Now We Know What “Ours” Meant

I noted in the last post that the U.S. federal stockpile of medical protective gear is almost empty as coronavirus spreads. And everybody is screaming for ventilators. But Trump seems to have his own private stash.

Josh Marshall:

As we work to find out the scope and goals of the White House’s seizure of medical goods across the United States, a simpler pattern is coming into view: the White House seizes goods from public officials and hospitals across the country while doling them out as favors to political allies and favorites, often to great fanfare to boost the popularity of those allies. The Denver Post today editorialized about one of the most egregious examples. Last week, as we reported, a shipment of 500 ventilators to the state of Colorado was intercepted and rerouted by the federal government. Gov. Jared Polis (D) sent a letter pleading for the return of the equipment. Then yesterday President Trump went on Twitter to announce that he was awarding 100 ventilators to Colorado at the behest of Republican Senator Cory Gardner, one of the most endangered Republicans on the ballot this year. As the Post put it, “President Donald Trump is treating life-saving medical equipment as emoluments he can dole out as favors to loyalists. It’s the worst imaginable form of corruption — playing political games with lives.”

We don’t know if the ventilators sent by Trump were part of the shipment that was seized. But there have been reports from several sources of the federal government seizing shipments of medical equipment, and nobody knows what’s happening to it. I mentioned this in a post a couple of days ago. And see Are the Trumps Engaged in Profiteering?

Back to Josh Marshall:

For all the confusion, what is clear is that the federal government is demanding that states, localities and hospital systems find their own supplies while systematically interdicting those they do purchase and rerouting them in other directions while providing no explanation of what standards are being used to distribute them. At the same time, Republican officeholders keep turning up announcing windfalls of medical supplies courtesy of the President. In many cases, like Gardner, they’re Republicans within blue or purple states.

Josh Marshall again, from another post today:

This morning I heard from a board member of a regional private hospital system who said these seizures aren’t just happening. They’re commonplace. Seemingly bordering on routine. To paraphrase this person’s account it’s searching high and low everywhere to find supplies and on those rare occasions when you strike gold the feds are likely to jump in and grab your stuff anyway. Hearing this my sense – not the source’s words – is that it’s almost like FEMA and whatever other agencies are doing this are using these desperate buyers as their involuntary lead generators. Let them find the stuff and when you see a shipping order surface, grab it.

What’s going on? We can only speculate.

What seems just as likely, or perhaps a minimum version of the story is that the White House has created a highly chaotic and disorganized process and then Trump and Jared Kushner have layered over that a thin blanket of their own corruption, the commerce in favors and mutual back scratching and paydays that are the mother’s milk of Trumpism. Down at the level of FEMA and Customs we heard of one story that seemed highly suspicious at first but when we dug into it was more a story of chaos and craziness but where all the key players were acting reasonably enough in a situation that was highly unreasonable.

But again and again we hear of friends reaching out to Jared or Trump and suddenly getting a shipment. It’s worth noting that one of these cases was some unnamed friend of Trump reaching out about a shortage in the public hospital system in New York City. Trump gave it to Jared and suddenly a shipment was on the way. They talked up this story in that press briefing where Jared was the special guest.

It stinks out loud, in other words.

What’s Free Market Capitalism Done for Us Lately?

I was struck by something in this Paul Waldman column, quoting Washington Governor Jay Inslee, about shortages of medical supplies:

Inslee noted that he recently asked the CEO of a private company that is manufacturing the transport medium for tests if it could ramp up production with double shifts.

“She said, ‘Well, maybe — we have to find a way to finance that,’” Inslee told me. This surprised him, because it seems like something the federal government should already be communicating with such manufacturers about.

It struck me that if the law of supply and demand is that compelling, why wouldn’t the manufacturer step up and start double shifts without being asked? Clearly the demand is there. But apparently, in this situation, people making the component parts of the much-needed coronavirus tests can’t or won’t crank up production without government intervention.

Here’s another example:

One major problem is that the federal government’s haphazard approach has created a vast mismatch in availability among disparate parts needed to make testing possible.

For instance, Inslee noted, the state has unused testing capacity right now in large part because it lacks one thing: the swabs needed to take samples.

