Baby Formula: Thank Protectionists and the FDA for the Shortage

[KenH]

"Naturally, the baby formula protectionists have plenty of excuses for why their preferred form of central planning and big-government intervention in the marketplace is "necessary." They'll insist that FDA regulations are necessary to protect children—as if European baby formula is not already heavily regulated. European infant mortality also tends to be lower than US infant mortality, so the claim that protectionism is "for the children" is clearly baseless.

These facts, however, don't prevent Trump-style protectionists from claiming government regulations are good "because China."

Secondly, the protectionists are likely to claim that government control of formula—and all other dairy-based imports—are important because they "protects jobs." What protectionists are really saying is that you and your family must just do without essential goods in order to protect a small number of corporations that dominate the formula marketplace thanks to US regulations. ...

Once again, the anticapitalist "fair trade" advocates and advocates of WIC corporatism who caused these shortages will likely escape unscathed. Formula industry lobbyists will deploy and ensure nothing is done to endanger the protection-induced profits at the dominant firms. Welfare-state leftists will ensure that the federal government continues to subsidize these corporations as well. Rightwing protectionists will continue to insist that foreign goods must be kept out to make America great.

Somehow, this is all capitalism's fault."

- rest of article at Baby Formula: Thank Protectionists and the FDA for the Shortage | Ryan McMaken

 

[Earth Wind and Fire]

"Naturally, the baby formula protectionists have plenty of excuses for why their preferred form of central planning and big-government intervention in the marketplace is "necessary." They'll insist that FDA regulations are necessary to protect children—as if European baby formula is not already heavily regulated. European infant mortality also tends to be lower than US infant mortality, so the claim that protectionism is "for the children" is clearly baseless.

These facts, however, don't prevent Trump-style protectionists from claiming government regulations are good "because China."

Secondly, the protectionists are likely to claim that government control of formula—and all other dairy-based imports—are important because they "protects jobs." What protectionists are really saying is that you and your family must just do without essential goods in order to protect a small number of corporations that dominate the formula marketplace thanks to US regulations. ...

Once again, the anticapitalist "fair trade" advocates and advocates of WIC corporatism who caused these shortages will likely escape unscathed. Formula industry lobbyists will deploy and ensure nothing is done to endanger the protection-induced profits at the dominant firms. Welfare-state leftists will ensure that the federal government continues to subsidize these corporations as well. Rightwing protectionists will continue to insist that foreign goods must be kept out to make America great.

Somehow, this is all capitalism's fault."

- rest of article at Baby Formula: Thank Protectionists and the FDA for the Shortage | Ryan McMaken

Of course….tell that to my 5mo grandson.

 

[Reformed1689]

I've literally been having to go to Walmart daily just to see if the specialized formula we need is available. Sometimes I'm lucky if there is one bottle and one bottle only lasts a day....

 

[Deacon]

Of course….tell that to my 5mo grandson.

Oooo… I have a grandson that age too. Congrats!
Just today I texted my daughter and told her to contact my other daughter (in northern Maine) and have her ship some from Canada (no shortage there).

I never thought we would have a President worse than Carter.

Rob

 

[Reformed1689]

and have her ship some from Canada (no shortage there).

Of the name brands like Similac????

 

[KenH]

Not that I had any reason why I would have known this before this shortage got all over the news, but I was shocked to learn that only 25% of mothers breastfeed.

 

[Earth Wind and Fire]

Oooo… I have a grandson that age too. Congrats!
Just today I texted my daughter and told her to contact my other daughter (in northern Maine) and have her ship some from Canada (no shortage there)

I never thought we would have a President worse than Carter.

Rob

that’s wonderful… children are what it is all about!

Yea, this guy makes Carter look like a piker! I honestly don’t know what our citizens are going to about him and Kamela … oh boy

 

[Earth Wind and Fire]

Not that I had any reason why I would have known this before this shortage got all over the news, but I was shocked to learn that only 25% of mothers breastfeed.

Yea… normal isn’t coming back. Just learned the CDC wants to enforce masks again in NJ and NY, claiming another uptick… imagine the arrogance of those people especially after spying on us. They know what they can do with their masks! ​

 

[KenH]

Yea… normal isn’t coming back. Just learned the CDC wants to enforce masks again in NJ and NY, claiming another uptick… imagine the arrogance of those people especially after spying on us. They know what they can do with their masks! ​

Did more women breastfeed before the pandemic? Or had they already switched for convenience and lack of time due to working outside of the home?

 

[Revmitchell]

I am proud protectionist. If the country we are doing trade with has high terrifs on what we sell them then we need to do the same. Period.

 

[KenH]

"Given market realities, it seems unlikely that U.S. policymakers can flip some policy switch and quickly fix the situation, but they can at least (hopefully) learn a few lessons.

