Public Choice – artdiamondblog.com

Can the Methods of ACT UP Bring Quicker Cures for Other Maladies?

Amar Bhidé has a thought-provoking article in which he asks the public choice question of how to overcome government regulators who slow the development of breakthrough drugs. He holds up, as a main example to ponder, the AIDs ACT UP movement that is often given credit for winning concessions from the FDA that spurred the availability of a drug cocktail that greatly extended and improved the lives of AIDs patients. The passages quoted below are from a review of a book that may be a promising source for learning more about what ACT UP did and how they did it.

(p. C3) In her 2012 book, “The Gentrification of the Mind,” Sarah Schulman delved into the silence still surrounding AIDS in America.

. . .

Schulman has gone from witness to a sort of living archive. She is a former member of AIDS Coalition to Unleash Power, the influential direct-action group committed to ending AIDS. Her new book, “Let the Record Show,” is based on 17 years of interviews she conducted with nearly 200 members of the organization.

. . .

The effect is rather like standing in the middle of that large room, where anyone could speak up and share an idea. Everyone is talking; small stories branch off, coalesce pages later. Speakers shade in one another’s stories, offer another angle, disagree passionately. You turn a page, and the same people have their arms linked together at a protest. Shadows start to fall; in squares of gray text, deaths are marked, moments for remembrance. So many people leave the room.

. . .

This is not reverent, definitive history. This is a tactician’s bible.

The organizational brilliance of ACT UP emerged out of necessity. The group was founded in 1987, incited by Larry Kramer’s famous call to action. The members were infected, their lovers were sick and dying. There wasn’t time to obsess over process, to contest every comma in a letter. The anarchistic framework asked only that members be “committed to direct action to end the AIDS crisis.”

. . .

When Schulman herself returns to the individual, it is to think again about the figure of the bystander. Why did these particular people rise to the moment and not others?

What thread connected an H.I.V.-positive stockbroker, a retired chemist from Queens, addicts, art students, lifelong activists, people who just happened to be in the next room at the center and wandered in, What was going on in there? For some it was their first experience of gay community; for others it was where they went when the community began to vanish. All of them became autodidacts in drug research, policy, media relations.

For the full review, see:

Parul Sehgal. “Remembering Those Who Stood Up.” The New York Times (Wednesday, May 5, 2021): C3.

(Note: ellipses added. In the original, the words NOT italicized above, were the only words that WERE italicized.)

(Note: the online version of the review has the date May 4, 2021, and has the title “A New Testament to the Fury and Beauty of Activism During the AIDS Crisis.”)

The book under review is:

Schulman, Sarah. Let the Record Show: A Political History of ACT UP New York, 1987-1993. New York: Farrar, Straus and Giroux, 2021.

The article mentioned above by Bhidé is:

Bhidé, Amar. “Constraining Knowledge: Traditions and Rules That Limit Medical Innovation.” Critical Review 29, no. 1 (Jan. 2017): 1-33.

“Legions of Good People” Are Willing to Pay a Price “to Speak the Truth”

(p. A9) . . . in February 1986 . . . a presidential commission was investigating the explosion of the Challenger space shuttle, which killed all seven crew members a few weeks earlier.

Mr. McDonald was an engineer for the maker of the solid-fuel booster rockets. During a hearing, he believed an official of the National Aeronautics and Space Administration was glossing over a prelaunch debate on whether to proceed despite unusually cold temperatures in Cape Canaveral, Fla.

Seated in the background, Mr. McDonald waved his hands for attention and then stood up. He told the commission that he and other engineers had warned that low temperatures might cause a failure of synthetic rubber O-ring seals in the rocket’s joints. The commission later found that such a failure was responsible for the explosion and that NASA had brushed aside a warning that could have saved the astronauts.

. . .

Mr. McDonald’s uninvited testimony was a shock to the commission appointed by President Ronald Reagan. In his memoir, “Truth, Lies and O-Rings,” the engineer recalled the reaction from William P. Rogers, chairman of the commission:

“Who in the hell are you?”

. . .

Mr. Rogers thanked Mr. McDonald and other engineers for giving their side of the story.

. . .

