Posts Tagged ‘coronavirus’

Anti price gouging laws were enacted across this nation with the best intentions however they very often produce shortages of essential goods.  This is exactly what happened at the beginning of the Coronavirus crisis.  In a purely free market economy the shortage of toilet paper would have been mush less severe.  We probably would not have witnessed near riots and even fist fights over a shortage of this so necessary product.

When the mass buying toilet paper began and store inventories began to run low the store keepers should have automatically raised prices.  A drastic run on  toilet paper should have led to a drastic rise in the price.  This would have discouraged the mass buying and hording when inventories in the stores began to run low.

Because of the increased sale of toilet paper the store owners would have ordered more toilet paper from their suppliers who would then charge the store owners more if their supplies began to run low.  Quickly, because of free market forces the increased price and demand of toilet paper would have reached the manufacturers who would produce more and ship it faster down the supply chain to the stores.

Here is how the Foundation for Economic Education explained the factors behind the toilet paper shortage:

From an economic perspective, the value of toilet paper is much higher now than it was pre-pandemic. But with the price of toilet paper the same as it always was and not reflecting its increased value, there is nothing to prevent individuals from buying as much of it as possible. Indeed, that’s the rational consumer response. But if shopkeepers increased the price of toilet paper to reflect its new value, suddenly we would think twice about hoarding it and only take as much as we need. These rising prices would also signal supply chains of the increased value of toilet paper, prompting toilet paper manufacturers to boost production.

In natural disasters, like a hurricane or an earthquake or a pandemic, we often hear people decry “price gouging” and blame “greedy shopkeepers” for trying to profit off of misery. Yet, price gouging is an unfair term. If the shopkeeper raises the price of toilet paper (or hand sanitizer or bleach or eggs or any of the other items that are currently in high demand), then it incentivizes the consumer not to hoard and to buy only as much of an item as is truly needed. It’s not greedy, it’s responsive.

If the store charges too much customers will not buy the product or they will buy very little then the store will need to lower the price.  When more product becomes available the store will need to lower the price if it does not sell.  The store will eventually need to order less causing the price up the supply chain to fall signaling the producers to produce less.

Because of the price controls restricting the price the store can charge they are not able to pay their suppliers more.  The suppliers are not able to pay the manufacturers more.  There is no incentive for the producers to rapidly produce more and no incentive for the suppliers to rush the product down the supply chain resulting in delays in restocking shelves.

Government interference in the free market always produces far more negative results than positive no matter how well intentioned they are.  Unfortunately most colleges do not teach free market economics and politicians who  do not support anti price gouging laws are decried as monsters.

by baldilocks

I’m okay. No pestilence; nor am I aware of any family member or friend who has it. I do keep a very long prayer list consisting of names, however.

I just want to point out something.

Yesterday, there was this.

CBS News has picked up the story of the woman who claims her hospital gave her no protection to take care of COVID-19 patients.

But CBS News apparently didn’t check the story because, as they say, it was too good to check.

Imaris Vera, part-time nurse and part-time Instagram model, claims she quit her job at a Chicago area hospital – still unnamed – because the hospital didn’t provide nurses with proper equipment around COVID-19 patients.

All we’ve heard is howls from governors and CDC officials for us not to take away gear from first responders. Save the PPE and the N-95 masks for the pros. So at first blush, the story looked like it might be true.

Then it started crumbling.

And, today, there was this.

President Donald Trump reportedly owns a stake in a company that produces hydroxychloroquine, the anti-malaria drug he has repeatedly touted as a coronavirus treatment even though his experts say there’s no strong evidence it works.

Trump “has a small personal financial interest” in Sanofi, the French drugmaker that makes Plaquenil, the brand-name version of hydroxychloroquine, The New York Times reported Monday.

In addition, Sanofi’s largest shareholders include a mutual fund company run by major Republican donor Ken Fisher, the paper said. Trump’s three family trusts, as of last year, each had investments in a mutual fund whose largest holding was Sanofi, according to the Times.

Mike Cernovich presented the financial documents and figured out that President Trump’s stake in Sanofi is worth no more than $435. And, considering that Sanofi hasn’t owned the patent for Panequil (hydroxychloroquine’s brand name) since 1995, there are likely dozens of generic versions of the drug, since it is used to treat several conditions: rheumatoid arthritis, malaria, lupus, etc.

But we know what media’s intended implication is: that President Trump is pushing hydroxychloroquine as a cure for the Wuhan virus in order to enrich himself.

