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How Big Tech Is Consuming America’s Electricity and Water
As federal net-zero policies attempt to shift transportation, heating, and other essentials onto the electric grid, one of the hottest growth sectors of America’s economy is poised to increase electricity demand exponentially, further straining an energy infrastructure that is being pushed into the red.
Data centers, the so-called “brains of the internet,” are industrial warehouses packed with rows upon rows of servers. They process, communicate, and store the data behind everything from bank records, online retailers, and social media platforms to Netflix shows and your personal iPhone videos.
“Data centers are essential to cloud computing and its ability to give users remote access to data,” a 2023 Federal Reserve report states, quoting a Science article that calls them the “information backbone of an increasingly digitalized world.”
Many analysts laud data centers as one of the fastest-growing sectors of the real estate market, but the industry may soon find itself hitting a wall as local communities put up increasing resistance to the industry’s seemingly insatiable appetite for power and water.
“While other commercial real estate sectors are experiencing a decline in construction pipelines, data center development has reached an all-time high,” according to a January report by Newmark, a commercial real estate advisory.
“However, growth is increasingly constrained by land and power availability, supply chain challenges and construction delays, not to mention increasing resistance from some local jurisdictions.”
The report said the rapid growth of artificial intelligence (AI) and other technologies is fueling the demand.
The industry is led by cloud computing behemoths like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta. It also includes digital landlords, called co-location companies, which rent storage space out to third parties. These include Equinix, Digital Realty, and CyrusOne.Electricity Demand From Data to Double by 2030
Data warehouses consumed 17 gigawatts of electricity in 2022, or about 4 percent of total U.S. consumption. This is projected to double to 35 gigawatts by 2030.
Eric Woodell, who holds a doctorate of science in information systems and communications and is the founder of Amerruss, a tech infrastructure management company, referred to data centers as “energy hogs.”
“But now your data center for AI applications is no longer a hog, it’s an elephant and it’s living in your backyard,” he told The Epoch Times.
Mr. Woodell has been managing data centers for 25 years, formerly for Vanguard, the world’s second-largest asset manager.
A mere 10-foot-square space within the average data center consumes about 10 times as much electricity as the average home, he said.
“While conventional data centers are already pulling an enormous amount of power, AI computing doesn’t use CPUs [central processing units], but GPU-based systems instead, as the GPUs [graphics processing units] are tailored to better handle complex mathematical functions,” he said. “But there’s a catch: they draw between five and 10 times more power than similarly equipped CPU systems.”
This hefty increase in electricity demand strains a grid that is already predicted to feature power shortages and routine rolling blackouts in the coming years. This is due to more demands being placed on the grid at a time when utilities are aggressively shutting down coal and gas plants in their transition to wind and solar energy.
According to a February case study of one large regional electric utility, PJM, by Quanta Technologies, the next several years will feature “equipment overloads that trigger as much as 6,826 MW of load shedding during average winter peak demand.”
Load shedding means cutting power to consumers, also known as blackouts, to prevent a system collapse.
PJM serves a dozen eastern Mid-Atlantic states as a wholesale provider.
“The analysis reveals the expected overload of 30 bulk transmission facilities (230 kV and higher) in the 2028 summer due primarily to high load growth associated mostly with new data centers,” the report states.
Curiously, given that the transition to renewable energy is ostensibly to fight rising temperatures, the Quanta report finds that “electric demand is peaking less in summer and more in winter.” This is particularly worrisome as states on the West Coast and in the northeast, representing nearly one-third of natural gas consumers across the United States, are banning gas heating in new homes, forcing those households to rely on electricity for essential heating.
PJM forecasts new data center load growth of 7,500 MW by 2028, while deactivating 11,100 MW of fossil fuel production, leaving an 18.6 Gigawatt gap between new demand and remaining supply in this sector, according to Mr. Woodell.
“18.6 Gigawatts would power roughly 3 million homes or New York City three times over,” he stated. “The ramifications are massive.”Data Center Alley
Globally, data centers consume about 3 percent of the world’s electricity, according to Ryan Yonk, an economist at the American Institute for Economic Research. This consumption tends to be steady and predictable, and utilities can expand to accommodate it, he said.
However, problems arise when centers become concentrated in a single area, especially if that area is transitioning away from fossil fuels.
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“For individual communities, there are some real questions about data centers going in, particularly if they’re going to be clustered, and they often are,” Mr. Yonk told The Epoch Times.
“Data centers end up having consistent power requirements, which means that the grid can be pretty well expanded so long as production capacity is high enough,” he said. “But as we transition more to renewables … the greater the baseline demand, the more problematic it can be.”
The region covered by PJM and the Quanta study is significant because it includes the world’s largest data hub, where about half of all U.S. data centers are located and through which an estimated 70 percent of the world’s internet traffic passes.
For anyone who conducts a Google search or makes an Amazon purchase, that transaction will likely be processed in what is known as Data Center Alley, home to about 150 data warehouses in Loudoun County, northern Virginia.
Data Center Alley had its beginnings in the 1980s when America Online (AOL) located its headquarters there. It quickly drew in others due to its proximity to Washington, its construction of the “world’s densest” fiber optic network, a supply of relatively cheap electricity, and local tax incentives.
“This is the area where you want to locate to connect up to everything else,” Julie Bolthouse, director of land use at the Piedmont Environmental Council (PEC), told The Epoch Times.
“Everybody is building off of each other in these data centers; you have to think about it as one giant network that is all communicating with each other,” she said.
“What’s happened from the ‘90s to now is that we’ve supersized them. We’ve gone from a small building that was part of a larger business campus and was only five megawatts, to these hyper-scale warehouse-type buildings that are now 200,000 square feet, and they’re using up to 90 megawatts per building.”
For scale, 90 megawatts is about the electricity consumption of 22,000 homes, according to a PEC report.
The data center network in northern Virginia expanded in 2022 to include a development called the Digital Gateway, a cluster roughly equal in size to Digital Alley, located in nearby Prince William County. This new development includes 37 buildings and 14 substations of 200,000 square feet each, Ms. Bolthouse said, and more developments are in the pipeline throughout the area.
The current and incoming data centers would increase electricity usage by more than 20 gigawatts, the PEC states in the report. Currently, the total peak demand for that area is 23 gigawatts, so northern Virginia’s data centers would almost double the local electricity demand, using about as much as 5.5 million homes.
The problem for local communities is that, once a municipality approves the development, the electric utility must build new power generation and transmission lines to service that development. The cost of this new infrastructure is largely borne by the community in the form of higher electric bills for all ratepayers.
“When we pay our electric bills each month, you’re giving a huge subsidy to multibillion-dollar companies like Amazon, Google, Microsoft, and Apple,” the PEC report states.
As a result, data centers are increasingly facing local resistance when they try to build new facilities.
One group putting up resistance is the Virginia Data Center Reform Coalition, which includes about 40 organizations including home ownership associations, natural resource protection groups, historical preservation groups, and climate activists.
This organization, in which Ms. Bolthouse has a leadership role, is working to get local laws passed to slow or stop the expansion of data centers. Searching for New Places to Build
Consequently, developers have started looking elsewhere in search of land, cheap energy, and abundant groundwater. Target locations include Atlanta, Georgia, and Columbus, Ohio. Cheyenne, Wyoming has also approved significant data center development.
Data center developers are also seeking locations abroad. The BBC reported in June of 2023 that data centers used about one-fifth of all electricity in the Republic of Ireland, the equivalent of the electricity used in all the country’s urban districts combined.
Energy consumption in Ireland by these data warehouses increased 31 percent from 2021 to 2022, and by 400 percent since 2015, the BBC stated.
There had even been consideration given at one point, before Russia invaded Ukraine, to locating data centers in frigid locations like Siberia, some of which also have an abundant supply of nuclear power, Mr. Woodell said. “But obviously that went away because of geopolitical concerns.”
Ultimately, he believes governments will step in to put limits on the industry as electric grids become increasingly unable to meet public demand, forcing countries to choose between data and essentials like heating or powering hospitals.
“I think there will end up being moratoriums,” he said. “In Europe and in the UK they’ve basically put moratoriums in place on any new data center builds because there’s just not enough power.”
And the drain on local resources goes beyond electricity, it includes water usage as well.
Data centers concentrate a significant amount of power in a small space, generating more heat than air cooling alone can mitigate. Consequently, they consume enormous amounts of groundwater to keep the servers from overheating.
A new Facebook data center is under construction in Eagle Mountain, Utah, on Nov. 7, 2019. The facility is a 970,000 square foot building and sits on 500 acres. (George Frey/AFP via Getty Images)
Google, for example, reported that it consumed 5.6 billion gallons of water in 2022, primarily to cool its data centers. This was a 20 percent increase over what it used in 2021.
The Fed report stated that the data center industry ranked among the 10 largest industries for water consumption in 2021.
According to Owen Williams, the chief technical officer of Subsea Cloud, a manufacturer of underwater data “pods,” when energy is input into an industrial machine, a car, or an airplane, that energy is converted into physical movement, or “work.”
“When you talk about data centers, there is absolutely no work happening in a computer,” Mr. Williams told The Epoch Times. “And when you have energy going into the machinery and there is no work happening in that machine, every bit of the energy that goes in has to come out again as heat,” he said.
“One hundred percent of the energy that you let go into a server has to be removed from the server,” Mr. Williams said. “If you let it build up, it will basically burn up, so with the increase in computer density, the demand for removing this heat has become extreme.”
Typically, he said, on top of the electricity used to power the computers, an additional 40 percent on average is required to cool them. This puts an additional strain on electric grids and consumes enormous volumes of local groundwater in the process.Can Data Centers Thrive Under the Sea?
Companies like Microsoft, Subsea Cloud, and some Chinese competitors believe that they have found a solution: sink data centers offshore inside deep-water pods.
These companies have developed new technologies that can house data centers in coastal waters, thousands of feet below the surface.
The normal operating temperature of a computer chip is above 70 degrees Celsius (158 degrees Fahrenheit), so that even in tropical waters “you still have a difference between the water and the chip that’s so big, it will transfer this heat away from the chips without spending any energy to do it,” Mr. Williams said.
However, where Microsoft has constructed data tanks with five-inch thick steel walls to keep deep-sea pressure from crushing the tanks, Subsea Cloud fills its tanks with a patented non-corrosive fluid, using solid-state drives that can function in a liquid environment. This serves two functions.
“Number one, it’s transferring the heat very efficiently,” Mr. Williams said. “Number two, it’s maintaining a pressure inside of the pod that is equal to the outside.” This requires the walls of the undersea pods to be only one-quarter of an inch thick.
While it took some convincing to get tech companies to consider an underwater alternative, the demand for undersea pods is “huge at the moment,” he said.
“We are very lucky to be in a spot where very large companies are talking to us—and governments, too. The fact is that it doesn’t look like the world population wants to scale back on the use of electronics and AI and all of that.”
Submersible data pods may help to reduce the land, electricity, and groundwater required to feed the growing demand from data centers, but ultimately the global data industry will still need vast amounts of power to fuel its growth, which will continue to strain power grids.
Mr. Woodell says that one day soon, the tech industry will have to either innovate dramatic new efficiencies in data processing or face practical and regulatory roadblocks to further growth.
COVID-19 and Federalism: Public Officials’ Accountability and Comparative Performance
COVID-19 and Federalism: Public Officials’ Accountability and Comparative Performance
Authors: Doug Badger and Robert Moffit
Read the Article on Heritage.org
SUMMARY
Never has a major public health crisis been politicized as much as public officials’ response to COVID-19. The flashpoints of controversy have ranged from the efficacy of masks, therapeutics, and vaccines to business and school closures and comprehensive lockdowns. Large and diverse states such as California, Florida, New York, and Texas took markedly different approaches to lockdowns and mask mandates. The evidence shows that Florida and Texas had health outcomes similar to California’s and better than New York’s while maintaining much lower unemployment rates. As the pandemic subsides, there should be a calm and bipartisan assessment of public officials’ performance—what went right, what went wrong, and what changes should be made.
KEY TAKEAWAYS
As the pandemic subsides, there should be a critical look at how state and federal public officials acted. Federalism helps show the efficacy of various approaches.
While the federal government rightly relaxed regulations and promoted rapid production of vaccines, too many bureaucratic barriers hindered an effective response.
Lawmakers should address the big failures, such as confusing messages to the public, an overreliance on flawed data, and disastrous societal lockdowns.
Article
In the aftermath of the COVID-19 pandemic, public officials—state and federal, elected and non-elected, career and noncareer—must be held accountable for their performance in this national health emergency.
America’s constitutional order facilitates such accountability. The United States is a federal republic, with a division of powers between the general government of the nation, authorized to exercise specified national responsibilities, and state governments, provided with broad authority to exercise powers far beyond those allotted to the national government. In No. 45 of The Federalist, James Madison neatly summarizes that dual allocation: “The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite.”
The Founders recognized that federalism accommodates America’s pluralistic political culture while promoting innovation in public policy. Curiously, with the onset of the COVID-19 pandemic, some commentators have viewed American federalism as a disability rather than a strength. Writing in the JAMA Forum, a group of researchers remark, “During an emergency when the health of the nation depends on acting with coordination and cooperation, the failure of federalism comes into sharp relief, forcing us to reconsider one of the most deeply held American beliefs: that decisions made closer to home are inherently better.”1
Sarah Gordon, Nicole Huberfeld, and David K. Jones, “What Federalism Means for the US Response to Coronavirus Disease 2019,” JAMA Forum, May 8, 2020, doi:10.1001/jamahealthforum.2020.0510 (accessed July 1, 2021).
