THE STRANGE CASE OF DONALD TRUMP AND THE DEFENSE PRODUCTION ACT: A WAR TIME PRESIDENT WHO WON’T PULL OUT ALL THE STOPS TO WIN THE WAR

President Trump’s dance with the Defense Production Act of 1950 (DPA) makes us

wonder why he hasn’t embraced the DPA in getting ventilators and other protective equipment in the hands of those battling the coronavirus. In a March 18 Executive Order, Trump declared ventilators and protective equipment

“essential to the national defense” against the spread of the virus, the standard required by the DPA for production and distribution of critically needed equipment. The range of explanations spans a continuum from benign to cynical.  The

shortage of medical equipment compels a closer look at what’s happened.

The DPA gives a president broad powers that potentially could alleviate shortages. Trump doesn’t lack awareness of the law. He’s spoken, however, of “hopefully” not needing it against the virus and using it only in a “worst-case scenario.” The fact the nation now has more coronavirus cases than any other country sounds like a “worst-case scenario.”  

                                     

                     

Some History

The DPA’s roots rest in the Second World War. Congress gave President Franklin

Roosevelt broad authority for ordering that industry convert facilities and produce war material. When the Korean War started, President Harry Truman needed

Image Courtesy Wikimedia Commons

similar power. Congress enacted the DPA, a law that has been reauthorized over 50 times and has been regularly invoked since. Trump claimed the coronavirus pandemic makes him a “wartime president,” though, mysteriously, he’s not using all available resources for winning the war. 

The DPA gives presidents three kinds of power: (1) authority requiring that businesses accept and prioritize government contracts deemed necessary for national defense; (2) power for establishing regulations that allocate materials, services, and facilities for national defense; and (3) authority for managing the civilian economy assuring access to scarce materials for defense needs. Trump seemingly thinks the federal

government has only a limited role in the war since he declared the federal government isn’t a “shipping clerk.” Trump has acted as if each state is an independent nation, left to fend for itself. 

 

Trump, the Virus, and the DPA

General Motors, Medtronic, ResMed, Royal Philips, and Vyaire Medical could produce

essential supplies. None have shown enthusiasm at the prospect. Each, if ordered to produce essential supplies, could do so and, of course, would want a large share of the $2.2 trillion CARES bailout Congress passed and the president signed March 27.

The most visible company in the discussion, General Motors, could shift factories from building automobile engines to building ventilators. Trump’s order didn’t immediately require that GM convert to ventilator production.  GM, in fact, said it was going ahead with plans for manufacturing ventilators, but reportedly wanted $1 billion for doing so, millions of it upfront. A dispute over costs erupted between GM and the administration and discussions broke off. A bit later Trump said he’d use the DPA in requiring that General Motors accept and prioritize contracts for ventilators, the number being determined by the Secretary of Health and Human Services. 

Trump came under fire from House Speaker Nancy Pelosi for his reluctance to use the

DPA. He finally, on April 2, said he was invoking the law and requiring that three companies – 3M, General Electric, and Medtronic – produce masks. Even GOP Senator Ted Cruz of Texas urged that Trump “exercise these delegated powers to the full extent necessary.”  Trump, however, hasn’t ordered that General Motors,

or any of the other companies, begin production of other needed materials and has even gone so far as saying invoking the DPA would effectively “nationalize” firms. We find Trump’s reluctance about invoking the DPA baffling and he hasn’t explained his reasons.  Still, we have some ideas.

A Range of Possibilities

We start with the most benign potential reason. Imagining any president hesitating about injecting the government into the business of private companies isn’t difficult. Democrats and Republicans say they believe

in limited government. Staying out of a firm’s decisions about what it will produce, when, and at what price comports with that philosophy. Republican orthodoxy mandates that the government avoid intrusion into the operational life of private business as much as possible (tax cuts notwithstanding). We see this explanation near one end of a benign-to-cynical continuum.

Nearer the middle of that continuum, we

might suggest a political rationale. Perhaps, Trump fears antagonizing his political base if he strongly and enthusiastically uses the DPA. Many are true believers in Republican orthodoxy, despite their willingness to feed from the $2.2 trillion CARES trough. These supporters would likely regard any deviation from the party’s antigovernment norm as heresy, punishable in right wing media (and maybe at the ballot box). When Trump strayed a little from the line and sought a compromise with Democrats on his border wall, howls from Rush Limbaugh and Laura Ingraham forced his hand and he backed off the compromise idea.

                  

On the far end of the continuum, Trump might just be appeasing friends in the industry. If he goes all-in with using the DPA in forcing production of large amounts of different materials, imagining that he will ruffle the feathers of friends in the manufacturing world follows. Could the president simply want protection for his captains-of-industry colleagues from costs associated with converting their operations to producing medical equipment? Is Trump putting the interests of his friends above what is best for the country right now?

It’s possible Trump’s reluctance springs from a combination of the factors we’ve identified and others. His real reasons could cover our

entire continuum. The mounting death toll and the need for addressing the health needs of millions of Americans, however, suggests using every tool in the box, including the DPA.