In the battle for US Presidency, and lady candidate is proposing an anti gouging law that would punish retailers from profiting from price increases during inflation. Why punish the trader when the govt:
1. Has increased interest rate from the Federal Reserve. The trader has no choice but to pass on the cost
2. The printing of too much money naturally causes the price of goods to rise because of oversupply of money. More money vs goods means higher price of good.
These price increases are the results of govt actions, not by traders. Traders know that higher prices result in lower sales, and lower margin.
Certainly this is populist policy and very likely to win votes. The Philippine geniues might copy this.
More thinking should be made in this proposed policy if ever the candidate wins
