Michael F Schundler
3 min readMay 25, 2022

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The issues with baby formula highlight how government can contribute to problems. First, the baby formula plant which contributed to the shortage was closed after two infants died due to a rare bacterial infection. As a result, a huge recall occurred before it was even determined where the bacteria came from.

Meanwhile, an inspection of the plant where the forumula was produced did find bacteria (but not the type that killed the babies) as well as other safety issues like standing water. But no bacteria was found on surfaces used to make the formula.

Subsequent statement by the FDA note that the vast majority of American homes would likely fail similar inspections since most homes have bacteria on eating surfaces, kitchen and bathroom counters, toothbrushes, etc. That said, safety and health issues should be addressed and fixed.

But a proactive "pro-baby" government agency realizing that the shortage that would occur would have said to the company... "let's work on a plan together to keep the babies safe without shutting down the plant" or let's work on a plan to import baby formula until the plant re-opens (I mean if we can do this as an "emergency measure", why not do it before the emergency occurs?

Everyone loses when a factory shuts down, the company, the workers, the consumers, and yes... even the government. But government agencies don't think that way...

So a company risks a lot if it tries to keep the plant open without the co-operation of government. Contrast how the government handled this incident with how the government handled the Covid vaccine crisis. The government took a pro active step of working with the vaccine makers including issuing an EUA for the Covid vaccine and indeminifying the makers of the vaccine. See the difference? Millions of vaccine were made available in the latter case, and millions of bottles of formula were not available due to the former approach.

The media and politicians are so busy stoking the fires of "class warfare", "identity politics", and party warfare, they forget we all depend on one another. Does the company deserve some blame for failing to keep its factory up to the safety standards... you bet they do... but so the government is also guilty of failing to work with the company to fix the issues. Once the government introduces regulations it becomes "a partner" to the manufacturing process (which is clear from the fact that the government takes "their cut of the profits" in the form of taxes.

Part of the problem is that government is very "siloed". The agency that participated in the shut down of the plant has no authority beyond that, the government having participated in the plant shut down took no steps to address the pending problem until it became a "crisis"... then only then are there other agencies that can get involved, since crisis solving belongs to another agency. Are you getting a sense of how government bureacracy works...

Health care and processed food are among the most heavily regulated markets in America. Regulated markets have a tendency to "consolidate" in order to spread the high cost of regulaton over the maximum number of units of production. Ideally, those regulations make things "safer" but they also make the supply chain more vulnerable as consumer demand is being met by fewer suppliers. Bottom line, never confuse health care and processed food with "free market" capitalism, they are not. Want to see free market capitalism, go to your local farmers market.

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