The JAMA Forum authors point to a lack of efficient coordination, different policies, and inferior outcomes for minorities.2
This is somewhat ironic, given the Centers for Disease Control and Prevention’s (CDC’s) bungling of critical diagnostic testing and effective communication, both essential components of pandemic response. As USA Today notes, “The CDC’s leadership went on to fail Latino, Black and Native American communities and low-income neighborhoods.” Brett Murphy and Letitia Stein, “How the CDC Failed Health Officials Desperate for COVID-19 Help,” USA Today, January 26, 2021, https://www.usatoday.com/in-depth/news/investigations/2020/09/16/how-cdc-failed-local-health-officials-desperate-covid-help/3435762001/ (accessed July 1, 2021).
In fact, federalism has fostered policy innovation, enabled state officials to avoid misguided measures, and allowed them to secure better public health and economic outcomes. Regarding the COVID-19 pandemic, America’s constitutional order facilitates holding public officials accountable for their performance in this national health emergency.
The Advantages of Federalism
The value of state or local policy decisions is not that they are “inherently better”; substantively, the quality of a decision is independent on its merits, whether made in Washington, a state capitol, or the county council. Rather, as Thomas Jefferson observed, “It is not by the consolidation, or concentration of powers, but by their distribution, that good government is effected. Were not this great country already divided into states, that division must be made, that each might do for itself what concerns itself directly, and what it can so much better do than a distant authority.”3
Frederick C. Prescott, ed., Alexander Hamilton and Thomas Jefferson: Representative Selections (New York: American Book Company, 1934), p. 286.
An added value of federalism is that the state or local policymaker is more directly accountable to the people who are directly affected by the policy; policymaking is thus more democratic.
Finally, the fact different states adopt different policies is a feature, not a bug: Policymaking in a democratic society is often a complicated process of balancing competing goods while respecting public opinion. That different jurisdictions strike this balance in different ways should be expected in a country as vast in size as the United States of America. Constitutionally, moreover, state officials have broad powers to regulate intrastate commerce and to exercise “police powers” to protect the health, morals, and safety of their citizens, including, of course, the protection of public health from the ravages of a pandemic and its multiple consequences.4
Over the course of two centuries, federal courts have imposed limitations on state police powers on a case-by-case basis: for example, striking down state intrusions on the congressional power over interstate commerce or violations of persons’ civil liberties.
This is not a responsibility that they legally can (or should) abdicate to the President, Congress, or to some distant and unaccountable bureaucracy in Washington.
The JAMA Forum researchers further argue, “When our collective fate relies on speed, efficiency and unity, federalist ideals fall flat. Divided government creates unnecessary challenges for residents of states that are too slow to act or take up federal policies.”5
Gordon et al., “What Federalism Means for the US Response to Coronavirus Disease 2019.”
Underlying this argument is the tacit assumption that the federal government policies are the correct policies. That merely assumes what is to be proven. In any case, it does not logically follow that centralized government would guarantee efficiency, speed, or unity. Centralized government can just as easily issue authoritarian edicts or mandates based on bad information and poor judgment that can also inhibit speed and efficiency and sow confusion and disunity.6
Alexis de Tocqueville well summarized the disadvantages of centralized government: “Among large, centralized nations, the legislator is forced to give laws a uniform character that does not allow for the diversity of places and mores; never learning about individual cases, he can only proceed by general rules. Men are obliged to bend to the necessity of legislation, for legislation cannot adapt to the needs and mores of men; this is a great cause of trouble and misery.” Alexis de Tocqueville, Democracy in America, Vol. I (Indianapolis, IN: Liberty Fund, 2012), p. 260.
Logic aside, the empirical evidence for any assumed superiority of Washington’s governance is thin. Examining the federal government’s performance over 2001 to 2014, Paul C. Light, a senior fellow at the Brookings Institution, observes, “Federal failures have become so common they are less of a shock to the public than an expectation. The question is no longer if government will fail every few months, but where? And the answer is ‘Anywhere at all.’”7
See Paul C. Light, “A Cascade of Failure: Why Government Fails, and How to Stop It,” Brookings Institution, July 2014, https://www.brookings.edu/wp-content/uploads/2016/06/Light_Cascade-of-Failures_Why-Govt-Fails.pdf (accessed July 1, 2021).
The federal government’s 2020 COVID-19 response supplies a fresh batch of disturbing examples.
What Americans Have Learned from the COVID-19 Pandemic
Americans are often counseled to “follow the science” and heed the advice of the public health experts. Understandably with a novel coronavirus the science has been evolving with the accumulation of new information; science is not static. Nonetheless, the initial extreme mortality projections8
For example, the Imperial College of London team initially projected 2.2 million American deaths from the coronavirus. Alan Reynolds, “How One Model Simulated 2.2 million U.S. Deaths from COVID-19,” Cato Institute, April 21, 2020, https://www.cato.org/blog/how-one-model-simulated-2.2-million-us-deaths-covid-19 (accessed July 1, 2021). Such radical projections have made it difficult for policymakers to plan effectively. A key task for any after-action assessment of the COVID-19 pandemic is to examine the assumptions that drove the various epidemiological models.
and contradictory and confusing advice from public health experts, as well as hypocrisy in public health enforcement, has created unnecessary anxiety and anger and weakened public trust.
First, though the coronavirus is highly contagious, dangerous, and deadly, serious illness and death has been highly concentrated among older persons and persons with serious underlying health conditions, including cardiac and respiratory conditions, as well as diabetes and obesity.9
Centers for Disease Control and Prevention, “People with Certain Medical Conditions,” updated March 29, 2021, https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/people-with-medical-conditions.html (accessed April 20, 2021).
The accumulated data show that younger and healthier persons who have contracted the infection have presented few or mild symptoms and have generally not been threatened with severe illness, hospitalization, and death. For example, most children who are known to have been infected are either asymptomatic or, according to the Centers for Disease Control and Prevention (CDC), experience “mild” symptoms. About 1.3 percent of children diagnosed with COVID-19 have been hospitalized, and 0.01 percent have died.10
Melissa Jenco, “Covid-19 Cases in Children Surpass 2 Million,” American Academy of Pediatrics, December 29, 2020, https://www.aappublications.org/news/2020/12/29/covid-2million-children-122920 (accessed July 1, 2021).
According to CDC’s best estimates, a person over 65 who contracts the virus is 4,500 times more likely to die of it than a person under 18.11
Centers for Disease Control and Prevention, “COVID-19 Planning Scenarios,” updated March 19, 2021 (accessed April 24, 2021). Authors’ calculations based on Table 1, Scenario 5.
Second, as a highly contagious disease the coronavirus has had different impacts demographically and geographically. The metrics of caseloads, hospitalizations, and mortality per million have varied from state to state and within states. Based on the science and the data, therefore, sound policy would accurately reflect these epidemiological and demographic distinctions, targeting intense efforts to protect the most vulnerable and relaxing social and economic restrictions on the least vulnerable.
Federalism, as noted, is a constitutional distribution of political authority and responsibility between the national government and the particular governments of the several states. In coping with a pandemic, Washington has the responsibility of providing accurate data and reliable information and guidance, promoting scientific advances in the development and deployment of vaccines and therapeutics, making federal regulatory changes, and providing emergency supplies and technical and financial assistance. State and local officials can use the federal assistance to make balanced judgments that will secure the best outcomes for public health and the general welfare of their citizens.
Mixed Performance. Federal and state officials alike have both succeeded and failed in battling the virus and its social and economic consequences.
In our initial Heritage Backgrounder on the pandemic, we argued that the actions of state leaders would be pivotal to ensuring a successful response to the pandemic.12
See Robert E. Moffit and Doug Badger, “Defeating COVID-19: What Policymakers Can Do to Change the Conditions on the Ground,” Heritage Foundation Backgrounder No. 3485, April 9, 2020, https://www.heritage.org/public-health/report/defeating-covid-19-what-policymakers-can-do-change-the-conditions-the-ground.
Effective responses to COVID-19 have been secured in states and local communities; and it is on the ground, in states and localities, where Americans have also sustained their biggest losses, both in economic decline and in public health.
Some states that deviated from the excessively restrictive advice of federal policymakers, such as Florida, have done well relative to other states that have adopted and adhered more closely to federal guidance.13
Eddie Scarry, “Media Face the Music: Ron De Santis Got It Right,” Washington Examiner, March 17, 2021, https://www.washingtonexaminer.com/opinion/media-face-the-music-ron-desantis-got-it-right (accessed July 1, 2021).
In combating the virus, certain states have gone beyond federal guidelines for commonsense hygiene and “social distancing” and pursued aggressive and lengthy lockdowns of the social and economic lives of their citizens. California, for example, closed down private schools even though these private and religious institutions had taken “safety and sanitary” measures outlined by the CDC.14
Nicole Russell, “California’s COVID-19 Restrictions Go Too Far,” The Daily Signal, September 4, 2020, https://www.dailysignal.com/2020/09/04/californias-covid-19-restrictions-go-too-far/.
The economic contraction, business closures and failures, and the resulting unemployment have imposed huge costs on the residents of many states and local communities.
Lengthy school closures, in particular, have harmed children. Prolonged isolation and joblessness have imposed health as well as economic costs. This has been evident in a rise in anxiety, depression, and other mental health problems, opioid-related deaths and substance abuse, and domestic violence.15
See also Megan L. Evans, Margo Lindauer, and Maureen E. Farrell, “A Pandemic Within a Pandemic—Intimate Partner Violence During COVID-19,” New England Journal of Medicine, December 10, 2020, https://www.nejm.org/doi/full/10.1056/NEJMp2024046 (accessed July 7, 2021).
Reductions or shutdowns of routine medical services contributed to, among other things, dangerous delays in cancer and heart screenings and surgeries.16
Bruce Alpert, “From Rotten Teeth to Advanced Cancer: Patients Feel the Effects of Treatment Delays,” Kaiser Health News, April 20, 2021, https://khn.org/news/article/from-rotten-teeth-to-advanced-cancer-patients-feel-the-effects-of-treatment-delays/ (accessed April 20, 2021).
Sound policy would do a better job and balance the protection of public health from the ravages of the pandemic with the need to preserve the personal, social, and economic health of the citizens. In this crisis, some state and local officials have succeeded in striking that balance and others have failed.
Washington’s Pandemic Performance
In coping with a pandemic, leaders of states, cities, and private organizations rely on the information provided by federal officials, specifically the CDC. As investigative reporters for USA Today describe it, “Headquartered in Atlanta, removed from the direct line of politics, the [CDC] employs thousands of public health experts, many embedded in local health departments. Though it’s not primarily a regulatory agency, its science guides national medical practice.”17
Murphy and Stein, “How the CDC Failed Health Officials Desperate for COVID-19 Help.”
Elected officials, from the White House and governor’s mansions to federal and state appointed and non-career employees, thus depend on the institutional knowledge, skills, and experience of the CDC’s career civil servants to provide them with the best, most accurate, and updated scientific information to make and implement public policy. Based on the full record of the CDC over the past year, Americans should indeed be grateful that the agency has not been granted national enforcement power and, thus, the potential of imposing a universal program of policy mismanagement.
The several federal government initiatives that proved successful were outside the CDC.
What Federal Officials Got Right. At the outset of the pandemic, federal government officials took decisive actions. The Trump Administration banned travel to and from infected areas of the globe, launched a comprehensive review of government rules and regulations that might inhibit a rapid response to the national medical emergency, and marshalled the resources of the private sector to combat the coronavirus, including a major public–private partnership to secure the rapid research and production of vaccines and therapeutics to arrest the spread and severity of the disease.
Travel Bans. On January 21, 2020, a U.S. traveler from China to Washington State was the first confirmed COVID-19 case. On January 31, President Trump declared a ban on travel from China.18
National Public Radio (NPR), “Trump Declares Coronavirus a Public Health Emergency and Restricts Travel from China,” January 31, 2020, https://www.npr.org/sections/health-shots/2020/01/31/801686524/trump-declares-coronavirus-a-public-health-emergency-and-restricts-travel-from-c (accessed July 1, 2021).
This was followed by similar bans on travel from Iran and Europe.
Regulatory Reform. The Trump Administration pursued a very different path from previous Administrations faced with national emergencies. Where the historical Washington pattern has been to centralize power and expand regulation under such circumstances, the Trump Administration decentralized regulatory power and encouraged private-sector innovation, ranging from small firms to large corporations.
The Trump Administration’s operating principle was that deregulation would set in motion positive change and innovation, enabling providers and private-sector firms to get business done quickly in meeting the national medical emergency.
Through aggressive regulatory reform, the Administration encouraged the rapid deployment of telemedicine and added 145 new medical services to Medicare’s roster.19
Seema Verma, “CMS Has Made a Lasting Imprint on the Healthcare System,” Centers for Medicare and Medicaid Services, January 15, 2021, https://www.wwsg.com/news/cms-has-made-a-lasting-imprint-on-the-healthcare-system/ (accessed July 1, 2021).
The Administration also changed rules to facilitate telemedicine’s reimbursement, stimulating its rapid growth.20
Marie Fishpaw and Stephanie Zawada, “Telehealth in the Pandemic and Beyond: The Policies That Made It Possible, and the Policies That Can Expand Its Potential,” Heritage Foundation Backgrounder No. 3510, July 20, 2020, https://www.heritage.org/health-care-reform/report/telehealth-the-pandemic-and-beyond-the-policies-made-it-possible-and-the.
