The Latest from the Prospect
 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
 
JUNE 7, 2022
Meyerson on TAP
The Case for Price Controls
And it’s not just that they beat cozying up to Saudi Arabia.
It’s been 21 years since I left L.A. for D.C. (I only live in cities that can be identified by two letters), but having lived in Los Angeles for nearly 50 years, I still feel its gas prices in my bones. And gas prices there are rapidly approaching $7 a gallon. In some neighborhoods, they’ve already exceeded that.

And as if inflation on that scale weren’t bad enough, its electoral consequences are likely to shift control of Congress to racist, insurrectionist, conspiracy-addled nitwits in November’s elections.

How, then, can the Democrats forestall or at least mitigate this grim double whammy? Joe Biden appears to grasp the peril he’s in; it’s compelling him to make a pilgrimage to Saudi Arabia and its murderous crown prince in the hope that the prince will bring more of his nation’s oil to market, thereby driving down prices.

But there’s a less morally bankrupt, economically more effective, and far quicker way of achieving the same ends. It’s called price controls.

Contrary to what economic orthodoxy would have us believe, such controls have been markedly successful at various times in our nation’s history. (Economic orthodoxy is often clueless about history in its preference for theory over fact.) According to Hugh Rockoff, a professor of economic history at Rutgers, price and wage controls brought the yearly rate of inflation down from 32.4 percent to 7.1 percent during World War I, and from 11.9 percent to 1.6 percent during World War II. Of course, as Jason Zweig pointed out in a recent Wall Street Journal column, people are more likely to accept such controls during wartime than they are during peacetime. Then again, having not really experienced a run of inflation for the past 40 years, Americans are rapidly going into shock as food and fuel prices continue to run amok. Selective controls on key commodities might not only provide the only way to achieve some fast relief, but also demonstrate, in tandem with legislation to cut the price of prescription drugs and the cost of child care, that the Democrats can actually and effectively legislate and implement policies in the public good.

Wages are rising, too, but as they clearly lag inflation, there’s no need to control them, particularly since the sectors in which they’re rising the most are those that have been paying poverty-level wages for decades. What this country needs is price controls, and if the Democrats can’t figure that out, they’re inviting economic and electoral disaster.

How to Dismantle For-Profit Colleges, Without Congress
A previously undisclosed memo to the Education Department offers a step-by-step guide to closing predatory schools before they suck up more federal loans. BY DAVID DAYEN
In Pennsylvania, Democrats’ Suburban Strategy Is Being Put to the Test
The party needs to turn out the suburbs and shore up its urban base. Republican anti-abortion extremism might help. BY RYAN COOPER
Saving Lives Globally vs. Defending Pharma Profits
The U.S. position at a key WTO meeting on intellectual-property waivers for COVID vaccines will reveal which side Joe Biden is on. BY ROBERT KUTTNER
The Politics of Time
Why did Julius Caesar change the calendar? Professor Nomi Claire Lazar explains. BY PROSPECT STAFF
 
Click to Share this Newsletter
Facebook
 
Twitter
 
Linkedin
 
Email
 
The American Prospect, Inc.
1225 I Street NW, Suite 600
Washington, DC xxxxxx
United States
Copyright (c) 2022 The American Prospect. All rights reserved.

To opt out of American Prospect membership messaging, click here.
To manage your newsletter preferences, click here.
To unsubscribe from all American Prospect emails, including newsletters, click here.