At work, however, Mr. McDonald was at times ostracized by colleagues who accused him of undermining the company’s aerospace business. Morton Thiokol moved him out of his space shuttle duties in what he considered a demotion.

. . .

“I never considered myself a hero for doing my job in the best manner that I knew how and telling the truth about it,” he wrote, adding that “there are legions of good people out there every day defending their professional opinions and willing to speak the truth at some risk to their own job security. They just haven’t been involved in such a high-profile news making event like me.”

For the full obituary, see:

James R. Hagerty. “Engineer Exposed Space Shuttle Risks.” The Wall Street Journal (Saturday, April 3, 2021): A9.

(Note: ellipses added.)

(Note: the online version of the obituary has the date March 30, 2021, and has the title “Rocket Engineer Blew the Whistle on NASA After the Challenger Disaster.”)

The McDonald memoir mentioned above is:

McDonald, Allan J., and James R. Hansen. Truth, Lies, and O-Rings: Inside the Space Shuttle Challenger Disaster. Gainesville, FL: University Press of Florida, 2018..

Virologist “Dismayed” That Wuhan Lab Conducted Two Coronavirus Studies “With Only a Modest Level of Safety Measures”

(p. A6) On the heels of President Biden’s abrupt order to U.S. intelligence agencies to investigate the origins of the coronavirus, many scientists reacted positively, reflecting their push in recent weeks for more information about the work of a virus lab in Wuhan, China. But they cautioned against expecting an answer in the three-month time frame of the president’s request.

After long steering clear of the debate, some influential scientists have lately become more open to expressing uncertainties about the origins of the virus. If the two most vocal poles of the argument are natural spillover vs. laboratory leak, these new voices have added a third point of view: a resounding undecided.

“In the beginning, there was a lot of pressure against speaking up, because it was tied to conspiracies and Trump supporters,” said Akiko Iwasaki, an immunologist at Yale University. “There was very little rational discussion going on in the beginning.”

. . .

While researchers generally welcome a sustained search for answers, some warn that those answers may not arrive any time soon — if ever.

“At the end of this process, I would not be surprised if we did not know much more than we know now,” said W. Ian Lipkin, a virologist at the Mailman School of Public Health at Columbia University who was one of the first U.S. scientists to visit China in early 2020 and consult with public health authorities there.

China’s lack of cooperation with the W.H.O. has long fueled suspicions about how the coronavirus, known as SARS-CoV-2, had emerged seemingly from nowhere to seize the world.

. . .

Speaking recently to the former New York Times journalist Donald McNeil Jr., Dr. Lipkin said he was dismayed to learn of two coronavirus studies from the Wuhan Institute of Virology that had been carried out with only a modest level of safety measures, known as BSL-2.

In an interview with The Times, Dr. Lipkin said this fact wasn’t proof in itself that SARS-CoV-2 spread from the lab. “But it certainly does raise the possibility that must be considered,” he said.

A BSL-2 level of research would also add to the difficulty researchers will face trying to pin down clear evidence that a coronavirus infected the staff. At higher levels of security, staff regularly give blood samples that can be studied later for genetic material from viruses and antibodies against them. There may be no such record for SARS-CoV-2.

For the full story, see:

Carl Zimmer, James Gorman, and Benjamin Mueller. “Scientists Welcome a Search That Might Never Bear Fruit.” The New York Times (Friday, May 28, 2021): A6.

(Note: ellipses added.)

(Note: the online version of the story has the date May 27, 2021, and has the title “Scientists Don’t Want to Ignore the ‘Lab Leak’ Theory, Despite No New Evidence.”)

Biden’s “Abrupt Shift” on Wuhan Lab Origin of Covid-19

(p. A1) WASHINGTON — President Biden ordered U.S. intelligence agencies on Wednesday to investigate the origins of the coronavirus, indicating that his administration takes seriously the possibility that the deadly virus was accidentally leaked from a lab, in addition to the prevailing theory that it was transmitted by an animal to humans outside a lab.

. . .

But the president’s carefully worded directive underscored a new surge in interest about the lab, which President Donald J. Trump and some of his top aides repeatedly blamed for the pandemic. Some scientists attributed the renewed focus on the lab to Mr. Trump’s departure from the White House — and being less identified with the theory — while others said it reflected the deep frustrations with the recent W.H.O. report that was co-written by Chinese scientists.

