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
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.
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| Image Courtesy Wikimedia Commons |
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
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
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.
