AIPAC) United Democracy Project PAC in support of Latimer. Latimer was recruited to run by AIPAC.
Walz says he’s ‘damn proud’ of military record, thanks Vance for his service
Minnesota Gov. Tim Walz, in his first solo campaign appearance, defended his military record and thanked his vice presidential opponent, Sen. JD Vance, for his service.
“I am damn proud of my service to this country,” Walz said to applause at the AFSCME convention in California. “And I firmly believe you should never denigrate another person’s service record. Anyone brave enough to put on that uniform for our great country, including my opponent, I just have a few simple words: thank you for your service and sacrifice.”
Vance has repeatedly criticized how Walz has talked about his military record, which included 24 years in the Army National Guard before he retired to run for Congress in 2005. Vance served as a combat correspondent for four years in the U.S. Marine Corps.
Read more about Vance’s comments and Walz’s background here.
Biden says he would attend Trump’s inauguration if he were elected
President Joe Biden on Tuesday, as he was departing the White House, said he would go to Trump’s inauguration in January if he were to win this year’s election.
“I have good manners, not like him,” Biden told reporters after being asked if he’d attend. Trump did not attend Biden’s inauguration in 2021.
Biden also defended his calling Trump “a genuine danger to American security,” a comment he made during his CBS News interview over the weekend. Asked whether that contradicted his calls to cool heated political rhetoric, Biden shot back: “That’s just a statement. That’s a factual statement.”
-Fritz Farrow
Judge’s ruling means independent Cornel West can appear on North Carolina ballot
Independent presidential candidate Cornel West will be allowed on the general election ballot in North Carolina following a judge’s ruling that reversed a decision that would have kept him off the ballot in the battleground state.
In a ruling on Monday, U.S. District Judge Terrence Boyle ordered the North Carolina State Board of Elections to certify Justice for All North Carolina as a political party in the state. That party, started by West’s campaign, is nominating him as its candidate in North Carolina and some other states. The board had previously voted to deny certifying the party over concerns about how signatures were gathered for its petition to become a certified party.
Justice for All North Carolina called the decision a “monumental day for our party” but West’s campaign still faces headwinds. The Democratic National Committee filed a complaint with the FEC alleging that West’s campaign received “illegal In-Kind Contributions” from firms it used to collect signatures for ballot access petitions in Arizona and North Carolina — allegations West has pushed back on.
“We’ve always said we’re going to ensure the third party candidates are playing by the rules, and it’s clear his campaign isn’t playing by the rules,” DNC spokesperson Matt Corridoni told ABC News after the complaint was filed.
-Oren Oppenheim
Walz to make his 1st solo campaign appearance
Minnesota Gov. Tim Walz on Tuesday will embark on his first solo Harris-Walz campaign event as Harris’ running mate with a stop in Los Angeles for the American Federation of State, County and Municipal Employees (AFSCME) international convention.
Walz is set to speak at 3:35 p.m. ET.
Walz emerged as a popular candidate among labor unions during Harris’ search for a vice president pick, sources said. AFSCME represents 1.4 million public service members, and the union’s president, Lee Saunders, previously released a statement endorsing Harris for president.
Harris to roll out economic plan on Friday
Harris will outline her economic policy in a speech in Raleigh, North Carolina, on Friday, her campaign announced, making it her first major policy rollout since jumping into the race.
Harris’ speech will detail her plan to “lower costs for middle-class families and take on corporate price-gouging,” a campaign official said.
The vice president has heavily focused her stump speech on the economy while on the campaign trail in recent weeks, saying over the weekend she would look to eliminate taxes on tips earned by service workers — a proposal Trump announced earlier this summer.
Harris’ college sorority creates PAC
The historically Black Alpha Kappa Alpha Sorority Inc., of which Vice President Kamala Harris counts herself a member, started its own political PAC last week, according to a filing with the Federal Election Commission posted Monday.
The committee is named Alpha Kappa Alpha Sorority PAC, Inc., or AKA 1908 PAC, the filing shows.
