It’s no secret that the medical equipment needed to fight the coronavirus (COVID-19) is extremely scarce everywhere. “Every state is fighting for resources. ” Rhode Island Gov. Gina Raimondo: “Frankly, all countries. Most countries compete for the same resources, so it’s a challenge. However, the Trump administration had attempted to invoke its powers under the Defense Production Act, which almost unilaterally gives it authority to mobilize personal industry to produce goods in the public interest. It wasn’t until March 27 that Trump ordered General Motors to begin generating ventilators under the law, even though “General Motors and Ventec Life Systems reiterated Friday their goal of making desperately needed ventilators at a GM plant in Indiana. “
Prior to his order, Trump underscored his frustration with the GM industry in a tweet that said, “As always with ‘this’ General Motors, things never seem to get better. They said they would provide us with 40,000 much-needed ventilators “very quickly. “Now they say there will only be 6,000 until the end of April, and that they need the more productive dollar. It’s a mess with Mary B. Invoke “P”. The last sentence refers to the invocation of the Defense Production Act.
The effects of this scenario have caused states to engage in a bidding war among themselves and oppose the federal government for essential medical supplies. New York Governor Andrew Cuomo has been outspoken in his complaint about the scenario, saying: “It’s not the right way to do it, it’s ad hoc, I’m competing with other states, I’m raising costs in other states. . . »
Their frustration is understandable given that New York City has become the epicenter of COVID-19 cases in the U. S. The city has already recorded 38,977 cases of COVID-19 (as of March 27) since the start of the crisis. President Trump said he didn’t know New York City hospitals really needed “40,000 to 30,000 ventilators,” later adding, “It’s a two-way street. They also have to treat us well. They can’t say, “Oh my God. “We deserve to get this, we deserve to get that. We’re doing a wonderful job.
Similarly, Kentucky Governor, Andy Beshear, admitted that his state lost out to the Federal Emergency Management Agency when bidding to get protective equipment saying, “It is a challenge. The federal government says ‘states, you need to go find your supply chain’ and then the federal government ends up buying from that supply chain.”
Detroit Mayor Mike Duggan also expressed frustration with bidding wars, saying, “I’m trying to outdo the mayor of Chicago or the mayor of Houston. We want a federal response. “
As the bidding wars between states drive the prices of medical equipment ever upward, it is hard to not see the entire situation as a form of federal and private industry price gouging in a time when cooperation is paramount.
The effects of those bidding wars are negative for all parties involved, but they leave poorer rural states with no choice when they are forced to compete with the federal government and states with more monetary resources. As Oregon Gov. Kate Brown’s press secretary, Charles Boyle, explains. , “Both in our requests for private protective devices from the national stockpile and in our conversations with our own providers, we ourselves compete with larger states with faster desires due to the duration and scale of the desirestheir COVID-19 outbreaks: New York, California, Washington, and others.
FILE – In this March 13, 2020 file photo, Kentucky Gov. Andy Beshear discusses developments in … [+] Kentucky regarding the new coronavirus in Frankfort, Ky. Beshear ordered bars and restaurant dine-in services to close in another aggressive step to contain the new coronavirus as the state reported its first death linked to the illness.(AP Photo/Bruce Schreiner)
Beshear is relentless in his pursuit of medical equipment. “I am willing to pay whatever it takes to protect the other people of Kentucky to the greatest extent possible,” Beshear said. “Right now, other people, and some will take it the wrong way, I don’t care about money, I care about lives and we’re going to do everything we can to protect them. ” As of March 26, Beshear said the state of Kentucky has spent about $8 million on the COVID-19 response.
“Yes, it would be better if we lived in a time where we weren’t competing with other states and, in fact, the federal government that buys us often,” Beshear said, “but that’s our truth on the ground. “
The effects of these bidding wars across the board find state healthcare and hospital systems receiving less resources at a higher cost at a much delayed pace. Franky, it is shocking that in the midst of the worst health crisis that the United States has seen in decades that states are being reduced to bidding wars with each other and the federal government.
Moreover, these bidding wars do nothing to prop up the already stagnant economic situation in the United States. While many brands have been forced to halt production, which has pushed unemployment even higher, it would actually be worth supporting the economy if those employees and businesses could simply return to work safely and contribute in some way to the COVID-19 crisis. This would undoubtedly speed up the health response, save lives, and eventually end the pandemic.
Hopefully, the Trump administration’s order to General Motors to start generating ventilators is a sign of things to come and that there will be more orders for brands to start making medical materials that will fill the domestic supply chain and ease the pressure on states and fitness systems.