Free market response to peanut butter salmonella scare?

I do not disagree, but my husband is not convinced of that. Wall Street is full of companies who traded long term stability for short term profit.

How do we counter that perception?

I would say it's because daddy federal reserve and mommy government will come to their aid and they know it.
Why worry about long term financial health of your company when you and your friends can get insanely rich now, then drop the mess onto the taxpayers and retire as gods.

That is exactly how it turned out. How much worse could it be, seriously.
Without the gov and fed, these companies would have gone bankrupt and creditors would probably chase the execs and their bank accounts around the globe =)
 
Then you won't need an FDA to trace it back to the source because this shit won't happen. The free market solution incorporates the law of the land. The free market does work. This would not happen if the government would prosecute people and throw them in jail for this nonsense.

You could try explaining that to the parents of 300,000 sick babies in China from melamine that was added to their milk. But wait, you say! If it was a free market, the producers would never commit those crimes, because then they would lose customers or face the prospect of being thrown in jail. How's this instead? The ones responsible not only had their businesses shut down, but they were executed. I don't think you'll find a more persuasive argument than that to set an example of the repercussions of polluting products. So by your logic, everything should be safe from China now given the utmost severe punishments delt out to those responsible. Yet China still continues to have incident after incident of dangerous products being freely sold domestically and abroad, ranging from lead to anti-freeze in products because of poor regulation. I don't see how you can argue with a straight face that if what little regulation exists in China were to step aside, all of these problems would magically disappear.
 
Look up Underwriter's Laboritories (UL). The free market can govern itself. People who want to make money generally don't try to kill their customers.:rolleyes:(except the government, of course);)

great example. i, for one, would trust a food product from a factory/company that had been inspected/audited by a firm similar to UL more than from one that may or may not have been inspected by a government agency.

insurance industries would require a certification from some form of inspector prior to issuing insurance.

these are the free-market answers to questions about the FDA (or SEC).

and, relative to the question about Wall Street and short-term profits ahead of long-term stability: as interest rates were pushed near zero, firms sought out returns elsewhere as a method to fund operations and return a certain profit to their investors. this does not diminish their lack of responsibility or due dilligence, but perhaps it can serve as an explanation of one of the reasons investment bankers became such douchebags.
 
I would imagine that shipping products that they knew were tainted would violate their contracts with the businesses and people they are supplying, and enforcing contracts is one of the few roles that I think most people here agree the government has responsibility for. Maybe even dips into fraud, trying to sell products as 1 thing when they are clearly not what they say they are, and enforcing laws against fraud is another of the few roles that I think most people here agree the government has responsibility for.

As for the free market itself, I would imagine voluntary boycott of the company - why would people buy from a company that openly sells tainted products - the company's sales would plummet - and the same would happen to any other company who did something similar, and seeing what it would do to their sales, company's would take it upon themselves to ensure their products were safe and obviously to not willfully send out product which they know to be tainted..

You using "imagine" is a pretty good way to start your post. Did you notice how many products were effected by these 2 peanut factories?

This company has done exactly what you think a company wouldn't, they knew they had a problem and continued to knowingly send it out.
 
Without the government regulatory agencies, citizens and/or the state could charge anyone complicit in distributing tainted food with murder probably.
And the company would almost certainly go under as a result.

With the US gov agencies in charge, no one will get in real trouble, the company will probably even survive.

Gov agencies "protecting" us are in actuality almost always doing more harm than good. If there was no SEC for example, people would be charged and convicted by regular courts and jurors instead of the SEC. I doubt regular people will be very lenient with people ripping them off en masse =)
What does the SEC do to people like Madoff? He is sitting in his penthouse drinking wine and drowning in hookers probably. And if it wasn't for the SEC making people feel "safe", clients would be much less trusting and more scrupulous, which would keep the wall st peoples on their toes. A lot more than watching out for an inspector every month and filing fake SEC paperwork.

Let me get this straight, blind trust of the gov't is in some way worse than no regulation at all?
 
This company has done exactly what you think a company wouldn't, they knew they had a problem and continued to knowingly send it out.

So how is a government agency going to stop this from happening? If anything it gives a false sense of security to the consumer and allows the company to hide behind the veil of government agencies.

The proof is in the pudding.

The government didn't shut them down, the market did. You lose.
 
Let me get this straight, blind trust of the gov't is in some way worse than no regulation at all?

Yes. Because blind trust in the government gives a sense of false security to the consumer, whereas no regulation urges caution, personal responsibility and also increases the effectiveness of branding. Branding is not as effective when the government puts a security blanket over everyone's brand. Think about how much more important brands were to people 70 or 80 years ago. Sears. Five and Dime. Etc.
 
