The government program that contributed to the baby formula shortage

The Indicator from Planet Money

NPR

Business

4.7 • 9.2K Ratings

🗓️ 23 May 2022

⏱️ 10 minutes

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Summary

Baby formula is in short supply after a voluntary February recall by the manufacturer, Abbott. Today, we explain how the government helped shape the U.S. formula market, and why that structure led to a devastating shortage.

Transcript

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0:00.0	NPR.
0:11.8	This is the indicator from Planet Money, I'm Whalen Wong.
0:14.6	And I'm Darien Woods.
0:16.0	Mickey feel is a graphic designer in Chicago.
0:18.8	And just over a week ago, she was scrolling through her Twitter feed, which he noticed
0:23.2	a lot of people in a timeline talking about the national shortage of infant formula.
0:28.4	He is a mom herself, and she remembers having a rough time with breastfeeding and needing
0:32.9	to supplement with formula.
0:34.7	So she sprang into action.
0:36.6	She set up a Google form to connect parents with people wanting to help and made a digital
0:40.7	flyer promoting her new Mutual Aid effort.
0:43.8	So if you're, you know, in Texas and you're at a Costco or whatever, you see something
0:47.8	and there's somebody that's within, you know, having many miles of you, let's pair you
0:51.6	guys up.
0:52.6	The Google form just filled up like 200 people before I knew it.
0:56.5	There are a lot of reasons behind the formula crisis, but one big factor is actually a government
1:02.3	nutrition program aimed at helping moms and babies.
1:06.4	About half the formula bought in the US gets distributed through this program.
1:10.6	And that means that the government has played an outsized role in shaping the market for
1:14.4	baby formula.
1:16.4	Today on the show, we pull back the curtain on this unique market for baby formula in the
1:21.0	US.
	...

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