Baby Formula Shortage Prompts NJ State Of Emergency: Murphy
Those looking to make a profit by increasing baby formula prices will face severe penalties in New Jersey, officials said.
Nicole Rosenthal, Patch Staff
Posted Wed, May 18, 2022 at 8:40 am ET
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NEW JERSEY – Gov. Phil Murphy declared a state of emergency in New Jersey on Tuesday amid an ongoing shortage of baby formula due to inflation, supply chain issues and recalls in the state and around the country.
The declaration was signed in order to activate New Jersey price gouging laws consistent with efforts at the federal level, according to Murphy.
“We firmly believe that New Jersey is the best place in the nation to raise a family, and during this challenging time, we want to support our
families with all of the resources at our disposal,” Murphy said in a statement.
“To any retailer who may try to take advantage of vulnerable families during this shortage, let me be clear that this reprehensible action will not be tolerated. And to any New Jerseyan affected by this shortage, rest assured that my administration will do everything in our power to ensure families have access to the formula they need.”
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Once again, this is just Gooferment stupidity. There’s no such thing as “price gouging”. Higher prices are the signals from the market that makes TWO things happen — conservation of a scarce resource and an incentive to entrepreneurs to provide resources or alternatives. Baby formula is no different that any other commodity. Argh!
Like the hotels taking in refugees from a natural disaster MUST raise their prices to encourage “conservation”. If the price is “too high”, then a family will squeeze into one room rather than spread out into two. Then this will leave that other room free for some other family. The market place “rations” scarce resources by higher priced.
Also, entrepreneurs may open a spare bedroom during an emergency to make a few bucks because of those high prices.
Real economists like Walter Williams have made much stronger arguments than I ever can. But it’s clear that politicians and bureaucrats never studied any economics or enjoy posturing for the publicity.