You could try explaining that to the parents of 300,000 sick babies in China from melamine that was added to their milk. But wait, you say! If it was a free market, the producers would never commit those crimes, because then they would lose customers or face the prospect of being thrown in jail. How's this instead? The ones responsible not only had their businesses shut down, but they were executed. I don't think you'll find a more persuasive argument than that to set an example of the repercussions of polluting products. So by your logic, everything should be safe from China now given the utmost severe punishments delt out to those responsible. Yet China still continues to have incident after incident of dangerous products being freely sold domestically and abroad, ranging from lead to anti-freeze in products because of poor regulation. I don't see how you can argue with a straight face that if what little regulation exists in China were to step aside, all of these problems would magically disappear.

...but considering the totalitarian role the Chinese government does take, can you really argue that regulation would help the situation? :rolleyes: Actually, it would in their rare case, but actually implementing and effectively enforcing such regulations would require the same exact change of heart from China's government that it would take to remove all the obstacles to a working free market in the first place: You see, China is extremely messed up in plenty of ways. Sure, they'll execute business owners caught contaminating their products, but how often do they bother catching them instead of just letting it slide? Generally speaking, their government favors industry over protecting people's basic rights (life, liberty, property), because they don't care one bit about people's rights, and they pretty much see every dead citizen as a chance to reduce their population. Heck, I wonder if they don't just think, "Why not let unsanitary food kill some citizens and then squeeze a few extra executions out of it?" :rolleyes:

I mean, they have special fields where crops are grown for government officials, whereas everyone else eats food from the shithole fields. China's market is not a free market, and because of that, it does not serve their consumers - in fact, their consumers have very little market power. Part of this is because they don't even have free speech: Because their media is tightly controlled and consumers aren't exactly allowed to speak openly about the government or companies, the supply/demand curve is extremely skewed against consumers and workers. I mean, it's not like you're going to have hard-hitting journalists freely making weekly reports on dangerous and unsanitary working conditions and workers/consumers catching on to reality and demanding change with their market decisions. Because of their collectivist culture, the Chinese people - as consumers and workers - are a lot more reticent to stand up for themselves as individuals, and both the government and business owners take advantage of that. That's in addition to the government having long suppressed the value of the yuan, destroying the selective buying power and collective price/quality negotiating ability of consumers.

In a free market, demand from both self-interested consumers and workers compels companies to have safe and sanitary conditions, thereby preventing regular outbreak incidents, etc...and ultimately, the conditions demanded by the market (once the economy is large enough to afford them, i.e. post-industrial-revolution-style) will generally exceed the conditions demanded by an intrusive government, without the tax drain and especially the lawyer drain (which undermines small businesses). When you realize that THIS market mechanism is the alternative to regulation, it should be obvious why China fails as an example - they don't have a free market, and their collectivist culture ensures consumers and workers have extraordinarily little leverage or self-interest. Collectivism and a totalitarian government have broken the self-regulating mechanism of their market. Anyway, when outbreak incidents do occur (and they'll occasionally happen, free market or government-controlled market), the gauntlet should fall because of rights violations. heavenlyboy mentioned the way the UL regulates electronics, and their seal of approval is what consumers look for to avoid shady products.

Do you really think that consumers and workers have no power in a free market, and companies will be as unsafe and unsanitary as they can possibly be simply because there are no regulations written into law, which they must go through lawyers and red tape to prove compliance with? If so, consider this: When it comes to food, almost nobody gives a damn about kosher certification - just a few Jewish people and people with special diets - but nevertheless, just about every big food company still sees it worth their while to get private kosher certification for kosher foods! Plus, kosher inspections are so meticulous that manufacturers are generally exempted from government inspections if their plant is kosher-certified, because even the government knows such inspections would be absurdly redundant. Now...in the absence of the FDA (which is corrupt, protects big pharma from liability, and basically bans competition against big pharma) and USDA, what do you think would happen? Would companies get away with unsanitary food? Hell no! Self-interested consumers wouldn't put up with that crap! If just a few Jewish people and special diets people are enough to demand kosher inspections, do you realize what kind of pressure everyone else - who DOES care about safe food - would put on companies to be privately inspected? Consumers would know to look for certification from the best and most trustworthy inspection agency around before buying food products...and unlike the FDA, private agencies can be held accountable (either in court or by decreased market share) if they start slacking off or becoming corrupt. Plus, without an FDA or USDA mandating by law what kind of product information must be and cannot be on the packaging, companies might even start to compete based on increased transparency.


