Monday, May 23, 2022

Baby Formula mess

Biden to the rescue. He's having the military fly in 2 days worth of formula!

Women, Infants, Children (WIC): For the purpose of this program, about half the baby formulas produced in the United States are purchased by state governments with federal money.

“The production of baby formulas is a very regulated industry. In early 2022, the Food and Drug Administration forced the closure of a factory of Abbot Laboratories (producer of Similac) in Michigan. Abbot is the dominant American producer of baby formulas, partly because it is the monopolistic distributor chosen by most state governments. A germ had been discovered in the factory, but not in the products. Some 98% of all the baby formulas consumed in the United States are produced domestically, thanks to a customs tariff of 17.5%, not to mention the regulatory requirements. Industry concentration is a typical result of regulation and protectionism."

[In other words, it is completely government controlled and 50% is purchased by the government for WIC and it’s free for those families.]

This is called “central planning” and is a feature of Communist/Socialist countries with large bureaucracies that apparently have poor math skills. Women who usually got free formula through WIC are now having to buy it, making a shortage for those who always purchased formula. If you like central planning instead of free market and competition with minimal regulation and fewer monopolies, just keeping voting for Democrats.

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