“The Spontaneous, Uncoordinated Effort of Businesses, Entrepreneurs and Innovators”

(p. A1) True Value Co. heard from its more than 4,500 affiliated hardware stores last month that hand sanitizer was flying off the shelves, leaving store staff with none for themselves.

At the company’s factory in Cary, Ill., which makes cleaning products and paint, John Vanderpool, the company’s divisional vice president of paint, recalled asking, “What can we do to help here?” After a tip from his wife, a pharmacist, he consulted with the Food and Drug Administration, then huddled with his maintenance team and engineers over two weekends to retool two paint-filling lines to produce jugs of FDA-approved hand sanitizer.

Starting this week they are being shipped free to stores for their own use. The product will go on sale to the public eventually.

The changeover at True Value’s factory from paint to hand sanitizer is one of countless private-sector initiatives that represent an underappreciated asset in Americans’ fight against the coronavirus. It is a 21st-century version of the “Arsenal of Democracy,” the mobilization of industrial might that helped win World War II, only this time to make personal protective equipment, ventilators, tests and vaccines instead of uniforms, ammunition, tanks and bombers.

And where that arsenal was orchestrated by the federal government, this one has been largely the spontaneous, uncoordinated effort of businesses, entrepreneurs and innovators driven as much by the urge to contribute as by future profit.

. . .

(p. A9) Joel Mokyr, an economic historian at Northwestern University, said national crises such as wars and pandemics historically generate a hive of entrepreneurial innovation, from the late 18th-century search in England for a treatment for smallpox to a German drive in the run-up to World War I to use atmospheric nitrogen for explosives.

“We have this huge reservoir of creative energy spread around the economy. When you have an event like this all of a sudden, everyone says, ‘Oh wow let’s look at this problem—let’s see what I can do to solve it.’ ”

This time, innovators are exploiting tools and methods that didn’t exist in previous crises. In mid-March, Lennon Rodgers, director of the Grainger Engineering Design Innovation Lab at the University of Wisconsin in Madison, fielded a plea from the university’s hospital to make 1,000 face shields.

He often gets requests from around the campus to manufacture random items and “initially, I didn’t take it too seriously,” he recalled. But after his wife, an anesthesiologist, told him the shields were indispensable for dealing with highly infectious patients, he scoured hardware and craft stores for parts.

He teamed up with Delve, a local design firm, and Midwest Prototyping, a contract manufacturer, to design their own “Badger Shield,” named after the University of Wisconsin mascot. They expected to use 3-D printers, then concluded that wouldn’t achieve the necessary scale. They uploaded the design to their website along with the necessary parts for anyone to download. A few days later Ford Motor Co. did, and, with tweaks of its own, began turning out face shields for Detroit-area hospitals.

For the full story, see:

Greg Ip. “Health Crisis Awakens Spirit of Private-Sector Innovation.” The Wall Street Journal (Friday, April 17, 2020): A1 & A9.

(Note: ellipsis added.)

(Note: the online version of the story was updated April 16, 2020, and has the title “Shoes to Masks: Corporate Innovation Flourishes in Coronavirus Fight.”)

“Real World Evidence” on Effectiveness of Experimental Drugs Can Be Extracted From Electronic Health Records

(p. A7) . . . analysis of compassionate-use data, about the experimental drug remdesivir from Gilead Sciences Inc. published in the New England Journal of Medicine, came under criticism. Scientists pointed out that the Covid-19 patients received the drug in centers around the world where care may have differed, data on some patients was incomplete and there was no comparison group.

That study’s first author, Jonathan Grein, of Cedars-Sinai Medical Center in Los Angeles, said given how little is known about the coronavirus and how to treat it, “I think at this point any information is potentially helpful.” He said the study, funded by Gilead Sciences, noted the findings were limited and preliminary. “It is a starting point, an opportunity to aggregate our initial experiences,” he said.

. . .

The FDA . . . has worked closely with companies trying to extract “real world evidence” about patients’ experiences with new or experimental drugs from sources such as electronic health records.

For the full story, see:

Amy Dockser Marcus. “Hundreds Get Plasma in National Study.” The Wall Street Journal (Wednesday, April 22, 2020): A7.

(Note: ellipses added.)

(Note: the online version of the story has the date April 21, 2020, and has the title “Hundreds Receive Plasma From Recovered Coronavirus Patients in National Study.”)

