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Im also wondering... There's been a lot of criticism of federal folks and their reaction to covid. But what's about the states? They still have pretty wide powe

Im also wondering... There's been a lot of criticism of federal folks and their reaction to covid. But what's about the states? They still have pretty wide powers and should have intervened. Isn't it within the power of individual states to stimulate manufacturing of masks.

ceejayoz 6y ago
Stimulate, yes. Mandate, no. The Feds have special powers that are tailor-made for this sort of disaster, that aren't being used effectively. https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 Most of the options for states would involve subsidies, which they can't really do as they can't run deficits, and are seeing tanking tax revenue.
ethanbond 6y ago
What powers would those be? AFAIK there’s no state level Defense Production Act, for example. If you mean just putting out guaranteed orders, not every state has the capacity to manufacture PPE, even fewer have money to pay for it. One might suggest that multiple states get together and induce manufacturing in the states where they have capacity. We did that. It’s called the federal government, and it’s choosing not to utilize those powers.
- blisterpeanuts 6y ago
  Offer them tax abatements and regulatory easement? At the very least, it means more local jobs, which should incentivize states & municipalities to compete for such plants.
brsg 6y ago
I guess it really depends on what you mean by "stimulating" manufacturing. They're only recourse, really, is to make purchases of the equipment (does increased demand count as stimulating?). The federal government, and only the federal government, has the power to compel industries to manufacture under the Defense Production Act. https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 This was a major point of contention at the beginning of the outbreak in the US. Governor's were lobbying the feds to invoke the act, although the administration declined to do so. The end result was that states were competing with each other for heavily inflated PPE costs. In some cases, the feds themselves were outbidding states. https://news.wbfo.org/post/cuomo-asks-federal-defense-production-act-says-april-28-primary-might-be-mail-only https://news.wbfo.org/post/cuomo-asks-federal-defense-produc... https://www.latimes.com/politics/story/2020-04-07/hospitals-washington-seize-coronavirus-supplies https://www.latimes.com/politics/story/2020-04-07/hospitals-...
- AlexTWithBeard 6y ago
  But somehow China manages to stimulate its' manufacturing without involving wartime laws. I don't know how they do it, but may be the US needs a bit of the same too.
snarf21 6y ago
There is one fundamental difference. States don't control the currency. The federal government can print money to solve this issue. States can't, they can only raise taxes.

ceejayoz 6y ago

Stimulate, yes. Mandate, no. The Feds have special powers that are tailor-made for this sort of disaster, that aren't being used effectively. https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 Most of the options for states would involve subsidies, which they can't really do as they can't run deficits, and are seeing tanking tax revenue.

ethanbond 6y ago

What powers would those be? AFAIK there’s no state level Defense Production Act, for example. If you mean just putting out guaranteed orders, not every state has the capacity to manufacture PPE, even fewer have money to pay for it. One might suggest that multiple states get together and induce manufacturing in the states where they have capacity. We did that. It’s called the federal government, and it’s choosing not to utilize those powers.

blisterpeanuts 6y ago
Offer them tax abatements and regulatory easement? At the very least, it means more local jobs, which should incentivize states & municipalities to compete for such plants.

brsg 6y ago

I guess it really depends on what you mean by "stimulating" manufacturing. They're only recourse, really, is to make purchases of the equipment (does increased demand count as stimulating?). The federal government, and only the federal government, has the power to compel industries to manufacture under the Defense Production Act. https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 https://en.wikipedia.org/wiki/Defense_Production_Act_of_1950 This was a major point of contention at the beginning of the outbreak in the US. Governor's were lobbying the feds to invoke the act, although the administration declined to do so. The end result was that states were competing with each other for heavily inflated PPE costs. In some cases, the feds themselves were outbidding states. https://news.wbfo.org/post/cuomo-asks-federal-defense-production-act-says-april-28-primary-might-be-mail-only https://news.wbfo.org/post/cuomo-asks-federal-defense-produc... https://www.latimes.com/politics/story/2020-04-07/hospitals-washington-seize-coronavirus-supplies https://www.latimes.com/politics/story/2020-04-07/hospitals-...

AlexTWithBeard 6y ago
But somehow China manages to stimulate its' manufacturing without involving wartime laws. I don't know how they do it, but may be the US needs a bit of the same too.

snarf21 6y ago

There is one fundamental difference. States don't control the currency. The federal government can print money to solve this issue. States can't, they can only raise taxes.