Bad policy makes people vulnerable, and the current baby formula shortage is just the latest example. The immediate cause of the shortage was contamination in a Michigan factory, which might not resume production until June. But the underlying cause is a slew of bad policies that make the market less competitive.
Tariffs, labeling and marketing regulations have removed so much competition from the industry that when a recall affects one factory, it becomes an emergency for parents across the country.
Those regulations give young families fewer places to turn to during shortages — on purpose. Existing companies push hard for these regulations because they put up a barrier to entry against potential competitors and preserve market share for themselves. Policymakers need to clean up the mess they made as quickly as possible. Instead, they are doubling down.