By the way, this is worth repeating:
So how is a government agency going to stop this from happening? If anything it gives a false sense of security to the consumer and allows the company to hide behind the veil of government agencies.

The proof is in the pudding.

The government didn't shut them down, the market did. You lose.
 
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So how is a government agency going to stop this from happening? If anything it gives a false sense of security to the consumer and allows the company to hide behind the veil of government agencies.

The proof is in the pudding.

The government didn't shut them down, the market did. You lose.

The market forced the recall? The company isn't paying anyone back for the tainted peanut butter, they win.
 
no, all regulation is bad if it's involuntary, some people need to die and test for themselves if they want to know the quality of PB, that's the price of freedom, YOU PAY YOUR OWN RISK.
 
So how is a government agency going to stop this from happening? If anything it gives a false sense of security to the consumer and allows the company to hide behind the veil of government agencies.

The proof is in the pudding.

The government didn't shut them down, the market did. You lose.

so if the market, or the company had the power to prevent the word from getting out, you'd have no problem with merchants knowingly selling bad products even if they knew it's suicidal to their business? (don't be afraid to say yes, I agree).
 
so if the market, or the company had the power to prevent the word from getting out, you'd have no problem with merchants knowingly selling bad products even if they knew it's suicidal to their business? (don't be afraid to say yes, I agree).

I know you're speaking to dannno with three n's, but I'll answer: You're trying to frame the issue as a false dichotomy, Josh...as usual. I'm not sure if you're just confused or a self-aware sophist, but...if I were a Christian, I'd probably consider you an emissary of the devil, considering just how adept you are at trying to verbally maneuver people into buying your moral relativism. :rolleyes:

Anyway, onto your question: I do have a problem with someone doing this - and if they harm someone by doing so, they're damn well liable! However, that's only after the fact! A priori, nobody has the right to play big brother over the shoulders of every merchant, violating their liberty in a futile [supposed] attempt to prevent this, while raising the cost of doing business and putting small companies at an unfair disadvantage. Do you really not understand how it's possible for someone to have a moral problem with aggression and want it punished without wanting a constant watchdog micromanaging everyone from the beginning, requiring them get an expensive lawyer and a permit and government inspection before they're allowed to operate any little aspect of their business? :rolleyes:
 
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Let me get this straight, blind trust of the gov't is in some way worse than no regulation at all?
Errr, this one should really be common sense...and Malakai's post - which you were responding to - didn't do a bad job explaining why, either.

The market forced the recall? The company isn't paying anyone back for the tainted peanut butter, they win.

They're not? Well, then - in that case, don't you think all of their direct customers might think twice about buying from that company again, knowing they'll never get their money back in the event of a recall? Failing to pay back their customers is a pretty short-sighted business move, and I imagine it's going to cost them, assuming that's actually what's happening in this case. Of course, that's aside from the whole LIHOP thing. ;)
 
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I know you're speaking to dannno with three n's, but I'll answer: You're trying to frame the issue as a false dichotomy, Josh...as usual. I'm not sure if you're just confused or a self-aware sophist, but...if I were a Christian, I'd probably consider you an emissary of the devil, considering just how adept you are at trying to verbally maneuver people into buying your moral relativism. :rolleyes:
At least I believe in what I ask.


Anyway, onto your question: I do have a problem with someone doing this - and if they harm someone by doing so, they're damn well liable! However, that's only after the fact! A priori, nobody has the right to play big brother over the shoulders of every merchant, violating their liberty in a futile [supposed] attempt to prevent this, while raising the cost of doing business and putting small companies at an unfair disadvantage.

That's again, very easy to say until the harm is done, after the fact, you'd wish you paid thousands for the possibility of preventing one sick consumer (oh wait, maybe you're like me, money upfront is more important).

Do you really not understand how it's possible for someone to have a moral problem with aggression and want it punished without wanting a constant watchdog micromanaging everyone from the beginning, requiring them get an expensive lawyer and a permit and government inspection before they're allowed to operate any little aspect of their business? :rolleyes:

No, I understand, I DON'T UNDERSTAND THOUGH, why there is a big deal about how it's done, who does it, what it costs, doing it before or after. The question should be whether it's the moral thing to do, if it is, shouldn't we do it at all costs? If it's not, does it matter how legal it is?

Question for you is, do YOU understand that the price of freedom is people will get hurt? Do you understand that another person's life is not worth certain people's time worrying about? Do you understand just because I sound sarcastic, I am not? Do you understand that every system has a downside, and admitting it is not the end of the world?
 
