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Government Is No Match For The Coronavirus. Thank God For The Private Sector.

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The Coronavirus is reminding everyone that you cannot rely on government and that ultimately it is the private sector that will provide the solutions. Many non-medical government officials and members of the media are predicting massive cases of COVID-19 and death, when in fact no one can predict the outcome. What we do know is that government has created a full-blown national panic, when at this point the normal flu season is far more deadly.

Decentralization is critical to a functioning society but often precluded by federal regulations.

The Washington Post reported the following about the Centers for Disease Control:

The problems started in early February, at a CDC laboratory in Atlanta.

A technical manufacturing problem, along with an initial decision to test only a narrow set of people and delays in expanding testing to other labs, gave the virus a head start to spread undetected — and helped perpetuate a false sense of security that leaves the United States dangerously behind.

Tests begin with the CDC to ensure quality, which is exactly the wrong approach. It assumes the government can outperform the best medical industry in the world. Even at this hour the CDC has failed, shipping test kits that are defective.

The CDC does not have a solution, but it also becomes the classic blocker to progress. Labs cannot act without a lengthy approval process from CDC and the FDA. These government controls violate the principle of subsidiarity (problems should be solved at the lowest level possible). Ultimately care is provided by local hospitals, care facilities, and labs.

South Korea’s rapid testing allowed for early treatment and containment of the virus. These test kits were created in three weeks. Many labs in the U.S. could have solved the test kit problem but were restrained by the FDA and CDC. The South Koreans offered to help us, but was the CDC listening? Evidently not.

At the president’s request on Friday, America’s robust private sector, including Walmart, Walgreens, CVS, Roche Laboratories, and LabCorp, came up with a solution for mass testing. Roche has received fast-track FDA approval for its COVID-19 diagnostic test. This testing will be done on a drive-thru basis in parking lots. This minimizes contact and allows for mass testing of thousands across the country. The more Americans are tested, resulting in a lower death rate percentage, the more the testing will have a calming effect on our citizens.

Americans consider regulators and government to be sacrosanct, but in fact government agencies are slow and often fail us. Think of the FAA, which allowed Boeing engineers to bypass basic engineering standards, resulting in the crash of two Boeing 737 Max airliners and the grounding of 900 planes around the world.

We all know that anytime we expect service from the government, it will be slow and painful vs. the private sector, which is mostly fast and courteous. In spite of some minor shortages, due to hoarding, the private sector is supplying us with gas, food, prepared meals, medical supplies, and health care.

The Coronavirus crisis must cause us to rethink government. The Trump administration has restricted new regulation and reduced arcane strictures, which has resulted in a booming economy. It is absolutely true that most private industry can be trusted because the alternative for poor or unscrupulous providers is failure. Private industry can be sued and suffer financial decline, unlike government, which simply demands more money for poor performance. Business or individuals that commit fraud are subject to civil and criminal penalties.

The federal government spends 21 percent of our national GDP. All federal spending comes from business and citizens, which restricts their ability to allocate those funds to their families and to spur economic growth. American entrepreneurs are excellent capital allocators, creating the jobs and technologies that keep us safe and allow a very high standard of living for most citizens.

In spite of enormous federal deficits, every protected class of workers and business expects the government to bail it out during a crisis, from airlines and cruise ships to government workers. We will now witness a litany of spending beginning with $8 billion for the Coronavirus, moving to a $50 billion pork-laden House bill, and a third spending bill coming from Treasury.

This system is grossly unfair, as working class individuals and small businesses do not get paid when businesses shut down.

It’s time we heed the advice of President Ronald Reagan: government is the problem, not the solution.

The Welfare-Warfare state is not only consuming a large portion of our national income, but worse it is also spending far beyond its means, creating debt now surpassing $23 trillion vs. under $6 trillion in the year 2000.

The solution is to reduce federal spending to 18 percent of GDP, which will downsize or eliminate many counterproductive agencies and allow American business and individuals to perform and innovate.

If you are unconvinced, think of Walmart now offering ultra-low cost medical services, along with a host of competitors including CVS and Walgreens. Gas is very cheap because of our fracking industry. An abundance of high quality food is available from thousands of grocery stores, restaurants, and now home delivery from many sources.

Americans are hard-working, resilient, and innovative. The time has come to unleash this talent to create a higher living standard and solutions to the most perplexing national challenges.

Bob Luddy is President and Founder of CaptiveAire. This article appeared in The American Spectator. Reprinted with the author’s permission.

How Young Coders Are Using Tech to Combat the Opiate Crisis

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Unless you have been impacted by it personally, the opioid crisis may seem like nothing more than a detached statistic. But for those who have watched loved ones lose their battles with addiction, the opioid crisis is all too real. And instead of surrendering to the despair that is all too easy to feel in such a dire situation, one Baltimore resident is using his friend’s overdose as a catalyst to save lives through coding.

