Campaign proposals could have unintended economic effects
UC economist tells ABC News that efforts to help Americans could lead to higher prices, scarcity
Government interventions that would attempt to help consumers could lead to other problems, a University of Cincinnati economist told ABC News.
Michael Jones, PhD, assistant professor of economics
Vice President Kamala Harris has unveiled the economic agenda for her presidential campaign, which includes a ban on grocery price gouging, a $25,000 subsidy for first-time homebuyers and child tax credits. To evaluate the proposals, ABC News turned to economists including Michael Jones, PhD, assistant professor of economics in the University of Cincinnati's Carl H. Lindner College of Business.
Jones said Harris’ strategy to deal with inflation through a price-gouging ban could lead to scarcity of goods.
"If there's a restriction on the prices that companies can charge for products, they simply won't supply them," he said.
A subsidy for homebuyers could cause sellers to boost their asking prices, negating any benefit for the buyers, Jones said.
"If they have $25,000 more to spend on a house, they'll submit bids up to $25,000 higher for the home," he said. "That policy in particular is a bad idea because it won't bring the price of housing down."
Featured image at top: A woman shops for groceries with a motorized shopping cart. Photo/Amigo Mobility via Unsplash
Impact Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Does the president's prescription drug site actually make medications affordable?
March 20, 2026
Local 12 turned to Erwin Erhardt, PhD, economics professor in UC’s Lindner College of Business for insights on direct-to-consumer drugs.
Fusion reactors may be key to uncovering dark matter
March 20, 2026
Popular Mechanics highlights a new study by University of Cincinnati physicist Jure Zupan that explains how fusion reactors might create subatomic particles associated with dark matter.
UC Blue Ash expert examines a link between sports betting and binge drinking behavior
March 20, 2026
Keshar Ghimire, PhD, an associate professor of economics at UC Blue Ash, has co-authored a new study in the journal Health Economics that examines a possible link between gambling and substance use. Local 12 spoke with Ghimire about his findings.