I don't have faith in the free-market: faith is the belief in something without reason, or despite reason.
I'm gonna venture a guess and say you hate religion so much you feel the word "faith" has a dirty connotation which you don't like being associated with yourself. If this is the case, you're either unfamiliar with more general usage of the word "faith" or you're being overly defensive (personally I assume it's the former).
Either way, it's entirely your own error. The word faith can be used interchangeably with words like trust or belief. Trust, belief, and faith, can exist in the presence of supporting evidence. For example: "I believe the theory of blahblahblah is correct in the presence of this evidence here". Do note that this (hypothetical) evidence would not necessarily proof of the theory, so you can't say it is absolutely known with certainty to be true, so the applicability of faith isn't excluded.
(That said, I have to say I don't see this evidence you referred to. Please cite me a country who's economy is more laissez-faire yet also enjoys superior consumer safety & quality compared to us).
I agree that the government should work to protect the individual - but I disagree that having an FDA (or many of the myriad alphabet agencies), actually do that. In essence because what these agencies do is substitute their will for the will of the market participants.
You trust the drug companies when they pull these sorts of shenanigans? http://science.slashdot.org/article.pl?sid=09/05/03/0348243
Game theory says that the free market economics could arguably work, but only in scenarios with perfect (or near perfect) information among all players. Making fake medical journals kinda highlights the fact that they're not willing to allow such an ideal market to exist. Why? It's not in their interest to do so, so they don't. Common sense right?
I'm okay with somebody in a government agency substituting their will for my own if they possess superior knowledge concerning how to go about testing for what I could consider to be harmful to my interests. Given what is poisonous to Ben is likely also poisonous to Jerry, it's not unreasonable to say that government screening of toxic materials in food is universally in everyone's interests. If they know how to test for this crap, let them. They'll be better at the lab work than I would be. (not to mention, I don't have the time to test for toxins in all my food before I eat it).
So even if companies could create better mechanisms for quality control, they are mandated (at the point of a gun) to follow the bureaucrats' whims.
Nothing in the law forces companies to practice less-safe or less-healthy policies than they wish. Nobody is forcing Monsanto to genetically engineer anything that contaminates non GMO crops. If companies in a free market are able to produce safer food/drugs when big brother isn't looking over their shoulder, why don't they do it now? Specifically, give me an example of how the FDA would prevent a food producer from selling me cleaner food than what they currently sell me.
In a free-market, reputation must be earned, and can easily be lost. Also in a free-market, harm or fraud is a crime (protection from criminals is a legitimate function of the government.
I'll take the results of a regular lab-tests over someone's "reputation" any day. Regulators' tests can also can be used to establish certainty something is safe before harm occurs. This is valuable because preventing damage is always cheaper, easier, and more effective than trying to remediate it after it's been allowed to occur.
In Capitalism, your "nice cool glass of melamine laced milk" would land you a "nice long stay in the penitentiary". See? No FDA required.
So you're saying a system where criminal charges are applied after people are hurt (without any attempt to protect them from that harm) is better than a system where periodic FDA sampling of the milk or baby formula verifies its safety before my child ingests it? You're advocating a system where people only know whether their baby's food is poison based on how many other people's babies have died. How is that a better system?
Furthermore, if the only thing preventing consequences for bad behavior is a court room, I think consequences would be more a function of who has the more expensive lawyer, rather than who suffered damages. And lets not even get into how we throw someone into jail when the harmful product was imported from a foreign country...
BTW, the FDA also regulates things like lasers. Lasers used at shows by casinos (which may be too close to airports, blinding pilots and potentially killing many people at once), and lasers used to correct somebody's vision. Do YOU prefer to rely on reputations or government regulators before somebody permanently alters your eyes, potentially blinding you for life?
Government regulation first came about because most people demanded it after bad things happened to them or people that could have been them.