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What's Wrong With Price 'Gouging' In Baby
Formula Crisis?

Original Article

Posted By: RockyTCB, 5/16/2022 6:11:57 AM

As night follows day, the shortage of baby formula around the country has politicians shouting about the evils of “price gouging” and vowing to stop it. But what if “price gouging” relieves shortages and makes sure parents who need the formula the most can get it? News accounts tell the story of panicked mothers who’ve had to drive hours in all directions to find formula. In response, President Joe Biden is pressing the Federal Trade Commission to “bring all of the Commission’s tools to bear” to stop sellers from raising formula prices. Parents would be better off if the Biden

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Reply 1 - Posted by: Bur Oak 5/16/2022 6:29:51 AM (No. 1156605)
Make your own formula.
11 people like this.

Reply 2 - Posted by: WhamDBambam 5/16/2022 6:49:16 AM (No. 1156621)
Our local rag, in lockstep with other official MFM mouthpieces I imagine, has a FRONT PAGE STORY this morning on the horrors and dangers of making your own infant formula (like they used to in the Fifties). Of course, this article was written by "scientists" and is based wholly on "science!"
14 people like this.

Reply 3 - Posted by: JHHolliday 5/16/2022 7:11:01 AM (No. 1156629)
My mom raised 4 sons. I was the oldest, and she breastfed me, but the others were on formula that she made herself. That was 40-50 years ago, and we are all still alive. There is really no such thing as "price-gouging". I bought my house 45 years ago for $40,000. Zillow appraises it today for $310,000. If I sell it now, I will take a quarter million dollar profit. Price gouging, or just what the market now says it's worth? You might see a blip when people rush to take advantage of a shortage, but the market always responds (if allowed to). I recall the guy who bought thousands of dollars worth of toilet paper with the expectation of making a huge profit. The market caught up, and he has a garage full of toilet paper. At least his family will never be without it.
14 people like this.

Reply 4 - Posted by: smak90 5/16/2022 7:58:49 AM (No. 1156655)
Number 1, the local media hear in Austin was warning against mother's attempting to make their own formula. They said it's not safe to make it yourself. Imagine if Americans started doing things themselves again.
15 people like this.

Reply 5 - Posted by: msjena 5/16/2022 8:02:14 AM (No. 1156658)
Price controls cause shortages. It's basis economics.
10 people like this.

Reply 6 - Posted by: privateer 5/16/2022 8:45:09 AM (No. 1156694)
FTA: 'It’s unlikely that any of these “anti-gouging” measures will make it to Biden’s desk (unless a few spineless Republicans side with Democrats). There are several of them that make it a practice. These sort of fear-mongering, tug at the heartstrings issues may give cover to additional.
4 people like this.

Reply 7 - Posted by: seamusm 5/16/2022 8:48:07 AM (No. 1156696)
It is very difficult for a mother to return to breast-feeding after having used formula for any significant length of time. But maybe this shortage will have a good outcome if it encourages new mothers to rely on breast milk not formula. The DANGER of home made formula is over-wrought baloney.
8 people like this.

Reply 8 - Posted by: Krause 5/16/2022 9:17:27 AM (No. 1156736)
If Biden owned a baby formula company he would be the top gouger.
4 people like this.

Reply 9 - Posted by: Rich323 5/16/2022 9:37:22 AM (No. 1156763)
I heard that foreign born Walmart employees buy entire pallets of baby formula and send back to home countries. Probably happens at all our discount marts. So when supply is reduced along with this pseudo black market supplies will be short.
1 person likes this.

Reply 10 - Posted by: MDConservative 5/16/2022 9:53:13 AM (No. 1156788)
#1 makes a valid point. Baby formula is a recent invention. There are substitutes. The mothers of many here used evaporated or whole milk, white corn syrup, and some drops of liquid vitamins to make their own. Read the ingredients to Abbott's product...guess what's in there, with a few more unpronounceable components. The next great female-centric panic...
2 people like this.

Reply 11 - Posted by: NamVet70 5/16/2022 10:24:13 AM (No. 1156824)
An increase in the market price of a product results in more producers entering the market and a greater abundance of that product. A government mandated price control on a product will always result in scarcity followed by rationing. The Biden regime probably knows this and creates scarcity in the hope they can exploit the resulting crisis.
4 people like this.

Reply 12 - Posted by: DVC 5/16/2022 12:02:46 PM (No. 1156945)
Price increases during times of shortages ensures the best distribution of the limited quantities of a scarce commodity. For example: If the price is low, someone may buy 10 extra cans "just in case", denying it to others. Or someone who CAN breastfeed may buy it for convenience, denying it to someone who cannot breastfeed and who desperately needs it. If it is more expensive, people buy only what they need, and it is more widely available, and will be used only when it is necessary, less so for convenience. Perhaps some mothers who are breastfeeding may extend that time rather than switching to formula for convenience, making it more available for those who must have it. Price increases cause all sorts of market adjustments which HELP get the best distribution of a scarce commodity. Prices rising in times of shortages is NORMAL and GOOD, and while certainly inconvenient, the whole free market idea of pricing as a signal to ensure the most effective distribution of scarce resources is an important part of the proper working of a free market. The high price signal also is a sign to manufacturers to do everything that they can to increase production, and thereby profit more. Perhaps a second shift on a production line doesn't make sense, cost-wise, at normal prices. But at higher prices, that second shift may then increase supply, while still being profitable, even while paying more labor costs. Read Thomas Sowell's Basic Economics. He and Walter Williams are favorite authors, both brilliant economists who have taught me much. Williams wrote on this topic several times. Don't fall for the leftist's touchy-feely BS about "price gouging" which destroys the free market forces which are necessary to correct this problem as quickly as is possible. Keep the damned government out of it and let the free market forces fix this. The government caused this, and anything they do will make it WORSE, absolutely guaranteed. This emotional appeal on "price gouging" is very attractive but totally wrong headed.
4 people like this.

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