• First, the infant formula situation is an unfortunate reminder that the trendy economic nationalist policies proposed to make America more “resilient”—tariffs, localization mandates, government contracts, etc.—can actually make us weaker by discouraging global capacity, supplier diversity, and system‐wide flexibility. As I’ve said a million times now, reshoring supply chains might insulate us from external supply and demand shocks, but it also can amplify domestic shocks (and reduce overall economic growth and output to boot). We’re seeing that reality play out once again in the highly protected and regulated U.S. dairy market, where domestic production accounts for the vast majority of American consumption. Indeed, infant formula—with its protectionism, regulations, and heavy dose of government direction—is pretty much the poster child for what nationalist “industrial policy” advocates today propose for all sorts of “strategic” industries. And, well… here we are. Lessons abound.
  
  
• Second, the formula crisis points to a better way forward for U.S. policy. Most obviously, the United States should follow the lead of major dairy producing nations Australia and New Zealand and eliminate barriers to imported infant formula and other dairy products—for practical/economic reasons and for moral ones. (Taxing baby formula to enrich Big Dairy?! COME ON.) The United States also should embrace—as we discussed previously for rapid tests—a regulatory system that allows Americans to buy any food approved by the FDA or any other competent regulator. If it’s good enough for consumers in Europe, Canada, New Zealand, Australia, Japan, etc., it’s good enough for us (and if some folks still want to buy American, nothing’s stopping them). Finally, the WIC program should probably be overhauled to ensure that the system doesn’t short‐circuit price signals and supplies. Replacing the convoluted and distortionary sole‐supplier bidding/contract approach with a simple cash voucher for qualified parents would be the obvious place to start, especially when paired with pro‐consumer trade and regulatory reforms that would lower formula prices generally. (And when we’re done doing that, we should embrace a host of other market‐oriented policies that will help American moms.)
  

These changes won’t put formula on American store shelves tomorrow—and they might not be good for the economic nationalists or Big Dairy—but they’d definitely be better for the rest of us in the longer term. It’s too bad parents had to learn this lesson the hard way."

- rest of article at America's Infant Formula Crisis and the 'Resiliency' Mirage | Cato Institute

 

[Reynolds]

I am proud protectionist. If the country we are doing trade with has high terrifs on what we sell them then we need to do the same. Period.

I agree 100%.
If it's Trump's fault, why did we have plenty of baby formula when Trump was President?

 

[Reynolds]

"Given market realities, it seems unlikely that U.S. policymakers can flip some policy switch and quickly fix the situation, but they can at least (hopefully) learn a few lessons.

• First, the infant formula situation is an unfortunate reminder that the trendy economic nationalist policies proposed to make America more “resilient”—tariffs, localization mandates, government contracts, etc.—can actually make us weaker by discouraging global capacity, supplier diversity, and system‐wide flexibility. As I’ve said a million times now, reshoring supply chains might insulate us from external supply and demand shocks, but it also can amplify domestic shocks (and reduce overall economic growth and output to boot). We’re seeing that reality play out once again in the highly protected and regulated U.S. dairy market, where domestic production accounts for the vast majority of American consumption. Indeed, infant formula—with its protectionism, regulations, and heavy dose of government direction—is pretty much the poster child for what nationalist “industrial policy” advocates today propose for all sorts of “strategic” industries. And, well… here we are. Lessons abound.
  
  
• Second, the formula crisis points to a better way forward for U.S. policy. Most obviously, the United States should follow the lead of major dairy producing nations Australia and New Zealand and eliminate barriers to imported infant formula and other dairy products—for practical/economic reasons and for moral ones. (Taxing baby formula to enrich Big Dairy?! COME ON.) The United States also should embrace—as we discussed previously for rapid tests—a regulatory system that allows Americans to buy any food approved by the FDA or any other competent regulator. If it’s good enough for consumers in Europe, Canada, New Zealand, Australia, Japan, etc., it’s good enough for us (and if some folks still want to buy American, nothing’s stopping them). Finally, the WIC program should probably be overhauled to ensure that the system doesn’t short‐circuit price signals and supplies. Replacing the convoluted and distortionary sole‐supplier bidding/contract approach with a simple cash voucher for qualified parents would be the obvious place to start, especially when paired with pro‐consumer trade and regulatory reforms that would lower formula prices generally. (And when we’re done doing that, we should embrace a host of other market‐oriented policies that will help American moms.)

These changes won’t put formula on American store shelves tomorrow—and they might not be good for the economic nationalists or Big Dairy—but they’d definitely be better for the rest of us in the longer term. It’s too bad parents had to learn this lesson the hard way."

- rest of article at America's Infant Formula Crisis and the 'Resiliency' Mirage | Cato Institute

We need to make our own formula. Y'all want us so dependent on foreign products that we can not fight a war.

 

[KenH]

"As the COVID-19 pandemic rattled global supply chains, each of the two most recent presidential administrations stressed the importance of limiting America's supposed reliance on imported goods and boosting domestic supply chains. Now, a national shortage of baby formula is testing that theory—and the results don't look good for the "Made in America" crowd. ...

