The February shutdown of an Abbott Laboratories plant in Michigan due to contamination precipitated the nationwide baby formula shortage. The plant finally resumed production this month. Whether these events reflect corporate greed or bureaucratic bungling illustrates why we so often disagree about policy.

Let’s start with some facts. Abbott is one of the four largest formula producers and makes the Similac and Elecare brands. The Food and Drug Administration (FDA) closed the plant after investigation of a whistle-blower’s report confirmed poor sanitation and Abbott recalled potentially tainted formula. Contaminated formula has been linked to two deaths. The resulting shortage has left parents scrambling madly.

What do these facts show? In one view, Abbott put profits ahead of babies. As the left-wing Guardian observes, “The embattled baby formula producer Abbott used windfall profits to enrich investors instead of replacing failing equipment that was likely injecting dangerous bacteria into its infant nutritional products.” The “prioritization of shareholder wealth” shows the “rot in the nation’s economic system.”

Abbott’s actions demonstrate the need for consumer protection. But policing corporate greed is hard. The regulations consumers enact must be enforced. Companies lobby to keep regulators’ budgets small, resulting in too few and poorly paid inspectors, who then curry favor with companies in hopes of getting hired for better salaries. Companies “capture” the...

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