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No, let’s not nationalize the infant formula market

This is probably not worth anyone's time, but it annoyed me so I'm going to make you all suffer through it. In New York, Ross Barkan provides a potted summary of the infant formula shortage and ends up with this:

Though off the table for now, more radical solutions should be considered too. Why not have the government manufacture baby formula? If moderates and conservatives will oppose full-bore nationalization of the industry, a public option for baby formula could be worthwhile, forcing Abbott and others to compete against the government while guaranteeing, in the event of another recall, baby formula for all. A government fail-safe could be readily available, always.

Can we talk? The baby formula shortage is serious, but we have serious problems like this about a dozen or a hundred times a year. So why do we so often find liberals suggesting that some kind of nationalization is the answer? What possibly makes anyone think that the US government would make a great manufacturer of infant formula in all its many variations? In fact, a manufacturer so spectacular that it would guarantee formula for all? Can you even imagine the politics that would doom such an effort? It's crazy.

This is obviously something best handled by the private market. It might make mistakes now and again, but it has a tremendous incentive to sell as much formula as possible. And the fact that formula is more important than, say, cat food, doesn't matter. The government also doesn't manufacture life-saving drugs. It doesn't manufacture vaccines. It doesn't manufacture pacemakers. It regulates all those industries to make sure they don't cut too many corners, but that's it.

The US government isn't a manufacturer, and there's no reason to think it should be. What's more, if you're worried about monopolization, is one supplier really better than four? Why?

So please, let's cut the crap about nationalizing industries every time there's some routine problem that the media suddenly finds out about after months of ignoring it. It's ridiculous, and all it does is give liberals a bad name.

AS AN ASIDE: Can we please get some better reporting on the infant formula shortage? Here are the things we know:

  • There are a large number of specific types of formula that are in short supply. But we don't seem to know which ones.
  • Reporters are keen to dig up anecdotes about people who had to drive to the next county to find the particular type of formula they want. But how many of these stories are there?
  • Abbott's plant in Sturgis was shut down over a cronobacter infestation of some kind. But what kind? And why did it take so long to re-open the factory? Was it because of stonewalling by Abbott? Or because of dumb requirements from the FDA?
  • In fact, how much of a shortage is there, really? How many actual people are running short of formula? How many people have run completely out of formula and literally can't find it anywhere—not in the next county, not on Amazon, not anywhere? How many babies have ended up in the ICU because of some formula-related crisis?

These are all pretty routine questions? Why have they gone unanswered for so long?

75 thoughts on “No, let’s not nationalize the infant formula market

  1. PostRetro

    Abbott Labs has made some pretty dumb management decisions on a variety of fronts:

    First laying off employees due to short term forecasting of covid

    https://www.medtechdive.com/news/abbott-lays-off-400-workers-amid-drop-in-demand-for-covid-19-tests/603079/

    Then destroying COVID tests

    Destroying Covid Test Inventory during surges
    https://www.nytimes.com/2021/08/20/us/abbott-covid-tests.html

    Glucose monitoring shortages

    https://www.bbc.com/news/business-51262846

    But 2019 offers the root cause. Abbott wants to develop a digital ecosystem of profit for their medical devices, and nutrition is just not where they focused

    https://www.chicagobusiness.com/health-care/three-key-products-driving-growth-abbott

    The financialization of every product commodity should not be a health industry company goal, yet we accept profits over products. I'm sure Abbott Labs has some idea bouncing around about how more profitable it would be to sell NFTs instead of actual products.

    We need manufacturers to care more about making things than monetizing every thing.

  2. lsanderson

    Well! If we'd just update our silly rules and let vendors add a wee bit of chalk to the formula, I'm sure this whole issue would just go away. Maybe a few infants too.

      1. rick_jones

        Though it remains to be seen if their deaths were indeed caused by the issues found at the Abbot plant in Sturgis. Different strains.

      1. Vog46

        Free markets are great so long as unfettered legal liability is also on the table for those companies that violate basic simple protocols and put food (and directly baby) safety above all else, but we have watered down the liability part. Now companies can, in some cases, do almost what ever they want without cause for concern because the FDA is an impotent agency.
        The FDA is also very slow to respond to complaints or whistle blower allegations. The ONLY time an emergency is declared is when blatant food safety issues are noted when an FDA inspector is on site which is not too often OR when a pattern of sickness related to ingestion is noted but by then the damage is done.
        They NEED to have the same enforcement that the USDA has over animal processing. They test and if a test is bad they SHUT THE PRODUCTION LINES DOWN until the bacteria is eliminated. Any food processed in that facility since the last test is disposed of. Without question.
        The FDA is weak.

  3. shadow

    The government SHOULD be in the business of manufacturing medicine. Specifically, larger states or coalition of states should ensure they can supply their residents essential drugs like insulin. What argument would you make against it that couldn't also be made against the post office?

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