While each of these specific trade and regulatory policies has contributed to the infant formula shortage in small ways, the bigger picture should raise some difficult questions for the economic nationalists who believe that foreign trade is a vulnerability for America's economy. Sen. Josh Hawley (R–Mo.), for example, has suggested tightening the "Made in America" rules that already govern federal procurement to include "the entire commercial market." Using the power of the federal government to exclude even more foreign-made products, he argued in a New York Times op-ed last year, is "critical for our national security."

But, as the situation with Abbott Nutrition demonstrates, supply shocks can originate close to home too. Thanks to strict FDA regulations and oppressive tariffs, America is already largely dependent on only domestic suppliers for infant formula: America exports far more than it imports every year.

That's exactly the situation the economic nationalist want in all industries—and we're now seeing exactly how that can go wrong. Cutting off foreign trade and protecting domestic suppliers can make a country more vulnerable to unexpected supply problems, not more resilient."

- rest of article at America's Trade and Regulatory Policies Have Contributed to the Baby Formula Shortage (reason.com)

 

[percho]

IMHO

Nothing, zilch, is taking place that isn't planned.

And it is going to get worst.

 

[Revmitchell]

"As the COVID-19 pandemic rattled global supply chains, each of the two most recent presidential administrations stressed the importance of limiting America's supposed reliance on imported goods and boosting domestic supply chains. Now, a national shortage of baby formula is testing that theory—and the results don't look good for the "Made in America" crowd. ...

While each of these specific trade and regulatory policies has contributed to the infant formula shortage in small ways, the bigger picture should raise some difficult questions for the economic nationalists who believe that foreign trade is a vulnerability for America's economy. Sen. Josh Hawley (R–Mo.), for example, has suggested tightening the "Made in America" rules that already govern federal procurement to include "the entire commercial market." Using the power of the federal government to exclude even more foreign-made products, he argued in a New York Times op-ed last year, is "critical for our national security."

But, as the situation with Abbott Nutrition demonstrates, supply shocks can originate close to home too. Thanks to strict FDA regulations and oppressive tariffs, America is already largely dependent on only domestic suppliers for infant formula: America exports far more than it imports every year.

That's exactly the situation the economic nationalist want in all industries—and we're now seeing exactly how that can go wrong. Cutting off foreign trade and protecting domestic suppliers can make a country more vulnerable to unexpected supply problems, not more resilient."

- rest of article at America's Trade and Regulatory Policies Have Contributed to the Baby Formula Shortage (reason.com)

This article is inflammatory and nothing but a caricature of the made in America crowd. Further, it ignores the depletion of producing products in America over the last years due to left wing politics that works to get rid if American production and farming. One of the most inept articles on the subject I have ever seen.

 

[Earth Wind and Fire]

Did more women breastfeed before the pandemic? Or had they already switched for convenience and lack of time due to working outside of the home?

Who knows?

 

[KenH]

IMHO

Nothing, zilch, is taking place that isn't planned.

And it is going to get worst.

Absolutely true that nothing takes place that isn't planned, as God ordains all that happens for His purpose and His glory.

 

[Reynolds]

"As the COVID-19 pandemic rattled global supply chains, each of the two most recent presidential administrations stressed the importance of limiting America's supposed reliance on imported goods and boosting domestic supply chains. Now, a national shortage of baby formula is testing that theory—and the results don't look good for the "Made in America" crowd. ...

While each of these specific trade and regulatory policies has contributed to the infant formula shortage in small ways, the bigger picture should raise some difficult questions for the economic nationalists who believe that foreign trade is a vulnerability for America's economy. Sen. Josh Hawley (R–Mo.), for example, has suggested tightening the "Made in America" rules that already govern federal procurement to include "the entire commercial market." Using the power of the federal government to exclude even more foreign-made products, he argued in a New York Times op-ed last year, is "critical for our national security."

But, as the situation with Abbott Nutrition demonstrates, supply shocks can originate close to home too. Thanks to strict FDA regulations and oppressive tariffs, America is already largely dependent on only domestic suppliers for infant formula: America exports far more than it imports every year.

That's exactly the situation the economic nationalist want in all industries—and we're now seeing exactly how that can go wrong. Cutting off foreign trade and protecting domestic suppliers can make a country more vulnerable to unexpected supply problems, not more resilient."

- rest of article at America's Trade and Regulatory Policies Have Contributed to the Baby Formula Shortage (reason.com)

The more we make in the USA, the less we are subject to foreign control. Let's buy 50% of our formula from China. We decide to sanction China, then poof, overnight half our formula disappears. Japan lost WW2 mainly because their war machine relied on imports. They had to extend the conflict past it's ideal scope to attempt to procure war materials. Learn from history. Quit paying these theory spewing morons any attention. History repeats itself, and repeats itself, and repeats. .....