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One of the reasons baby formula is in high demand is that WIC subsidies are generous but effectively set a price cap for many customers. If a business wants to
by Kalium 5y ago
One of the reasons baby formula is in high demand is that WIC subsidies are generous but effectively set a price cap for many customers. If a business wants to make more money, they have to squeeze on the cost side. Buying stolen product can be a good way to cut costs on the supply side if you run a small and inefficient operation.
I hope that helps clarify things for you! The reason it appears sad at first blush is not true, even with any number of financial exchanges in between.
I found the article I linked previously to be highly educational on this subject.
- tshaddox 5y agoNo, that’s still sad for the exact same reason.
- Kalium 5y agoHow so? As far as I can tell, this does not indicate that people can’t afford baby formula and diapers, quite important items. Instead the whole system works because the people who need them do have ready access to these vitally important items to keep their children safe, healthy, and happy because the WIC and Medicaid systems successfully perform their intended functions. I clearly have missed something.
- dragonwriter 5y ago> As far as I can tell, this does not indicate that people can’t afford baby formula and diapers It says that there is a significant enough segment of the market dependent on WIC to do so that it sets a price cap that drives market behavior enough to motivate sponsored theft by retailers as a means of keeping prices at a level that allow them to stay under the price cap of the WIC-dependent population. Which is exactly saying that a mass of people can't afford baby formula and diapers, at prices the market sets absent theft, even with existing public assistance for exactly that purpose.