Friday on CNBC’s “Squawk Box,” host Joe Kernen and Sen. Elizabeth Warren (D-MA) debated Democratic presidential nominee Vice President Kamala Harris’ policy suggestion of implementing price controls during a 20-minute contentious interview.
Warren said, “Look at what happened to their profit margins. If they had just been passing along costs profit margins would have stayed about the same, but for some industries, some companies, profit margins shot up. Do you know where they shot up most often? It was in industries where there was a lot of concentration, a lot of market power, places where the market is not functioning competitively. So you end up with some, you remember all talked about egg prices, you end up with something like a giant egg producer, Cal-Maine. Cal-Maine raises the price of eggs their profit margins increased by 718%. That’s not just passing along costs.”
Kernen asked, “Can I tell you why those are fallacious and misleading at best?”
Warren said, “So look.”
Kernen said, “Why can’t I tell you — please, let me tell you. Kraft you say, 440% profit increase. The example you used, the prior quarter from the year before they had a charge of $1.3 billion, and an accounting change which wiped out of profits.”
Warren said, “You didn’t let me finish. Look at the data. Come on, we have economic study after economic study.”
Kernen said, “Senator, 40 million eggs destroyed by of the Avian flu.”
Warren said, “When there is concentration in an industry we have seen much greater increases.”
Kernen said, “Do you attribute the inflation, that is what you think we need to do to solve it?”
Warren said, “They are not random one-offs, it is part of the problem. when you’ve got companies that are gouging consumers on prices, consumers need to know they’ve got somebody on their side.”
Kernen said, “Senator listen we’re trying to help.”
Warren said, “Where are you on the 37 states that currently have price gouging laws?”
Kernen said, “This is the way you never lose an argument because no one can ever say anything back to you senator. It’s frustrating.”
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