Question

Ms. Sakamoto of the Mother’s Milk Bank notes that studies show that breast milk sold on the breast milk markets risks being contaminated with cow milk etc. She says that "these studies show that if moms are paid for their breast milk, these are the kind of problems we will see." Do you agree with Ms. Sakamoto? Explain using economic thinking.

Answer 1

For the breast milk market to work, there has to be sufficient supply of breast milk. Not all lactating mothers would be willing to contribute to the supply without receiving a payment for the same. There might be some women who are willing to donate breast milk but given the scenario of an unpaid effort, the supply might be very less.

Also, the contamination being talked about is a part of every market in the economy. There is known presence and risk of contamination in any and every good being sold in the market. This does not make producing or providing 'free goods' a solution. This will create huge excess demand for a product. So, if it has been suggested by Ms. Sakamoto that the milk must be an unpaid contribution, this will render all markets in the economy useless.

There will be no (or negligent number of) producer who would be willing to supply free products.

Thus, the breast milk market will function the same way as other markets and providing a free good will leave no incentive for the women to donate.