Harris has been an AKA since her days as a student at the historically Black Howard University in Washington, D.C. Harris on Monday visited the campus, her office confirmed to ABC News, but it’s not clear why she was there.
In July, before President Joe Biden dropped out of the race, Harris spoke at the AKA’s annual Boulé in Dallas, Texas. Since then, as a candidate, she’s also addressed similar national gatherings of two other historically Black sororities, Zeta Phi Beta and Sigma Gamma Rho.
Trump says he will return to Butler, Pennsylvania after assassination attempt
After discussing the assassination attempt made against him in Pennsylvania in July, former President Donald Trump said he’s planning a trip back to Butler in October.
“We’re going back to Butler; we’re gonna go back in October,” Trump said, adding, “Butler is a big, great area.”
Addressing what he’ll say when he returns, Trump told Musk, “I think I’ll probably start by saying I was so horribly interrupted.”
Trump discusses assassination attempt with Musk, says he turned head at ‘perfect angle’
During his conversation with Musk, former President Donald Trump addressed the assassination attempt made against him during a campaign rally in July.
“It was amazing that I happened to be turned just at that perfect angle,” Trump said of the bullet, which grazed his right ear while his head was turned.
During the discussion, Trump mentioned the man who was killed in the shooting, saying, it was a “very sad situation.”
“We lost somebody that was firefighter, a great Trumper,” Trump said of Corey Comperatore, adding, “He was a just a fantastic family [man] and a fantastic man.”
Trump and Musk’s conversation on X appears to be delayed
The conversation between former President Donald Trump and Elon Musk appears to be delayed, with many X users reporting they cannot access the Spaces conversation.
“This Space is not available,” appeared for some users on X.
The conversation was scheduled to begin at 8:00 p.m. ET.
Judge orders RFK Jr. off New York ballot
A New York judge ruled Monday that the thousands of signatures gathered by Robert F. Kennedy Jr.’s campaign in the state were “invalidated” after a Democrat-aligned group argued he misled voters by listing as his home an address he rarely visits.
The judge, Christina Ryba, ordered the New York Board of Elections to not include Kennedy’s name on the ballot this fall.
A lawyer representing Kennedy told reporters last week they would appeal any ruling that went against them.
The ruling could prompt Democrats to bring similar lawsuits against Kennedy in other states where he gathered signatures from registered voters to appear on the ballot.
The FBI is investigating alleged attempts by Iran to target the then-Biden-Harris campaign, sources familiar with the matter confirmed to ABC News.
The alleged targeting via spear-fishing emails occurred before Biden announced he would exit the 2024 presidential race, the sources said.
While the campaign was targeted, the alleged hack was not successful, sources added.
The FBI is investigating a purported hack of the Trump campaign, according to a brief statement from the agency earlier Monday.
The FBI did not attribute the hack to anyone in its statement.
A source familiar with the matter told ABC News that Trump adviser Roger Stone has also been informed that his email accounts have been compromised, and that he’s cooperating with any investigation into the matter.
The Washington Post first reported the news.
-ABC News’ Luke Barr, Gabriella Abdul-Hakim, Will Steakin and Katherine Faulders
Biden, Obama, Clintons tentatively slated to speak at DNC: Sources
President Joe Biden, former President Barack Obama, and Bill and Hillary Clinton are all tentatively slated to speak at the Democratic National Convention next week, sources familiar said.
The working speaking schedule, which can always change, is as follows, according to the sources:
Monday: President Joe Biden, former Secretary of State Hillary Clinton Tuesday: Former President Barack Obama Wednesday: Vice presidential nominee Tim Walz, former President Bill Clinton Thursday: Vice President Kamala Harris
-ABC News’ MaryAlice Parks and Fritz Farrow
Trump posts on X ahead of Musk interview
Trump posted on X for the first time in nearly a year ahead of his conversation with Elon Musk scheduled for Monday night.
The video posted is a previously released campaign ad referencing his multiple indictments and telling supporters, “They are not coming after me, they are coming after you.”