At least I believe in what I ask.
That's what I'm still not sure about, hence the comment about how I'm not sure if you're just confused or a self-aware sophist!

That's again, very easy to say until the harm is done, after the fact, you'd wish you paid thousands for the possibility of preventing one sick consumer (oh wait, maybe you're like me, money upfront is more important).
When you say "you'd wish you paid," who are you referring to...the business owner? If I owned a business, I'd certainly do everything I can to instill trust in my customers (plus, when it comes down to it, I actually do care about people anyway). Money up front and quarterly profits are great I guess, but even in the purely selfish and practical sense, such an intense focus on the short-term can undermine your business in the long-term...whereas developing a reputation for trustworthiness, customer service, etc. can go a long way towards customer loyalty. One of my favorite examples here is in Randy Pausch's book, The Last Lecture, where he talks about how Disney's generous return policy (back in the day) ultimately netted them $100,000 in further business from his family. That said, customer loyalty - and what consumers want in general - are much bigger factors in a free market where small competition isn't being suppressed by government policy...so I guess it's no surprise that quarterly reports are the name of the game in today's corporate-fascist market. :rolleyes:

No, I understand, I DON'T UNDERSTAND THOUGH, why there is a big deal about how it's done, who does it, what it costs, doing it before or after. The question should be whether it's the moral thing to do, if it is, shouldn't we do it at all costs? If it's not, does it matter how legal it is?
This depends on what you're asking. I believe in universal morality, but I do not believe in absolute morality. Of course I propose that we should always do the moral thing (although sometimes there's some ambiguity involved, such as in a situation I've addressed in this post.) Because you made a comment about "how much it costs," I'm not quite sure exactly what you're asking, so I'll cover more than I otherwise may have. First, I'll clarify with two points what I mean by "we should always do the moral thing," assuming natural rights stemming from rightful self-ownership (and by extension, ownership of property rightfully acquired). I know you don't believe in natural rights, but you still understand the terminology, so I'll use it to convey my viewpoint:
  • We have a moral obligation to respect people's rights (rather than violate them), and we should be held accountable when we do violate them. By violating someone's rights, we're violating their self-ownership, and in short, we owe it back to them...with interest of some sort, in my opinion. I say "in my opinion," because I believe that universal morality exists, but I don't necessarily presume my guess of its parameters to be 100% correct. I do think I'm close, though. This is different from moral relativism though, which holds universal morality does not even exist whatsoever, and that there is no right or wrong...which is what you believe. Anyway, this leads into the idea of protecting people's rights, which is different from merely respecting them: Although good, caring people will make reasonable efforts to protect other people's rights as well as respect them (and to help them out in general), it takes violating someone else's rights before you owe it to them to forfeit any of your own rights or self-ownership. In other words, we can't rightly force a sovereign individual to protect or sacrifice for someone else, because that would violate their own self-ownership without them having violated anyone else's. Still, in terms of moral judgments, my conscience tells me there is still a such thing as morality above and beyond respecting people's rights. For instance, I'd say a person who gives to charity is a better person than one who mocks the poor, all other things being equal...but that's just my opinion, and I could be wrong. Based on our own consciences, we can make rough judgments about how good of people we are, but beyond respecting people's rights, it's damn-near-impossible to come up with any kind of objective, non-arbitrary rule about what kind of behavior is "adequately moral." For all we know, an anthropomorphic male God with a big dangling penis and a beard might own a very detailed morality judgment scale with a ten trillion page tome covering every possible situation, but since that's impossible to know - muchless agree upon - we're left with subjective rough estimates when it comes to morality beyond natural rights and what a good person "should" do in every situation. ;)
  • Respecting other people's rights doesn't mean, "Spend every penny you own micro-inspecting every piece of food you sell and live like Bubble Boy to prevent accidentally breathing on someone." It simply means, don't appreciably violate someone else's self-ownership. You're still causally responsible and generally liable if you directly cause appreciable harm to someone even on accident, but there's still a difference between liability and having done something morally reprehensible.

So, back to the point: In the moral sense, people should always refrain from committing immoral actions...but policing morality and proactively micromanaging others to prevent them from committing aggression is another matter, because taking certain actions in the course of policing aggressive behavior are inherently aggressive by themselves. That's why it matters how it's done, who does it, and when they do it. To give an extreme example, it would be immoral and a violation of someone's rights for a little kid to steal someone's ice cream cone, but that doesn't mean it's acceptable for a police officer to shoot a suspicious-looking kid in the head first to prevent the crime from happening...after all, that in itself is a crime, and it's quite a serious one. The same principle applies to preemptive business regulation and big brother micromanagement by some self-appointed authority, with obvious differences in degree (of course, the authority might be "majority-appointed" or whatever else, but that still doesn't confer legitimacy).

