https://www.wsj.com/articles/governments-baby-formula-shortage-abbott-mead-johnson-tariffs-wic-fda-perrigo-democrats-11652996346?mod=opinion_lead_pos1
““I think there might be a need for indictment,” Nancy Pelosi said this week. She means business executives, not Members of Congress, alas.”
Politicians are scrambling to pacify mothers angry about the baby formula shortage, but the one thing they won’t do is look in the mirror. Fixing the shortage requires fixing the government policies that helped to create it.
The shortage began after Abbott Laboratories shut down a plant in Michigan after four infants who consumed formula made at the facility fell seriously ill. Abbott controls about 42% of the U.S. market, and the other three large manufacturers (Perrigo, Nestle and Mead Johnson) haven’t been able to increase production fast enough to compensate. Ergo, empty shelves.
Enter President Biden, who on Wednesday invoked the Defense Production Act. The Cold War-era law lets the federal government conscript private businesses to produce goods for national defense and to reorder supply chains, putting some customers ahead of others. Progressives think government is the solution to every problem, which is why the law has become their household remedy to every product shortage.
Mr. Biden says the law will let his Administration prioritize raw ingredients for baby formula. He also plans to send government planes to fly in supply from overseas. But there doesn’t appear to be a shortage of formula ingredients. Nor is there a problem transporting it. The main barriers to increasing supply are regulatory.