When it comes to pork rinds, U.S. producers have long had the most skin in the game. They produce more of the crispy pigskin snacks than anyone in the world. Now a new federal rule that will loosen import regulations for pork rinds is roiling the industry. The Department of Agriculture, responding to an Ohio company's request, has opened the door to imports of the pig skins used for pork rinds from Brazil and other nations.
Just as in the kiosk case, guess who is fussing about the relaxed import rules? If you said "consumer groups" then go back to the back of the room. If you said incumbent business interests or government officials, then you win a seat at the front of the room.
That has stirred an uproar among rivals and many state agriculture officials, who warn that importing pork rinds from areas of the world afflicted with livestock diseases is a threat to food safety.
Aren't consumers perfectly able to determine for themselves what is best for them? Of course we are, especially in these days of Google searches, blogs, and all kinds of "answers" pages. We're smart and don't need to be babysat.
TBut while the overall benefits of relaxing rules to increase competition to consumers is likely to be large, the marginal benefit felt by any one person is small and not worth fighting for.
Now, no-one wants to eat nasty pork rinds. But one of the things that competition does is that it drives firms to deliver safer products, to put more effort into quality control, knowing that if they put a bad product on the marketplace, their business would suffer and their rivals would gain business. But of course this added attention to quality control means higher costs Plus more competition also means lower prices. So more competition means thinner profit margins for incumbent interests, and they band together and fight rules that would bring them more competitors.
What about state ag officials? At least their job is to make products safer, right? Well, if consumers and, via competition, firms can maintain decent levels of safety without government help, then who needs state agricultural officials to look after us? Despite the veneer of being a government employee, they are as rational and self-interested as the rest of us.
But since the costs of competition are felt by a relatively small number of people, the marginal effect on any one of them is large relative and makes it worthwhile for them to organize and fight against such rulings.