Why Grocery Price Controls Are Not the Solution

James Hyland, former vice president of communications, public and government affairs for Roundy’s Inc., a Krogersubsidiary, offers a critical perspective on why grocery price controls are not the solution to the ongoing issue of food price inflation. Hyland, who retired in 2023, draws on his extensive experience working with media, government agencies, and the grocery industry to explain the inefficacy of such measures.

Quoting Winston Churchill, Hyland begins by reminding us, “Those who fail to learn from history are doomed to repeat it.” Vice President Kamala Harris’s proposed plan to implement grocery price controls, if elected, seems to overlook the lessons of history. According to Hyland, these measures have repeatedly failed to deliver the intended results and often lead to unintended consequences.

Food prices in the U.S. have indeed surged at a historic pace since 2021. However, Hyland emphasizes that grocery prices are driven by market forces, not greed. Supply and demand dynamics play the central role, with supply reflecting the costs of production and demand shaped by consumer preferences and incomes.

On the supply side, numerous factors have contributed to rising prices. These include pandemic-related supply chain disruptions, higher transportation costs, labor shortages, climate changes affecting crop yields, avian flu outbreaks, rising grain prices due to the Russian-Ukraine conflict, and increased wages. All of these elements have collectively pushed up production costs.

On the demand side, Hyland highlights the impact of government stimulus during and after the pandemic. Trillions of dollars injected into the economy boosted consumer demand in a supply-constrained environment, fueling rampant inflation. Basic economic theory tells us that when demand exceeds supply, prices inevitably rise.

Hyland also points to historical examples of failed price controls, including the U.S. itself during the 1973–74 gas crisis. President Nixon’s attempt to control wages and prices amid OPEC’s oil embargo led to shortages and long lines at gas stations, ultimately failing to alleviate supply issues. As renowned economist Milton Friedman put it, “If you want to create a shortage, just pass a law setting prices too low.”

Hyland warns that price controls in the grocery industry would lead to similar negative outcomes—shortages, hoarding, illegal markets, and favoritism. He also notes that the grocery industry was hailed as essential during the pandemic, keeping Americans fed, and it’s unfortunate that negative perceptions have since emerged.

In Hyland’s view, the real culprit of inflation is unchecked government spending. Both parties, he says, must take responsibility for excessive money printing, which has only exacerbated inflation. His final advice to the next administration: “Stop printing money without restraint; it’s a formula that doesn’t compute.”