Friday, October 31, 2014

#29 – "Upton Sinclair's ‘The Jungle' Proved Regulation Was Required" : The Freeman : Foundation for Economic Education

#29 – "Upton Sinclair's ‘The Jungle' Proved Regulation Was Required" : The Freeman : Foundation for Economic Education


A little over a century ago, a great and enduring myth was born. Muckraking novelist Upton Sinclair wrote a novel entitled The Jungle—a tale of greed and abuse that still reverberates as a case against a free economy. Sinclair’s “jungle” was unregulated enterprise; his example was the meat-packing industry; his purpose was government regulation. The culmination of his work was the passage in 1906 of the Meat Inspection Act, enshrined in history, or at least in history books, as a sacred cow (excuse the pun) of the interventionist state.
A century later, American schoolchildren are still being taught a simplistic and romanticized version of this history. For many young people, The Jungle is required reading in high-school classes, where they are led to believe that unscrupulous capitalists were routinely tainting our meat, and that moral crusader Upton Sinclair rallied the public and forced government to shift from pusillanimous bystander to heroic do-gooder, valiantly disciplining the marketplace to protect its millions of victims. 
But this is a triumph of myth over reality, of ulterior motives over good intentions. Reading The Jungle and assuming it’s a credible news source is like watching The Blair Witch Project because you think it’s a documentary. 
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Most Americans would be surprised to know that government meat inspection did not begin in 1906. The inspectors Holbrook cites as being mentioned in Sinclair’s book were among hundreds employed by federal, state, and local governments for more than a decade. Indeed, Congressman E. D. Crumpacker of Indiana noted in testimony before the House Agriculture Committee in June 1906 that not even one of those officials “ever registered any complaint or [gave] any public information with respect to the manner of the slaughtering or preparation of meat or food products.” 
To Crumpacker and other contemporary skeptics, “Either the Government officials in Chicago [were] woefully derelict in their duty, or the situation over there [had been] outrageously overstated to the country.” If the packing plants were as bad as alleged in The Jungle, surely the government inspectors who never said so must be judged as guilty of neglect as the packers were of abuse.
Some 2 million visitors came to tour the stockyards and packinghouses of Chicago every year. Thousands of people worked in both. Why did it take a novel, written by an anticapitalist ideologue who spent but a few weeks in the city, to unveil the real conditions to the American public? 
All the big Chicago packers combined accounted for less than 50% of the meat products produced in the United States, but few if any charges were ever made against the sanitary conditions of the packinghouses of other cities. If the Chicago packers were guilty of anything like the terribly unsanitary conditions suggested by Sinclair, wouldn’t they be foolishly exposing themselves to devastating losses of market share?
In this connection, historians with an ideological axe to grind against the market usually ignore an authoritative 1906 report of the Department of Agriculture’s Bureau of Animal Husbandry. Its investigators provided a point-by-point refutation of the worst of Sinclair’s allegations, some of which they labeled as “willful and deliberate misrepresentations of fact,” “atrocious exaggeration,” and “not at all characteristic.” 
Instead, some of these same historians dwell on the Neill-Reynolds Report of the same year because it at least tentatively supported Sinclair. It turns out that neither Neill nor Reynolds had any experience in the meat-packing business and spent a grand total of two and a half weeks in the spring of 1906 investigating and preparing what turned out to be a carelessly written report with predetermined conclusions. Gabriel Kolko, a socialist but nonetheless a historian with a respect for facts, dismisses Sinclair as a propagandist and assails Neill and Reynolds as “two inexperienced Washington bureaucrats who freely admitted they knew nothing” of the meat-packing process. Their own subsequent testimony revealed that they had gone to Chicago with the intention of finding fault with industry practices so as to get a new inspection law passed. 
According to the popular myth, there were no government inspectors before Congress acted in response toThe Jungle, and the greedy meat packers fought federal inspection all the way. The truth is that not only did government inspection exist, but meat packers themselves supported it and were in the forefront of the effort to extend it so as to ensnare their smaller, unregulated competitors.
When the sensational accusations of The Jungle became worldwide news, foreign purchases of American meat were cut in half and the meat packers looked for new regulations to give their markets a calming sense of security. The only congressional hearings on what ultimately became the Meat Inspection Act of 1906 were held by Congressman James Wadsworth’s Agriculture Committee between June 6 and 11. A careful reading of the deliberations of the Wadsworth committee and the subsequent floor debate leads inexorably to one conclusion: knowing that a new law would allay public fears fanned by The Jungle, bring smaller rivals under controls, and put a newly laundered government seal of approval on their products, the major meat packers strongly endorsed the proposed act and only quibbled over who should pay for it.
In the end, Americans got a new federal meat inspection law, the big packers got the taxpayers to pick up the entire $3 million price tag for its implementation, as well as new regulations on the competition, and another myth entered the annals of anti-market dogma.
To his credit, Sinclair actually opposed the law because he saw it for what it really was—a boon for the big meat packers. He had been a fool and a sucker who ended up being used by the very industry he hated. But then, there may not have been an industry that he didn’t hate.

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