. . .

(p. A8) “For over a year, anyone asking questions about the Wuhan Institute of Virology has been branded as a conspiracy theorist,” Mr. Hawley said. “The world needs to know if this pandemic was the product of negligence at the Wuhan lab, but the C.C.P. has done everything it can to block a credible investigation.”

In the past several days, the White House had played down the need for an investigation led by the United States and insisted that the W.H.O. was the proper place for an international inquiry. Mr. Biden’s statement on Wednesday was an abrupt shift.

. . .

Scientists had been reluctant to discuss the lab leak hypothesis last year because they had been on guard against disinformation, said Marc Lipsitch, a Harvard epidemiologist.

“Nobody wants to succumb to conspiracy theories,” he said.

But the March report by the group of W.H.O.-chosen experts in collaboration with Chinese scientists, dismissing the possibility of a lab leak as “extremely unlikely,” compelled some scientists to speak out.

“When I read that, I was very frustrated,” said Akiko Iwasaki, an immunologist at Yale University. Along with Professor Lipsitch, she signed a letter published in the journal Science this month saying that there was not enough evidence to decide whether a natural origin or an accidental laboratory leak caused the coronavirus pandemic.

“I think it’s really an unanswered question that really needs more rigorous investigation,” Dr. Iwasaki added.

From the earliest weeks of the outbreak, the Chinese government has worked to delay, deflect or block independent investigation of the virus’s origins.

Chinese officials said in early 2020 that the outbreak began at a Wuhan market, and they blamed illegal wildlife sales there. They did so despite having evidence that undermined that theory: Early data showed that four of the first five coronavirus patients had no clear links to the market. The government resisted accepting an international scientific mission.

For the full story, see:

Michael D. Shear, Julian E. Barnes, Carl Zimmer, and Benjamin Mueller. “President Orders Report in 90 Days on Virus Origins.” The New York Times (Thursday, May 27, 2021): A1 & A6.

(Note: ellipses added.)

(Note: the online version of the story was updated May 27, 2021, and has the title “Biden Orders Intelligence Inquiry Into Origins of Virus.” Where the wording in the online and print versions of the passages quoted above differs, the passages quoted above follow the online version.)

Three Wuhan Lab Researchers Sought Hospital Care at Time When Covid-19 Is Thought to Have Emerged

(p. A1) WASHINGTON—Three researchers from China’s Wuhan Institute of Virology became sick enough in November 2019 that they sought hospital care, according to a previously undisclosed U.S. intelligence report that could add weight to growing calls for a fuller probe of whether the Covid-19 virus may have escaped from the laboratory.

The details of the reporting go beyond a State Department fact sheet, issued during the final days of the Trump administration, which said that several researchers at the lab, a center for the study of coronaviruses and other pathogens, became sick in autumn 2019 “with symptoms consistent with both Covid-19 and common seasonal illness.”

The disclosure of the number of researchers, the timing of their illnesses and their hospital visits come on the eve of a meeting of the World Health Organization’s decision-making body, which is expected to discuss the next phase of an investigation into Covid-19’s origins.

Current and former officials familiar with the intelligence (p. 8) about the lab researchers expressed differing views about the strength of the supporting evidence for the assessment. One person said that it was provided by an international partner and was potentially significant but still in need of further investigation and additional corroboration.

Another person described the intelligence as stronger. “The information that we had coming from the various sources was of exquisite quality. It was very precise. What it didn’t tell you was exactly why they got sick,” he said, referring to the researchers.

November 2019 is roughly when many epidemiologists and virologists believe SARS-CoV-2, the virus behind the pandemic, first began circulating around the central Chinese city of Wuhan, where Beijing says that the first confirmed case was a man who fell ill on Dec. 8, 2019.

The Wuhan Institute hasn’t shared raw data, safety logs and lab records on its extensive work with coronaviruses in bats, which many consider the most likely source of the virus.

. . .

The Biden administration declined to comment on the intelligence but said that all technically credible theories on the origin of the pandemic should be investigated by the WHO and international experts.

“We continue to have serious questions about the earliest days of the Covid-19 pandemic, including its origins within the People’s Republic of China,” said a spokeswoman for the National Security Council.