The last time Trump posted on X was Aug. 24, 2023. It was a picture of his mugshot from Fulton County, when he turned himself in to authorities following his election interference indictment in Georgia.
-ABC News’ Lalee Ibssa, Kelsey Walsh, Soorin Kim
Trump to be interviewed by Elon Musk tonight
Trump, in a post to his conservative social media site Truth Social, announced he will be interviewed live by Musk on X at 8 p.m. ET.
It will mark a major return for Trump to X, formerly known as Twitter, since he was banned from the site following the Jan. 6, 2021, attack on the U.S. Capitol. Trump was reinstated in late 2022 but declined to become active on the site again, despite boasting 88 million followers.
Musk endorsed Trump following the July 13 assassination attempt against the former president. Recently, Musk has amplified misinformation about voting and elections on his X feed.
Walz discusses ‘whirlwind’ 1st week on the campaign trail
In a video posted on his X account, the Minnesota governor discussed what he called “not a normal week” since being named as Harris’ running mate.
Walz confirmed some details reported previously by ABC News and others, including that he informed Harris’ vetting team that he had not used a teleprompter before.
“Not a normal week, which is a good thing. Started by missing a call from the Vice President, pretty important one. And then got that call and honored to join the ticket with Kamala Harris to take us in a great direction,” Walz said.
“After that, it has been a whirlwind. We got on a plane and we flew to Philly, and they told me that in an hour I’d be giving a speech and there would be a teleprompter, something I had never used in my life, so certainly terrified, but was lifted up by the folks in Philly.”
-ABC News’ Will McDuffie
Harris wraps battleground state blitz, Vance makes rounds on Sunday shows
Over the weekend, Harris closed out a cross-country tour that included stops in battleground states Pennsylvania, Wisconsin, Michigan, Georgia and Arizona, as well as North Carolina and Nevada.
New polling released Saturday showed Harris taking the lead over Trump in Pennsylvania, Michigan and Wisconsin among likely voters. The New York Times/Siena College polls showed Harris at 50% among likely voters in each state, while Trump polled at 46%.
Vance, too, campaigned in key 2024 states and made the rounds on the Sunday shows. During his cable news appearances, Vance reiterated campaign talking points on immigration and repeatedly hit Harris for not sitting down for extensive media interviews and laying out her agenda. Harris has done brief gaggles with reporters and said she’d unveil an economic policy platform this week.
Vance responds to mass deportation plan: ‘Let’s start with one million’
Sen. JD Vance told ABC News he blamed Vice President Kamala Harris and the Biden administration’s policies, such as ending “Remain in Mexico,” for the ongoing migrant crisis.
When asked how he and Trump would accomplish their stated goal of mass deporting as many as 20 million immigrants — a proposal experts previously told ABC News would be a “nightmare” — Vance said they would take a “sequential approach.”
“I mean do you go knock on doors and ask people for their papers? What do you do,” Karl asked.
“You start with what’s achievable,” Vance said. “I think that if you deport a lot of violent criminals and frankly if you make it harder to hire illegal labor, which undercuts the wages of American workers, I think you go a lot of the way to solving the illegal immigration problem.”
“I think it’s interesting that people focus on, well, how do you deport 18 million people? Let’s start with one million. That’s where Kamala Harris has failed. And then we can go from there,” Vance said.
Harris cautions donors to ‘not take anything for granted’
Vice President Kamala Harris attended a fundraiser in San Francisco Sunday where she maintained her campaign “will win this election,” but cautioned donors to “not take anything for granted.”
“I know there’s a lot of enthusiasm out there,” Harris said, adding, “And you know, I’ve never been one to really believe in the polls — whether they’re up or they’re down.”
“What we know is the stakes are so high and we can take nothing for granted in this critical moment,” she continued. “So we will fuel our campaign as we have, with enthusiasm and optimism, but also with a deep commitment to the hard work it’s going to take, and to campaign.”
Speaker Emerita Nancy Pelosi introduced Harris at the event, touting the accomplishments of the Biden-Harris administration and the background of vice presidential nominee Tim Walz, several times calling the Harris-Walz ticket “the freedom ticket.”
