What’s Happening?
Nevada Attorney General Aaron Ford (D) wants to change state law to control prices. His bill, Assembly Bill 44 (AB44), targets what he calls “price manipulation” of essential goods and services. The bill got a rough reception at a hearing in Carson City on March 5.
“This is about scammers trying to fleece Nevadans,” said one supporter.
But is it really?
What’s in the Bill?
AB44 would make it a felony to “manipulate” prices of essential goods. The bill defines “essential goods” as items needed daily for survival (food, medicine, shelter) that cost more than $750 over 30 days or $9,000 over a year.
The state would determine if price increases “reflect basic forces of supply and demand.” Businesses found guilty could face criminal charges.
Attorney General Ford said:
“We’re talking about knowingly engaging in fraudulent and deceptive conduct. That’s the threshold.”
But many business owners worry the bill’s language is too broad and subjective.
The Bill’s Icy Reception
Business representatives showed up in force to oppose the bill in Carson City. The opposition included both large corporations and smaller businesses – AT&T, home builders, auto dealers, generic drug manufacturers, and the Henderson Chamber of Commerce all testified against it.
When Attorney General Ford introduced Assembly Bill 44, lawmakers challenged it on several points. The business community’s opposition went beyond that, casting the bill as an overreach that would apply to small businesses as well as large corporations.
Ford and Mark Krueger, chief deputy attorney general for the consumer protection bureau, repeatedly emphasized the bill’s focus on fraudulent and deceptive conduct. They also tried to stop a belief that AB44 is an attempt at rent control.
Business representatives argued that the bill’s language is subjective and too broad. They worried it would scrutinize anyone who raised prices, even when there were legitimate reasons. They said it doesn’t take into account market conditions that could provide good reasons for higher prices.
Out of all the testimony, only Jonathan Norman of the Nevada Coalition of Legal Service Providers spoke in support. “This is about scammers trying to fleece Nevadans,” he said. “And when I think of the consumers we see, the people we see coming into our offices, they almost uniformly no matter the issue have been… had economic harm happen to them.”
Proposed amendments are already looking to change sections of the bill, but business representatives remain concerned.
What Happens Next?
The bill is still in committee. Lawmakers are considering changes to address some concerns.
The clash shows the difference between two approaches to the economy. One side believes government should protect consumers through price controls. The other believes the free market and competition work better.
Why Should Conservatives Care?
This bill is a textbook example of government overreach. It gives unelected officials power to decide what prices are “fair” for everyday items. The free market already has built-in protections against price fixing.
Think about it like this: If a gas station charges too much, you drive to another one. When a business raises prices too high, customers shop elsewhere. That’s how the market works best – through competition, not regulation.
The bill specifically targets food, clothing, gas, medicine, housing, utilities, transportation, and internet access. These are things we all need. The government wants to decide if price increases are “justified” based on their judgment, not market forces.
History Shows Price Controls Don’t Work
Throughout history, governments have tried to control prices. The results haven’t been pretty. Remember gas lines in the 1970s? Those happened when the government set price caps on gasoline. People couldn’t find fuel, and stations ran dry.
More recently, cities with strict rent control laws like New York and San Francisco have some of the worst housing shortages and highest overall rents in the country. When landlords can’t charge market rates, they build fewer units or convert rentals to condos.
Venezuela tried controlling prices on food and basic goods. The result? Empty store shelves and a thriving black market where prices were much higher than they would have been in a free market.
When prices are allowed to rise during shortages, it may seem harsh at first. But those higher prices encourage more production and bring supplies back to normal faster than any government mandate.
What Can Conservatives Do?
If you value limited government and free markets, there are several ways to take action. Contact your state representatives and let them know you oppose government price controls. Support business groups fighting against this legislation.
Remember, the best protection against high prices isn’t more laws—it’s more competition.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