. . .

David Asher, a former U.S. official who led a State Department task force on the origins of the virus for then-Secretary of State Mike Pompeo, told a Hudson Institute seminar in March that he doubted that the lab researchers became sick because of the ordinary flu.

“I’m very doubtful that three people in highly protected circumstances in a level three laboratory working on coronaviruses would all get sick with influenza that put them in the hospital or in severe conditions all in the same week, and it didn’t have anything to do with the coronavirus,” he said, adding that the researchers’ illness may represent “the first known cluster” of Covid-19 cases.

For the full story, see:

Michael R. Gordon, Warren P. Strobel, and Drew Hinshaw. “Report on Wuhan Lab Fuels Covid-19 Debate.” The Wall Street Journal (Monday, May 24, 2021): A1 & A8.

(Note: ellipses added.)

(Note: the online version of the story has the date May 23, 2021, and has the title “Intelligence on Sick Staff at Wuhan Lab Fuels Debate On Covid-19 Origin.”)

Musk Confronts or Ignores Regulators Who Block Innovation

(p. A1) He’s become one of the world’s most successful entrepreneurs by reinventing industries from electric cars to rockets. Along the way, he’s also rewritten the rules of engagement with U.S. regulators.

Elon Musk has emerged a winner in a series of run-ins with a range of regulatory agencies that have watched as he sidestepped rules or ignored enforcement attempts. He has overmatched an alphabet-soup of agencies that oversee financial markets and safety in the workplace, on highways and in space flight.

Most chief executives try to avoid regulators—or at least stay in their good graces. Many accused of overstepping have paid fines or agreed to make improvements.

Mr. Musk, revered by some investors for his iconoclastic approach, has taken a different tack on his way to becoming one of the richest men in the world, not letting regulations hinder his goals to revolutionize transportation with Tesla Inc.’s electric cars or colonize Mars using SpaceX rockets.

Federal agencies say he’s breaking the rules and endangering people. Mr. Musk (p. A10) says they’re holding back progress.

. . .

The Federal Aviation Administration criticized SpaceX for launching a rocket in December [2020] without a proper FAA license. Mr. Musk ridiculed the FAA space division in a tweet as “fundamentally broken.”

. . .

When asked to comment on the specifics of this article, Mr. Musk replied with a “poop” emoji. Asked to elaborate, Mr. Musk declined to provide any input on his interactions with federal agencies or his view toward regulation. In a tweet Tuesday, Mr. Musk said he agrees with regulators “99.9% of the time.” He added that when they disagree, it “is almost always due to new technologies that past regulations didn’t anticipate.”

. . .

After the FAA delayed a January [2021] test launch, Mr. Musk accused the agency of holding back progress and argued that its regulations were outdated. “Their rules are meant for a handful of expendable launches per year from a few government facilities,” he tweeted on Jan. 28. “Under those rules, humanity will never get to Mars.”

. . .

The National Labor Relations Board ruled in March that Tesla had violated U.S. labor law by hindering unionization and ordered Mr. Musk to delete a tweet discouraging employees from unionizing. Tesla this month appealed the decision, saying the NLRB’s ruling was “contrary to law.”

Mr. Musk’s tweet remains online. The NLRB declined to comment.

For the full story, see:

Ben Foldy, Rebecca Elliott, Susan Pulliam. “Elon Musk’s War With Regulators.” The Wall Street Journal (Thursday, April 29, 2021): A1 & A10.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date April 28, 2021, and has the title “Elon Musk’s War on Regulators.”)

New Regulations Pushed by Union Allied with de Blasio Will Limit New NYC Hotels

(p. A8) Mayor Bill de Blasio and other New York City leaders are pushing a controversial plan to drastically restrict hotel development, a move that the mayor’s own experts fear could endanger the city’s post-pandemic recovery and cost billions in lost tax revenue.

. . .

The Council is expected to approve the plan in time for Mr. de Blasio to see it become law before he leaves office this year. Once it is in place, developers fear that few, if any, new hotels would be built.

. . .

“We flag that to continue with this proposal could be seen as contrary to economic recovery principles and sound planning,” Marisa Lago, the director of the planning department, wrote last year in the memo to City Hall.

