3 ms·
The government did very little in managing vaccine production other than act as purchaser, how is this an example of them managing a market?
by freewilly1040 5y ago
The government did very little in managing vaccine production other than act as purchaser, how is this an example of them managing a market?
- Slartie 5y agoThe US government regulated critical parts of the supply chain of raw materials and preproducts in order to ensure that US manufacturers have no sourcing problems. It then compelled the manufacturers into exclusively servicing the US purchase contracts first before fulfilling competing contracts from other global buyers with any of the finished product produced on US territory. I'd call that quite a lot of "market management". But as everyone could see it resulted in the fastest vaccination ramp-up worldwide (excluding Israel, which was a bit faster, but is also much smaller than the US and which had its own way to get "preferred" access to vaccine produced in the EU).
- freewilly1040 5y ago> regulated critical parts of the supply chain of raw materials and preproducts I'm unfamiliar with this having happened, but if it did as you say that would definitely support your point. > It then compelled the manufacturers into exclusively servicing the US purchase contracts Wasn't this just a component of the purchasing contract? I would draw a distinction between cases where the gov was a purchaser and where it was not.
- lostdog 5y agoThe US government subsidized the vaccines, effectively pre-purchasing enough so that manufacturing could be ramped up faster than normal. https://en.wikipedia.org/wiki/Operation_Warp_Speed https://en.wikipedia.org/wiki/Operation_Warp_Speed