On Friday, Democratic New York Attorney General Letitia James demanded that infant formula merchants “stop overcharging.”
The shortage of infant formula has worsened for months, resulting in multiple illnesses among youngsters and increased costs for their parents.
James attributed the high costs to “price gouging” on the part of retailers, even though the laws of economics would predict a lack of supply would result in higher prices.
In a press statement, she stated, “It is immoral that certain merchants seek to take advantage of the national infant formula scarcity while parents struggle to obtain nutrition for their children.”
“We alert all shops that New York will not allow baby formula price gouging. I urge anyone who observes this to keep exposing it to my office.”
If you come across anyone price gouging baby formula, immediately report it to my office:https://t.co/jdWVCnyNO5
— NY AG James (@NewYorkStateAG) May 27, 2022
New York’s price gouging rules restrict the practice for consumers, smaller businesses, and government organizations.
However, “it is not overcharging for merchants to restrict the amount of formula they offer to individual consumers,” the release explained.
In fact, the statement’s admission indicates that price limits invariably result in shortages.
If vendors cannot adjust prices in response to fluctuating demand, they will be compelled to force competition through other means, such as requiring customers to wait in lines or unfairly limiting supply.
— Emilee Fannon (@Emilee_Fannon) May 26, 2022
Despite this, Democrats have regularly advocated for price regulation in the face of numerous economic constraints throughout the past year.
Economics of the Democrats
Prior to Thanksgiving, Sen. Elizabeth Warren accused meat and poultry companies of “price manipulation,” “excessive consolidation,” and “simple corporate greed” over the rise in turkey costs.
Warren also demanded intervention from the Department of Justice.
She claimed, “when businesses have monopoly power as huge suppliers, they are able to raise the prices of the commodities they sell.”
Warren, however, disregarded the idea that enterprises’ pricing hikes are attributable to “inflationary costs.”
That’s despite the fact that multiple reports suggested the high cost of maize feed was causing a slight drop in turkey production.
House Speaker Nancy Pelosi (D-CA) recently promoted the “Consumer Fuel Price Gouging Prevention Act,” which would empower President Biden to regulate gas prices under the pretense of an “energy emergency.”
Pelosi stated, “Over and over again, we see gas prices climb. Occasionally when the cost of oil falls, oil prices fall. Price gouging must be stopped.”
Continually, Democrats have advocated for short-term, demand-side fixes to rising gas costs, like rebate schemes and credit cards.
The Biden administration also demanded that oil corporations raise their supply while canceling a massive oil and gas lease sale in Alaska and two auctions under review in the Gulf of Mexico.
This week, FDA Commissioner Robert Califf told the Senate he thinks there will be a “steady improvement” over the next two months before baby formula is back on store shelves in full.