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AMOD: I am so tired of this Baby Formula Shortage B** S***!! You either want a Free Enterprise Market System or you Don't! Geez!!!

Controversial Content
Added: Thursday, May 19th 2022 at 6:51pm by AMODPOVW
Category: News & Issues
Related Tags: economy, government
 
 
 

PERSONAL OPINION/COMMENTARY:

 

Okay, let me point this out right from the start!!!  The government.....whether it be Democrat or Republican, Trump or Biden has no power to fix the present Baby Formula Crisis!  They did not create the problem and they cannot and should not be getting blamed for it.  The problem was created as a result of the functions of our free Enterprise System, and all you folks complaining about Biden didn't do this or Biden didn't do this, or Trump did this or Trump did that need to just step back and make a decision, you either like Capitalism or you don't.....you like free Enterprise or you don't!!  Period, full stop!

So, let's take a quick look at what the actual problem concerning the Baby Formula amounts to!  Apparently there is a shortage of certain types of Baby Formula in stores throughout the country.....shelves are empty.

This shortage has occurred primarily because one Manufacturer (Abbott) was forced to close down a Factory due to production of a faulty product.  As a matter of fact several babies actually died because they consumed this tainted Formula!!  That's right....the government caught Abbott producing and selling some bad stuff and they told Abbott to cease production and fix the problem.  So what did Abbott do....they closed the Plant completely!  Now listen carefully, because here is where the part about Capitalism and Free Enterprise steps in!

The Babay Formula Market in America is controlled by a very few Big Companies, and Abbott is just one of them!  Each of those companies has a portion of the Market or as Economist call it "Market Share"!  Your Profit is based upon how well you maintain your Market Share in the face of a crisis. Abbott faced with the possibility that they would loose their share of the Market to competition closed down that factory anyway...why?  Would that not ensure a finiancial lose for the company.  Apparently not....and the reason why it did not.....is the principal of Suppy and Demand!! 

Abbott did not loose money, as a matter of fact they have raked in hugh profits during this time period.  They have cut cost because the factory is not open....they have no overhead, but because of the claim of "Inflation"....they have been able to raise the prices on the Formula that they still have in the system and will be able to hit the FDA and government up for funding to get their factory back on line!  It's a win/win for them....and they caused the problem.  And guess what, the prices will not go back down once the factory is back on line!!

Any Supply Sgt serving in any Company in the US Military could have solved this problem moments after it occured, but to do so you had to care about the customer!!  Abbott did not care about its customers.....it only cared about its bottom line!!

So what was the solution....and again, this is action that Abbott should have taken to protect its customers and Market Share.  When you closed down the tainted Factory....you immediately ramp up production in other facilities that you have to that produce similiar products.  You work to protect your Market Share.  As a Company you do not want the Government to import Formula from overseas because that will cut into your profits.  Abbott did not care...because it was going to have the win/win situation that I mentioned above.  But guess what....that is Capitalism....and Free Enterprise!

Geez!!

User Comments

I agree in the same way that I agree that whoever is in the White House doesn't have control of oil prices and gas at the pump.  A true 'free market" allows the company, of whatever sort, to charge as much as the market will pay.

In the case of the oil industry, with all the underpinnings government has given them...with their lobbists asking for tax breaks etc, I call that price gouging.  In the case of the baby formula problem, Abbott was rightly shut down on that particlar factory because children dying is not something that baby formula should be resulting and the Feds have the responsibility to stop those deaths by the Abbott company.

I don't know how I feel about "free market".  Part of me wishes prices for things like baby formula and oil could be frozen and the companies legally forbitten to raise prices beyond a reasonable amount.

But, that would go against the ethos that this country has operated on, and the change would prompt the calls from some of "federal over-reach".  Amazingly the people complaining most about the "baby formula shortage" and casting blame on Biden would be among the first to scream about that supposed government overreach.

Bingo!!!!!

So much of this is plain Political Theatre....and people suffer as the play goes on!

Abbott controls almost 43% of the Formula Market!!!  They control almost 70% of the WIC Formula Market.....that's government money!!  With that product being in short supply the price was raised as a result of the shortage....again, I hear nothing about Abbott suffering a lose in profit during all of this...of course there was and is price gouging going on!

I thought we were energy Independent.....why are we not pumping more oil in order to meet present demand......I tell you why....because demand drives prices!  If gas is in short supply the price goes up!  We could drill our way out of this mess....but profit is the motive....and Oil Companies are making record profits right now!{#basic-laugh.gif}

Well, I think you and I agree for the most part, but I am anti-oil company.  The problem is that with Citizens United and various other decisions, companies, including oil companies,have special levels of impact on policies.

We should have enough alternative fuel availablity by now that the choice isn't either importing or drilling for more oil, but rather having options for those of us who want to go green that are financial viable.

And, of course, oil companies are having the highest PROFIT they ever had!!!

https://time.com/6175400/oil-company-profits/

Sorry---I didn't see your last line---but then some people are too busy coaching basketball teams!!! :O)

What I call price gouging....I don't think they should be allowed to get away with it, whether some might call that "government controll" rather than free market or not.

{#rofl.gif}{#rofl.gif}{#rofl.gif}

I didnt know  why, this was happening. Thank you for explaining.

No problem!{#basic-laugh.gif}

I don't trust a female who is capable of nursing her baby yet chooses to rely on baby formula instead.

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