30th August 2010
There have been a lot of unsurprising news stories lately. Rod Blagojevich going on TV. Tiger Woods and his wife divorcing. The economy racing along like an elderly tortoise. And the Food and Drug Administration saying the salmonella outbreak proves the agency needs more power.
We should have seen that coming. In the private sector, entities that fall short of doing their jobs find themselves forced to shrink. In the public sector, the opposite is typically true. Failure is an option, and often a beneficial one.
The Federal Reserve Board and Treasury facilitated the 2008 financial crisis? Then obviously we have no choice but to give them even more responsibility. The Securities and Exchange Commission let Bernie Madoff rob investors? A bigger SEC will be a smarter SEC.
It’s true that the FDA is charged with assuring food safety. But really, the government can’t do that. The task is too big and too complex. Fortunately, it doesn’t have to do it, because the pressures of competition force producers to make sure their goods are clean and wholesome.
What goes curiously unnoticed is that egg suppliers and grocery stores have nothing to gain from sickening their customers—and a lot to lose. It doesn’t take many obvious hygiene lapses for a company to get a bad reputation, and a bad reputation can be catastrophic.
In 1971, a New York man died of botulism after eating a can of Bon Vivant soup. If you’ve never heard of Bon Vivant soup, there’s a simple explanation: In no time at all, the company was bankrupt and the brand was as defunct as William McKinley.