Following the announcement of Robert F. Kennedy Jr. as President-elect Donald Trump's pick for Secretary of Health and Human Services (HHS), many have raised concerns about the future of public health policy.
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However, CNBC's Jim Cramer stated that even with Kennedy's controversial stances potentially undoing "some of the biggest public health advances of the last century," the pharmaceutical and processed food industries likely won't see drastic disruptions.
The HHS is a large federal agency with a $1.7 trillion budget and over 80,000 employees. It oversees programs like Medicare, Medicaid and the Free Vaccines for Children Program and manages agencies such as the Food and Drug Administration (FDA), Centers for Disease Control and Prevention (CDC) and National Institutes of Health (NIH).
Kennedy, a vaccine skeptic and critic of processed foods, desires to reshape public health policy. Critics, including Cramer, argue his views could roll back scientific advancements in vaccines and nutrition. Kennedy has voiced his intent to address what he calls a "broken" food system and has proposed unconventional approaches, such as substituting weight-loss drugs with subsidized gym memberships and organic food for Medicaid recipients.
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Despite Kennedy's ambitions, Cramer is skeptical about their impact. While speaking on Mad Money, he said, "The interests within the government, notably the staff, will push back and the food lobby will push back. And, most important, Americans just don't like being told what to do."
Cramer believes the cultural resistance, paired with the influence of government staff and lobbyists, will ultimately limit Kennedy's ability to make sweeping changes.
Cramer also emphasized that industries like pharmaceuticals and processed foods are deeply entrenched in U.S. systems and have significant lobbying power. Previous attempts to curtail processed foods or radically shift public health narratives often face resistance from the public and policymakers.
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Stock prices for companies like Eli Lilly, Moderna, PepsiCo and General Mills declined after Kennedy's nomination. However, Cramer argues that these industries are resilient and have diversified portfolios that extend beyond vaccines or specific food products.
Processed food companies, backed by strong lobbying efforts, have historically fended off major regulatory changes. While Kennedy's focus on nutrition may gain bipartisan support, Cramer states that achieving substantial reforms would require navigating the complex web of political and economic interests supporting the current food system.
Ultimately, Cramer – known for his investment advice on Mad Money – said that while he doesn't see the drug and food industries taking a huge hit with Kennedy at the helm, he's not recommending investors purchase these stocks.
"For now, nobody wants to take a chance on these already out-of-favor industries," Cramer said. "And, you know what, I can't blame them," he said.
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