The Economics of Infant Formula Shortages

The pandemic has resulted in supply chain disruptions, and goods shortages across multiple industries. But few shortages have caught the public’s attention like that of infant formula. Kadee Russ of UC Davis joins EconoFact Chats to discuss some of the structural reasons behind this shortage, focusing on the role of regulation, the power of lobbying, the role of advertising, and the impact of trade restrictions. Kadee also highlights what good government policy for ensuring the supply of infant formula might look like. Kadee Russ is an Associate Professor of Economics at the University of California at Davis.