Baltimore’s Opioid Crisis

The city of Baltimore is no stranger to the opioid epidemic. The media has dubbed it “ground zero” of the growing crisis, as the region has been hit particularly hard when it comes to drug use and addiction. In 2017, opioid-related substances killed 523 Baltimoreans. This was a dramatic increase from the 192 opioid-related deaths that occurred within the city just three years prior in 2014.

Baltimore’s health commissioner, Dr. Leana Wen, commented on the seriousness of this situation, saying, “A couple weeks ago there was a spike of 20 overdoses in one area within a few hours.”

Unfortunately, the rise in overdoses in this region is due largely to the presence of fentanyl in batches of locally distributed heroin. Fentanyl is an extremely potent opioid and many users are often unaware when they have purchased heroin containing the substance. Since users do not realize that they are using fentanyl, its potency is not taken into account. And since they assume that they are using typical street-grade heroin, they inject their normal amount, not realizing that fentanyl has turned a “regular” dose into a lethal one.

Wen commented on the fentanyl problem, saying:

“People are using fentanyl without realizing it. Fentanyl is getting mixed in with heroin, cocaine, prescription drugs. They’re overdosing and dying without realizing what they’re taking.”

This is precisely what happened to a close friend of Baltimore game developer Mike LeGrand. LeGrand watched his friend struggle with addiction throughout the course of their friendship. But about a year ago, his friend lost her battle after overdosing on heroin that had been laced with carfentanil. Carfentanil is an extremely potent form of fentanyl that is 5,000 times stronger than typical heroin, making it easy to overdose on the substance.

The passing of his friend personified the opioid crisis in a way LeGrand had not anticipated. He was resolved to do whatever he could to prevent drug overdoses around the city.

Private Coders to the Rescue

In response to the rising use of opiates around the city, Baltimore officials took measures to show the public that it was serious about combating the crisis. But however good the intentions may have been, governments are inherently ill-equipped to handle this problem. For starters, the drug war has turned addicts into criminals, putting them at odds with state officials. Building trust becomes exceedingly difficult if jail time is always on the table. And for those engaging in illegal drug use on a regular basis, attending a city-run course on overdose prevention may not appeal to you.

On the federal government’s end, Attorney General Jeff Sessions has demonstrated a clear lack of understanding on the issue, routinely calling for a doubling down on the War on Drugs as a viable solution to the problem. However, after almost five decades of federal drug prohibition, the situation has grown worse, not better. It has also helped to create a stigma against drug use, as it has become associated with crime rather than being looked at as a vice for those struggling to deal with past traumas and mental health issues. Sessions has also continued to demonize marijuana, even though the plant has already proven itself to be a useful tool in helping to ease addicts off of opiates. But where the state has failed to adequately address this issue, the private sector is offering substantial solutions.

In addition to the creation of an overdose prevention task force, Baltimore also set up an alert system to notify health care professionals when overdoses spiked in a given area. This information was then used to target neighborhoods where bad batches of heroin were being sold so that doctors could warn users to steer clear.

But since this information was only sent to medical professionals, rather than the actual users, it did little to curb overdoses throughout the city. Those who needed the information most were not receiving it. However, upon discovering the city’s email alert system, LeGrand was inspired to expand the concept.“It got me thinking,” he said, “If there are batches of heroin that are killing large groups of people, shouldn’t there be a way to alert them so they know and don’t die?”

And since his expertise is in code, he knew exactly how to turn his vision into a reality. LeGrand and his wife run a nonprofit called Coding in the Schools, where they teach students to code. After enlisting help from five of his students, he created an app that analyzed the local paramedic data in order to determine which areas of Baltimore were being inflicted with bad batches of heroin. Each day, the data is analyzed and users are alerted if their area experiences a spike in overdoses.

Since many drug users are hesitant to sign up for a service that may land them on some sort of list, LeGrand made sure that his Bad Batch app is completely anonymous for users. All someone needs to do is send a text message to the number provided and, similar to an Amber Alert, you will begin receiving text message alerts on your phone. Bad Batch also provides users with a list of resources around the city, like needle exchange vans or addiction recovery resources.

And in addition to saving lives, the launch of Bad Batch has given purpose to its young creators, who accidentally stumbled upon the world of coding.

The Bad Batch Boys

David Gatewood and Davon Harris had never planned on becoming coders and they certainly never planned on saving lives. As students, the 18-year-olds had met LeGrand through one of his coding camps and from that point on, their lives had found a sense of purpose.

“A lot of us had barely any background in computer science,” Gatewood said. “In the neighborhoods, I’ve lived in, not a lot of people are interested in coding. I never thought I could be a part of something like this.”