Besides both  being distortions of reality by Big Media entities, these two vignettes are small parts of an overarching goal: to keep fear and hopelessness stoked in the collective psyche of the American public.

It’s like this. If the public believes that the president is just in it for himself and there is in actuality no pharmaceutical cure, they will be willing to accept a more radical cure — like changing presidents.

Big Media will keep trying. And that’s why the president’s daily Wuhan virus press briefings are so important.

And it’s why several Big Media entities hate these briefings and refuse to cover them.

Keep an eye on all of them, especially now that most of you have the time to do it.

Juliette Akinyi Ochieng has been blogging since 2003 as baldilocks. Her older blog is here.  She published her first novel, Tale of the Tigers: Love is Not a Game in 2012.

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I’ve maintained for many years that government regulations do far more harm than good.  Unfortunately the Coronavirus crises has more than proved me right.  Government red tape cost the lives of many Americans early on during this pandemic and the deregulation efforts by President Trump will have saved a substantial number of Americans before the crisis is over.  If you think I’m being melodramatic check out the Townhall article The Red Tape Pandemic by John Stossel.

The number of test kits available when the crisis began to unfold was disgrace and directly attributable to government regulations.  This had a major impact on how far and how fast the virus spread across the United States.  The Townhall article explains how a much larger number of test kits in South Korea resulted in a much less dire situation than we now face here.

Coronavirus deaths leveled off in South Korea.

That’s because people in Korea could easily find out if they had the disease. There are hundreds of testing locations — even pop-up drive-thru testing centers.

We can compare that to what happened here due to the low number of test kits.

In America, a shortage of COVID-19 tests has made it hard for people to get tested. Even those who show all the symptoms have a difficult time.

Why weren’t there enough tests?

Because our government insists on control of medical innovation.

The shortage of test kits was caused by government regulations.

When coronavirus appeared, the Centers for Disease Control and Prevention made its own tests and insisted that people only use those CDC tests. But the CDC test often gave inaccurate results. Some early versions of the test couldn’t distinguish between coronavirus and water.

Private companies might have offered better tests, and more of them, but that wasn’t allowed. The World Health Organization even released information on how to make such tests, but our government still said no. Instead, all tests must go through the government’s cumbersome approval process. That takes months. Or years.

Hundreds of labs had the ability to test for the virus, but they weren’t allowed to test.

As a result, doctors can’t be sure exactly where outbreaks are happening. Instead of quarantining just sick people, state governors are forcing entire states to go on lockdown.

At the same time, many people who show no symptoms do have COVID-19. Without widespread testing, we don’t know who they are, and so the symptomless sick are infecting others.

The shortage of test kits was relieved by President Trump relaxing regulations.

A few weeks ago, the government finally gave up its monopoly and said it was relaxing the rules. There would be quick “emergency use authorizations” replacing the months- or years-long wait for approval. But even that took so long that few independent tests were approved.

So President Donald Trump waived those rules, too.

Now tests are finally being made. But that delay killed people. It’s still killing people.

Doctor and nurse shortages have also impacted the Coronavirus crisis.  This issue was solved by a combination of President Trump and the governors of many states.

In some states, there’s a shortage of doctors or nurses. That, too, is often a product of bad law — state licensing laws that make it illegal for professionals licensed in one state to work in another. Trump said he would waive “license requirements so that the doctors from other states can provide services to states with the greatest need.” Then it turned out that he could only allow that for Medicare; he didn’t have the power to override stupid state licensing rules.

Fortunately, many states finally waived harmful licensing laws on their own.

It’s good that governments finally removed some rules.

This National Review article Deregulate to Help the Private Sector Fight Coronavirus also proves that government regulations have been costly in the fight against Coronavirus.

Amid the humanitarian and economic crisis brought on by the coronavirus pandemic, an intelligent policy response can save lives and livelihoods. In addition to the many measures being introduced and passed into law, including economic-stimulus measures and funding for testing, one critically important government response is to cut red tape and regulatory burdens that stand in the way of a quick and impactful response from businesses that can meaningfully help in the crisis.

The level of food and necessities has stabilized in the past few days.  One deregulation effort by President Trump’s administration helped bring that about.

since 1938, federal regulations limit most commercial truck drivers to eleven hours of driving time in a 14-hour workday. The restriction is intended to reduce accidents caused by highway fatigue. The rule doesn’t necessarily encourage safety, however, as truckers may be forced off the road at the end of their workday in areas not hospitable to truckers…Last Friday, after the president’s declaration of a national emergency, the Department of Transportation announced a nationwide exemption to the 82-year-old rules. Now truckers can help deliver badly needed supplies more quickly and efficiently while still safely splitting their required ten-hour rest period into two separate breaks instead of having to all take it at once.