Blacks Deficient in Vitamin D Are at Greater Risk of Cytokine Storm from Covid-19

(p. A15) Black Americans are dying of Covid-19 at a higher rate than whites. Socioeconomic factors such as gaps in access to health care no doubt play a role. But another possible factor has been largely overlooked: vitamin D deficiency that weakens the immune system.

Researchers last month released the first data supporting this link. Based on a link between levels of the inflammatory marker C-reactive protein and severe cases of Covid-19, they estimate that tens of thousands of lives could be saved world-wide by normalizing vitamin D levels, through its modulation of the inflammatory cascade.

Vitamin D is produced by a reaction in the skin to the ultraviolet rays in sunlight. Many Americans are low in vitamin D, but those with darker skin are at a particular disadvantage because melanin inhibits the vitamin’s production.

For the full commentary, see:

Vatsal G. Thakkar. “Vitamin D and Coronavirus Disparities.” The Wall Street Journal (Friday, April 17, 2020): A15.

(Note: the online version of the commentary has the date April 16, 2020, and has the same title as the print version. Where the wording of the online and print versions differs, the passages quoted above follow the online version.)

The research working paper mentioned above, is:

Daneshkhah, Ali, Vasundhara Agrawal, Adam Eshein, Hariharan Subramanian, Hemant Kumar Roy, and Vadim Backman. “The Possible Role of Vitamin D in Suppressing Cytokine Storm and Associated Mortality in Covid-19 Patients.” (April 30, 2020).

Art Diamond Interviewed on Curing Covid-19

On Monday, May 4, Jim Blasingame, the host of his nationally syndicated “The Small Business Advocate” radio show, interviewed me on issues related to my book Openness to Creative Destruction, and “Free to Choose a Possible Cure,” my April 17 op-ed piece on the web site of the American Institute for Economic Research. You can click on the links below to listen to each segment of the interview.

EPA Brags of Taking Weeks to Approve Soft-Pack Packaging for Scarce Disinfectant Wipes

New York (CNN)The coronavirus pandemic has made all kinds of virus-busting home cleaning products nearly impossible to find.

Disinfectant wipes, especially, are in high demand with consumers clearing out shelves just as quickly as stores restock them.

But now, one of the biggest makers of private-label wipes says tens of millions more wipes are expected to hit store shelves.

Rockline Industries, which makes Good & Clean wipes and store brand products for major retailers, said the wipes will be available at stores later this month.

. . .

Rockline was able to increase its wipes production because of a packaging tweak.

Cleaning wipes are predominantly packaged in hard plastic canisters, unlike baby wipes, which usually come in soft-packs.

. . .

But the unprecedented demand for household disinfectant wipes led to Rockline maxing out its canister production. It needed a different solution to be able to quickly and significantly increase the volume of packaged wipes to meet demand.

. . .

Given how quickly the disinfectant wipes supply is depleting in the market in response to the pandemic, Rockline, in February [2020], started exploring different ways to expedite supply, including alternative packaging formats.

The disinfectant wipes products are registered with the Environmental Protection Agency, which oversees the category and approves new products, new ingredients and packaging changes for individual companies.

So, several weeks ago, Rockline had talks with the EPA about putting its disinfectant wipes in soft-packs in addition to canisters as a way to get even more product into stores. Clorox and Lysol already sell some wipes in soft-packs.

“Typically the approval could take several months,” Dresselhuys said. Rockline was able to get the approval in just a matter of weeks.

The EPA said it’s in its interest to ensure Americans have access to approved surface disinfectant products effective against the novel coronavirus.

“To this end, the agency is expediting disinfectant product reviews and identifying regulatory flexibilities to avoid supply chain disruptions, including ingredient sourcing changes, manufacturing location additions or changes, and packaging changes,” the agency said in a statement to CNN Business.

For the full story, see:

Kavilanz, Parija. “No One Can Get Disinfectant Wipes. One Company Found a Clever Solution to Put Them on Shelves.” In CNN Business, Fri., May 1, 2020, URL: https://www.cnn.com/2020/05/01/business/disinfectant-wipes-shortage-coronavirus/index.html.

(Note: ellipses added.)

Engineering the Bar Code “Was Fun!”

(p. A13) If he had followed instructions from his boss, George Laurer might never have succeeded in designing the Universal Product Code.