Meanwhile, the Centers for Medicare and Medicaid Services (CMS) issued over 100 Medicare waivers and over 600 coronavirus-related Medicaid waivers for the states to respond effectively to the pandemic ranging from paperwork reduction and the expansion of medical scope of practice to changes in medical reimbursement.21
Verma, “CMS Has Made a Lasting Imprint on the Healthcare System.”
Vaccines and Therapeutics. The Trump Administration, operating through the Department of Health and Human Services (HHS) and the Department of Defense, undertook “Operation Warp Speed,” an aggressive program to remove federal regulatory barriers private companies faced in developing and deploying innovative vaccines to combat the coronavirus. The companies moved with unprecedented speed.22
See Edmund F. Haislmaier, “COVID-19: Getting Ready for the Vaccines,” Heritage Foundation Issue Brief No. 6031, December 9, 2020, https://www.heritage.org/public-health/report/covid-19-getting-ready-the-vaccines.
The goal was to provide 300 million doses of the vaccine, with initial doses to be available to the public in January 2021.23
Government Accountability Office, Operation Warp Speed: Accelerated COVID-19 Vaccine Development Status and Efforts to Address Manufacturing Challenges, GAO–21–319, February 11, 2021, https://www.gao.gov/products/gao-21-319 (accessed July 1, 2021).
To encourage progress toward that goal, the federal government also entered into pre-purchase agreements with six manufacturers, committing in advance to buy 900 million doses, conditioned on obtaining an emergency use authorization (EUA) for their products.24
Congressional Budget Office, Research and Development in the Pharmaceutical Industry, April 2021, p. 11, https://www.cbo.gov/publication/57126 (accessed April 20, 2021).
Thanks in part to government process changes, Moderna and Pfizer were issued EUAs based on successful testing of their vaccines, which demonstrated an efficacy of approximately 95 percent. Beyond the Pfizer and Moderna vaccines authorized before the end of the year, Johnson and Johnson and AstraZeneca were in advanced testing of their vaccines. The U.S. Food and Drug Administration (FDA) granted EUA to the Johnson and Johnson vaccine on February 27, 2021.25
U.S. Food and Drug Administration, “Janssen COVID-19 Vaccine,” updated April 23, 2021. https://www.fda.gov/emergency-preparedness-and-response/coronavirus-disease-2019-covid-19/janssen-covid-19-vaccine (accessed July 1, 2021).
Altogether, this was an impressive and unprecedented public health achievement: a vaccine developed in months rather than years.
At the same time, the Administration pressed for the quick development and rapid deployment of new therapeutics. The FDA issued numerous new guidelines to private industry as well as many EUAs for diagnostic tests and other medical countermeasures. By October 31, 2020, there were more than 370 active trials of therapeutic agents.26
U.S. Food and Drug Administration, “FDA Combating COVID-19 with Therapeutics,” December 2, 2020, https://www.fda.gov/media/136832/download (accessed July 1, 2021).
Where Federal Officials Got Policy Wrong. For decades, Washington’s office with primary responsibility for periodic pandemics has been established and dis-established in different federal agencies. Today, HHS currently houses the Office of Pandemics and Emerging Threats. Gail Wilensky, former Medicare administrator, argues that such an office should be relocated in the National Security Council:
Whether as cause or effect of the office’s repeated dissolution or sidelining, neither the defense establishment nor the public seems to appreciate that disease threats are as serious to the country’s security as are wars with our traditional enemies.27Gail Wilensky, “Policy Lessons from Our Covid Experience,” New England Journal of Medicine, October 22, 2020, https://www.nejm.org/doi/full/10.1056/NEJMp2023204 (accessed July 1, 2021).
Superseding that office, President Trump’s Coronavirus Task Force took the lead in educating the general public on the COVID-19 pandemic. President Biden instituted a White House reorganization shortly after taking office, naming a Jeffrey Zients as his Coordinator of the COVID-19 Response and creating numerous interagency task forces.28
Doug Badger, “COVID-19: Why President Biden’s Response Strategy Falls Short,” Heritage Foundation Issue Brief No. 6044, January 27, 2021, https://www.heritage.org/public-health/report/covid-19-why-president-bidens-response-strategy-falls-short.
Despite these bureaucratic reshufflings, the CDC was, and is, Washington’s main source of detailed scientific information and guidance for the public health authorities, as well as the public, during the pandemic. Writing a major report for the New York Times, Eric Lipton and his colleagues observe:
The CDC, long considered the world’s premiere health agency, made early testing mistakes that contributed to a cascade of problems that persist today as the US tries to reopen. It failed to provide timely counts of infection and deaths, hindered by aging technology and a fractured public health reporting system. And it hesitated in absorbing the lessons of other countries, including the perils of silent carriers spreading the infection. The agency struggled to calibrate its own imperative to be cautious and the need to move fast as the coronavirus ravaged the country…. In communicating to the public, its leadership was barely visible, its stream of guidance was often slow, and its messages were sometimes confusing, sowing mistrust.29Eric Lipton et al. “The CDC Waited Its Entire Existence for This Moment,” New York Times, June 3, 2020, https://www.nytimes.com/2020/06/03/us/cdc-coronavirus.html (accessed July 1, 2021).
When speed and clarity were required, instead Americans were too often treated to a CDC response that was sluggish, confusing, and sometimes erroneous. As investigative reporters for USA Today likewise concluded, the CDC was “paralyzed by bureaucracy, failed to consistently perform its basic job—giving public health authorities the guidance needed to save American lives during the pandemic…. Authorities in at least 13 states questioned CDC guidance that contradicted either scientific evidence or information put out by CDC itself, records show.”30
Murphy and Stein, “How the CDC Failed Health Officials Desperate for COVID-19 Help.”
To be fair, from the start of the pandemic, Washington’s initial response was compromised by factors well beyond the control of federal officials. Most importantly, public health authorities in the United States and elsewhere did not understand the novel virus, the course of the disease, or the best clinical response to disease progression.
Initial Response. China, the source of the virus, was uncooperative in providing crucial information about the nature and origins of the virus. When COVID-19 originally surfaced as a public health problem in Wuhan, China (reportedly), in early January 2020, the World Health Organization (WHO) took note of its existence but on January 14 issued contradictory declarations, saying that there was “limited transmission” of the novel coronavirus between humans and then tweeting that it was not transmissible from human to human.31
Kieran Corcoran, “An Infamous WHO Tweet Saying There Was No Clear Evidence Covid-19 Could Spread Between Humans Was Posted for ‘Balance’ to Reflect Finding from China,” Business Insider, April 18, 2020, https://www.businessinsider.com/who-no-transmission-coronavirus-tweet-was-to-appease-china-guardian-2020-4 (accessed July 1, 2021).
Six days later, on January 20, the United States recorded the first American COVID-19 case in Washington State. On January 27, President Trump created the White House Coronavirus Task Force; on January 30, the WHO declared a global public health emergency; on January 31, as noted, the Trump Administration declared a public health emergency and imposed a ban on travel from China.32
Phillip A. Wallach and Justus Myers, “The Federal Government’s Coronavirus Response—a Public Health Timeline,” Brookings Institution, March 31, 2020, https://www.brookings.edu/research/the-federal-governments-coronavirus-actions-and-failures-timeline-and-themes/ (accessed July 1, 2021).
Meanwhile, the viral infection accelerated, but federal authorities were unaware of the extent of the spread, mainly because many of the carriers of COVID-19 were asymptomatic and the United States had not developed the crucial testing capacity to detect the degree of contagion. According to investigative reporters for USA Today, as of late February 2020, the CDC assured public health officials that the virus was “under control.”33
Murphy and Stein, “How the CDC Failed Health Officials Desperate for COVID-19 Help.”
As Brookings scholars note, CDC officials also
reassured state and local officials that testing capacity was adequate in late February, although it was reported that fewer than 500 tests had been conducted at that point. (The CDC’s own count, which includes its own tests plus those of U.S. public health labs, put the total number of tests at the end of February at around 4,000.) Perversely, the failure to test at scale kept the publicly recognized number of cases low, which served as a justification for insisting that the existing testing regime was adequate.34Wallach and Myers, “The Federal Government’s Coronavirus Response,” p. 4.
During this time, there was an exponential growth in COVID-19 caseloads. On March 11, 2020, the WHO declared a global pandemic. On March 13, President Trump declared a national emergency and, as noted, followed up with expanded travel bans, an invocation of the Defense Production Act to secure the procurement of medical supplies and equipment, accelerated approval of commercial testing for the virus, and encouraged Americans to follow social distancing and hygienic guidelines. Working with Congress, Trump signed the first of a series of COVID-19 relief bills, an $8.6 billion package. In March 2020, the prevailing view of the Trump Administration officials, influenced by leading career public health authorities, was that with the proper mitigation measures, the United States could “flatten the curve” and bring the virus under control. They were mistaken.
The CDC’s Defective Test. The federal government’s first major failure was in its inability to rapidly develop and deploy the diagnostic testing necessary to determine the extent of the infection. The reason: multiplicity of pre-existing and outdated rules regulations and guidelines imposed by the FDA, CDC, and CMS. CDC officials insisted that public health authorities use only CDC tests, and the CDC test was only to be administered by public health labs, thus excluding a whole universe of independent and academic institutions from using the tests, including the research team at Johns Hopkins University. Worse, the CDC test for COVID-19 was flawed and had to be recalled. As Brookings scholars have observed, “Nevertheless, for at least two weeks after the problem became clear, alternative paths to testing were either neglected or stymied by existing regulations.”35
Ibid.
Compounding the initial CDC test failure was the FDA rule prohibiting the use of non-CDC tests, thus stopping Americans from getting diagnostic tests from independent laboratories, including from such reputable companies as Roche, a Swiss-based pharmaceutical giant.36
Robert E. Moffit, “Coronavirus Testing Delays Show Why Federal Health Rules Need Thorough Review,” The Daily Signal, March 16, 2020, https://www.dailysignal.com/2020/03/16/coronavirus-testing-delays-show-why-federal-health-care-rules-need-thorough-review/.
The Trump Administration eliminated this outdated regulatory regime, jettisoning the overly restrictive CDC testing criteria on February 28 and junking the FDA restriction on independent diagnostic tests on February 29, 2020.37
Ibid.
America lost precious time. This initial federal regulatory bungling was the most serious federal government failure, and it inflicted severe damage on the nation’s ability to respond rapidly to what was soon to be a deadly threat. As health care reporter Julie Scharper observed, “Without comprehensive testing, U.S. officials found it difficult to gauge the spread of the virus and identify carriers.”38
Julie Scharper, “5 Ways the U.S. Botched the Response to COVID-19,” Johns Hopkins Bloomberg School of Public Health, April 3, 2020, https://www.jhsph.edu/covid-19/articles/5-ways-the-us-botched-the-response-to-covid-19.html (accessed July 1, 2021).
Delay of Rapid At-Home Self-Testing. Even as the CDC has bungled its own testing regime in the pandemic’s early days, it later resisted new testing approaches that might have mitigated a surge in cases that occurred during the fall and winter of 2020–2021. One such strategy would have been to make at-home COVID-19 tests that yield rapid results broadly available without a prescription.
By allowing tens of millions of people per day to determine their COVID-19 status, rapid at-home tests could help reduce the contagion’s spread.
Until March 2021, the FDA refused to approve these tests, even as U.S. manufacturers produced them for export to countries such as the United Kingdom, which distributes at-home tests free of charge to enable its populace to test themselves twice weekly.39
BBC News, “Tests to Be Offered Twice-Weekly to All in England,” April 5, 2021, https://www.bbc.com/news/uk-56632084 (accessed April 24, 2021).
The tests appear to be serving as a complement to vaccines. As of April 16, 2021, the U.K. was recording an average of 39 new cases per million people, far lower than its European neighbors France (597 per million), Italy (249), Germany (244) and Spain (182).40
Our World in Data, “COVID Cases,” https://ourworldindata.org/covid-cases (accessed April 17, 2021).
Deaths related to COVID-19 were 0.40 per million population in the U.K. Figures for other European countries ranged from five times that number (Spain, 2.0) to more than 16 times (Italy, 6.5).41
Our World in Data, “COVID Deaths,” https://ourworldindata.org/covid-deaths (accessed April 17, 2021).
The FDA justified its inaction by noting that rapid, home-based tests—which detect antigens produced by the virus rather than the virus itself—are less sensitive than laboratory-based PCR tests. While rapid tests are more likely than PCR tests to return false negatives, that risk is more than offset by their volume (tens of millions of tests per day), frequency (people could test themselves multiple times), and immediacy (they return results in minutes rather than days).42
Paul Romer et al., “Rapid COVID Tests: A Cure for Lockdowns, a Complement to Vaccines,” Heritage Foundation Lecture No. 1319, January 13, 2021, https://www.heritage.org/public-health/report/rapid-covid-tests-cure-lockdowns-complement-vaccines.
The FDA has recently begun to grant emergency use authorization for rapid, at-home tests. As of early April, the agency had greenlighted five at-home, over-the-counter, rapid testing products.43
Michelle Crouch, “New At-Home COVID-19 Tests Promise Results in Minutes,” AARP, updated April 2, 2021, https://www.aarp.org/health/conditions-treatments/info-2021/at-home-covid-tests.html (accessed April 24, 2021).
It remains unclear how quickly the companies will be able to ramp up production. It will take an ample supply of tests to replicate or even approach the scale of the U.K. program. According to the Committee for a Responsible Federal Budget, Congress has appropriated $53.6 billion for COVID-19 testing, monitoring, and research and development.44
Committee for a Responsible Federal Budget, “COVID Money Tracker,” https://www.covidmoneytracker.org/ (accessed April 24, 2021).
As of April 24, 2021, $38.6 billion remained unallocated. The Administration should consider devoting at least some of those available funds to the purchase of rapid, at-home tests, as a supplement to vaccination efforts.45
These tests complement vaccinations for two reasons. At least some portion of Americans are uncomfortable with vaccination for this virus. Dr. Mina makes the point that “[w]e don’t want to find ourselves in June finding a whole new clade of virus—we know how quickly it can spread—with a virus that the vaccines don’t protect from. These tests, at the very least, we should be doing as a contingency plan.” Romer et al., “Rapid COVID Tests.”
Insufficient National Stockpile. The maintenance of a sufficient storehouse of emergency medical equipment and supplies is essential. Nonetheless, as Scharper also reports, federal officials ignored “decades” of warnings of public health experts that the Strategic National Stockpile was woefully short of these vital items, and thus the CDC was once again short of the material assets required to cope with a powerful pandemic.46
Scharper, “5 Ways the US Botched the Response to COVID-19.”
Gail Wilensky, senior fellow at Project Hope and former Medicare administrator, warns that “in planning for unknown future epidemics, federal pandemic-preparedness officials must decide what constitutes a prudent level of supply stockpiling, with an understanding of the inevitable trade-offs between perceived readiness and the cost of equipment and supplies that we hope never to use.”47
Gail Wilensky, “Policy Lessons from Our Covid Experience,” New England Journal of Medicine, August 26, 2020, https://www.nejm.org/doi/full/10.1056/NEJMp2023204 (accessed July 1, 2021).
Outdated CDC Data. Timely, sound, and accurate data are essential to an effective government response to the pandemic. The CDC is still failing on all counts.
The CDC has never established a real-time data collection system for public health reporting.48
Joel White and Doug Badger, “In Order to Defeat COVID-19, the Federal Government Must Modernize Its Public Health Data,” Heritage Foundation Backgrounder No. 3527, September 3, 2020, https://www.heritage.org/health-care-reform/report/order-defeat-covid-19-the-federal-government-must-modernize-its-public.
Doctors and state and local health agencies often transmit data to the CDC by phone or fax, antiquated arrangements that slow data collection and subject it to errors in transcription. Once collected, the CDC siloes the data across 100 separate reporting systems, complicating efforts by frontline medical workers to obtain the information they need to coordinate local responses.49
Ibid., p. 2.
The CDC’s data collection and dissemination system are so abysmal that private entities—most notably Johns Hopkins University and The Atlantic—established public-facing databases that, through most of the pandemic, became the source of much of what we know about COVID-19 cases, hospitalizations, and deaths.
The agency’s failure is due to its refusal to implement multiple acts of Congress. These laws, dating to 2006, required it to implement a real-time data collection system that would make information available to clinicians and policymakers.50
Pandemic All-Hazards Preparedness Act, Public Law No. 109–417; Pandemic All-Hazards Preparedness Reauthorization Act of 2013, Public Law No. 113–5; Pandemic All-Hazards Preparedness and Advancing Information Act, Public Law No. 116–22; and Coronavirus Aid, Relief, and Economic Security Act, Public Law No. 116–136.
The Government Accountability Office has repeatedly taken the CDC to task for failing to implement data systems that the law requires.51
Government Accountability Office, Public Health Information Technology: Initial Strategic Planning Needed to Guide HHS’ Efforts to Establish Electronic Situational Awareness Capabilities, GAO–11–99, December 17, 2010, https://www.gao.gov/products/gao-11-99 (accessed August 17, 2020), and Government Accountability Office, Public Health Information Technology: HHS Has Made Little Progress toward Implementing Enhanced Situational Awareness Network Capabilities, GAO–17–377, September 6, 2017, https://www.gao.gov/products/GAO-17-377 (accessed August 17, 2020).
Ironically, the 2006 law directed the CDC to implement such a system precisely because it would be essential to an effective response to “potentially catastrophic infectious disease outbreaks and other public health emergencies that originate domestically or abroad.”52
Pandemic All-Hazards Preparedness Act, Public Law No. 109–417 (emphasis added).
The law gave the CDC until 2008 to establish the system. When the pandemic struck in 2020, that system did not exist. It still does not—despite subsequent congressional mandates passed in 2013, 2019, and 2020.53
Paul Davidson, “Still Hunting for Clorox Wipes? Shortages Now Likely to Last Until Mid-2021, Company Says,” USA Today, December 12, 2020, https://www.usatoday.com/story/money/2020/12/10/clorox-wipes-shortages-likely-last-until-mid-2021/3886716001/ (accessed July 1, 2021).
The fragmentary and dated information the agency does collect is often not available to those who need it most. The CDC’s reporting is, for the most part, a one-way street—from health care workers to public health officials, but not the other way. This failure adversely affects patients by denying clinicians access to clinical knowledge and best practices that would improve their capacity to provide better care.
The CDC’s Confusing Guidance on Surface Transmission. Early in the pandemic, the CDC warned that SARS-CoV-2 was commonly transmitted from surfaces. That theory underlay advice on frequent hand-washing and warnings against face-touching, both of which are sensible whether or not there is a pandemic. It is also why public health authorities called on people to wear gloves during the pandemic’s early weeks and months, a time during which public health officials discouraged mask-wearing.
The CDC’s—ultimately flawed—theory was plausible initially. Officials worried that fomites—objects or materials thought to harbor the virus—were a significant infection vector. Scientists released studies measuring how long the coronavirus could “survive” on various surfaces. The CDC called for disinfecting surfaces in homes, helping create a long-running shortage of Clorox Wipes.54
Ben Guarino and Joel Achenbach, “Virus ‘Does Not Spread Easily’ from Contaminated Surfaces or Animals, Revised CDC Website States,” Washington Post, May 21, 2020, https://www.washingtonpost.com/health/2020/05/21/virus-does-not-spread-easily-contaminated-surfaces-or-animals-revised-cdc-website-states/ (accessed July 1, 2021).
The CDC learned early on that the risk of fomite infection was low but was reluctant to alter its advice on disinfecting surfaces. The agency threw a head feint on May 21, 2020. The Washington Post reported that the CDC had changed its guidance on the risks of contracting the disease from surfaces.55
The archived page that the original Washington Post article cited can be found at https://web.archive.org/web/20200520114538/https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/how-covid-spreads.html (accessed April 24, 2021).
The story linked to a revised CDC publication that warned in large, bold-faced type that the virus “spread easily between people.”56
The archived version of the revised document that the NPR article cited can be found at https://web.archive.org/web/20200523123538/https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/how-covid-spreads.html (accessed April 24, 2021).
It also contained a similarly large and bold-faced heading stating that “the virus does not spread easily in other ways.” Under this heading, the agency listed “touching surfaces and objects” along with transmission between people and animals.
The next day, NPR posted a story entitled, “CDC Advice on Spread of COVID-19 ‘Has Not Changed,’ Agency Says.” The account linked to the same URL as the Washington Post’s May 21 article, but the document on that site had changed. While it continued to say that surface transmission “is not thought to be the main way the virus spreads,” the CDC removed the heading saying that “the virus does not spread easily in other ways.” Instead, the newly revised document grouped surface spread under the heading “the virus may spread in other ways.”57
U.S. Centers for Disease Control and Prevention, “Science Brief: SARS-CoV-2 and Surface (Fomite) Transmission for Indoor Community Environments,” updated April 5, 2021, https://www.cdc.gov/coronavirus/2019-ncov/more/science-and-research/surface-transmission.html (accessed April 24, 2021).
It also separated its guidance on surfaces from its assessment of the risk of transmission between people and animals, grouping the latter under the heading “spread between animals and people.”
The agency’s officials clearly thought the change was significant enough to modify the document a second time in the space of 24 hours. And they continued to advise the public to “routinely clean and disinfect frequently touched surfaces,” despite being unable to establish that surface transmission was a major source of the pandemic’s spread.
In April 2021, the CDC revised its scientific guidance on the subject.58
U.S. Centers for Disease Control and Prevention, “Guidance for Cleaning and Disinfecting: Public Spaces, Workplaces, Businesses, Schools and Homes,” September 16, 2020, https://www.cdc.gov/coronavirus/2019-ncov/community/pdf/reopening_america_guidance.pdf (accessed April 18, 2021).
Citing studies of “quantitative microbial risk assessments” that had been published months before, the agency declared that the “risk of SARS-CoV-2 infection via the fomite transmission route is low, and generally less than 1 in 10,000.”
Nevertheless, the CDC’s public-facing document continues to advise Americans to sterilize surfaces in their homes.59
American School and University, “22 States Have Closed Schools Statewide Because of the Coronavirus,” March 16, 2020, https://www.asumag.com/facilities-management/article/21126265/22-states-have-closed-school-statewide-because-of-the-coronavirus (accessed April 24, 2021).
The September 2020 document, still extant as of June 24, 2021, casts its guidance on disinfecting surfaces in the home and public places in quasi-patriotic terms:
This guidance is intended for all Americans, whether you own a business, run a school, or want to ensure the cleanliness and safety of your home. Reopening America requires all of us to move forward together by practicing social distancing and other daily habits to reduce our risk of exposure to the virus that causes COVID-19. Reopening the country also strongly relies on public health strategies, including increased testing of people for the virus, social distancing, isolation, and keeping track of how someone infected might have infected other people. This plan is part of the larger United States Government plan and focuses on cleaning and disinfecting public spaces, workplaces, businesses, schools, and can also be applied to your home.
This pattern of clinging to policies and guidances long after they have been shown to be misguided is a central characteristic of the government’s public health communications regime. These public health officials have been reluctant to follow the science when it conflicted with their earlier pronouncements. They seem equally unwilling to admit error or acknowledge that they sometimes base their advice on unproven or disproven hypotheses, not conclusory scientific evidence.
CDC Guidance on Schools. School systems in many states discontinued or greatly restricted in-person instruction for lengthy periods. By the middle of March 2020, 22 states had enacted statewide K–12 closures, affecting 26.1 million students, or just less than half the school-aged population.60
Education Week, “Where Are Schools Required to Be Open?,” updated April 23, 2021, https://www.edweek.org/leadership/map-where-are-schools-closed/2020/07 (accessed April 24, 2021).
As of April 5, 2021, 12 states required in-person instruction to be available in all or some grades either full- or part-time, with most of the rest letting school boards decide whether to allow children to return to their classrooms.61
“Los Angeles United School District Announces Plan to Fully Reopen Schools for In-Person Learning in the Fall,” City News Service, May 24, 2021, https://www.nbclosangeles.com/education/k-12-education/lausd-fully-reopen-schools-classrooms-coronavirus-pandemic-covid-19-vaccines/2602405/ (accessed July 7, 2021).
Some of the nation’s largest school districts still have not returned to five-day-per-week in-person instruction. Students in Los Angeles, the country’s second largest school district, are not expected to fully reopen for in-person instruction until the fall.62
Howard Blume, “Newsom Expects K-12 Schools to Be Open Full Time in Fall,” Los Angeles Times, April 6, 2021, https://www.latimes.com/california/story/2021-04-06/newsom-expects-k-12-schools-to-be-open-full-time-in-fall (accessed April 24, 2021).
The May 24 announcement by the Los Angeles School superintendent is consistent with an earlier statement by California Governor Gavin Newsom, who said in April that he does not expect all schools in his state to implement a five-day in-person school week until the fall. He stopped short of saying whether he would mandate a statewide September reopening.63
Michele Poletti and Andrea Raballo, “Coronavirus Disease 2019 and Effects of School Closure for Children and Their Families,” JAMA Pediatrics, November 23, 2020, https://jamanetwork.com/journals/jamapediatrics/fullarticle/2773295 (accessed April 24, 2021).
The cognitive, social, medical, and emotional consequences of keeping millions of children out of classrooms for extended periods are severe. A November 2020 letter to the editor of the Journal of the American Medical Association noted:
Mental health of children and adolescents undergoes a sudden stress test during quarantine that causes a complete, sudden, and unprepared loss of direct social relationships with peers, representing a significant human need and stimulus for well-being, socioemotional development, and self-identity in this age range. Direct social relationships are limited to family members, with increased risks of loneliness; especially in the absence of home outdoor spaces, school closure significantly increases the risks for (1) physical health; (2) addiction to video games and binge watching (clearly exceeding daily time limits of screen exposure indicated by pediatric guidelines); and (3) alteration of circadian rhythms.… Finally, school closure may have a profound effect on academic achievement, especially in the youngest children and in children of families with low socioeconomic status. If school closure will be confirmed for the remaining months and also summer camps will be impeded, the well-known summer learning gap will be amplified, especially for children of families at low socioeconomic status and for children with preexisting neurodevelopmental or mental health conditions of vulnerability. Families with low socioeconomic status have less available possibilities in terms of suitable places to do homework, electronic devices, internet access, and owned books; parents themselves in the case of low socioeconomic status, exemplified by the immigrant parent-child acculturation gap, may be less able to motivate and help them in this new experience of online schooling.64Francesco Agostinelli et al., “When the Great Equalizer Shuts Down: Schools, Peers and Parents in Pandemic Times,” National Bureau of Economic Research Working Paper No. 28264, December 2020, p. 33, https://www.nber.org/papers/w28264 (accessed April 24, 2021).
The detrimental effects of such closures are long-term and fall most heavily on children from the poorest households. Francesco Antonelli of Yale University and his colleagues measured the “human capital deficit”—the extent to which school closures impaired children’s cognitive and social development—and estimated that:
At the end of high school, the average human capital deficit is about 12 percent, ranging from 5 percent in the most affluent communities to 30 percent in the poorest ones. These are large long-run differences in a society already troubled by dramatic gaps in opportunities.65U.S. Centers for Disease Control and Prevention, “Operational Strategy for K-12 Schools Through Phased Prevention,” updated April 23, 2021, updates as of March 19, 2021, https://www.cdc.gov/coronavirus/2019-ncov/community/schools-childcare/operation-strategy.html (accessed April 24, 2021).
The CDC’s recommendations on school closures have influenced decisions by governors, mayors, and school boards to limit in-person learning. Adhering to the agency’s guidance that desks remain at least six feet apart creates difficulties in reopening classrooms, particularly to all students on a five-day-per-week basis.
After leaving the recommendation in place since early in the pandemic, the CDC abruptly rescinded it on March 19, 2021, saying that desks need only be separated by three feet rather than six.66
U.S. Centers for Disease Control and Prevention, “Science Brief: Transmission of SARS-CoV-2 in K-12 Schools,” updated March 19, 2021, https://www.cdc.gov/coronavirus/2019-ncov/science/science-briefs/transmission_k_12_schools.html (accessed April 24, 2021).
The agency’s revised “science brief” on the subject did not cite a single classroom-based study that found desks should remain six feet apart.67
World Health Organization, “Considerations for School-Related Public Health Measures in the Context of COVID-19: Annex to Considerations in Adjusting Public Health and Social Measures in the Context of COVID-19, 14 September 2020,” https://apps.who.int/iris/handle/10665/334294 (accessed April 24, 2021).
It did, however, list numerous studies supporting the one-meter (three-feet) standard long favored by the WHO68
American Academy of Pediatrics, “COVID-19 Guidance for Safe Schools,” last updated March 25, 2021, https://services.aap.org/en/pages/2019-novel-coronavirus-covid-19-infections/clinical-guidance/covid-19-planning-considerations-return-to-in-person-education-in-schools/ (accessed April 24, 2021).
and the American Academy of Pediatrics.69
Polly van den Berg et al., “Effectiveness of Three versus Six Feet of Physical Distancing for Controlling Spread of COVID-19 Among Primary and Secondary Students and Staff: A Retrospective, Statewide Cohort Study,” Clinical Infectious Diseases, March 10, 2021, https://academic.oup.com/cid/advance-article/doi/10.1093/cid/ciab230/6167856 (accessed April 24, 2021). The CDC also differs from the WHO and other public health agencies in recommending that people maintain a distance of six feet (1.83 meters) rather than one meter (3.28 feet). The CDC relies largely on a June 2020 metanalysis of studies of a variety of communicable viral diseases, including COVID-19. That study concluded: “A physical distance of more than 1 m probably results in a large reduction in virus infection; for every 1 m further away in distancing, the relative effect might increase 2.02 times.” The WHO and other bodies used that as the basis for the one-meter recommendation. The CDC recommended 1.83 meters. The question is whether the trade-off, which imposes large social and economic costs, is worth the additional distance. Clearly, the answer is no when it comes to schools, but that question should also be addressed with regard to physical distancing requirements more generally. It is interesting to note that the WHO, which funded the study published in the Lancet, adopted the one-meter standard. Derek K. Chu et al., “Physical Distancing, Face Masks, and Eye Protection to Prevent Person-to-Person Transmission of SARS-CoV-2 and COVID-19: A Systematic Review and Meta-Analysis,” The Lancet, June 27, 2020, https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)31142-9/fulltext (accessed April 24, 2021).
The agency brief omitted reference to a highly relevant study published in Clinical Infectious Diseases earlier in March that, based on a comprehensive review of scientific literature on classroom transmission, found “no significant difference in student or staff case rates between schools with ≥3 versus ≥6 feet of distancing with a large sample size.”70
Cited by Quentin Fottrell, “5 Critical Mistakes That Created the Biggest Public Health Crisis in a Generation,” Marketwatch, July 4, 2020, https://www.marketwatch.com/story/100-days-of-the-covid-19-pandemic-5-critical-mistakes-that-created-the-biggest-public-health-crisis-in-a-generation-2020-06-18 (accessed July 1, 2021).
The CDC ultimately changed its policy but without admitting error, much less acknowledging the damage to which its earlier unsubstantiated pronouncement contributed. Its recommendation to space desks six feet apart was never scientifically supported by classroom studies. The CDC abandoned it only after a flood of evidence from around the world soundly refuted it.
Mixed Mask Messages. The value and effectiveness of masks in arresting the spread of infection has been a flash point throughout the COVID-19 crisis. Federal public health officials garbled their message in the early days of the pandemic, have not produced solid scientific evidence for the protective value of masks, and have overstated the value of government mask mandates in preventing waves of infections.
Federal officials undermined their credibility by at first downplaying the value of masks in reducing the risk of transmission then abruptly shifting to messages that exaggerate their importance. For example:
On January 30, 2020, Dr. Nancy Messionier, director of the CDC’s National Center for Immunization and Respiratory Disease, declared: “We don’t routinely recommend the use of face masks by the public to prevent respiratory illness. And we are not recommending that at this time for this new virus.”71Fadel Allasson, “Surgeon General Defends Reversal on Face Mask Policy,” Axios, July 12, 2020, https://www.axios.com/surgeon-general-reversal-face-mask-d385e2d5-42b7-433e-89a6-3584f3e61bf3.html (accessed April 24, 2021).
Dr. Jerome Adams, then-Surgeon General of the United States, echoed Dr. Messionier’s message when he tweeted in February 2020: “Seriously people- STOP BUYING MASKS! They are NOT effective in preventing general public from catching #Coronavirus.”72Norah O’Donnell, “Dr. Fauci Says, ‘With All Due Modesty, I Think I’m Pretty Effective,’” InStyle, July 15, 2020, https://www.instyle.com/news/dr-fauci-says-with-all-due-modesty-i-think-im-pretty-effective (accessed April 24, 2021).
Adams later reversed himself.
Dr. Anthony Fauci, medical advisor to former President Trump and also President Biden, also discouraged the public from wearing masks in the pandemic’s early days. And like Adams, Fauci later advocated fervently in favor of mask-wearing.
As with the separation of desks in classrooms, Dr. Fauci and others abruptly changed their positions without admitting error. Asked by CBS News reporter Nora O’Donnell whether he regretted at first opposing mask-wearing outside the clinical setting, Fauci said:
No. I don’t regret anything I said then because in the context of the time in which I said it, it was correct. We were told in our task force meetings that we have a serious problem with the lack of [personal protective equipment] and masks for the health providers who are putting themselves in harm’s way every day to take care of sick people.73In fact, in May 2020, the CDC published a study summarizing 14 randomized studies of face masks and hygiene. According to the authors, “We did not find evidence that surgical-type face masks are effective in reducing laboratory-confirmed influenza transmission, either when worn by infected persons (source control) or by persons in the general community to reduce their susceptibility…. However, as with hand hygiene, face masks might be able to reduce the transmission of other infections and therefore have value in an influenza pandemic when healthcare resources are stretched.” Jingyi Xiao et al., “Nonpharmaceutical Measures for Pandemic Influenza in Nonhealthcare Settings—Personal Protective and Environmental Measures,” Emerging Infectious Diseases, Vol. 26, No. 5, May 2020, p. 972, https://wwwnc.cdc.gov/eid/article/26/5/19-0994_article (accessed July 1, 2021).
It may be true that Dr. Fauci and other public health leaders initially recommended against widespread mask-wearing because they prioritized the health of frontline medical workers over the health of the broader public.74
Fauci also noted in the interview that he and his colleagues declared masks to be ineffective in protecting people against COVID-19 before they appreciated the risk of asymptomatic transmission. That, however, is arguably inconsistent with his first reason, which suggested the need for rationing masks, not determining them to be ineffective in protecting the general public from the contagion.
If so, it would have been reasonable for them to say at the time that while masks could help control the pathogen’s spread, people should refrain from wearing them because those caring for the sick needed them more. Stories about the exposure of frontline workers to the disease were prominent at the time, and the shortage of personal protective equipment was widely reported.75
Noah Higgins-Dunn, “Coronavirus: CDC Director Says Face Masks May Provide More Protection Than Coronavirus Vaccine,” CNBC, September 16, 2020, https://www.cnbc.com/2020/09/16/cdc-director-says-face-masks-may-provide-more-protection-than-coronavirus-vaccine-.html (accessed April 24, 2021).
However, their early declarations went much further, suggesting that masks would not be of value against the coronavirus.
Dr. Fauci and others may see no contradiction in their conflicting advice on masks, but it inarguably damaged their credibility with millions of people.
The Value of Masks. That credibility further eroded when public health officials began making improvident claims about masks that had no basis in science. Testifying before a U.S. Senate Committee in September 2020, then-CDC Director Robert Redfield declared masks to be “the most powerful public health tool.”76
Ibid.
Holding a face mask aloft, he added, “I might go as far as to say that this face mask is more guaranteed to protect me against COVID than when I take a COVID vaccine.”77
Colin Dwyer and Allison Aubrey, “CDC Now Recommends Americans Consider Wearing Cloth Face Coverings in Public,” NPR, April 3, 2020, https://www.npr.org/sections/coronavirus-live-updates/2020/04/03/826219824/president-trump-says-cdc-now-recommends-americans-wear-cloth-masks-in-public (accessed April 24, 2021).
The scientific evidence about the relative value of masks and vaccines does not support Dr. Redfield’s declaration. Masks offer two possible benefits in inhibiting the spread of infection. The first is “source control”—the extent to which wearing a mask prevents an infected individual from spreading the virus. The second is “protection”—the extent to which wearing a mask protects an uninfected individual from contracting the virus.
The CDC first recommended the wearing of masks for source control in April 2020.78
U.S. Centers for Disease Control and Prevention, “Science Brief: Community of Cloth Masks to Control the Spread of SARS-CoV-2,” updated November 20, 2020, https://www.cdc.gov/coronavirus/2019-ncov/science/science-briefs/masking-science-sars-cov2.html (accessed April 24, 2021).
It has since cited studies showing that “[m]ulti-layer cloth masks can both block up to 50–70 percent of these fine droplets and particles79
Paul Davidson, “Still Hunting for Clorox Wipes? Shortages Now Likely to Last Until Mid-2021, Company Says,” USA Today, December 12, 2020, https://www.usatoday.com/story/money/2020/12/10/clorox-wipes-shortages-likely-last-until-mid-2021/3886716001/ (accessed July 1, 2021).
and limit the forward spread of those that are not captured.”80
The source control value of masks is well attested and comports with common sense. SARS-CoV-2 is a respiratory virus.81
“The existing scientific evidence challenges the safety and efficacy of wearing facemasks as preventive intervention for COVID-19. The data suggests that both medical and non-medical facemasks are ineffective to block human to human transmission of viral and infectious disease such as SARS-COV-2 and COVID-19, supporting against the usage of facemasks.” Baruch Vainshelboim, “Facemasks in the COVID-19 Era: A Health Hypothesis,” Medical Hypotheses, Vol. 146, November 22, 2020, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7680614/ (accessed July 1, 2021).
People transmit it by exhaling droplets and particles. Masks block some or most of those droplets and particles and shorten the distance they travel. Consequently, face coverings should make it less likely that a person with the disease will infect others.
Unlike with the protective value of masks, it would be unethical to test this hypothesis on a human population. Sending infected people—an experimental group wearing masks and a control group without them—into public spaces and comparing the number of people they infect would violate federal protocols on the protection of human subjects.
Thus, the source control value of masks rests on a combination of laboratory measurements, case studies, prudence, and common sense.
The CDC did not endorse the protective value of masks until November 2020. In its “science brief,” providing background on its revised recommendations, the CDC cites several studies that it says “demonstrate that cloth mask materials can also reduce wearers’ exposure to infectious droplets through filtration.”82
Henning Bundgaard et al., “Effectiveness of Adding a Mask Recommendation to Other Public Health Measures to Prevent SARS-CoV-2 Infection in Danish Mask Wearers,” Annals of Internal Medicine, posted November 18, 2020, https://www.acpjournals.org/doi/10.7326/M20-6817 (accessed April 24, 2021).
These laboratory studies generally test how well various fabrics work in filtering out droplets and particles. They are not controlled experiments and do not test whether masks protect people against infection in real-world settings. In that sense, they are similar to studies on fomites, which showed how long they could survive on various surfaces but did not support conclusions that they were a significant vector of infection.
The effectiveness of masks to prevent COVID-19 transmission is not supported by a review of the professional literature.83
The November 18, 2020, release was cited in Doug Badger and Norbert Michel, “Mask Mandates: Do They Work? Are There Better Ways to Control COVID-19 Outbreaks?,” Heritage Foundation Backgrounder No. 3578, December 27, 2020, https://www.heritage.org/public-health/report/mask-mandates-do-they-work-are-there-better-ways-control-covid-19-outbreaks. The study was included in the March 2021 Annals of Internal Medicine.
There has been just one controlled study that tested whether masks protect uninfected people against COVID-19.84
On May 7, 2021, the CDC amended its science brief to mention the Danish study. It characterized the study’s results as “inconclusive.”
The Danish study, conducted during the spring of 2020, included 6,000 participants. The control group did not wear masks; the experimental group did. All were instructed to spend at least three hours daily outside the home and observe social distancing guidelines. Participants were tested for COVID-19 over a one-month period. The study found no statistically significant difference in infection rates between those who wore masks and those who did not.
The Annals of Internal Medicine originally posted the study, which concluded that masks do not protect uninfected people against COVID-19 on November 18, 2020, two days before the CDC announced that masks do offer such protection.85
A recent flashpoint is over the degree of immunity provided by the COVID-19 vaccines and the continued utility of masking. In a March 29, 2021, MSNBC interview, CDC Director Dr. Rochelle Walensky stated that vaccinated people “don’t carry the virus, don’t get sick.” She cited the CDC’s “clinical trials” and “real world data.” CDC officials subsequently walked backed her statement. See Amy Anderson, “Two Masks Versus Vaccinated Freedom,” Washington Examiner, April 11, 2011, https://www.washingtonexaminer.com/opinion/two-masks-versus-vaccinated-freedom (accessed April 24, 2021).
The agency’s science brief did not mention the study.86
Although the CDC did not address the Danish study until May 2021, there is one blog post that questions the researchers’ analysis of the Danish data. The Danish researchers concluded that there was no statistically significant difference in infection rates between the control group and the experimental group, The blog post’s author, James M. Brophy, a professor of medicine and epidemiology at McGill University, argues against statistical methodology that relies on null hypothesis significance testing. Applying Bayesian analysis to the Danish data, Brophy finds “an 81% probability of fewer infections among those encouraged to wear a mask and a 35% probability that mask wearers will avoid more than five infections per one thousand individuals.” Brophy believes that his probabilistic assessment means that his findings are “good enough” to support mask mandates. “While the current evidence is imperfect, it appears ‘good enough’ to make policy decisions today, given the absence of any severe downside to the intervention…. In decision theory terms, the expected value of perfect information for mask effectiveness may be sufficiently low that further research into this intervention is perhaps not worth the extra value returned.” James M. Brophy, “COVID-19: Controversial Trial May Actually Show That Masks Protect the Wearer,” The BMJ Opinion, November 24, 2020, https://blogs.bmj.com/bmj/2020/11/24/covid-19-controversial-trial-may-actually-show-that-masks-protect-the-wearer/ (accessed April 24, 2021).
Public health officials’ mixed messages over masks have carried over from the Trump Administration into the Biden Administration.87
“The new guidelines are rigid and binary and aren’t accompanied by explanations or a link to an accessible version of the underlying science, which would empower people to both understand them better and figure things out for themselves.” Zeynepp Tufekci, “The CDC Is Still Repeating Its Mistakes,” The Atlantic, April 28, 2021, https://www.theatlantic.com/health/archive/2021/04/cdc-outdoor-mask-pandemic/618739/ (accessed July 1, 2021).
The CDC continues to say that masks have protective value, although the findings of the only controlled study on the subject conflict with this recommendation.88
In April 2021, the CDC released new mask guidelines for vaccinated and unvaccinated persons, specifying indoor and outdoor use, which have generated further confusion.89
Kevin Dayaratna and Norbert Michel, “A Statistical Analysis of Mandates and Mask Usage in Kansas,” Heritage Foundation Special Report No. 246, April 15, 2021, p. 6, https://www.heritage.org/government-regulation/report/statistical-analysis-mandates-and-mask-usage-kansas.
Mask Mandates. In addition to endorsing the value of mask-wearing in reducing transmission of the pathogen, the CDC has supported mask mandates, government requirements that individuals wear masks when outside their homes.
The value of these mandates is of some dispute. A November 2020 CDC study concluded that Kansas’s mandates “appear to have contributed to the mitigation of COVID-19 transmission in mandated counties.”90
Ibid., p. 6 (emphasis in original).
In an erratum published January 1, 2021, the CDC acknowledged that its study did not reflect updates to the data.91
The CDC has since published at least two additional studies suggesting the jurisdictions with mask mandates have outperformed those without them. Heesoo Joo et al., “Decline in COVID-19 Hospitalization Growth Rates Associated with Statewide Mask Mandates – 10 States, March – October, 2020,” Morbidity and Mortality Weekly Report, February 12, 2021, pp. 212–216, https://pubmed.ncbi.nlm.nih.gov/33571176/ (accessed July 11, 2021), and Gery P. Guy et al., “Association of State-Issued Mask Mandates and Allowing On-Premises Restaurant Dining with County-Level COVID-19 Case and Death Growth Rates – United States, March 1 – December 31, 2020,” Morbidity and Mortality Weekly Report, March 12, 2021, pp. 350–354. https://www.cdc.gov/mmwr/volumes/70/wr/mm7010e3.htm (accessed July 11, 2021).
The agency did not, however, acknowledge that the updated data affected the CDC’s conclusion that mandates helped mitigate the spread of COVID-19. Heritage Foundation authors Norbert Michel and Kevin Dayaratna write:
Closer examination shows that this conclusion is incorrect because the authors used data available from USAFacts.org that was later updated. In other words, the updated version of the data does not show that the COVID-19 incidence trend reversed in the counties with mask mandates.92Badger and Michel, “Mask Mandates: Do They Work?”
Extending their analysis into November, Michel and Dayaratna found sharp increases in COVID-19 cases both in counties that had mask mandates and those that did not. That increase was especially high from mid-October through mid-November.
Kansas counties with mask mandates experienced larger increases in new cases than those without mask mandates.93
Stephanie Soucheray, “Great Influenza Author Talks COVID-19, 1918 Flu,” Center for Infectious Disease Research and Policy, April 10, 2020, https://www.cidrap.umn.edu/news-perspective/2020/04/great-influenza-author-talks-covid-19-1918-flu (accessed July 1, 2021).
These findings are broadly consistent with well-documented patterns: Mask mandates have not withstood waves of infection either in the U.S. or in other countries that have imposed them.94
Dan Mangan, “Trump Issues ‘Coronavirus Guidelines’ for Next 15 Days to Slow Pandemic,” CNBC, March 26, 2020, https://www.cnbc.com/2020/03/16/trumps-coronavirus-guidelines-for-next-15-days-to-slow-pandemic.html (accessed July 1, 2021).
Cases have surged in cities, counties, states, and countries that have imposed mask mandates as well as in those that have not.
This does not suggest that mask-wearing is without value. As elsewhere noted, masks appear to reduce the risk that people who do not know they are infected will transmit the disease to others, providing a public health benefit that involves relatively little social cost.
State Lockdowns and the Politicization of the Pandemic
The COVID-19 pandemic was the first time in American history that public officials have responded to a virus with such a comprehensive lockdown of the social and economic life of their citizens.
Even during the horrific 1918 flu—which disproportionately impacted young adults and claimed 675,000 American lives—public health authorities, without the benefit of vaccines or antibiotics, did not resort to the kinds of comprehensive lockdowns that became a costly feature of the COVID-19 pandemic. According to John Barry, the 1918 pandemic’s most prominent historian, “There were no general lockdowns, the way we have today. Most cities closed saloons, theaters, places of public gathering, but no general closing.”95
Ballotpedia, “States That Issued Lockdown and Stay-At-Home Orders in Response to the Coronavirus (COVID-19) Pandemic, 2020,” https://ballotpedia.org/States_that_issued_lockdown_and_stay-at-home_orders_in_response_to_the_coronavirus_(COVID-19)_pandemic,_2020 (accessed April 24, 2021).
By March 2020, it was evident that the early bungling by federal health officials had contributed to a public health crisis. On March 16, 2020, President Trump called on the country to engage in a 15-day effort to slow the contagion’s spread.96
Bobby Allyn, “To Fight Virus, Trump Extends Social Distancing Guidelines for 30 More Days,” NPR, March 29, 2020, https://www.npr.org/2020/03/29/821976925/coronavirus-cases-soar-across-the-u-s-and-officials-say-worse-is-yet-to-come (accessed July 1, 2021).
The CDC urged the elderly and those with chronic medical conditions to remain at home, encouraged remote work and learning, and warned against frequenting public places and gathering in groups of more than 10. By the end of the 15 days on March 30, 29 states and the District of Columbia had instituted lockdown orders.97
Ibid. The seven states were Arkansas, Iowa, Nebraska, North Dakota, South Dakota, Utah, and Wyoming.
On March 29, Trump called on the nation to curtail activities for an additional 30 days.98
Justin Boggs, “Drs. Birx and Fauci Credit Americans for Flattening the Coronavirus Curve,” Denver Channel, April 8, 2020, https://www.thedenverchannel.com/news/coronavirus/drs-birx-and-fauci-credit-americans-for-flattening-the-coronavirus-curve (accessed July 1, 2021).
By early April, all but seven states and the District of Columbia had issued lockdown orders.99
Department of Labor, Bureau of Labor Statistics, “Unemployment Rate Rises to Record High 14.7 Percent in April 2020,” May 13, 2020, https://www.bls.gov/opub/ted/2020/unemployment-rate-rises-to-record-high-14-point-7-percent-in-april-2020.htm.
The rationale behind the Trump Administration guidelines and the state orders was to “flatten the curve” or slow the disease’s rate of spread. Lockdowns were viewed as temporary measures and were at first characterized by senior public health officials as being successful.
Dr. Deborah Birx, who at the time served as coordinator of the White House Coronavirus Task Force, and Dr. Anthony Fauci of the National Institutes of Health said on April 8 that Americans had begun to flatten the curve:
I think what has been so remarkable to those of us who have been in the fields for so long is how important behavioral change is and how amazing Americans are adapting to the behavioral changes and that is what is changing the cases and that is what will change the mortality going forward.100John Tierney, “Death and Lockdowns,” City Journal, March 21, 2021, https://www.city-journal.org/death-and-lockdowns (accessed July 1, 2021).
The policy disrupted society and “flattened” the national economy. In April 2020, the national unemployment rate skyrocketed to a stunning 14.7 percent.101
Atlas, “Science, Politics, and COVID: Will Truth Prevail?”
State lockdowns have disproportionately affected low-income and minority workers and minority businesses: 40 percent of low-income workers lost their jobs, and 32 percent of Hispanic businesses and 41 percent of black businesses were closed.102
California, Kentucky, New Hampshire, New Jersey, New Mexico, New York, Oregon, and Pennsylvania.
But what began as a time-limited expedient intended to reduce burdens on hospitals and contain the pandemic was recast as ways to achieve a new, different goal. Lockdowns were no longer viewed as temporary measures but as longer-term restrictions that would be tightened and relaxed but not entirely removed. As Dr. Scott Atlas, senior fellow at the Hoover Institution at Stanford University and former White House advisor, has observed, “Almost every state and major city in the US, with a handful of exceptions, have implemented severe restrictions for many months, including closures of businesses and in-person schools, mobility restrictions and curfews, quarantines, limits on group gatherings, and mask mandates dating back to at least last summer.”103
Kevin Liptak, “Trump and Florida’s DeSantis Talk Reopening Plans and Share Mutual Congratulations,” CNN, April 28, 2020, https://www.cnn.com/2020/04/28/politics/donald-trump-ron-desantis-florida/index.html (accessed July 1, 2021).
By May 6, governors in 16 states had either withdrawn their orders or allowed them to lapse. By early June, only eight states and the District of Columbia still had lockdown orders in effect.104
We choose to examine population-adjusted deaths rather than cases, because confirmed cases provide a distorted picture of the extent of the pandemic’s spread. Confirmed cases—those diagnosed by test and reported to public health authorities—overlook asymptomatic and mildly symptomatic infections that went undiagnosed. Testing is uneven between states, meaning states that test more extensively might record higher case rates than those that do less testing, producing an inconsistent means of comparison. There are undoubtedly errors in the COVID-19 mortality data. Still, the counts are far more precise and more indicative of serious infections, a more urgent public health concern than mild or symptom-free cases.
States, however, differed in their approaches. While some reopened schools and businesses and permitted in-person dining, others kept some restrictions in place, and many imposed mask mandates.
Politicization. That division among states carried a strong political tinge, with Republican governors, especially Florida’s Ron DeSantis (R), portrayed as Trump allies who put their populace at risk by rejecting science.105
They were unfavorably compared to their blue state counterparts, particularly New York Governor Andrew Cuomo (D) and California Governor Gavin Newsom (D), whose long-term restrictions, school closures, mask mandates, and shuttering of public places closely aligned with the views of federal public health officials.
A portion of the public began to regard these officials’ increasingly dire warnings against reopening in partisan terms. Many rejected these warnings and their seeming indifference to the human consequences of social isolation, school closures, business failures, and lost jobs. Supporters of lockdowns saw their critics as “anti-science” and believed that they were putting the country at risk of mounting infections, hospitalizations and deaths.
Actions by state and local governments largely aligned with the prevailing political views of their respective constituencies. Stringent restrictions, occasionally relaxed and then reinstated, were common in “blue” states and cities, while “red” states and localities tended to embrace more permissive policies.
Federalism may have facilitated this divergence, but its cause lay in the failure of public health officials to articulate and defend a coherent strategy.
Did States That Followed CDC Guidelines Fare Better Than Those That Did Not?
The JAMA Forum researchers, as noted in the introduction, editorialized that America’s federalist response was inherently deficient. The authors assume the country would have been better off with a centrally imposed response to the pandemic. According to this line of argument, if the federal government theoretically had the power to compel every state in the Union to adopt policies that California and New York did, the medical and economic consequences of the pandemic would have been less severe.
In point of fact, federalism permits a natural experiment to test this hypothesis. We can reasonably ask whether states that most closely adhered to the recommendations of federal public health officials had fewer COVID-19 cases and deaths. We can also ask whether those states suffered worse economic outcomes than did states that adopted less restrictive policies.
A high-level review of pandemic and economic outcomes in the four largest states (California, Texas, Florida, and New York)—two of which deviated from the policies recommended by federal health officials and two of which most closely followed them—offers one way of testing how different states that took divergent approaches to the pandemic fared.
Chart 1 compares the number of deaths related to COVID-19 per million population, as of April 23, 2021, among the four states and the U.S. average.106
As the chart shows, although California has the lowest rate, both Florida and Texas are below the national average and well below the COVID-19 mortality rate reported for New York. Florida’s rate, for example, is only about 4 percent higher than California’s; New York’s rate is 65 percent higher than Florida’s.
Florida’s performance is quite remarkable given the makeup of its population. As of April 21, 2021, the CDC reported a total of 551,728 deaths linked to COVID-19. Of those, more than 80 percent were among people ages 65 and older. In 2018, Florida had the second-highest proportion of people in this age demographic among all 50 states. Proportionately, Florida’s senior population is 43 percent higher than that of California. Yet in a disease that causes death predominantly among those over 65, Florida’s death rate is, as noted above, only 4.3 percent higher than California’s.
Economic indicators offer another way to compare the impact of adherence to federal public health guidelines. Chart 2 assesses the economic performance of the four states as measured by changes in gross domestic product (GDP).
As the chart shows, seasonally adjusted real GDP contracted by 3.5 percent from 2019 to 2020. As with deaths per million population, California and Florida outperformed the national average and had relatively equivalent results. Texas tracked with the national average, while New York suffered far more severe economic contraction.
The fact that California and Florida experienced downturns of roughly equal size is in part due to the differing nature of their economies. Florida outperformed California in 12 of the 21 GDP components measured by the Bureau of Economic Analysis. The most consequential differences were in two areas that reflect structural differences between the states’ respective economies: accommodation/food services and information.
The biggest drag on Florida’s economy by far was in the area of accommodation and food services, which shrank by 0.99 points between 2019 and 2020, accounting for more than one-third of its overall 2.9 percent GDP reduction. Florida’s economy relies heavily on national and international tourism. That industry, which depends on the policies set by other states and countries at least as much as it does on the host state, delivered the most substantial blow to Florida’s economy.
California, by contrast, was buoyed by continued growth in the information industry, seeing a 0.40 percent growth, compared with Florida’s 0.08 percent contraction. That industry was one of five GDP components that improved in California between 2019 and 2020 and was by far the state’s best performer.
In short, growth in California’s information industry dampened the effect of lockdowns and school closures on the state’s economy. That single component and the downturn in Florida’s tourist industry best explains why the two states experienced contractions of similar size.
While GDP provides an economic snapshot, other indicators are relevant to this comparison among the four states. One such indicator is the unemployment rate. Chart 3 compares the unemployment rate in February 2020, the month before lockdowns began, and February 2021.
Here, the contrast between the two states that implemented CDC guidelines and the two that departed from those guidelines is most pronounced. At the two extremes, Florida’s unemployment rate rose by just 1.4 percent between February 2020 and February 2021, while New York’s increased by 5.0 percent. California also saw a significant increase (4.2 percent), while Texas’s rise in joblessness was smaller, though still worse than the national average.
California’s unemployment rate nearly doubled over that period (4.3 percent to 8.5 percent), and New York’s rose by 128 percent (3.9 percent to 8.9 percent). Texas unemployment rose from 3.7 percent to 6.9 percent, while Florida saw the most modest rise (3.3 percent to 4.7 percent).
In February 2021, New York and California logged the second- and third-highest unemployment rates among the 50 states and the District of Columbia, outperforming only Hawaii. Thus, whether measured in relative or absolute terms, joblessness in New York and California was far worse than the national average and among the worst in the nation.
One way to compare the public health and economic outcomes on a single map is to display COVID-19-related deaths per million in the four states along with their unemployment rates. Chart 4 presents that comparison.
The horizontal axis (x-axis) shows COVID-19-related deaths per million population. The vertical line near the middle of the chart shows the national average as of April 23, 2021 (1,767 deaths per million population). The vertical axis (y-axis) shows the unemployment rate in February 2021. The horizontal line shows the national unemployment rate in that month (6.2 percent).
Of the four states, three lie to the left of the vertical line, indicating that their deaths associated with COVID-19 per million residents are below the national average. Florida and Texas, as discussed above, deviated significantly from the advice of federal public health experts. New York lies to the right of that axis, showing that its COVID-19-related deaths per million population exceeded the national average.
Only one of the four states—Florida—recorded a February 2021 unemployment rate that was below the national average. Florida and Texas performed best of the four states, with joblessness in New York and California performing far worse than the national average.
Overall, Florida was the only state in the quadrant on the lower left, indicating that it had the best combined performance on COVID-19-related deaths and unemployment rates. New York was the worst performer in both categories, as shown by its place in the quadrant on the upper right.
Thus, in the four largest states, those that adhered most closely to federal public health guidelines did not significantly mitigate public health outcomes but did experience worse economic outcomes, at least according to these metrics. Far from yielding superior results, close adherence to federal public health recommendations appears to have resulted in poorer health and economic outcomes among the four states examined.
Conclusion
Never has a major public health crisis been politicized as much as public officials’ response to COVID-19. This was profoundly regrettable and a disservice to the country. While it is true that initial responses to the pandemic were based on incomplete information or data that were not initially available, it is also true that policies were maintained even after the alleged scientific basis for them had eroded.
The flashpoints of controversy have ranged from the efficacy of masks, therapeutics and vaccines to business, and school closures and comprehensive lockdowns. For over a year, public health officials at every level of government have compiled a public record. Large and diverse states such as California, Florida, New York, and Texas provide empirical data on their performance coping with the pandemic, protecting public health, and mitigating its social and economic consequences.
The evidence is available and accumulating; the consequences of policy are increasingly clear. As the novel coronavirus pandemic subsides, there should be a calm and bipartisan assessment of public officials’ performance: what went right, what went wrong, and what changes can be made that will enable Americans to do better when confronted with the next pandemic.
Doug Badger is Senior Fellow in Domestic Policy Studies, of the Institute for Family, Community, and Opportunity, at The Heritage Foundation. Robert E. Moffit, PhD, is Senior Fellow in Domestic Policy Studies, of the Institute for Family, Community, and Opportunity, at The Heritage Foundation.
Mississippi – One of the Reddest States – Has Enough Anomalous Voters and Aberrations in Its Voter Rolls to Impact a Statewide Election
Read the article on thegatewaypundit.com
Mississippi citizens invited the Fractal quantum technology team to audit the Mississippi voter rolls – and the results, as you can see in this video, are surprising.
The reddest state, or one of them, has voter rolls with enough obvious aberrations – found with Fractal quantum compute in less than 45 minutes – to impact a statewide election.
Mississippi has honest, diligent, highly patriotic election management at the state level.
The Mississippi Secretary of State, Michael Watson, is a national leader – almost alone – demanding voter rolls be free of illegal alien voters.
The Mississippi Secretary of State office provided very clean, professional, inexpensive, data exports. Of the 26 states where the Fractal team received voter rolls, those in Mississippi were by far the most professional.
The office of the Secretary of State offered the team every bit of cooperation – Mississippi citizens ought to be pretty pleased the Secretary of State team there is vitally interested in any data they can get on how to improve voter rolls.
Even a great Secretary of State office, like Mississippi’s, doing all the right things, can have very inaccurate voter rolls if it has crappy tools.
Mississippi uses relational technology/SQL – like every Secretary of State in America, and every voter integrity organization and thus vast numbers of invisible anomalous voters remain on the rolls.
Nobody could have done a better job than the Mississippi Secretary of State with relational technology – it is a tools problem, not a people or talent problem.
Mississippi is not alone.
As the Fractal team showed in the Georgia video, quantum compute demonstrates there is no way Biden can be declared the winner in Georgia 2020 – Fractal quantum tech compared the official Secretary of State Georgia cast ballots which contradicted their own voter histories.
As Fractal quantum compute showed in Alaska, almost a third of the voter roll is off limits to citizens and what is visible shows voters living at addresses without bedrooms – like a warehouse.
Fractal showed in Utah, that even while much of the voter roll is hidden by the government, it still contains thousands of people voting from ineligible locations like hotels.
As Fractal demonstrated in Minnesota and Kansas, their official property tax rolls contradict their official voter rolls – showing again, neither state has a clue as to how to create a clean voter roll in which citizens can have confidence.
Over 30,000 voters have multiple voter IDs from their Secretary of State.
That’s the electoral equivalent of giving out multiple Social Security Numbers!
In Arizona, Michigan, Georgia, Texas, Pennsylvania, Washington, Oregon, Colorado, California, Minnesota, New Mexico, Wisconsin and other states – wildly inaccurate voter rolls are a feature, not a bug.
In those states, bad actors deliberately infuse voter rolls with anomalies to be used when needed – which is in 2024.
In those states, it is not just a tools problem – like Mississippi – it is organized, government-sponsored sovereign voter fraud – where bad tools like relational databases help out.
The days of wildly inaccurate voter rolls remaining invisible to citizens are over – quantum compute, using cross database search perfected years ago with the TSA No-Fly List and insurance and Medicaid fraud – is now demonstrating to all how bad voter rolls are.
Bad data is not just a state issue.
The Fractal team ran the voter rolls furnished by the RNC to candidates in 2022 – and they were 50% wrong! The worst data management in any corporation might be 4% – the RNC is over 50% incorrect.
In 2023, in Wisconsin, Republican canvassers started using the Wisconsin data team’s lists – door to door – and they reported these lists were 99% accurate.
A U.S. Senate seat was saved by the intelligent use of quantum by the Wisconsin Streetfighters.
Those lists were built by the Wisconsin team, with Fractal quantum playing a role – but not the entire role – and the results were 99% accuracy.
The same canvassers used the RNC rolls a year earlier – for the Red Wave that never happened – and they reported the RNC lists were over 50% incorrect.
Every Fortune 1,000 company is growing its use of quantum compute driving both large and small language A.I. models.
Fractal is introducing – to Secretaries of State in a few states – and Medicaid investigators in every state, the power of quantum technology – at a fraction of the cost of their current technology.
When you look at the Mississippi data, do not blame the Mississippi government. They have crappy technology – as does the RNC, and every Secretary of State in America. They deliver the most professional voter rolls our team has experienced.
What is important is that quantum technology, from the Fractal team or other companies – delivers the beginning of the end of phantom-infested voter rolls – showing the thousands of phantoms in every state voter roll – missed for a generation by the national voter integrity orgs and of course, the RNC – all of whom use obsolete relational technology.
And everything you see in this video – is accessible from your phone – at 200 million transactions per second – running on computers you can hold in your hand.
Montana district court Judge Deborah Christopher tenders resignation
Read the article on Daily Montanan
A district court judge who has been under scrutiny for the way she handled a child custody case and for repeatedly missing work is resigning from the job, according to a letter to the chief justice of the Montana Supreme Court.
In the letter, Judge Deborah Kim Christopher said it had been a privilege to serve Lake and Sanders counties for nearly 24 years, and she will resign effective April 5, 2024.
Christopher said as a judge, she learned much about people’s lives and professions.
“I was compassionate as a judge even with a reputation as a tough judge,” Christopher said in the March 15 letter.
The Lake County Leader first reported Christopher’s resignation. Christopher is a former prosecutor who grew up in Polson and spent time in the U.S. Army.
Thursday, the Montana Secretary of State’s Office still listed Christopher as a judge candidate for the November 2024 election. The other candidate listed is defense and civil attorney Britt Cotter of Polson.
Gov. Greg Gianforte has the authority to fill judicial vacancies after receiving notice from the chief justice and soliciting applications. A spokesperson from the Governor’s Office said it will initiate the process for filling the vacancy as outlined in law.
“There will be an application window in which interested parties may apply to fill the remainder of the term,” said Sean Southard of the Governor’s Office in an email. “The term will end on the first Monday of January 2025. ”
In January, the Montana Supreme Court removed Christopher from a case where she unexpectedly took away child custody from the caretaking parent and gave it to the father without either parent requesting it or alleging wrongdoing.
Christopher had also referred to the mother in the case as “you bitch” when discussing the case with staff after the mother had left the courtroom, according to a recording of the proceeding.
The Judicial Standards Commission brought a formal complaint against Christopher this year for repeatedly missing work without adequate notice or plans, jeopardizing defendants’ rights to speedy trials and due process.
In a separate case, the state health department recently asked the judge to be disqualified, alleging bias. Additionally, a lawyer who represented the mother in the custody matter earlier confirmed he and his colleague filed a judicial misconduct complaint against the judge.
“I am happy that Judge Christopher has elected to resign rather than to continue on the bench,” said Lance Jasper on Thursday.
Jasper and Spencer MacDonald had filed a complaint and publicly raised concerns about Christopher’s judgement.
“I am saddened that it’s now coming to light there are many individuals like Shanna (ManyWounds, mother in the custody case) that have suffered tremendous injustice that will now never be addressed due to the fact that her resignation results in all judicial complaints being dismissed without a determination being made,” Jasper said.
Jasper said the resignation means the judge doesn’t have to confront wrongdoings and the public doesn’t get the full picture.
“It’s a further insult to these people they (the complaints) can’t even be disclosed to the public,” Jasper said.
Christopher did not return a voicemail left for comment earlier this week.
However, she reflected on her career in the letter to Chief Justice Mike McGrath.
She said she was the first female judge in the Twentieth Judicial District, a ranking female officer at Airborne School at Fort Benning Georgia, and first female Lake County Attorney.