While neither boy is personally connected to the opioid crisis, their coding abilities have helped to prevent overdoses within their own communities. Together with LeGrand and the rest of their team, the coders worked closely with addicts to better understand their needs. This, in turn, brought a newfound sense of empathy for all parties involved.

Bad Batch takes a realistic approach to the opioid problem by meeting those suffering on their level, rather than setting far-fetched expectations. The creators are not naive enough to assume that people are going to quit the substance overnight by simply signing up for the app. But instead of viewing those struggling with addiction as aimless “junkies” with little regard for their own self-preservation, the creators now understand that these users are not all armed with a deathwish. And their overall goal is to help educate users so that they can live to fight another day.

Harris commented:

“No one wants to die. You still make your own decisions. We’re trying to help this not be your last decision.”

By providing users with the information they need to avoid lethal batches of heroin, the “Bad Batch Boys” as they have been called by local media outlets, are building trust within their communities. And if a user someday decides they are ready for help, they know that Bad Batch is there to provide resources.

Wen has praised Bad Batch’s efforts, specifically for helping in ways that the government cannot. She said:

“We at the Baltimore City Health Department realize that we can’t solve all these issues by ourselves and that we need the collaboration of nonprofits and the private sector.”

So far,100 people have signed up to use Bad Batch and LeGrand is often out on the streets of Baltimore informing as many people about the app as possible.

Without Government, Who Will Build the Roads? Domino’s Pizza, Apparently

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Yesterday, Domino’s Pizza announced that rather than wait for government action, the company would take it upon itself to fix potholes as part of its “Paving for Pizza” campaign.

A lot can happen in the time it takes for your pizza to leave its store of origin and arrive at your door. Sitting helplessly in the front seat, one encounter with a pothole may mean your delicious cheesy pie is delivered in ruins.

We’ve all had the unfortunate experience of opening that square cardboard box after the delivery guy has left, only to find that the cheese and toppings have slid off in what appears to be an act of foul play. Overcome with hanger, you call the pizza store and demand that a new one be sent over. But realistically, between traffic and bake time, you are not going to get that pizza for at least another hour. The struggle is all too real.

This problem is apparently so widespread for Domino’s, they recently launched a pizza insurance program that would allow consumers to insure their pizza in case something happens to it during the delivery. While this was a clever idea, especially to those of us who subscribe to a “private insurance for everything” philosophy, it still didn’t save any pizzas. Insured or not, Domino’s still has to make another pizza if one is ruined.

So how do you, to the best of your ability, prevent pizzas from being destroyed on the road? You attack the root of the problem and fix the roads themselves. And that is exactly what Domino’s plans to do.

While the new program officially launched yesterday, “Paving for Pizza” has already fixed over 50 potholes in California, Texas, and Delaware. The campaign promises to give local municipalities the money needed to fix their crumbling infrastructure should they be selected by the company. Those wanting to cash in on this opportunity need only go online to Domino’s website and nominate their own neighborhood roads for consideration.

Commenting on this unconventional initiative, creative director at CP + B, Kelly McCormick, said:

We know that the carryout experience includes everything from ordering, to getting the pizza home in perfect condition. This forced us to think broader about carryout and meant that we had to consider the drive or walk home, on the pothole-ridden roads and icy sidewalks that we don’t own and can’t control ourselves. So, we decided to go where no other pizza company would go.

And where they’re going, they will most certainly need roads.

Who Will Build the Roads?

Since the dawn of time, libertarians have been routinely bombarded with one infamous question: Without government, who will build the roads? For those hostile towards the freedom philosophy, this question seems like a real “gotcha” weapon. There is no possible way the free market could handle a “public good” as important as roads, thus proving the entire libertarian philosophy to be untenable. Of course, Domino’s is now proving this assertion to be false.

Yet, the “roads” question has taken on a life of its own within the liberty sphere, dominating meme culture and becoming a source of constant frustration for those committed to free-market principles. So tightly woven is this question into the modern freedom movement, historian Tom Woods once said:

“Who will build the roads?” is the question that belongs at the top of every libertarian drinking game. If we didn’t have forced labor, the argument runs, there would be no roads. There’d be a Sears store over there, and your house over here, and everyone involved would just be standing there scratching their heads.

But what our skeptical friends may not fully understand is that where there are roads there is commerce. And in the absence of roads, how could Sears feasibly draw customers into its store? Or, put differently, without properly functioning roads, how could Domino’s deliver your pizza safely to your door?

All Roads Lead to Commerce

Roads have historically been viewed as a public good, which is defined as a product or service that is provided to citizens exclusively by governments, ensuring use is accessible to all. This has led many to believe that the government is the only entity capable of road management. And even though toll roads and other forms of private thoroughfares exist as living examples, there are many who cling to the government’s monopoly on roads. But there are multiple problems with this viewpoint.