In 1971, a supervisor at International Business Machines Corp. told the electrical engineer to devise a bar code based on previous models involving circular symbols resembling dart boards. While the boss was on vacation, Mr. Laurer concluded that little circles wouldn’t do, partly because smears of ink left by printing presses could scramble the code. Instead, he and others came up with a row of stripes, whose varying width and spacing conveyed a reliable code.

. . .

. . . , as he noted in the title of his memoir, “Engineering Was Fun!”

For the full obituary, see:

James R. Hagerty. “Bar Code Designer Defied Instructions.” The Wall Street Journal (Saturday, December 14, 2019): A13.

(Note: ellipses added.)

(Note: the online version of the obituary has the date Dec. 12, 2019 and has the title “George Laurer, Defying Instructions, Created Universal Bar Code.”)

Laurer’s memoir, mentioned above, is:

Laurer, George J. Engineering Was Fun! 3rd ed. Morrisville, NC: Lulu.com, 2012.

Chinese Scientists “Withdrew” Research Paper That Noted Proximity of Shi Bat Lab to Wuhan Market

(p. A11) For the past 15 years, Chinese scientist Shi Zhengli has warned the world—in English, Chinese and French—that bats harbor coronaviruses that pose serious risks to human health.

The flying mammals are a likely culprit in the pandemic now sweeping the globe, and Dr. Shi and her laboratories in Wuhan, where the outbreak was first identified, have attracted suspicion.

. . .

Dr. Shi’s experience—and her large set of reference material—helped her determine that the new coronavirus loose in Wuhan had most likely come from a bat. In fact, a sample her team collected in Yunnan province in 2013 was about 96% identical to the genetic sequence of the virus that causes Covid-19.

All of that has raised questions about whether the virus could have somehow escaped from one of Dr. Shi’s labs and infected Wuhan’s population.

In a February [2020] research paper, Chinese scientists pointed out that the Wuhan market, where the coronavirus began spreading late last year, was close to her labs as well as those of another local scientist who has worked on bats at the Wuhan Municipal Centers for Disease Control and Prevention.

The authors withdrew their paper as “speculation” after it got widespread international notice.

For the full story, see:

James T. Areddy. “‘Bat Woman’ Draws Scrutiny.” The Wall Street Journal (Wednesday, April 22, 2020): A11.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the story has the date April 21, 2020, and has the title “China Bat Expert Says Her Wuhan Lab Wasn’t Source of New Coronavirus.”)

Early Promising Results from Gilead-Sponsored Study on Remdesivir

(p. B3) A doctor in Chicago told colleagues that Gilead’s drug remdesivir appeared to help many patients enrolled in a clinical trial site at the University of Chicago Medicine hospital, according to a news report in online health publication STAT, which cited a video of the remarks. The doctor said that the hospital had enrolled 125 patients in two remdesivir studies sponsored by Gilead, and that most had been discharged from the hospital, and two had died.

. . .

“Partial data from an ongoing clinical trial is by definition incomplete and should never be used to draw conclusions about the safety or efficacy of a potential treatment that is under investigation,” a University of Chicago spokeswoman said in an email. “Drawing any conclusions at this point is premature and scientifically unsound.”

. . .

Last week, Gilead reported in the New England Journal of Medicine that remdesivir showed encouraging results in treating 53 patients with severe Covid-19 symptoms. The patients were given the drug under so-called compassionate use, which allows for doctors to request unapproved drugs for patients in emergency situations.

Of the 53 compassionate use patients who received remdesivir, nearly half were discharged from the hospital and seven patients died, or 13% of the total, according to the New England Journal paper. Of 30 patients using breathing tubes connected to ventilators, 17 had their tubes disconnected after remdesivir treatment.

For the full story, see:

Joseph Walker. “Gilead Shares Up 9.7% On Encouraging Signs In Covid-19 Drug Trial.” The Wall Street Journal (Saturday, April 18, 2020): B3.

(Note: ellipses added.)

(Note: the online version of the story has the date April 17, 2020, and has the title “Coronavirus Drug Report, Though Inconclusive, Sends Gilead Higher.” Where the versions differ, the passages quoted above follow the somewhat longer online version.)

Chinese Communists Censor Academic Articles on Origins of Covid-19

(p. A21) Beijing has claimed that the virus originated in a Wuhan “wet market,” where wild animals were sold. But evidence to counter this theory emerged in January [2020]. Chinese researchers reported in the Lancet Jan. 24 that the first known cases had no contact with the market, and Chinese state media acknowledged the finding. There’s no evidence the market sold bats or pangolins, the animals from which the virus is thought to have jumped to humans. And the bat species that carries it isn’t found within 100 miles of Wuhan.

