In a socialist economy, the state takes over the manufacture and distribution of goods and services. The governor of New York is demanding just such a system to fight to the overblown threat of the coronavirus.
From Zero Hedge this afternoon:
Instead of sitting around and complaining about how too much of the US supply chain is dependent on China, Cuomo urged Trump to use the DPA [Defense Production Act] to develop a plan and tell factories how much of which critical items they should produce.
This way, Cuomo said, it will end the bidding wars between states that led to New York purchasing medical masks that typically cost well under a dollar for more than $6 a mask.
Cuomo is advocating the state step in and take control the manufacture of medical supplies and possibly other goods and services. We know how well such a system worked in Venezuela.
“I say forget the voluntary partnership—order the companies to produce it. Let the federal government do it so the private company doesn’t end up marketing with all these states that are competing. We paid 75 cents for a mask and now we’re paying $7 dollars. Why? Because California will pay $6… Let the federal government just take the power of supply and distribution,” Cuomo said.