"Peter" has some thoughts on N95 masks.
Jared Moskowitz, head of Florida's Division of Emergency Management and the point man for procuring N95 masks for the state's frontline emergency responders (along with other PPE items) said today that he had contacted 3M about the unavailability of the masks to the states. He was told that the masks were being sold at higher prices to foreign buyers, cash buyers. That is outrageous!
3M said their distributors are free to negotiate the best deal they can and 3M does not interfere, nor do they have an America first policy. There is a lot of money changing hands here. I imagine a lot of it is finding it's way into the pockets of 3M executives, from the CEO down. There is no other explanation for such a callous disregard for the lives of our health care workers and first responders. Greed and hoarding are commonplace in a crisis, but we expect better from our corporations and public officials. President Trump's America First policy must be strictly adhered to in the distribution of emergency equipment and personal protection gear. Not one mask should be allowed to be exported until all Americans, including the public, have been provided with whatever they need and all of our emergency reserve requirements are fulfilled.
I just saw an interview of the 3M CEO on Fox News. Guilty, guilty, guilty! What a sleeze ball. I hope Trump takes them over and cancels the contracts of the distributors. Let the military do the distributions. Their priorities are in line with America First policies.
Posted by: Gunny | April 03, 2020 at 11:57 AM
I get a little uneasy with cries for govt to take over private or corporate businesses. That’s what a socialist govt would do. Negotiations; compromise; incentives. I wonder why our own govt isn’t able to pay competitive prices, but foreign countries can. Increasing production way beyond normal levels costs money. Producers have a right to recoup at least some of those additional costs. Allowing governments to arbitrarily take over free mkt businesses is not capitalism.
Posted by: Legion | April 04, 2020 at 02:59 PM
Likewise there are legal means of dealing with people/companies who are willing to sacrifice lives for “blood profits”. Nationalizing the business is not the suggested way.
Posted by: Legion | April 04, 2020 at 03:11 PM
Legion, they're not being nationalized. The Defense Production Act merely addresses the product made and the distribution. It also prohibits bribes and kickbacks. The profits stay with the company. Any bribery is handled criminally by the DOJ.
Posted by: Gunny | April 04, 2020 at 04:20 PM
Nationalizing business and commerce has sure worked for Cuba and Venezuela – hasn’t it? I do think there are certain people and factions in the world that would like to see the U.S. fall into jumping into the nationalization trap. Our country has proven itself in how to deal with questionable and corrupt practices that 3m may quite well be doing or teetering upon. Power of the pen and strategic enforcement have proven very effective since oh – the late 1930’s when it comes to production and distribution of critical items.
No need to shout and threaten. Speak softly and carry a big stick – make that a big US made Louisville Slugger. US Department of Commerce and US Customs can swing into action virtually overnight to control the outflow of designated US produced items. Enforceable laws and regulations are on the books to deal with the likes of 3M or similar miscreants. And if 3M decides to decrease annual production of its estimated 400MM masks in the U.S. and increase production outside don’t just talk about the Defense Production Act – use it and its legal penalties. I doubt Roman – head of 3M – will continue what’s actually been a running feud with President Trump since well before COVID-19 became the 24/7/365 word. Looking at a year in rocky lonesome for conviction on each and every count of violating the Act doesn’t set well with guys like Roman. They usually cry during conviction and sentencing.
Posted by: Manx | April 04, 2020 at 04:24 PM
I hope 3M finds all the negative publicity was worth the extra bucks they made by exporting masks that were needed here. I suspect it will cost them government contracts, later. Meanwhile, Pelosi and the usual suspects are gearing up for another investigation of Trump.
Posted by: Franklin | April 04, 2020 at 06:37 PM
Spot on, Franklin. Being the penny ante investor I am I took a look today at the balance sheets for 3M and its main competetor Honeywell. At the moment they're similar. If I were a day trader I'd short 3M and buy options on Honeywell. But I'm a rube who doesn't know what I'm talking about.
Posted by: Manx | April 04, 2020 at 07:43 PM