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I don’t think they thought about it very much. It’s like that spongebob meme where patrick has the wallet. Or the Friends one that I don’t know the name of the template. You could go point by point building up a case for why there should be government regulations, but as soon as you say like “regulation” they go “Nope bad”
Though some people really do believe they as a rugged individual will be able to research and test all of their food without an FDA or whatever. If they buy bread that has sawdust in it, they’ll be able to tell, and somehow get a refund, or buy some other bread that doesn’t have sawdust. That seems like a lot of work and optimism compared to regulations and inspections by qualified professionals earlier in the process.
sawdust is edible though, now digestable is a different question entirely and will require a few centuries of research to get data on due to my pro-sawdust-in-food lobbyists.