Cramer: RFK Jr. at HHS Won't Sink Junk Food and Drug Industries
Friday, Nov 15, 2024 7:26 pm ET
1min read As the dust settles on the 2024 election, one appointment has caught the eye of investors and health enthusiasts alike: Robert F. Kennedy Jr. (RFK Jr.) as the potential Secretary of Health and Human Services (HHS). With his controversial stances on vaccines and ultra-processed foods, many are wondering if his leadership could spell disaster for the junk food and drug industries. But Jim Cramer, host of CNBC's Mad Money, isn't convinced.
Cramer believes that even with RFK Jr. at the helm of HHS, these industries are unlikely to face ruin. He argues that the enormous federal organization, housing major health agencies like the FDA, CDC, and NIH, will push back against radical changes. Additionally, the food lobby and Americans' aversion to being told what to do may further mitigate the impact of RFK Jr.'s policies.
However, potential changes to drug approval processes could still impact the industry under Kennedy's leadership. His skepticism towards vaccines could influence policy decisions, potentially impacting the development and distribution of vaccines for emerging diseases. Additionally, his focus on reducing ultra-processed foods could encourage healthier lifestyles, potentially reducing the demand for certain pharmaceuticals.
But Cramer isn't the only one weighing in on this topic. A 2024 Fortune article highlights RFK Jr.'s desire to restrict the use of chemicals added to kids' food, arguing that it only enriches corporate America. He wants to ban additives like synthetic dyes, which could lead to healthier choices and reduced consumption of ultra-processed foods. However, the food industry has shown resilience in the face of previous regulatory pressures, and companies have adapted by reformulating products, keeping sales stable.
In conclusion, while RFK Jr.'s appointment to HHS may pose some challenges for the junk food and drug industries, it's unlikely to devastate them. The complex nature of these industries, the influence of various stakeholders, and the resilience of the food lobby will likely mitigate any negative impact. As investors, it's crucial to stay informed about these developments and consider the broader implications for the industries involved.
Cramer believes that even with RFK Jr. at the helm of HHS, these industries are unlikely to face ruin. He argues that the enormous federal organization, housing major health agencies like the FDA, CDC, and NIH, will push back against radical changes. Additionally, the food lobby and Americans' aversion to being told what to do may further mitigate the impact of RFK Jr.'s policies.
However, potential changes to drug approval processes could still impact the industry under Kennedy's leadership. His skepticism towards vaccines could influence policy decisions, potentially impacting the development and distribution of vaccines for emerging diseases. Additionally, his focus on reducing ultra-processed foods could encourage healthier lifestyles, potentially reducing the demand for certain pharmaceuticals.
But Cramer isn't the only one weighing in on this topic. A 2024 Fortune article highlights RFK Jr.'s desire to restrict the use of chemicals added to kids' food, arguing that it only enriches corporate America. He wants to ban additives like synthetic dyes, which could lead to healthier choices and reduced consumption of ultra-processed foods. However, the food industry has shown resilience in the face of previous regulatory pressures, and companies have adapted by reformulating products, keeping sales stable.
In conclusion, while RFK Jr.'s appointment to HHS may pose some challenges for the junk food and drug industries, it's unlikely to devastate them. The complex nature of these industries, the influence of various stakeholders, and the resilience of the food lobby will likely mitigate any negative impact. As investors, it's crucial to stay informed about these developments and consider the broader implications for the industries involved.