But Mr. de Blasio’s views hew closer to those of another group: the hotel workers union that endorsed his 2020 presidential campaign, pouring $440,000 into ads to bolster his ill-fated candidacy.

The union, the Hotel Trades Council, has long pushed to limit the construction of new hotels, which are often nonunion. Its calculation has been that limiting the development of such hotels, which typically offer less-expensive lodging than existing full-service hotels, would tend to increase hotel room prices generally and bolster the higher-end hotels where many of its workers are employed.

. . .

In most of the city, developers are free to build hotels in areas that are zoned for such use. Under a special approval process, building hotels would become far more challenging, said Moses Gates, vice president of housing and neighborhood planning at the Regional Plan Association, an influential nonprofit planning group. No other type of routine development currently gets the kind of scrutiny that Mr. de Blasio is proposing for hotels, he said.

“Hotels would be the only common land use which would always need City Council approval to be built, no matter what,” Mr. Gates said.

. . .

The Hotel Trades Council’s support of a special permit process for new hotels may seem counterintuitive, since it is effectively opposing the growth of jobs in the industry that it represents. Union hotel jobs in New York City provide one of the few pathways to the middle class for workers with no college education.

“Labor generally is in favor of employment and of growth, but especially jobs in their own sector,” said Harry C. Katz, a professor of collective bargaining at Cornell University.

But mid-market hotels that serve middle-class tourists are hard to unionize, union and industry experts say. If citywide special permits are adopted, as is expected, the hotel union would most likely use its political leverage to pressure Council members to only accept new hotels that use union labor.

For the full story, see:

Dana Rubinstein and J. David Goodman. “A Plan to Limit New Hotels in New York Meets Resistance.” The New York Times (Wednesday, April 28, 2021): A8.

(Note: ellipses added.)

(Note: the online version of the story has the date April 27, 2021, and has the title “A $7 Billion Mistake? New York Seeks to Curb New Hotels.”)

The research co-authored by Stone and mentioned above was described in:

Stone, Brian, Jr., Evan Mallen, Mayuri Rajput, Carina J. Gronlund, Ashley M. Broadbent, E. Scott Krayenhoff, Godfried Augenbroe, Marie S. O’Neill, and Matei Georgescu. “Compound Climate and Infrastructure Events: How Electrical Grid Failure Alters Heat Wave Risk.” Environmental Science & Technology (published online in advance of print on April 30, 2021).

“As a Species, We’re Very Good At Adapting”

(p. A11) Barack Obama is one of many who have declared an “epistemological crisis,” in which our society is losing its handle on something called truth.

Thus an interesting experiment will be his and other Democrats’ response to a book by Steven Koonin, who was chief scientist of the Obama Energy Department. Mr. Koonin argues not against current climate science but that what the media and politicians and activists say about climate science has drifted so far out of touch with the actual science as to be absurdly, demonstrably false.

. . .

Mr. Koonin still has a lot of Brooklyn in him: a robust laugh, a gift for expression and for cutting to the heart of any matter. His thoughts seem to be governed by an all-embracing realism. Hence the book coming out next month, “Unsettled: What Climate Science Tells Us, What It Doesn’t, and Why It Matters.”

Any reader would benefit from its deft, lucid tour of climate science, the best I’ve seen. His rigorous parsing of the evidence will have you questioning the political class’s compulsion to manufacture certainty where certainty doesn’t exist. You will come to doubt the usefulness of centurylong forecasts claiming to know how 1% shifts in variables will affect a global climate that we don’t understand with anything resembling 1% precision.

. . .

Mr. Koonin is a practitioner and fan of computer modeling. “There are situations where models do a wonderful job. Nuclear weapons, when we model them because we don’t test them anymore. And when Boeing builds an airplane, they will model the heck out of it before they bend any metal.”

“But these are much more controlled, engineered situations,” he adds, “whereas the climate is a natural phenomenon. It’s going to do whatever it’s going to do. And it’s hard to observe. You need long, precise observations to understand its natural variability and how it responds to external influences.”

