HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

The Mystery of the Missing Baby Formula

Views:988
@ReasonVids

President Joe Biden has invoked the Defense Production Act and ordered the U.S. military to fly pallets of baby formula into the country from Europe.

https://reason.com/video/2022/06/02/cant-find-baby-formula-blame-tariffs-and-the-fda/
----
But if the federal government just backed off and let the market function like it's supposed to, we wouldn't need military intervention or emergency policies designed for war to stock grocery store shelves with baby formula. This crisis is largely the result of protectionism, regulation, and central planning of the sort that both Democrats and Republicans want more of in Washington.

Reporters like CNN's Jake Tapper have been pressing officials to explain why the government didn't respond more quickly to this shortage—but the actual solution is for the government to be less involved entirely.

A better question is why didn't the Biden administration clear the way for the private sector to react to price signals, like it does in every other industry? Food suppliers would have started stockpiling European-made formulas months ago if only U.S. tariffs and regulations weren't an obstacle.

So how does this work in practice? First, the federal government prohibits importing many European-made baby formulas simply because they fail to meet the Food and Drug Administration's (FDA) labeling requirements.

But Europe is the world's leading exporter of baby formula, thanks to major producers based in Germany, the Netherlands, and Britain. If the FDA's labeling regulations are so necessary, why is it that infants all over the globe safely consume formula made in Europe? Meanwhile, about 98 percent of the formula sold in the U.S. is produced domestically. We've sealed ourselves off from a robust, and safe, global market.

In addition to the labeling requirements, the government imposes huge tariffs on foreign-made formula to protect domestic manufacturers and the American dairy industry.

Now the U.S. is heroically flying in European-made baby formula. But just a year ago, customs officials were bragging about heroically seizing it at a port of entry.


These two policies of regulation and protectionism work in tandem to scare aware foreign suppliers. For example, let's say you're running a baby formula manufacturing firm in Germany. You would have zero incentive to spend the money to earn FDA approval for your labels because high tariffs would make your product too expensive to compete in the U.S. market.

Brian Deese, director of the National Economic Council, says the White House has acted quickly to "waive a whole bunch of regulations that traditionally make sense, but don't make sense in this crisis."

"Don't make sense in this crisis?" Wait a minute. Did European-made baby formula suddenly become less hazardous? Does passing formula through the hands of the U.S. military magically makes it safe for American babies to drink? Or maybe the regulations and tariffs are designed to protect big businesses, not babies, and never should have existed in the first place?

Sen. Mike Lee (R–Utah) introduced a bill that would temporarily waive the tariffs on baby formula and remove the FDA labeling regulations.

How about scrapping them altogether?

There's an important lesson here for economic nationalists, who claim that international trade is a vulnerability. Excluding even more foreign-made products is "critical for our national security," Sen. Josh Hawley (R–Mo.) argued in a New York Times op-ed last year. He has suggested tightening the "Made in America" rules that already govern federal procurement to include "the entire commercial market."

If Hawley got his way, all industries could become just as vulnerable to supply shocks as baby formula. Will we one day have to replace our $2.5 trillion international shipping and logistics industry with emergency military aircraft crisscrossing the skies?

The Biden administration and Congress get to come off like heroes, rushing to feed American babies left to go hungry because of the supposed cruelty of the free market. But that's all an act. Don't be fooled about the real cause of this shortage.

Written and narrated by Eric Boehm. Edited by Regan Taylor. Audio by Ian Keyser.

