Governors are saying that Federal Govt needs to take the lead in producing and allocating PPE (masks, ventilators, etc). One analogy is to aircraft carriers in WWII. Connecticut didn't make their own! Not a good analogy. And as always, this issue is more 1/n

complicated than it might appear at first glance. There is enormous variation right now in the incidence of the disease. Some states (NY, NJ, LA, etc) coping with huge case loads and demand for PPE. Others, not so much. Some of this is bad luck. Some is 2/n

better foresight. CA for example, closed more quickly and encouraged self-isolation. Given this large variation, not obvious you want national production and especially national distribution. Do you want the Feds in charge of who gets what given who is leading the Feds 3/n

right now? Yes, understandable that governors don't want to "bid against each other" but paying real prices (though always unpleasant) allows goods, at least in theory, to flow to the states that are in the worst straits. As with any product, allowing prices to rise puts 4/n

a burden on some. But it also provides great encouragement to increase output. The Defense Production Act can do that, too. But it there is an information challenge--the Feds have to know how much to make of each kind of mask, how many ventilators all-together and can miss 5/n

out on new designs by new players who might be more nimble. Governors wanting the Feds to make and distribute everything are eager, understandably, not to pay market prices. But this urge comes at a cost. The other problem is that the distribution system on the ground 6/n

in the hospitals is incredibly slow, bureaucratic, un-nimble and reacting very poorly to the urgency of the current situation. This is the result of years of turning hospitals into extended arms of Medicare. They are not used to responding quickly. Many layers of 7/n

communication and poor communication between the different parts of the institution. None of this is solved and may be harmed by turning everything over to Feds. In the current mess, there is an incentive at least, to become nimble and make progress.