In every administration, particularly more right than left, the idea of cutting back regulations to unleash the power of private business is a theme. At times, administrations on the left tend to want to regulate or do government actions for all the wrongs of the economy. There is no magic wand, but administrations tend to move back and forth as interest groups tend to want to get rid of regulations they do not like.

In an article from the Associated Press, recently there was a outbreak of E coli food poisoning tied to onions in McDonald’s. The company did the correct thing, it sent the onions back to the supplier in this case, Taylor Farms which is a large food company based in California, served burgers without onions and after a few days new shipments of onions were received, and all was back to normal. The Federal Food and Drug Administration (FDA) said there does not appear to be a food issue related to McDonald’s. The issue was sales went down and now McDonald’s is spending an extra $100 million ad dollars on bringing customers back to the stores.

Linking to dividend paying stocks, all profitable companies want to work with the government and maintain their high margins. No amount of regulations can correct the wrongs of the entire economy, but governments sometimes try. Businesses have lobbyists to ensure that their interests are protected, and regulations are reasonable to have good products. All over the world, we have seen and will continue to see fake and bad products in the market and profitable companies have a duty to fight against the products. In the early 1900’s there was little food regulations, and it was known as the decade of the bellyache, and we do not want to go back to there. One tends to believe the use of AI will help ensure the regulations that are good are easily followed and we will see. In the meantime, we will see how much of the regulations are cut with the new administration in Washington. Will it cost companies money?

There are more questions than answers, till the next time – to raising questions.