It’s the end of July and there has been a whirlwind of activity on Capitol Hill. And, as you can imagine, none of it is very good. The Senate just put the finishing touches on their version of the National Defense Authorization Act (NDAA). The next step is for the House and Senate to reconcile their bills but that may not happen until November. Congress is getting ready to consider another fiscal relief bill. Congress has already spent roughly $3 trillion on the coronavirus response, which, coupled with other spending, has resulted in a deficit of $3.8 trillion and total national debt approaching $27 trillion. Needless to say, fiscal responsibility has been thrown out the window. Every day closer to the election means more temptation for Congress to spend money on non COVID-19 items.
Teach Your Children Well…by Letting States, Localities Lead
Summer is rapidly coming to a close, and soon, more than 50 million American schoolkids will be headed back to the classroom. But, still deep into the dog days of summer, policymakers and state officials have not decided if these classrooms will be virtual or the real deal. The federal government is already weighing in on this thorny issue with President Trump opining that reopening schools “is important for the children & families. May cut off funding if not open!” Reports indicate that Senate Majority Leader Mitch McConnell’s (R-Ky.) proposed “Phase 4” coronavirus relief package will include more than $100 billion in funding to assist states and localities in making schools ready for students. The Democrats reportedly want $400 billion.
But in their rush to shape reopening policies, elected officials fail to appreciate the role that states and localities must play in forging their own reopening paths. What works for New York students may not work for Iowa students. Jurisdictions and school districts across the country know what’s best for their kids, not federal bureaucrats 3,000 miles away. There’s no shortage of pressure from Washington, D.C. for classrooms to physically reopen. But for all the threats to withhold funding and the proposed tying of funding to physical reopening, schools have preciously little guidance for turning their lights back on.
And, what may work in one state or area may not work in another. City schools in areas hit hard by COVID-19 may have to rely on online classes for the time being, while states with less crowded schools, more space/larger school properties, and temperate climates can try in-person classes with (some) outdoor instruction. The problem is that federal policymakers often believe that their one-size-fits-all solution works best and try to dangle funding in front of desperate school districts. While federal funding only covers about 8 percent of public-school budgets, these appropriations are still significant enough to force schools to cater to bureaucrats’ wishes.
Instead of trying to dictate conditions to cash-strapped localities, lawmakers and the Trump administration should give states and districts the flexibility to reopen on their own terms. Schools can use federal monies to fix ventilation systems, or alternatively invest in better computers for students to learn remotely. Policymakers, however, should steer clear of providing a blank check to states and localities with a history of misusing taxpayer dollars. Attaching no requirements to funding to states such as Illinois and Connecticut would subsidize continued, reckless spending that was present before the pandemic. Rather, lawmakers should create a (wide) list of allowable uses for funding, such as computer purchases, teacher salaries, and school infrastructure upgrades. Striking the right funding balance would give schools the resources they need to cope with the coronavirus without bleeding taxpayers dry. The clock is ticking, and for the sake of millions of schoolkids, policymakers need to get this right.
Good Medicine – Getting Closer to a Vaccine
As the world restlessly waits for an end to the coronavirus pandemic, it’s increasingly clear that “normal” will not be possible absent pharmaceutical innovation.
Fortunately, indications abound that coronavirus vaccines and cures will emerge far sooner than anyone would have initially predicted. Research and development outcomes have already been staggering and the degree of innovation unprecedented. As of today, there are an incredible 1,297 clinical trials underway, with 427 unique treatments and 19 unique vaccines already undergoing trial. New treatments under development ranging from “antiviral therapies, anti-inflammatory, anticoagulant and antimicrobial treatments to steroids, cell therapy and others” are already resulting in far lower mortality rates for hospitalized patients than just a few months ago. But by far, the most promising expedited path to normalcy is the development of a vaccine. And incredibly, it is highly likely that vaccines will enter production at the end of summer, the most rapid development of any new medicine in human history.
