Government Creates the Baby Formula Shortage
2nd June 2022
First: bans on imports. There’s plenty of formula on supermarket shelves in Mexico and Europe. Normally, American companies would just buy that and ship it here.
But they can’t, because of several destructive government policies.
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Another reason for the shortage is government limits on competition.
America’s food stamp-like program, WIC, grants exclusive licenses in each state to just one company. Like all welfare programs, WIC (it stands for women, infants and children) has grown. It now buys half of all baby formula in America.
Abbott Nutrition grabbed most of that market by offering government the lowest price. Good for them. But after Abbott’s recall, there were few alternatives for parents to turn to.