libertarian
,
reason magazine
,
reason.com
,
reason.tv
,
reasontv
    Thumbnail for Hong Kong Is a 'Wake-Up Call for the World'45:06
    Hong Kong Is a 'Wake-Up Call for the World'
    ReasonVids
    816 views
    Thumbnail for What Fear Does to Our Freedom5:05
    What Fear Does to Our Freedom
    ReasonVids
    996 views
    Thumbnail for Banning Bikini Baristas, Big Dogs, and Energy Drinks! (Nanny of the Month, March 2013)1:33
    Banning Bikini Baristas, Big Dogs, and Energy Drinks! (Nanny of the Month, March 2013)
    ReasonVids
    855 views
    Thumbnail for Is Colorado Pot Overtaxed and Over-Regulated Already?8:22
    Is Colorado Pot Overtaxed and Over-Regulated Already?
    ReasonVids
    1000 views
    Thumbnail for Black man lists his 3 favorite white people0:51
    Black man lists his 3 favorite white people
    bestofupgoat
    280 views
    Thumbnail for Meanwhile in Canada ... | Canadian Politician Goes on Offensive to save Canada from Conservative Gun Grab4:58
    Meanwhile in Canada ... | Canadian Politician Goes on Offensive to save Canada from Conservative Gun Grab
    bestofvoatxyz
    1743 views
    Thumbnail for Is this the real reason they hate Assange so much?0:31
    Is this the real reason they hate Assange so much?
    bestofsaidit
    895 views
    Thumbnail for Zeitgeist - The Movie (2007)18:13
    Zeitgeist - The Movie (2007)
    bestofsaidit
    707 views
    Thumbnail for Wife of Charles III visits school in Londonistan1:01
    Wife of Charles III visits school in Londonistan
    bestofupgoat
    88 views
    Thumbnail for This Border Patrol Agent Resigned After Changing His Mind About Immigration8:03
    This Border Patrol Agent Resigned After Changing His Mind About Immigration
    ReasonVids
    873 views
    Thumbnail for Jailing Photogs and Smokers, Outlawing Chipotle! Plus Halle Berry! (Nanny of the Year, 2013)3:13
    Jailing Photogs and Smokers, Outlawing Chipotle! Plus Halle Berry! (Nanny of the Year, 2013)
    ReasonVids
    866 views
    Thumbnail for Author Paul Cantor on The Economics of Literature6:44
    Author Paul Cantor on The Economics of Literature
    ReasonVids
    932 views
    Thumbnail for John Lennon redefined pussy whipped | Bill Burr0:56
    John Lennon redefined pussy whipped | Bill Burr
    bestofvoatxyz
    961 views
    Thumbnail for Is Bernie Sanders A Democratic Socialist? Or Just a Socialist?16:09
    Is Bernie Sanders A Democratic Socialist? Or Just a Socialist?
    ReasonVids
    878 views
    Thumbnail for NBC's Education Nation Summit: Joe Trippi, Michelle Rhee, & More4:13
    NBC's Education Nation Summit: Joe Trippi, Michelle Rhee, & More
    ReasonVids
    828 views
    Thumbnail for Femoid.christ has encountered an unexpected error0:55
    Femoid.christ has encountered an unexpected error
    bestofupgoat
    265 views
    Thumbnail for 2DADS TV - TAKE BACK OUR FUTURE2:45
    2DADS TV - TAKE BACK OUR FUTURE
    cheekymusicvideos
    2354 views
    Thumbnail for Sgt. of Arms who died suddenly before being able to testify before Jan. 6 kangaroo court admitted all of the 'agitation was done by paid agitators'0:43
    Sgt. of Arms who died suddenly before being able to testify before Jan. 6 kangaroo court admitted all of the 'agitation was done by paid agitators'
    bestofsaidit
    814 views
    Thumbnail for Affirmative action White House press nigger can’t answer basic questions1:58
    Affirmative action White House press nigger can’t answer basic questions
    bestofvoatxyz
    1095 views
    Thumbnail for Born Different - What's It Like Growing Up Trans And With No Legs?4:44
    Born Different - What's It Like Growing Up Trans And With No Legs?
    AOU
    1073 views
    Thumbnail for *DIY Craft Ideas* How to make the "Happy Merchant" puppet with a rubber glove1:07
    *DIY Craft Ideas* How to make the "Happy Merchant" puppet with a rubber glove
    bestofvoatxyz
    1178 views
    Thumbnail for Cultural politics of breakdancing 0:49
    Cultural politics of breakdancing
    bestofupgoat
    165 views
    Thumbnail for Welcome to Canuckistan1:09
    Welcome to Canuckistan
    bestofupgoat
    123 views
    Thumbnail for How NYC's Landmarks Act Bulldozed the Future3:30
    How NYC's Landmarks Act Bulldozed the Future
    ReasonVids
    1034 views
    Thumbnail for Meet the Marijuana Industry's Newest Customers: Dogs3:19
    Meet the Marijuana Industry's Newest Customers: Dogs
    ReasonVids
    829 views

points

Permalink
Reply
libertarian
,
reason magazine
,
reason.com
,
reason.tv
,
reasontv
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle