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Get BARDA More Money!

Summary:
The NYTimes headline is Coronavirus Attacks the Lungs. A Federal Agency Just Halted Funding for New Lung Treatments and they do try their best to make this a scandal: When the coronavirus kills, it attacks the lungs, filling them with fluid and robbing the body of oxygen. In chest X-rays, clear lungs turn white, a sign of how dangerously sick patients are. But earlier this month, the Biomedical Advanced Research and Development Authority, or BARDA, a federal health agency, abruptly notified companies and researchers that it was halting funding for treatments for this severe form of Covid-19, the disease caused by the virus. The new policy highlights how staunchly the Trump administration has placed its bet on vaccines as the way to return American society and the economy to normal in a

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The NYTimes headline is Coronavirus Attacks the Lungs. A Federal Agency Just Halted Funding for New Lung Treatments and they do try their best to make this a scandal:

When the coronavirus kills, it attacks the lungs, filling them with fluid and robbing the body of oxygen. In chest X-rays, clear lungs turn white, a sign of how dangerously sick patients are.

But earlier this month, the Biomedical Advanced Research and Development Authority, or BARDA, a federal health agency, abruptly notified companies and researchers that it was halting funding for treatments for this severe form of Covid-19, the disease caused by the virus.

The new policy highlights how staunchly the Trump administration has placed its bet on vaccines as the way to return American society and the economy to normal in a presidential election year. BARDA has pledged more than $2.2 billion in deals with five vaccine manufacturers for the coronavirus, compared with about $359 million toward potential Covid-19 treatments.

I think diverting funding from lung treatments to vaccines is the right thing to do. Note that we are not talking about reducing spending on patients. BARDA, as the name suggests, funds advanced research and development. Thus, the administration is diverting funding from advanced research and development for lung treatments to vaccines. What’s better a vaccine that prevents a lung treatment from ever being needed or a lung treatment? A billion dollars spent on vaccines looks a lot more productive right now than a billion dollars spent on investigating new lung treatments.

The real scandal is how little we are spending on advanced research for vaccines–$2.2 billion is a pittance, less than a day’s worth of economic loss caused by COVID. Given their limited budget, BARDA is making good investments. Congress, however, has not allocated enough money to BARDA, one of the few agencies that had the foresight to do the right things, such as investing in emergency vaccine capacity, even before the pandemic hit. Congress’s failure to fund BARDA is why the administration is scraping the bottom of the barrel to get them all the funding they can.

We should go big, really big, on vaccines. But when I talk with people in Congress, I tell them that a big plan is ideal but if we can’t do that then at least GET BARDA MORE MONEY!

Addendum: The fact that BARDA can’t get enough funding from Congress in a pandemic is a good example of why we need a Pandemic Trust Fund.

The post Get BARDA More Money! appeared first on Marginal REVOLUTION.

Alex Tabarrok
Alex Tabarrok is Bartley J. Madden Chair in Economics at the Mercatus Center at George Mason University and a professor of economics at George Mason University. He specializes in patent-system reform, the effectiveness of bounty hunters compared to the police, how judicial elections bias judges, and how local poverty rates impact trial decisions by juries. He also examines methods for increasing the supply of human organs for transplant, the regulation of pharmaceuticals by the FDA, and voting systems.

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