Ohio Grocer Warns Kamala Harris' Price Control Plan Would Hurt Family Businesses

Rep. Michael Rulli, a freshman House Republican and owner of Rulli Bros. grocery stores in Ohio, fears that Vice President Kamala Harris' plan to impose price controls on groceries would decimate the industry and particularly harm family-owned businesses like his.

Rep. Michael Rulli (R-Ohio), who represents a district in northeastern Ohio and comes from a family of grocers, expressed deep concern over the potential impact of Vice President Kamala Harris' proposed price control plan on grocery stores, particularly small and mid-sized businesses like his Rulli Bros. chain. Rulli, a freshman House Republican, emphasized that such controls would inflict severe damage on the industry, severely limiting product availability and forcing many family-owned grocers out of business.

Rulli highlighted the low profit margins in the grocery sector, explaining that his stores operate on a net profit of approximately 1.5%, or $1.50 for every $100 worth of sales. Price controls, he argued, would prevent manufacturers from raising prices to cover rising costs, leading them to discontinue products rather than lose profitability.

Ohio Grocer Warns Kamala Harris' Price Control Plan Would Hurt Family Businesses

"If the Harris administration tells Procter & Gamble, which is based in Cincinnati, that this Tide right here that I'm selling today for $4.99 has to stay $4.99 for the next four years, what will happen is that Procter & Gamble will just simply choose not to make this product," Rulli explained.

The congressman emphasized that the diversity of products in grocery stores allows consumers, including blue-collar workers, to choose the items they can afford. With price controls, he believes, that variety would be severely curtailed, leaving shoppers with limited options and driving some businesses to bankruptcy.

Ohio Grocer Warns Kamala Harris' Price Control Plan Would Hurt Family Businesses

"What will happen in four years of a Harris administration is those 38,000 SKUs will go all the way down to 5,000 SKUs, and you will be living in Cuba or Venezuela," Rulli said.

Harris' plan, unveiled as part of her presidential platform, aims to address concerns over the high cost of groceries, particularly for essential items like meat, eggs, and dairy products. The plan calls for the creation of a new federal office tasked with monitoring food prices and cracking down on "price gouging" by large food corporations.

Ohio Grocer Warns Kamala Harris' Price Control Plan Would Hurt Family Businesses

However, critics, including Rulli and other industry experts, contend that price controls would stifle competition, hinder innovation, and lead to shortages, ultimately harming consumers. They argue that addressing food insecurity should focus on increasing supply and reducing production costs rather than imposing restrictions on businesses.

Rulli pointed out that his stores have witnessed five grocery stores in the vicinity close their doors in the past two years, a trend he fears could accelerate if price controls are implemented. Independent grocers, already facing challenges from larger chains, would be particularly vulnerable, he said.

Ohio Grocer Warns Kamala Harris' Price Control Plan Would Hurt Family Businesses

The National Grocers Association (NGA), an industry trade group representing independent grocers, has also expressed opposition to Harris' plan. The NGA argues that its members are already struggling with the same inflationary pressures that consumers face and that price controls would only exacerbate their financial difficulties.

Harris and her supporters maintain that the plan is necessary to protect consumers from unfair price exploitation by large corporations. They cite data showing significant increases in profits for major food manufacturers in recent years.

However, Rulli and other critics argue that these profits are driven by a combination of factors, including increased demand during the COVID-19 pandemic, supply chain disruptions, and rising costs of production. They contend that imposing price controls would not address these underlying issues and would ultimately harm the entire food supply chain.

The debate over Harris' price control proposal is likely to continue as the election approaches. While some consumers may support measures to lower food costs, others worry about the potential unintended consequences, including reduced selection, shortages, and the loss of local, family-owned businesses like Rulli Bros.