Democrats’ anti-price gouging proposals are ‘quite gimmicky,’ and are unlikely to reduce inflation.

Former Obama economic adviser Jason Furman slammed Democrats’ efforts in Congress to pass anti-price gouging legislation, claiming that such legislation will do little to reduce inflation and may even worsen shortages.

On CBS’s “Face the Nation” on Sunday, Furman discussed whether the Democrats’ request for a price-gouging restriction will have any effect on consumers as inflation increases.

“I believe these price-gouging legislation are very gimmicky,” Furman added, “because you know, you’ve got a lot of extra demand.” “What happens if demand rises? Prices rise.”

According to a new Moody Analytics report, the average American is likely to spend an additional $311 every month due to inflation. The growing cost of basic items such as automobiles, rent, food, fuel, and health care is causing financial strain.

“There’s an ancient adage that high prices cure high costs,” Furman explained. “It’s a headache to deal with, but it’s what triggers the additional supply, gets more manufacturers into the market and pulls prices down.”

“We have to let that process run its course,” the economist added. “If you attempt to meddle, you will just make matters worse. That was tried in the 1970s and failed miserably. We should avoid doing it again.”

According to the Labor Department, inflation surged again in April, with the consumer price index climbing 8.3 percent. While this is down from the 41-year record set in March, it is far higher than economists had predicted. While President Biden’s American Rescue Plan has aided the US economy’s recovery quicker than any other, it is also partly to blame for our “very high inflation,” according to Furman.

“I hoped he would have done something smaller at the time. It was perhaps bigger than it needed to be, but it’s nice that it happened.”

After Biden’s plan was enacted into law in March 2021, Furman blamed the Federal Reserve for “a lot of blunders.”

“For the most of last year, [the Fed] was behind the curve,” Furman added. “It continued thinking inflation was temporary, it kept refusing to normalize rates, and now you add President Putin’s invasion of Ukraine to the mix, and it’s like the icing on top of this dreadful mixture we already had.”