Question for you is, do YOU understand that the price of freedom is people will get hurt? Do you understand that another person's life is not worth certain people's time worrying about? Do you understand just because I sound sarcastic, I am not? Do you understand that every system has a downside, and admitting it is not the end of the world?

First off, I should point out that your first question carries the false and unsubstantiated assumption that permitting freedom and eschewing authoritarianism would cause more people to get hurt. Frankly, people will always get hurt, regardless of whether they live in a free country or not. However, I do strongly believe - the morality of liberty aside - that in an entirely practical sense, libertarian policies would ultimately involve the least number of people getting hurt. I don't consider people getting hurt the price of freedom, because people getting hurt is simply the price of life.

Still, I do understand your question, and I will answer it more directly:
Hypothetically speaking, let's say you could undeniably prove that allowing people to be free would result in more people getting hurt than...than, well, some level of authoritarianism by some group of people who consider themselves "special" (:rolleyes: ). Even then, I would still be a strong supporter of freedom, simply because I still believe in self-ownership of each person's life. Let's change the scenario, though: If you could undeniably prove that allowing people to be free would result in the end of the world, well...then I'd be more open to loosening my moral standards a bit further for pragmatic reasons. ;) I may be much more of a principled moral idealist than 99% of the population, and I'm fully committed to at least staying close to my moral convictions...but I nevertheless fully recognize that I'm still not 100% consistent. I'm not fully convinced by the idea of anarcho-capitalism yet, and I still wonder if a minarchist government might be a necessary evil, even though I readily acknowledge it as an evil. In other words, it should be readily apparent that I'm willing to tolerate and turn a blind eye to some small level of immorality for a perceived practical benefit.

To answer your other questions:
"Do you understand that another person's life is not worth certain people's time worrying about?"
Well, it depends on what you're asking. On one hand, your life is your own, and I don't expect you to be losing sleep every night over starving children in Antarctica. As cold as it might sound to some, it's simply not your problem unless you want it to be. On the other hand, in the case of the peanut butter incident: Let's say you were the guy who knowingly sold contaminated peanut butter. In that case, you obviously didn't think other people's lives were "worth your time" to worry about, so you deliberately sold peanut butter you knew would harm people. Regardless of whether you felt their lives "worth your time" though, their lives were certainly worth THEIR time, and it wasn't your right to knowingly do something that was likely to take them away, etc. Do what you want with your life, but once you encroach upon someone else's equal liberty and self-ownership, that's when you deserve to be taken to the shithouse (regardless of whether anyone has the "might" to bring you to justice, in the practical sense).

"Do you understand just because I sound sarcastic, I am not?"
I answered you seriously, right? ;)

"Do you understand that every system has a downside, and admitting it is not the end of the world?"
I understand that no system will ever have a 100% perfect outcome for everyone involved, but that doesn't mean all systems are created equal with equally weighted upsides and downsides, either. It sounds like you're trying to get me to concede to some wishy-washy relativist notion that each system is just as valid (practically or morally) as the next, but I totally disagree with that. On the contrary, I'm fully convinced that acknowledging self-ownership, permitting liberty, and rejecting arbitrary authority is objectively better - both morally and practically - than allowing arbitrary authority to rule over people's lives, whether we're talking about protectionism, socialism, Communism, fascism, or whatever else. Sure, we can never achieve a utopia, but the practical upsides to libertarianism seriously outweigh the practical downsides...which does not even remotely hold for more statist philosophies.
 
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I do not disagree, but my husband is not convinced of that. Wall Street is full of companies who traded long term stability for short term profit.

How do we counter that perception?
THIS abomination is most definitely NOT the FREE MARKET, by several country miles ( light years ).

Does that work? :D
 
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So how is a government agency going to stop this from happening? If anything it gives a false sense of security to the consumer and allows the company to hide behind the veil of government agencies.

The proof is in the pudding.

The government didn't shut them down, the market did. You lose.

What's the average death toll from tainted products until the almighty market corrects itself...
 
What's the average death toll from tainted products until the almighty market corrects itself...

What's the average death toll from tainted products until the almighty FDA corrects itself...

"Capitalism should not be condemned, since we haven't had capitalism." --Ron Paul
 
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