“[Harris] makes us all so proud. She brings us so much joy. She gives us so much hope,” Pelosi said, calling the vice president “politically very astute.”
(COLUMBUS, Ohio) — Ohio’s Republican Gov. Mike DeWine has stepped in to dispel rumors that Haitian immigrants are eating pets in Springfield — an unsubstantiated claim amplified by former President Donald Trump and Ohio Sen. JD Vance and other Republicans in recent days.
“I think we should take the word of the city manager and the mayor that they’ve found no credible evidence of that story of Haitians eating pets,” DeWine told local reporters who questioned him at an unrelated event on Wednesday.
Reporters asked the governor if he was dismayed that the leader of his party, Trump, is repeating the unsubstantiated rumors that largely stem from a viral social media post in a local Facebook group in which the poster wrote that their neighbor’s daughter’s friend had lost her cat.
“Look, my job is to tell what the facts are and what we’re seeing and I rely, frankly, on Mayor [Rob] Rue, the other officials, and county officials,” DeWine responded. “Look, they’re the ones who are there, they’re the ones who know what’s going on.”
A spokesperson for the city of Springfield previously told ABC News the claims that migrants are eating residents’ cats and dogs are false, and that there have been “no credible reports or specific claims of pets being harmed, injured or abused by individuals in the immigrant community.”
Still, Trump brought up the rumor while on the debate stage with Vice President Kamala Harris on Tuesday when asked a question about immigration.
“In Springfield, they’re eating the dogs. The people that came in, they’re eating the cats, they’re eating, they’re eating the pets of the people that live there,” Trump said on Tuesday night.
The Ohio town estimates there are up to 15,000 immigrants living in the city, which has put a strain on some resources. The city, in a FAQ page on its website, explained that the Haitian population is in the U.S. legally under the Immigration Parole Program.
DeWine earlier this week announced the state would send more resources to Springfield, which is grappling with the rapid influx of Haitian migrants over the last few years. His office said local primary caregivers have been impacted due to increased number of patients and lack of translation services. DeWine has authorized $2.5 million to go toward expanding primary care access for the city of Springfield.
“In general, migrants from Haiti have had little to no healthcare services prior to arriving in the United States, including vaccinations,” the press release said.
Now, Springfield is also dealing with the fallout of the pet controversy.
Springfield City Manager Bryan Heck addressed the issue in a video posted to Facebook.
“It is disappointing that some of the narratives surrounding our city has been skewed by misinformation on social media and further amplified by political rhetoric,” Heck said. “While we are experiencing challenges related to the rapid growth of our immigrant population, these challenges are primarily due to the pace of the growth, rather than the growth, rather than the rumors being reported.”
ABC News’ Alex Presha and Alexandra Hutzler contributed to this report.
(WASHINGTON) — A highly-anticipated economic agenda to be unveiled by Vice President Kamala Harris on Friday will include a federal ban on price gouging for food and groceries, the Harris campaign announced.
The proposal will be presented to voters alongside other plans to address elevated inflation, such as bolstered antitrust enforcement in the grocery sector and greater latitude to investigate corporate practices, the campaign said in a press release.
A ban on price gouging would in theory disallow food and grocery companies from hiking prices an excessive amount over a set period of time, economists told ABC News. They disagreed, however, on whether the measure could control the rise of food prices or if such an outcome is desirable.
Inflation remains a top issue for voters and a potential vulnerability for Harris, since rapid price increases emerged during the Biden administration. While inflation has fallen dramatically from its peak, consumers still face prices roughly 20% higher than where they stood before Biden took office.
In response to ABC News’ request for comment, the Harris campaign provided a statement outlining its economic proposals.
“Vice President Harris knows that rising food prices remain a top concern for American families. Many big grocery chains that have seen production costs level off have nevertheless kept prices high and have seen their highest profits in two decades. While some food companies have passed along these savings, others still have not,” the statement said.
Here’s what to know about how this federal ban on price gouging would operate and whether it would be effective:
How would a federal price-gouging ban work?
