Some more good things.
As I've said here before, usually the search abroad for monsters to destroy is usually a result of wanting to distract us from our own failures. The article points out what that is:
Yeah, and this at a time when billions have been taken out of pandemic prep (for future one and helping alleviate this one by giving more to the rest of the world) by the GOP and moderate Dems. [1]
It is striking that so many people are anxious to wrongly blame the costs of China’s zero Covid policy on its rejection of U.S.-made mRNA vaccines. To my view, this reflects an incredibly wrongheaded view of medical technology and the pandemic, that has likely cost millions of lives and also substantially worsened inequality.
As I argued in the early days of the pandemic, the United States should have taken the lead in poolingresources worldwide in order to maximize innovation and the deployment of effective vaccines, tests, and treatments. Instead, it doubled down on government-granted patent monopolies as a mechanism for financing research.
Moderna is the main villain in this story. It was paid $483 million for developing its vaccine, then another $472 million to conduct its phase three clinical trials. It also got advance purchase agreements for hundreds of millions of doses at close to $20 a shot, if the vaccines were approved by the FDA. (The shot cost around $1.50 to manufacture and distribute.) Not surprisingly, with this amount of government support, Moderna had generated at least five new billionaires, as of last summer.
The riches that have gone to Moderna’s billionaires, and other well-placed executives and researchers there and at other drug companies, could have instead gone to items like expanding the child tax credit, or subsidies for day care. Alternatively, if we are worried about inflation from an over-stimulated economy, we could have reduced demand in the economy by not giving so much money to the drug industry.
Baker then goes on to show how the government is helping too many monopolies out there and exacerbate inequality. Again, I think this is brilliant point. The government is creating billionaires instead of helping billions (the latter being better for everyone involved, especially the gov). Really good analysis worth reading.
[1] Note that the China Covid 0 policy is not without its faults and I know the Current hit to the Econ is rough enough to have affected companies and their bottom line and make some Chinese want to move out (and here)
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