More than 10 radically different approaches are currently under development, each one sharing almost nothing in common with the others aside from the general principle of developing an immunity to the virus. Typically, an inactivated form of the virus is introduced which teaches the immune system to provide necessary antibodies without causing any of the symptoms of the virus to manifest. This is probably the form of vaccination that most people are used to. But other, more ambitious projects are attempting a different approach by altering a person’s RNA (the “messenger” carrying instructions within all cells) to “teach” it to synthesize the antigen. This novel approach will save months, as there’s no need to cultivate weakened versions of the virus during this process. Still other approaches can be found in trials using a dormant type of virus vector to slip into cells and unload the gene like a Trojan Horse, effectively using a virus to combat a virus. Finally, some approaches engineer small proteins which mimic the virus yet still allow the immune system to learn how to fight it.
None of this would be possible without an array of regulatory reforms. The Food and Drug Administration (FDA), which has been long criticized for unreasonable delays and tacking unnecessary costs onto the development of new treatments, is starting to take a more flexible approach. This is part of a larger trend across the government. In fact, 800 regulations have been suspended in the midst of this pandemic. In the same way that open-container laws have been suspended without the world caving in, the initial success of FDA reform is improving healthcare rather than compromising patient safety. There is no reason that similar miraculous breakthroughs cannot continue if the FDA continues its march toward reform.
In addition, companies are taking significant chances spending billions of dollars in researching and developing new vaccines and committing them to production before they even know they are effective. Many producers will almost certainly lose considerable sums of money as a result. However, this trial and error is possible only because of the robust protection of intellectual property (IP) rights. Were the government to simply nationalize the means of vaccine production and nullify IP protections, as is advocated by many on the left, companies would see little point in continued production. This would jeopardize countless lives in this, and any future, pandemic.
By suspending regulatory burdens and protecting intellectual property rights, policymakers are empowering producers to create one of the greatest medical breakthroughs in recent human history. Our leaders must recognize this and act accordingly so that similar breakthroughs can occur again and again.
Blogs:
Monday: Phase 4 Relief Must be Targeted to Struggling Americans
Tuesday: Venezuela’s Dictator Stole from this Company. Now, America’s Government is Stopping Justice From Being Served
Wednesday: Phase 4 Relief: Do’s and Don’ts
Thursday: Let states, localities take the lead on reopening schools
Friday: Reimportation Executive Order would Wreak Havoc on Drug Innovation
Media:
July 18, 2020: The Jamestown Post-Journal (Jamestown, NY) ran TPA’s op-ed, “This Tax Day, Taxpayers Need Relief And Reform – Not Higher Rates.”
July 19, 2020: The National Interest ran TPA’s op-ed, “Venezuela’s Dictator Stole from this Company. Now, America’s Government is Stopping Justice From Being Served.”
July 20, 2020: The Center Square ran TPA’s op-ed, “Regulatory reform, not price fixing, is the cure to high drug prices.”
July 20, 2020: WBFF (Fox, Baltimore) interviewed me about the new Postmaster General.
July 21, 2020: The Economic Standard ran TPA’s op-ed, “The race for CARES Act (taxpayer) broadband funds.”
July 21, 2020: Latin American Advisor quoted TPA in a Q&A about the World Health Organization titled, “Is the United States Right to Withdraw From the WHO?”
July 21, 2020: The Center Square ran TPA’s op-ed, “Let states, localities take the lead on reopening schools.”
July 22, 2020: Issues & Insights ran TPA’s op-ed, “Postmaster General DeJoy Delivers On Postal Reform.”
July 22, 2020: RealClearHealth ran TPA’s op-ed, “FDA Makes Giant Leap Forward in Tobacco Harm Reduction.”
July 23, 2020: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about the next round of coronavirus relief spending and schools opening.
July 23, 2020: WBFF (Fox, Baltimore) interviewed me about the coin shortage.
July 23, 2020: The Center Square ran TPA’s op-ed, “Tesla continues subsidy shopping in Texas despite stock surges.”
July 23, 2020: The Morrow County Sentinel (Mt. Gilead, OH) ran TPA’s op-ed, “Regulatory reform, not price fixing, is the cure to high drug prices.”
Have a great weekend, stay safe, and as always, thanks for your continued support.
Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
