The editorial board of the the wall street journal posted a commentary on the baby formula shortage and, instead of repeating the Joe Biden administration’s blame story, he said that the Biden administration and federal policies led to the crisis.
The council noted that while the government tries to assure “angry moms” that it will fix the problem, Biden and the feds should “look in the mirror”:
The shortage began after Abbott Laboratories closed a factory in Michigan after four infants who were consuming formula made at the facility fell seriously ill. Abbott controls about 42% of the US market, and the other big three manufacturers (Perrigo, Nestlé and Mead Johnson) have not been able to ramp up production fast enough to compensate. Ergo, empty shelves.
Enter President Biden, who invoked the Defense Production Act on Wednesday. Cold War-era law allows the federal government to hire private companies to produce goods for national defense and to revamp supply chains, putting some customers ahead of others. Progressives believe that government is the solution to all problems, which is why the law has become their household remedy for every commodity shortage.
Mr. Biden says the law will let his administration prioritize raw ingredients for infant formula. It also plans to send government planes to fly in supplies from abroad. But there doesn’t seem to be a shortage of formula ingredients. There is also no problem to transport it. The main obstacles to increasing supply are regulatory.
The board also blamed commercial tariffs as high as 17.5% and Food and Drug Administration regulatory regulations that limit market competition.
Democrats, including House Speaker Nancy Pelosi (D-CA), also like to blame corporations for the problems, the Log mentioned.
“I think there might be a need for indictment,” Pelosi said of Abbott, who is already under investigation by the House.
the Log said the solution is to suspend tariffs and drop onerous labeling and ingredient requirements. He also noted that when manufacturers have exclusive contracts with states for a product, it creates monopolies.
And even if Abbott comes back online, the Log recommends reforming federal policies to allow the free market to thrive.
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