“I didn’t get it right all the time and I was always thankful to know if I got it wrong, there were seven Supreme Court Justices who would fix it,” Christopher said. “Given the incredible power held by a district judge with people’s lives, children, money, property, and futures, the position has always weighed heavily on me.”
However, she also said a sergeant major once told her she was “the most idealist lawyer” he knew and made her promise she wouldn’t lose her ideals “no matter what the price.
“I paid the price, but I kept the promise,” the judge wrote. “Having ‘Judge’ as a first name has been an honor and a privilege.”
Montana district court Judge Deborah Christopher tenders resignation
Read the article on Daily Montanan
A district court judge who has been under scrutiny for the way she handled a child custody case and for repeatedly missing work is resigning from the job, according to a letter to the chief justice of the Montana Supreme Court.
In the letter, Judge Deborah Kim Christopher said it had been a privilege to serve Lake and Sanders counties for nearly 24 years, and she will resign effective April 5, 2024.
Christopher said as a judge, she learned much about people’s lives and professions.
“I was compassionate as a judge even with a reputation as a tough judge,” Christopher said in the March 15 letter.
The Lake County Leader first reported Christopher’s resignation. Christopher is a former prosecutor who grew up in Polson and spent time in the U.S. Army.
Thursday, the Montana Secretary of State’s Office still listed Christopher as a judge candidate for the November 2024 election. The other candidate listed is defense and civil attorney Britt Cotter of Polson.
Gov. Greg Gianforte has the authority to fill judicial vacancies after receiving notice from the chief justice and soliciting applications. A spokesperson from the Governor’s Office said it will initiate the process for filling the vacancy as outlined in law.
“There will be an application window in which interested parties may apply to fill the remainder of the term,” said Sean Southard of the Governor’s Office in an email. “The term will end on the first Monday of January 2025. ”
In January, the Montana Supreme Court removed Christopher from a case where she unexpectedly took away child custody from the caretaking parent and gave it to the father without either parent requesting it or alleging wrongdoing.
Christopher had also referred to the mother in the case as “you bitch” when discussing the case with staff after the mother had left the courtroom, according to a recording of the proceeding.
The Judicial Standards Commission brought a formal complaint against Christopher this year for repeatedly missing work without adequate notice or plans, jeopardizing defendants’ rights to speedy trials and due process.
In a separate case, the state health department recently asked the judge to be disqualified, alleging bias. Additionally, a lawyer who represented the mother in the custody matter earlier confirmed he and his colleague filed a judicial misconduct complaint against the judge.
“I am happy that Judge Christopher has elected to resign rather than to continue on the bench,” said Lance Jasper on Thursday.
Jasper and Spencer MacDonald had filed a complaint and publicly raised concerns about Christopher’s judgement.
“I am saddened that it’s now coming to light there are many individuals like Shanna (ManyWounds, mother in the custody case) that have suffered tremendous injustice that will now never be addressed due to the fact that her resignation results in all judicial complaints being dismissed without a determination being made,” Jasper said.
Jasper said the resignation means the judge doesn’t have to confront wrongdoings and the public doesn’t get the full picture.
“It’s a further insult to these people they (the complaints) can’t even be disclosed to the public,” Jasper said.
Christopher did not return a voicemail left for comment earlier this week.
However, she reflected on her career in the letter to Chief Justice Mike McGrath.
She said she was the first female judge in the Twentieth Judicial District, a ranking female officer at Airborne School at Fort Benning Georgia, and first female Lake County Attorney.
“I didn’t get it right all the time and I was always thankful to know if I got it wrong, there were seven Supreme Court Justices who would fix it,” Christopher said. “Given the incredible power held by a district judge with people’s lives, children, money, property, and futures, the position has always weighed heavily on me.”
However, she also said a sergeant major once told her she was “the most idealist lawyer” he knew and made her promise she wouldn’t lose her ideals “no matter what the price.
“I paid the price, but I kept the promise,” the judge wrote. “Having ‘Judge’ as a first name has been an honor and a privilege.”
The Raiding of Red Lobster
The bankrupt casual restaurant chain didn’t fail because of Endless Shrimp. Its problems date back to monopolist seafood conglomerates and a private equity play.
BY LUKE GOLDSTEIN
The ongoing retail apocalypse claimed another victim this week.
Red Lobster, the casual dining restaurant chain with 550 locations, is entering Chapter 11 bankruptcy proceedings, turning over ownership for a second time in ten years as its sales and revenues continue to nosedive precipitously.
The company abruptly shuttered roughly 50 of its locations across the country last week without informing employees, who showed up to work only to find signs announcing the closures, which may be a potential labor law violation. According to staff complaints, they only later received notice that they’d be laid off or transferred to the remaining stores, in some cases many miles away.
Several observers have attributed Red Lobster’s implosion to its “Endless Shrimp” promotional deal, which the company hoped would bring more foot traffic in the door. It might have been a hit with stoners, but broadly speaking the deal was a disaster that raised costs for individual restaurants without a compensating increase in revenue.
The company’s current management and CEO are eager to pin its demise on Endless Shrimp, which totaled $11 million in losses. Upon filing for bankruptcy, they also launched an internal investigation into whether their majority shareholder Thai Union Group, which is also their main seafood supplier, might have pushed the shrimp promotion in order to boost their own sales at the cost of the retailer’s finances. This ownership structure between parties that are supposed to be on opposite sides of restaurant transactions does appear to be a clear conflict of interest.
But the arc of Red Lobster’s collapse extends much further back than Thai Union, and bends toward what writer Cory Doctorow has vividly described as “enshittification.”
The Endless Shrimp fiasco was a minor speed bump amid a series of poor business decisions by the company’s numerous owners. Many of those mishaps look less like miscalculations and more like self-sabotage, intended to hollow out the restaurant chain to enrich the chain’s previous private equity owners, Golden Gate Capital.
Golden Gate crippled Red Lobster by selling off one of its most valuable assets, the real estate it owned, in what’s known as a sale-leaseback, for $1.5 billion. With that sale, Golden Gate nearly made back its $2.1 billion purchase of Red Lobster, while turning the chain into a permanent leaser, adding a massive additional cost in the form of rent that was orders of magnitude bigger than the cost of Endless Shrimp. When commercial leases started going up, Red Lobster was highly exposed, but by then Golden Gate had already sold off its shares to Thai Union, which inherited all the debts Golden Gate stacked on the company.
Even today, the financial extraction continues. The law firms conducting the bankruptcy on Red Lobster’s behalf have already billed the company $10.5 million, nearly equivalent to the entire loss on the shrimp promotion.
How Red Lobster originally fell under control of private equity foreshadowed the problems that would later follow under Thai Union Group. The downfall is an emblem of how the long-term effects of consolidation in seafood and restaurant retail laid the groundwork for corporate raiders to pillage the once-iconic American brand.
RED LOBSTER BECAME AN EARLY PIONEER of the no-frills casual dining experience that spread across the country in the second half of the 20th century. Per its name, the signature offering was a typically upscale delicacy out of reach for most Americans, brought to the masses at affordable prices. That sales pitch epitomized a cultural and business trend at the time, as other more upscale brands like Grey Poupon pivoted to a broader customer base.
But to make the business work, Red Lobster had to find a way to bring down the cost of seafood to something affordable for its middle-class customers. The chain rapidly expanded franchises across the country. With scale, Red Lobster could use buyer power to purchase in bulk from larger seafood processors and get discounts from them to lower costs, a similar business model to those other fast-food and chain restaurants employed during that period.
Red Lobster was tremendously successful and at its height had over 700 locations, becoming one of the biggest casual dining businesses in the U.S.
But according to The Wall Street Journal, its demise came about when the cost of global seafood started to go up around 2013. Red Lobster, with its mostly seafood-based menu, suffered from that more than the other causal chains like Olive Garden that were under the portfolio of its previous owner Darden.
Some of the spike in seafood prices could be accounted for by unusual weather events in open oceans that year, certain aquatic diseases, and rising consumer demand. But another unseen factor was a wholesale transformation in the structure of the fishing industry. Red Lobster’s own purchasing power would be countervailed by a rollup of its seafood suppliers.
Agriculture had been industrialized and monopolized much earlier into factory farming controlled by meatpackers and other middlemen. Those same trends were also taking place in the seafood sector, though it took longer.
U.S. fishing used to be much more regionally based and mostly made up of independent fishers who’d sell their catches into local markets. In the 1990s and 2000s, the U.S. government started implementing a “catch share” program, which capped the volume per fisher and imposed other restrictions to manage overfishing, for environmental reasons and to preserve wildlife. The high up-front costs for licensing and the limitations on the number of catches one fisher could sell by season mostly benefited the larger fisheries that were accruing market share at the time. Catch management was prone to consolidation, because the shares became tradable assets that dominant fisheries could simply purchase from smaller struggling ones.
“The retail apocalypse is all about having your real estate sold out from under you so that you have to pay the rent in good times and in bad.”
Around the same time, there was an onslaught of foreign imports of fishing (from companies such as Thai Union) that didn’t have the same environmental standards. To compete, U.S. fisheries started to race for market share, buying up catch shares and forcing fishers into contractual arrangements where they could only sell to one of the large processors. In the Alaska area, four companies control the share rights to over 77 percent of catches for specific crab species. Along the Pacific Northwest coast, one company—Pacific Seafood—effectively controls the local market fishers sell into for a wide range of catches, from salmon to shrimp.
Right around the same time as fish prices began rising for Red Lobster, plaintiffs filed a wave of major antitrust lawsuits against these giant seafood processors that had usurped the industry.
One core claim across these lawsuits was that the new fishing giants held vast “purchasing power” over the entire market. They used that power both to reduce what they paid the fishers, who had few other buyers to turn to for better prices, and also to exact markups to retailers. Even supposed competitors like Pacific Seafood and Ocean Gold Seafoods had entered exclusive partnerships with one another to share one another’s processing facilities and fix prices together.
“The difference between what the fishermen are getting paid and prices in the supermarket are such an astronomical difference,” one fisherman party to a 2011 complaint testified. The complaint argued that prices went from $77 per ton in 2004 to $137 in 2006, as a result of market power.
An especially troubling practice alleged by the plaintiffs was that during peak seasonal demand, large processors artificially reduced the time intervals when fishers were permitted to go out on the waters to bring back fresh catches. Companies like Pacific Seafood did this to advantage their own bargaining position as middlemen by limiting supply.
On the other side of the country, federal law enforcement in New England caught a fishing tycoon named Carlos Rafael, known as the “Codfather,” bragging about his ability to price-fix. He was later put in prison on a litany of charges for conspiracy and dealings with the Russian mafia.
These documented lawsuits shed light on the problems Red Lobster faced from its upstream suppliers. Red Lobster’s entire business model was reliant on its own buyer power over seafood suppliers; but once its suppliers merged together, they could wield their own power to add markups.
BECAUSE OF RED LOBSTER’S HIGH COSTS and declining profits, the company’s owner Darden sold it off in 2014 for $1.2 billion to Golden Gate Capital, which believed it could make the chain leaner and more efficient. That was also Golden Gate’s promise when it took over the iconic shoe retailer Payless in 2012, before selling it off to a separate private equity firm, Alden Global Capital, just a few years later, in worse shape than when it first took over the company. Over the first two years of Golden Gate’s reign at Payless, the retailer generated $322 million in operating profits and paid $352 million in one-time dividends to shareholders, the largest being Golden Gate, along with $83 million in interest payments on the debt it had been saddled with from the purchase. That left it with virtually no resources to adapt to the e-commerce era as its sales cratered.
Golden Gate followed the same pattern of behavior with Red Lobster. To finance the purchase, Golden Gate imposed a sale-leaseback on most of the real estate, which went under ownership of American Realty Capital Properties. This real estate play has become common in private equity purchases of other retailers and even hospitals, because it gives the PE owners a quick injection of cash from the get-go.
“The retail apocalypse is all about having your real estate sold out from under you so that you have to pay the rent in good times and in bad,” private equity expert Eileen Appelbaum told Business Insider.
That was just the start of Red Lobster’s problems. Restaurants would become chronically understaffed, as the owners tried to slash costs wherever they could. The extravagant payments that the company made to its owners made it difficult for the chain to adapt in a changing restaurant business shifting away from casual dining.
Thai Union, among the largest global seafood conglomerates and a major supplier to Red Lobster, first acquired a 25 percent stake in the company for $575 million in 2016. Then in 2020, it purchased the remaining portion of shares from Golden Gate. This new ownership structure was highly unusual; it would be analogous to Walmart’s largest discount supplier Procter & Gamble deciding to purchase the retail side of the operation.
Thai Union continued cost-cutting and failed to rejuvenate the business, which was still stuck with rising rent costs because of Golden Gate’s sale-leaseback. Red Lobster also suffered, like the rest of the restaurant industry, through the pandemic, when in-store dining was barred in much of the country for a period of time.
In 2021, Red Lobster refinanced its debt obligations, which led to another private equity firm, Fortress Investment Group, becoming a key lender. According to Bloomberg, Fortress is now in contention to take over the chain after bankruptcy, placing it back in the hands of a set of financial pillagers.
Leading up to its financial implosion and bankruptcy, Red Lobster joined a lobbying group called Stronger America Through Seafood. For the past several years, this group has been aggressively lobbying to essentially deregulate American fishing by opening up federal waters for industrial aquaculture farms to harvest fish at massive scale, despite ecological and competition concerns. Red Lobster’s owner Thai Union Group and other dominant fishing processors would stand to benefit by being able to acquire new permits to the waters and expand their operations. Those efforts haven’t succeeded yet but are still actively under way.