Hopefully when the Coronavirus pandemic is over we will remember that government regulations made the crises worse and relaxing the regulations had very positive results. When it comes to getting rid of government regulations we need to go much further

Blogger running on a Cook County Forest Preserve trail earlier this month

By John Ruberry

Illinois is now in its eighth day of lockdown as part of Governor JB Pritzker’s shelter-in-place order because of the COVID-19 outbreak.

Life is anything but normal here.

There’s not much good to report.

On the other hand a few days ago I planned to compose a feel-good entry focusing on the the few good things to report on from where I live in Morton Grove, Illinois about coronavirus. But things quickly turned south. And now we just might have a preview of the damage an overreaching government that claims to be looking out for us can inflict.

I’m a runner–and I’ve not let the lockdown cut back on my hobby. (Oh, Peter Da Tech Guy has been begging me to write a running post for a while–here you go!) After all outdoor activity, including running, is allowed according to Pritzker’s shelter-in-place order, as long as I practice safe-distancing, which I do. During my runs through the Cook County Forest Preserve trails near my home, I’ve seen more people on the paths, including entire families, since the issue of the shelter-in-place order. When the coronavirus crisis fades away, some of those folks might pick up a new appreciation of nature and become physical fitness enthusiasts as well.

I’ve also seen more people smiling at me and waving during my runts. And I reciprocate.

That was through Wednesday.

In Chicago in the early part of last week, particularly on the lakefront, the parks and paths were packed with runners, walkers, and cyclists. There were picnics and barbecues and basketball games. Which caused Chicago’s mayor, Lori Lightfoot, to freak out.

“You cannot go on long bike rides,” the Democrat scolded. “Playgrounds are shut down. You must abide by the order. Outside, is for a brief respite, not for 5Ks. I can’t emphasize enough that we abide the rules.”

“If we have to … we will be forced to shut down parks and the entire lakefront,” the mayor said that day.

And so she did. In a condescending press conference the following day, Mayor Tenderfoot announced, while upping her warning that training for marathons was also not allowed on the lakefront during the lockdown, that all Chicago parks along the lakefront, along with the 606 Trail on the North Side, were closed and would be barricaded. Violators of Lightfoot’s order face a citation and a $500 fine.

Okay, I get it. COVID-19 can be deadly. Playing close contact sports such as basketball is stupid. But cooping people up in home will be psychologically demanding. And what will happen if the internet in Chicago slows down to a trickle because of an overwhelming demand in residential areas?

Will spouse abuse instances spike? And child abuse?

And it’s not just a Chicago issue in Illinois. At a large park in Skokie, the town just east of me, a friend of my daughter’s was playing tennis with her boyfriend. Someone living next to the park called the police, they them to told stop playing and leave. The cops also cleared out the rest of park. There were no gatherings there of more than ten people. Just a few people here and there, I was told.

On Friday Lightfoot encouraged people to call the non-emergency 311 line to inform on businesses that are deemed non-essential that remain open. Employees can rat out their bosses. Violators face up to a $10,000 fine.

What we are witnessing in Chicago is a preview of life under a Green New Deal tyranny-of-the-enlightened-few led by know-it-alls like Lightfoot. Because of “climate change,” the city’s lakefront could be closed for weeks during the summer. After all, many people drive to the lakefront parks and the adjoining neighborhoods.

On a national basis industries such as travel could be altered and possibly destroyed. Travel by jet spread the virus. So let’s shrink the airline industry, which produces greenhouse gases. What about the jobless pilots, machinists, and the flight attendants? Force them to attend a green jobs training program doubling as a re-education camp.

If the government goes after jet travel will the automotive industry be next? What about recreational boating? Why not shutter restaurants that serve food deemed as unhealthy? Who hasn’t heard obesity called an epidemic?

Does a family of four really need a huge house? Do you really need to take an out-of-state vacation?

Presumably in a Green New Deal America the running trails near my home will still be open and I can train for a marathon if I choose. But I’ll expect to see fewer smiling faces there.

Yes, I’m taking COVID-19 seriously. I’m washing my hands and drowning them in hand-sanitizer. I’m keeping safe distances.

John Ruberry regularly blogs at Marathon Pundit.