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The Unexpected Convergence: Trump, Mamdani, and the War on Prices

In a scene that perfectly captures the strangeness of American politics today, President Donald Trump, a billionaire and self-styled champion of American buisness (at least the ones he likes) was all smiles during an Oval Office visit from Zohran Mamdani, the democratic socialist and mayor-elect of New York City.

For months, the two men traded the harshest of insults. Mamdani was a “communist” and “radical left lunatic”; Trump a “fascist” and “despot.” Yet with New York’s mayoral election over and cameras clicking, the insults were on hold. The men praised each other as “rational” and “productive.” trump even joked that Mamdani might “surprise some conservative people.”

The Rising Bipartisan “War on Prices”

Give them points for collegiality, just don’t be surprised. Trump and Mamdani are only the latest example of the right and the left converging on economic issues. One likes price floors, the other likes rent control. They’re both waging the same “war on prices,” as the Cato Institute’s Ryan Bourne calls it. And this war enjoys rising bipartisan support.

A 10 Percent Interest Rate cap

Take legislation introduced earlier this year by what would have once been an unlikely duo: Sens. Josh Hawley (R-Mo.) and Bernie Sanders (I-Vt.). Their “10 Percent Credit Card Interest Rate Cap Act“-also reflecting a Trump idea from the 2024 campaign-sounds compassionate. who enjoys paying exorbitant credit card interest rates? But its a price control, plain and simple.

Why price Controls Fail

Price controls distort markets, leading to shortages, reduced quality, and unintended consequences. Capping credit card interest rates won’t make credit cheaper; it will make it harder to get, especially for those with less-than-perfect credit. Lenders will simply tighten lending standards, excluding more people from the credit market. This ultimately harms the very people the legislation intends to help.

Beyond Credit Cards: A Broader Trend

The impulse to control prices isn’t limited to credit cards. From calls for rent control to demands for drug price negotiation, there’s a growing chorus demanding government intervention to lower costs. While the motivations are understandable – people are struggling with affordability – the solutions are misguided. These interventions ignore the essential economic principles that drive prices and ultimately make things worse.

The Appeal of Price Controls

The appeal of price controls is easy to understand.They offer a simple,seemingly direct solution to complex problems. Politicians can present themselves as champions of the people, fighting against greedy corporations or unfair markets. But this is a perilous illusion. Price controls are a short-term fix with long-term consequences.

Key Takeaways

• The convergence of the right and left on economic issues, especially regarding price controls, is a growing trend.
• Price controls, while seemingly compassionate, distort markets and lead to unintended negative consequences.
• The “war on prices” ultimately harms consumers by reducing access to goods and services.
• Focusing on policies that promote competition and increase supply is a more effective way to address affordability concerns.

The unlikely alliance between figures like Trump and Mamdani highlights a worrying trend: the increasing acceptance of economically unsound policies. While political compromise is frequently enough necessary, it shouldn’t come at the expense of sound economic principles. Moving forward, it’s crucial to resist the siren song of price controls and instead