America’s nationwide shortage of baby formula has continued into the month of June and prompted a flurry of state and federal solutions. President Biden has announced plans to leverage national defense powers to produce more formula while relaxing FDA standards to enable imports from Canada and Germany. Meanwhile, in Wisconsin, Democratic Governor Tony Evers has also taken action: he signed an executive order to take on price gouging. “My administration won’t allow corporations to take advantage of parents trying to feed their hungry infants,” he said on Twitter shortly after signing. That same day, Colorado Governor Jared Polis made similar moves, with both governors following the lead of New Jersey Governor Phil Murphy’s actions from mid-May. But this policy is not poised for success.
Wisconsin has too little baby formula; out-of-stock rates in Wisconsin his 72% in late May, slightly worse than the national average. Many Wisconsinites have resorted to crossing state lines in order to find formula (Illinois’ out-of-stock rates, at “only” 45%, are the lowest in the nation). Everyone wishes that there was a higher supply of baby formula. So what are price caps supposed to do?
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