Ron Bailey commented that Nestle discovered and dropped the Georgia supplier of tainted peanuts a year before the FDA discovered the problem. He cites Nestle as an example of how "free market" was able to detect a problem (tainted food) and take preventative action (ie. terminate all supply contracts) before governement "regulation". Mr. Bailey's Nestle reference raises some larger questions.
Small Question: Why did the "free market" not work for the more than 70 companies that were purchasing from that same supplier?
Larger Question: If companies in an unregulated market will detect problems faster than government regulations and supervision, WHY are there product / food recalls? Basically, how can the market participants not notice: toxic waste jewelry (cadium), tainted eggs, tainted meats, tainted dog food, toxic dolls, etc.
Is there some particular government regulation that actively prevents companies from discovering the supply chain is compromised?
LARGEST QUESTION: Before deregulation advocates even begin extolling "free market" virtues, isn't it incumbent upon them to explain WHY companies consistently FAIL to catch the "bad apples" in the market? Shouldn't we be asking, what governement regulation prevented all (or nearly all) market participants to not: notice the housing bubble, discover the tainted foods / consumer products, properly vent methane from a Masey coal mine, realize the Global Financial System was nearing collapse, not notice Berney Madoff was a fraud, etc., etc., etc.?