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April 11, 2020
 
COVID-19 Policy Brief Series
Masks for All: Using Purchase Guarantees and Targeted Deregulation to Boost Production of Essential Medical Equipment
Caleb Watney and Alec Stapp

Across the country, health care workers caring for those suffering from COVID-19 fear being infected or bringing the virus home to loved ones due to a lack of protective gear. Patients fear that if their symptoms worsen they won't be able to use a ventilator, a crucial piece of equipment in drastically short supply. President Trump recently invoked Title I of the Korean War-era Defense Production Act (DPA) to compel General Motors to begin production of ventilators – but more aggressive, efficient action is necessary to address these critical shortages. Rather than implementing measures akin to nationalizing industry, the federal government should use Titles II and III of the law to incentivize production through purchase guarantees and to reduce liability on manufacturers. Producers face infrastructure and labor constraints that are not erased by top-down orders. Time is of the essence in responding to the coronavirus, and harnessing market signals and removing legal and regulatory hindrances will ensure medical supplies are created and distributed in a much faster, more efficient manner.

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