Saturday, September 16, 2017

Squawk Box

America, have your heard?
I got a brand new dance and it's called 'The Bird'
--Morris Day and the Time

Classic example of excessive regulation. An Obama era 2014 regulation limits the number of chickens that can be processed in a plant to 140/minute. A trade group representing poultry companies is petitioning the USDA for an increase to 175.

Rationale for the limit includes worker and food safety. Poultry companies cite pilot plant results that no adverse safety impact of higher production rates.

Regardless, government has no rightful role in dictating these production rates. If producers lose control of their processes at higher production rates, then they will be penalized in the market (for both labor and product).

Government's rightful role is settling legal disputes that may result. For example, if consumers sickened by bad birds, then then it is their right to seek recompense in the courts.

Stated differently, let markets (buyers and sellers) set proper production rates, not government.

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