Joe Kernen, co-anchor of CNBC’s “Squawk Box,” came out against the price-gouging ban proposal during a fiery interview with Sen. Elizabeth Warren (D-Mass.) on Friday, calling Warren’s claims “false” and “misleading.”
The Massachusetts senator worked on a price-gouging bill with Harris in 2020 and introduced a similar bill earlier this year, but argued that states such as Texas and Florida already have effective price-gouging bans in place.
“Price gouging laws are not price controls,” Warren said. “Price gouging laws assert that markets sometimes get out of control, and when they do, we need some way to bring them back on track. There needs to be some restraint on that behavior.”
Curnen questioned Warren about the details of a vague price-gouging ban supported by Vice President Harris.
He nodded. Washington Post opinion piece “The times call for serious economic policy. Harris offers a lightning rod,” the article said.
“If we, as Democrats, lose the Washington Post, we’re in serious trouble,” Kernen said, arguing that artificial price controls will never work.
For example, if consumers think the price of beef is too high, those same consumers won’t shift to buying chicken and there won’t be competition to sell beef at a lower price, he said.
“It’s just a matter of supply and demand,” Curnen said. “It’s a misconception.”
“For more than 30 years, 34 states have enacted and effectively enforced anti-price gouging laws, so where were you?” Warren countered.
“That way you can’t lose an argument,” Kernen said. “It’s frustrating, Senator, because no one can talk back to you.”
Warren said prices soared during the pandemic and then rose again during the Russia-Ukraine conflict because of “supply chain glitches.”
As a result, she argued, companies used the opportunity to raise prices higher than necessary and skyrocket profit margins.
Harris has come under fire over her proposed ban on price gouging, with some business leaders warning of a resurgence in inflation and former President Donald Trump saying she had gone “full communist”.
“These aren’t random, one-off things,” Warren said. “When there are companies that are unfairly inflating prices on consumers, consumers need to know they have someone on their side. That’s part of the problem.”
Warren cited the controversy surrounding egg producer Cal-Maine, one of several large egg suppliers. Lawsuits filed by Kraft, General Mills and other food companies They claim that the company was trying to rig the egg market by artificially inflating prices.
“Profit margins increased by 718 percent. And this is not just a case of passing on costs.”
After Warren and Kernen spoke to each other, the CNBC host attacked Warren’s claims.
“That’s sophistry,” Mr. Kernen countered. “Kraft says its profits increased by 440 percent.”
“The example you gave, last quarter, year-over-year, they took a $1.3 billion charge for accounting changes that wiped out profits, and then they…let’s get this over with,” Kernen said before being interrupted by Warren.
“I didn’t get to finish it,” Warren said. “Look at the data. Economic study after economic study.”
“It’s the same as always, Senator. The 40 million eggs are because of bird flu,” a visibly annoyed Curnen said.
The toss of 40 million eggs was a tribute to fellow major egg supplier Cal-Maine. The bird flu outbreak was announced in April. The virus was found at one of its facilities in Texas, leading the company to cull 1.6 million layers and 337,000 pullets.
Curnen appeared to argue that supply hits from bird flu could explain the huge difference in profit margins.