For starters, there is absolutely no proof that the government is well suited to care for the roads. In fact, there is far more evidence in support of the opposite. Government roads are either always in need of repair or heavily congested because some bureaucrat sitting in a desk ordered roadwork to be done during rush hour.

Additionally, the government has no real incentive to care for the roads in the first place.

In the market, private entities hoping to succeed know they must respond to consumer demand, lest they go out of business. A roofing company, for example, would not survive in the marketplace if it promised and then failed to respond promptly to emergency situations time and again. Yet, government roads are constantly in a state of disrepair, and it sometimes takes years before a service request is completed.

Of course, the government doesn’t get fired when it fails to respond to a road issue in a timely manner. Since the state operates by force, consumer satisfaction plays no role in its existence.

The private sector, on the other hand, has a vested interest in properly maintaining local roads as quickly as possible, as Domino’s is now proving.

The decision to launch Paving for Pizza was born out of an unmet demand in the marketplace. The government was failing to meet the needs of drivers on the road, which in turn was inhibiting Domino’s ability to live up to its promise of offering quality products to its consumers.

The Paving for Pizza campaign actually works in Domino’s best interest. Already, the company is having to spend money to replace the pizzas that are being destroyed en route to their final destinations. Additionally, having to remake a ruined pizza means that a Domino’s employee has to shift his or her focus away from another customer’s order. Replacing one pizza ends up costing the company both precious time and money.

But by choosing to invest money into fixing the roads in its many delivery areas, Domino’s is not only attacking the root of the problem, they are also scoring major points with consumers and local communities. Not only does the consumer have a better chance at receiving a beautifully intact pizza, but the entire community also benefits from the improved infrastructure. This, in turn, will result in new Domino’s customers who are drawn to the company as result of the improved roads. Everyone wins in this situation.

But the implications of this are far-reaching. Roads clearly play a vital role in the way Domino’s conducts business. But Domino’s is just one company. Since many establishments rely on roads to bring their customers to them, there is an enormous potential for private companies to lead the way in infrastructure innovation if they follow Domino’s lead.

At the very least, libertarians can now rest easy knowing that the next time we are accosted with the infamous question about roads, we can look to Domino’s as a beacon of free-market innovation of a public good.

The Year Local Entrepreneurs Funded The Olympics

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When it came time for cities around the globe to begin bidding to host the 1984 Summer Olympic Games, nobody wanted to volunteer. At the time, hosting the Olympic Games was seen for what it truly is: financially risky.

In the wake of the 1976 Summer Olympic Games, host city Montréal found itself $1.5 billion in debt; an amount the Canadian city was finally able to pay off in just 2006.

Put off by the financial setbacks experienced by Montréal and still grappling with the turmoil and political unrest left by the Cold War, the 1984 Summer Games were not particularly popular when it came to attracting potential host cities. In fact, only two cities even officially bid to host the 1984 Olympic Games: New York City and Los Angeles.

Los Angeles won the bid in the end, but its residents were not enthusiastic about this decision nor were they willing to foot the bill. The people of Los Angeles were so adamant about protecting their tax dollars from wasteful spending that they proceeded to pass a city charter prohibiting the use of public funds to be used for Olympic facilities. The city now had the honor of hosting the Olympic Games, but no way to pay for it.

Fortunately, a local businessman with a reputation for being budget-conscious stepped up and spearheaded the Los Angeles Olympic Organizing Committee (LA84). Comprised of other successful entrepreneurs and business-savvy individuals, the Committee’s goal was simple: find private funding for the Olympic Games, a feat that had never been done before.

Critics were not initially sold on the idea of leaving the fate of the ’84 Olympic Games to a committee of corporate businessmen. However wary they may have been towards the idea of privatization, the 1984 Olympics would go on to be remembered as one of the most successful Olympic Games in history. Not only did the Committee find itself under budget, it also managed to make a profit – something that had only happened once before.

Through private fundraising, corporate sponsorships, and fiscal discipline, the Committee pulled off the unthinkable. Instead of throwing away millions, if not billions, on building new infrastructure, LA84 made use of existing arenas and college sports facilities.

Unheard of at the time, the Committee made history by selling the exclusive broadcasting rights to just one network. The American Broadcasting Company (ABC) paid a modest $225 million to be America’s only source for viewing the Olympic Games.

When it came to housing the Olympians, LA84 chose to make use of college dormitories and other housing facilities spread throughout the city, rather than building a costly “Olympic Village,” which has become customary for host cities.

When all was said and done, the 1984 Los Angeles Summer Olympic Games cost a total of $546 million dollars. When compared to the $50 billion spent on the 2013 Sochi Winter Games, the amount spent by LA84 seems almost minuscule.

Privatization was not only possible, it was also the most efficient way to get the job done.

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