Nancy Pelosi Says She’s “Satisfied” By Biden

( Nancy Pelosi says she’s “satisfied” by Biden’s response to the baby formula crisis. Apparently, she is easy very to please. Biden has done very little.

In the face of anxious and exasperated new parents who cannot locate formula to feed their infants, President Joe Biden wants to demonstrate that he is taking courageous action that will solve the calamity.

On Wednesday, he cited the Defense Production Act, which mandates that private enterprises transfer additional supplies to companies that make infant formula. Unfortunately, nervous parents will continue to be frustrated by the sight of empty shelves for several more weeks.

During a national emergency, the production act provides the federal government with unusual regulatory and financial control over private industry. However, there is no assurance that the government would utilize its leverage to remedy the underlying problem. This is especially true in cases when the underlying issue was brought about by regulations imposed by the government in the first place.

Under the proposal proposed by the president, suppliers of the components used in infant formula production, such as cow’s milk, soy milk, and vegetable oils, will be required to transport their goods to makers of formula first. Other consumers in the food business will be required to wait, even though this will result in increased costs and a loss of productivity.

The government’s method does not deal with the underlying reasons for the scarcity. If we want to reduce the likelihood of shortages, we need to encourage stronger rivalry among local producers. The involuntary closing of the most important production plant in the nation was the immediate cause of the infant formula crisis.

The panic purchasing wiped out whatever stockpiles were left in the retailers; this crisis was unnecessary; businesses could have brought in supplies outside the United States. Instead, businesses suffered a loss in revenue and negative publicity, which prompted the government to assist with covering the expenses of shipping.

Due to tariffs placed on infant formula and regulations imposed by the FDA, it is not feasible to import formula during times of domestic shortages.

If a domestic manufacturer experienced difficulties with production, customers would have a safety net provided by opening the U.S. market to imports. We should also alter the regulations restricting the variety of alternatives available to low-income parents for the infant formula they buy for their children. The policy reaction from the government to the lack of infant formula scarcely shifts the needle.