“It seems ridiculous that the United States can’t produce enough swabs to solve this problem,” Inslee told me. “I have 50 or 60 long-term care facilities that have infections in them that we literally have not been able to do the testing we want of remaining residents and staff.”

Yeah, that’s ridiculous. No question. I can understand that it takes time and money to tool up to produce ventilators, but swabs? I thought that the all-powerful and perfect Free Market just automatically adjusts to produce whatever the public wants. It’s like magic, right? (She said, snarkily.) In this case, the market is government, but why wouldn’t the government’s money be as good as the private sector’s?

See also U.S. federal stockpile of medical protective gear is almost empty as coronavirus spreads.

In the case of tests, we’re going to be needing them for a long, long time. Assuming the virus is contained and the number of new cases begins to recede, we can’t just all stampede back to work and out to restaurants and ball parks without starting the spread up again. We’ll need to test the heck out of everybody and isolate the infected to get back to anything approximating normal, at least until there’s a vaccine. Which likely won’t be until some time next spring, if then.

Some local officials are disappointed the federal government will end funding for coronavirus testing sites this Friday. In a few places those sites will close as a result. This as criticism continues that not enough testing is available.

Yep, you heard that right. Trump expects states to pick up the tab and pay for their own tests, in spite of the fact that states have to live within budgets and a lot of them probably have no money to pay for tests unless they take money out of other parts of the budget that have already been cut to the bone. Ironically, red states will be hurt the worst, but Trumpers are too dim to realize that.

And, of course, the Trump Administration is defunding testing now. Trump says states should get their own stuff and only rely on the federal government as a “last resort.” It’s been “last resort” time for a few weeks now.

So, in spite of the fact that there’s a big, honking, life-or-death need for tests — and more hospitals, and more ventilators, and more PPE, and a lot of other stuff — the Free Market appears helpless to do anything about it, because it’s not clear where the money is coming from to pay for it. And there is no part of private, for-profit industry set up to provide for public health on this scale, including our famous for-profit health care system.

The glorious and holy Free Market may be really good at giving us all the toasters and DVD players we want (although not, apparently, toilet paper in a pinch), there’s a lot it can’t do. It doesn’t build hospitals in rural areas, for example, because there’s no profit in it. Not everything people really truly need can be produced at a profit. Let’s not even get started on the inability of the Free Market to provide universal health care, or even consistent and affordable health care for anybody but the very wealthy.

By relying on business models that don’t apply to the role of government and refusing to deploy the resources and authorities of the federal government, Trump and his enablers have pretty much screwed the nation. But this failure is more than just Trump, and it’s been a long time coming. See something I wrote back in bleeping 2009, The U.S. as a Failed State.

To add insult to injury, Reuters reports that George Laffer is speaking up about what the U.S. needs to do to get its economy moving again. Y’all are going to love this

Tax non-profits. Cut the pay of public officials and professors. Give businesses and workers who manage to hold on to their jobs a payroll tax holiday to the end of the year.

What about the extra aid funneled to newly jobless workers by the $2.3 trillion fiscal rescue package? Such government spending, Laffer told Reuters in an interview, will only serve to deepen the downturn and slow the recovery.

“If you tax people who work and you pay people who don’t work, you will get less people working,” Laffer said. “If you make it more unattractive to be unemployed, then there’s an incentive to go look for another job faster.”

Think this is too crazy?

Laffer’s unconventional plan isn’t just an academic exercise. First of all, he says he has presented it to his contacts at the White House. They include presidential economic advisor Larry Kudlow, who considers Laffer a mentor.

Laffer is also being floated in influential right-wing circles as a good candidate to head a proposed new industry task force aimed at re-opening the U.S. economy as soon as possible. “Bring in the minds like Art Laffer,” Sean Hannity, the Fox News host said April 6 of the proposed task force.

Needless to say, if the Trump Administrations listens to this moron while millions are out of work because there are no bleeping jobs, we’ll be facing mass hardship, a breakdown in civil order, and possibly a genuine depression.

If the Glorious and Holy Free Market were as capable as righties believe it is to respond to our every need, we wouldn’t be having this conversation.