Wuhan has two labs where we know bats and humans interacted. One is the Institute of Virology, eight miles from the wet market; the other is the Wuhan Center for Disease Control and Prevention, barely 300 yards from the market.

Both labs collect live animals to study viruses. Their researchers travel to caves across China to capture bats for this purpose. Chinese state media released a minidocumentary in mid-December following a team of Wuhan CDC researchers collecting viruses from bats in caves. The researchers fretted openly about the risk of infection.

. . .

While the Chinese government denies the possibility of a lab leak, its actions tell a different story. The Chinese military posted its top epidemiologist to the Institute of Virology in January. In February Chairman Xi Jinping urged swift implementation of new biosafety rules to govern pathogens in laboratory settings. Academic papers about the virus’s origins are now subject to prior restraint by the government.

For the full commentary, see:

Tom Cotton. “Coronavirus and the Laboratories in Wuhan.” The Wall Street Journal (Wednesday, April 22, 2020): A21.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the commentary has the date April 21, 2020, and has the title “ON BUSINESS; Airbnb Defied the Odds of Startup Success. How Will It Survive a Pandemic?”)

“Rational for Workers to Prefer a Seller’s Market in Labor”

If we adopt policies to maintain what I call a “robustly redundant labor market,” workers will have no reason to fear harm from free-trade and immigration. The policies that allow robustly redundant labor markets are described in my Openness to Creative Destruction: Sustaining Innovative Dynamism.

(p. C2) Unwilling to admit that the center-left has been largely captured by the managerial elite, many pundits and academics on the left insist that mindless bigotry, rather than class interests, explains the attraction of many working-class voters to populist parties that promise to restrict trade and immigration. But it is just as rational for workers to prefer a seller’s market in labor as it is for employers to prefer a buyer’s market in labor. Blue-collar workers who have abandoned center-left parties for populist movements bring with them the historic suspicion of large-scale immigration that was typical of organized labor for generations.

And as MIT economist David Autor and his colleagues have shown, voters in the U.S. regions hit hardest by Chinese import competition were the most likely to favor Donald Trump or Bernie Sanders in 2016. Strict environmental regulations, which impose few costs on the urban elites, can threaten the livelihoods and lifestyles of workers in the exurban heartlands, like the French yellow vest protesters who rebelled against a tax on diesel fuel intended to mitigate climate change.

For the full commentary, see:

Michael Lind. “Saving Democracy From the Managerial Elite.” The Wall Street Journal (Wednesday, January 11, 2020): C1-C2.

(Note: the online version of the commentary has the date Jan. 10, 2020, and has the same title as the print version.)

Lind’s commentary is related to his book:

Lind, Michael. The New Class War: Saving Democracy from the Managerial Elite. New York: Portfolio, 2020.

The latest version of the paper co-authored by Autor, and mentioned above, is:

Autor, David H., David Dorn, Gordon H. Hanson, and Kaveh Majlesi. “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure.” Working Paper, Oct. 2019.

My book, mentioned way above, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Firm Founders “Learned to Cope With a Lot of Adversity and Have a Lot of Resilience”

(p. B6) I’m a sucker for good stories about the founding of companies.

Yvon Chouinard started apparel maker Patagonia in a chicken coop; James Dyson went through 5,000 prototypes on his way to inventing a bagless vacuum cleaner; Steve Ellis opened Chipotle burrito shops simply to earn enough money to start a gourmet restaurant (he never got that far).

Airbnb Inc.’s story takes the cake. In 2008, a couple entrepreneurial types living on Ramen noodles in San Francisco cooked up an online home-sharing scheme. They recruited a computer scientist, funded their idea in the early days by maxing out credit cards and selling politically-themed cereal boxes, and held on until their company shook up the entire lodging industry.

. . .

“There’s this crazy idealism that founders have,” Brian Chesky, one of those Airbnb founders and the company’s chief executive, told me this week in a video chat. “They’ve learned to cope with a lot of adversity and have a lot of resilience.”

For the full commentary, see:

John D. Stoll. “ON BUSINESS; Airbnb Defied the Startup Odds. Will It Survive a Pandemic?” The Wall Street Journal (Saturday, April 18, 2020): B6.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date April 17, 2020, and has the title “ON BUSINESS; Airbnb Defied the Odds of Startup Success. How Will It Survive a Pandemic?”)