Antitrust & Trade Regulation, Coronavirus, Domestic Policy

Coronavirus – Leaders Don’t Dither. They Decide.

Military leaders are familiar with the “fog of war”, which refers to the need to make difficult decisions risking lives in the absence of full and clear data. They accept that some of those decisions will prove to be mistakes in hindsight. As the quote from TR makes clear, the courage necessary to make such decisions is not confined to war.

President Trump was correct to liken the coronavirus fight to a form of war. I maintained that we needed a military- style response from the beginning. There will be plenty of time in the future to debate whether the early response to the crisis was sufficient. However, the bickering and indecision in Washington over the past week is inexcusable.

We begin with Trump’s delay in utilizing the Defense Production Act’s powers to force production of vital medical supplies. The President invoked the Act over a week ago, but dithered in actually using it until now, apparently over the misguided idea that industry could be coaxed to respond and that competition was better than government mandates. The US Chamber of Commerce also reputedly opposed forcing production under the DPA because of concerns about “red tape”. In short, the inconvenience of complying with government restrictions was worse that the potential loss of lives.

As TR knew, indecision and uncertainty in a time of crisis will only produce chaos. The federal government needs to provide not just the financing in the economic stimulus package. Industry also needs the certainty in demand and direction in supply to quickly and efficiently gear up to produce the needed medical supplies. Indeed, compliance with a DPA order would effectively shield business from liability lawsuits that could arise out of the inevitable disputes over allocation decisions. Otherwise, the bidding war between the states for supplies will drive up the cost to the government and allow business to unconscionably exploit temporary monopoly power. At a time like this, the federal government should insure that industry directs its attention to the needs of the country as was done during World War II, not the maximization of their own profits.

Speaking of misuse of power, the partisan maneuverings on Capitol Hill are almost as sickening as COVID-19. The stimulus and aid bill should include more targeted protections for workers and a limitation on stock buybacks for at least a year after loans are paid back. In addition, a higher antitrust standard limiting mergers and acquisitions by aid recipients during the same period should be considered. The suspicions built up over the last few years between the White House and Congress also call for the maximum amount of transparency in the aid package. However, the attempt by Democrats to hijack the bill to add pet climate change and social welfare projects betrays their professed concern about aiding workers and the health care system. Republicans need to concede to the worker protections directly related to the virus response and Democrats need to drop the irrelevant riders. Otherwise, this indecision on Capital Hill will cost them the respect of the American people as well as lives.

The fog of this war against COVID-19 requires our leaders to exercise courage in the war itself and restraint in dealing with each other. TR was capable of delivering swift and cutting insults to his enemies in private, but remembered the need to cooperate in public to address a crisis. Our current leaders need to do the same.

Coronavirus, Domestic Policy

Coronavirus – Some Positive News

No nation can be great unless its sons and daughters have in them the quality to rise level to the needs of heroic days.

World War I Homefront Poster with Quote from Theodore Roosevelt. 

These are heroic days and call for all kinds of heroism from Americans. The vast majority of us are hopefully following official directions to stay home and practicing the new mantra of social distancing. Meanwhile, public safety, health and grocery workers are reminding us that heroism is often found in simply doing the ordinary extraordinarily well.  While the news may be grim now, there are some green shoots of hope out there.

The Guardian, a British newspaper, is regularly publishing a state by state breakdown of coronavirus cases in the United States here. It is updated daily  and shows bar graphs depicting the number of new cases over the previous five days by state. While the national number continues to climb at a worryingly geometric rate,  the bar graphs on the right of the chart indicate that Washington state may already be flattening the curve of infection. You may remember that it started testing and instituted radical social distancing earlier than the rest of the country.  Unfortunately, the rates in New York and the rest of the country are increasing, but the apparent success on the West Coast gives us hope that the current limitations may be working as intended.  

This MarketWatch site has a list of the 15 companies or groups that are working on either a treatment or a vaccine. A lot is going on behind the scenes to bring us to the point where we have the pharmaceutical tools necessary to treat or prevent infections and thus end the need for quarantines. However, any such treatment will need to undergo basic testing for safety and effectiveness. 

Finally, a group of Irish engineers invented an open source method for 3d printing of a ventilator. Together with the commitment of some American manufacturers to dedicate production to this need, it offers a way to close the gap in the medical resources needed to treat serious COVID-19 cases and reduce the fatality rate. 

I encourage you to remember TR’s comment about what makes great nations.  Like our fathers and grandfathers during the two world wars, we can make a difference on our own home fronts. Let’s do it!

Coronavirus, Domestic Policy

Coronavirus – America’s Moment

O my fellow citizens, each one of you carries on your shoulders not only the burden of doing well for the sake of your own country, but the burden of doing well and of seeing that this nation does well for the sake of mankind. 

Theodore Roosevelt, The New Nationalism, August 31, 1910

The measures outlined by President Trump to control the spread of the coronavirus at his March 16 news conference certainly are drastic and disruptive. However, a recent article on the medium.com website (https://medium.com/@tomaspueyo/coronavirus-act-today-or-people-will-die-f4d3d9cd99ca) presented both a statistically comprehensive and horrifying prediction of the public health crisis we may be facing as soon as April if we do not stem the tide of COVID-19 cases. As of today, there are 6496 confirmed cases with 112 deaths.  The number of cases are thus matching the hyperbolic increase that the article predicted.  

This crisis challenges not only each of us personally, but also the democratic model that inspired the world from the days of the American Revolution.  As Americans, we need to pull together and help our country triumph over this challenge and show how a free people can unify to defeat it. In addition to the precautions announced on March 16, here are some other things to consider. 

The article warns that our current health care infrastructure may quickly be overwhelmed by  serious COVID-19 cases.  To close this gap, people who are otherwise healthy should consider making themselves available to volunteer at hospitals and other facilities to assist health care professionals.  Another alternative is to provide child care for health care workers whose children are at home alone due to school cancellations or extended work hours. You could also become a delivery driver helping to deliver food to mild home bound COVID-19 sufferers.   Employers should support such volunteerism from those currently working from home and universities should encourage students to participate. Churches, state and local authorities could help by establishing easily-accessible on-line lists of potential volunteers.  Hopefully, we will  have distributed enough tests by then to clear those volunteers.  In any case, each of us will have to evaluate our ability to positively contribute to the response. 

In his book Democracy in America, the French author Alexis de Tocqueville marveled at the unique spirit of volunteerism he saw in his travels around the country. China is attempting to hide the early mistakes of its response by touting the later success of its heavy-handed totalitarian controls. They hope to use this to promote their form of government as a model for the world. In fact, they engaged in a four-month coverup of the outbreak because, like most dictators, they are inherently afraid of the truth. This cost thousands of Chinese lives and delayed an effective world response.  We must counter Chinese propaganda by showing that a free nation like America can be demonstrably more successful in dealing with such a crisis. Now more than ever, the future of our American values and model of government is up to each of us.