I watch the press briefings on COVID-19. I get the news feeds on the problem that the US has getting personal protective equipment (PPE). Since I’m close to the situation, and since I’m not presently doing business with USGOV or USSTATE interests, I can suggest to you why the problem exists.

“The fault is not in our stars, dear brutus, but in ourselves.” – Julius Caesar

Other countries are willing to pay the market rate. Many US entities are not. And some countries other than the US are offering to buy PPE in the pipeline earmarked for the US at a premium, thus getting the US un-earmarked. Ooops. Frankly, there’s not much that can be done about that except to deal with people who have stroke on the ground in China.

This is capitalism. And like it or not, supply and demand rules. An item that cost $1.00 six months ago might cost $2.00 today. Demanding the item at $1.00 won’t get you what you want.

In China, restrictions on movement have been completely lifted. If the virus returns with a vengeance, there are enough foreigners in country, that it won’t be possible to hide. However, all in all, it’s a positive sign.

8 COMMENTS

  1. The only way for the supply to increase is for the price and profit to go up, to encourage greater production, which will in turn, lower prices. Basic 6th grade economics.

    Unfortunately, a large portion of Congress are Communists, who have never understood Capitalism.

    -Kle.

    • It’s more than communism, it’s plain buffoonery. AOC has become the brain trust of the Democrat Party. Frightening. She might have made a decent bartender. I don’t know. But she Peter Principled out at dropping an olive into a martini.

  2. What’s worse than the “demanding the item at $1.00” is that our congress has termed the adjustment of the market prices to conditions “price-gouging” and made it illegal.

    They’ve outlawed market adjustments. It just doesn’t (can’t) affect things coming from other countries while they’re still in those countries.

    • That’s what they are doing. I have

        over a thousand

      Australian-made ventilators (everything in English, name brand, never used) in China that I can’t get into the US because they’re telling me that the purchase price was the 2019, pre-plague prices, and it’s more than 50% less than my cost. Until somebody pulls their head out of their a$$ and allows for reasonable cost-plus and shipping costs by air – expedited, there will be shortages in the US. So far, I’ve been able to keep the ventilators from going to a country other than the USA. Time to play politics and see if we can get that fixed from the top. OR people in the us can be content to suffocate.

    • I’m trying, LSP. No cashflow yet in my first week of business, but next week holds promise.

  3. I bet you will never understand why you are standing against that wall.

    China hid COVID-19 and sent us infected travelers. The NY corruptocrats “misplaced” the money for ventilators and now you want to join in and make more profit from the results of the attack and corruption? I believe that kind of thing is why the railroads got nationalized during WWI. Watch out for that part of the market. I hear that it can be quite “cut throat”.

    I read that the 3M export “to Canada” was blocked since that product was being re-imported to the US (at a premium, of course) or sold to other countries but not to Canadians. Just Business!

    OK. So long as we know the “rules”. Your Commissar will be with you shortly. You should be aware, that if you allow us to die for profit, we have no reason to keep you around, unless the price is right.

    • The PPE supply chain will be resolved shortly by the “big boys” and my feeble efforts will be bowled over.

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