EXPLAINED: Why The Baby Formula Shortage Is A Capitalist Disaster

TMR and Nomiki Konst talk about the duopoly on baby formula., WIC’s exclusive deal with Similac/Abbott laboratories and why the baby formula shortage has gotten worse for specific states. The Majority Report crew discusses the FDA’s involvement and why the shutdown of Abbott laborites might have taken place.

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Essentially we have I don't know I guess what you call secular supply issues just in general with stuff. But the big story in terms of the baby formula is that the FDA had shut down I guess February one of the biggest two manufacturers of baby formula in the country. And the problem is oh okay I should be I should I should amend that. It didn't shut down the Abbott facility. Abbott shut it down as opposed to addressing immediately the problems that the FDA found with the production facility that Abbott was using. Two babies died from this formula. Similac I think it is that Abbott makes. And the FDA not frankly regulating this industry enough. There are two major ones I'm looking for my notes here. And Abbott is one of them. But the problem with Abbott is they're their business is not just baby formula. They have a bunch of other businesses. And so they don't need to address these problems. They can shut it down.
And the two companies that dominate these sales are Abbott labs. Which creates yeah did you just say the Similac the medical price. And the other one makes Lysol. So they can take a hit here as opposed to you know like actually fixing the issue.