That is the topic of my latest Bloomberg column, here is one short excerpt:
…most of the vaccine-making capacity against a new virus would be concentrated in a few multinationals, and much of that activity occurs outside the U.S. If a pandemic were to become truly serious, politics might intervene and prevent the export of doses of the vaccine, no matter what the price.
The economic case for free trade is entirely sound. But here is one case where the U.S. government should take the initiative to support a domestic vaccine industry — because that trade is unlikely ever to be free.
And if you think the market will provide the solution, consider that potential suppliers may fear being hit with price caps, IP confiscations, or other after-the-fact “takings” by the U.S. government. So it is important to think now about how to create the right structures for the eventual creation of treatments and cures.
In the meantime, wash your hands! Nonetheless, so far the smart money still ought to bet that this one will evolve into less virulent forms, and it already seems that a disproportionate number of the people dying are quite old.