The Harris campaign said the measure would set “clear rules of the road to make clear that big corporations can’t unfairly exploit consumers to run up excessive corporate profits on food and groceries.”
Details on the policy remain limited, however. Economists told ABC News that the Harris proposal may end up resembling similar bans currently on the books in 37 states. Those bans prohibit companies from exploiting a sudden imbalance between supply and demand by significantly hiking prices.
“The typical example is a natural disaster. If a water company comes and sells water at double, triple or five times the price of what people can get it at five miles away, just to be able to take advantage of the situation – that’s price gouging,” Niko Lusiani, director of the corporate power program at progressive advocacy group Roosevelt Forward, told ABC News.
State bans define “price gouging” in various ways. Some measures establish a subjective set of criteria, such as a sudden and significant spike in prices; while others detail a specific numerical amount of price growth necessary to violate the law, Luis Cabral, a professor of economics at New York University who studies price gouging, told ABC News.
“It’s not easy to measure,” Cabral said, noting that qualitative definitions risk being overly vague while quantitative ones struggle to set the boundaries around what constitutes price gouging.
Many of the state-level bans on this practice set a condition that an emergency is necessary to trigger application of the law. The Harris proposal would likely omit such a stipulation, Lusiani said, since we are years removed from the outbreak of COVID-19.
“It’ll clearly be different because now we’re on the other side of the pandemic,” Lusiani added, but he noted that current price hikes could be viewed as a result of that disruption.
The Harris campaign said it would enforce a ban by slapping offenders with financial penalties.
Most state price-gouging bans punish violators with civil penalties enforced by the state attorney general, while other measures impose criminal penalties, according to the National Conference of State Legislatures, a group that tracks state laws.
“Enforcement will be critical,” Lusiani said. “A ban by itself won’t stand on its own legs.”
Would this type of ban help control inflation?
Economists disagreed sharply about whether a federal price-gouging ban would help control price increases and, if so, to what extent that outcome would benefit the economy.
The stark divide owed in part to a difference of opinion about the role of corporate profiteering in the pandemic-era bout of inflation, as well as a clash over the effectiveness of government intervention in addressing it.
Experts who faulted corporate price gouging for a portion of the price increases said it arose from market concentration that allowed a handful of dominant companies in a given industry, including the food and grocery sector, to raise prices without fear of competitors undercutting them with lower-priced alternatives.
Grocery retailer profit margins surged in 2021 and rose even higher two years later, even after price increases had begun to cool, a Federal Trade Commission study in March showed.
A price-gouging ban would help police corporations that otherwise would be tempted to leverage their market power by excessively raising prices, the experts said.
“Large, incumbent corporations that control a large share of a sector, including grocery companies, have way too much power to control prices,” Lusiani said. “That’s an underlying cause of the inflation.”
Some economists who spoke to ABC News attributed the acceleration of price increases over recent years to a textbook example of imbalance between supply and demand. The pandemic snarled global supply chains and triggered lockdowns, causing shortages of goods and workers. Meanwhile, government stimulus boosted demand, sending too many dollars after too few products.
“It’s economics 101 that if you stimulate demand while simultaneously deterring supply, your equilibrium will be significantly higher prices,” Michael Faulkender, a professor of finance at the University of Maryland’s Robert H. Smith School of Business, told ABC News.
In turn, Faulkender dismissed any potential benefit from a federal price-gouging ban. “It just sounds to me that we’re creating even more burdensome regulations that will actually raise prices for consumers,” Faulkender said.
Joe Brusuelas, chief economist for the accounting firm RSM US, said he opposes an outright ban but supports moderate measures that could deter price hikes, such as expanded government oversight of corporate practices.
Bruseulas pointed to data released this week showing food prices had risen 2.2% in July compared to a year ago. That level of inflation essentially stands at normal levels, Brusuelas said, suggesting that price increases had been reined in without a federal price-gouging ban in place.
“I’m concerned when I hear the federal government use the word ‘ban,’ but I’m not concerned about an exercise in oversight,” Brusuelas said.