Yet these models supply most of our insight into how the weather might change when emissions raise the atmosphere’s CO2 component from 0.028% in preindustrial times to 0.056% later in this century. “I’ve been building models and watching others build models for 45 years,” he says. Climate models “are not to the standard you would trust your life to or even your trillions of dollars to.”

. . .

Let technology and markets work at their own pace. The climate might continue to change, at a pace that’s hard to perceive, but societies will adapt. “As a species, we’re very good at adapting.”

. . .

. . . , the mainstream climate community will try to ignore his book, even as his publicists work the TV bookers in hopes of making a splash. Then Mr. Koonin knows will come the avalanche of name-calling that befalls anybody trying to inject some practical nuance into political discussions of climate.

He adds with a laugh: “My married daughter is happy that she’s got a different last name.”

For the full interview, see:

Holman W. Jenkins, Jr., interviewer. “How a Physicist Became a Climate Truth Teller.” The Wall Street Journal (Saturday, April 17, 2021): A11.

(Note: ellipses added.)

(Note: the online version of the interview has the date April 16, 2021, and has the title “Mr. Humble and Dr. Butcher’ Review: A Heart in the Right Place.”)

Koonin’s climate book, discussed in the interview quoted above, is:

Koonin, Steven E. Unsettled: What Climate Science Tells Us, What It Doesn’t, and Why It Matters. Dallas, TX: BenBella Books, 2021.

Cuomo-Endorsed Closure of Indian Point Nuclear Reactors Increases New York’s Use of Fossil Fuels

(p. B6) For most of his long political career, Gov. Andrew M. Cuomo railed against the dangers of having a nuclear power plant operating just 25 miles away from New York City, saying its proximity to such a densely populated metropolis defied “basic sanity.’’

But now, the plant is preparing to shut down, and New York is grappling with the adverse effect the closing will have on another of Mr. Cuomo’s ambitious goals: sharply reducing the state’s reliance on fossil fuels.

So far, most of the electricity produced by the nuclear plant, known as Indian Point, has been replaced by power generated by plants that burn natural gas and emit more pollution. And that trade-off will become more pronounced once Indian Point’s last reactor shuts down on April 30 [2021].

“It’s topsy-turvy,” said Isuru Seneviratne, a clean-energy investor who is a member of the steering committee of Nuclear New York, which has lobbied to keep Indian Point running. The pronuclear group calculated that each of Indian Point’s reactors had been producing more power than all of the wind turbines and solar panels in the state combined.

For the full story, see:

Patrick McGeehan. “Nuclear Plant’s Shutdown Means More Fossil Fuel in New York.” The New York Times (Tuesday, April 13, 2021): A15.

(Note: bracketed year added.)

(Note: the online version of the story was updated April 13, 2021, and has the title “Indian Point Is Shutting Down. That Means More Fossil Fuel.”)

Clean-Energy Requires More Transmission Lines Which Requires More Use of Eminent Domain to Seize Private Property

(p. B12) President Biden’s infrastructure plan proposes some tried-and-trusted methods to spur clean-energy development such as a 10-year extension of existing tax credits for solar and wind energy. More interestingly, it introduces an investment tax credit for high-voltage transmission lines.

. . .

The administration is certainly looking in the right direction: To reach President Biden’s net-zero emissions goal by 2050, the U.S. will need to expand electricity transmission systems by 60% by 2030 and may need to triple it by 2050, according to research published by Princeton University in December [2020]. That is because renewable energy-rich places such as the windiest regions aren’t necessarily close to population centers, where electricity demand is.

While the clean-energy industry probably won’t complain about a new subsidy, the tax-credit proposal is a bit of a head scratcher given that the real roadblocks to transmission lines have to do with permitting, much of which is in the hands of state and local authorities.

A shift toward e-commerce should push up productivity by eliminating workers needed in bricks-and-mortar stores, Mr. Gordon said. Videoconferencing should also help, though the public-transit sector could offset some of the gains because buses and rail transit will carry fewer riders, he said.

“For most transmission we need in the country, it’s not a cost issue or an access-to-capital issue, although transmission can be delayed because of cost allocation debates,” said George Bilicic, global head of power, energy and infrastructure at Lazard.

. . .

The proposed plan also calls for a so-called Grid Deployment Authority within the Energy Department to “better leverage existing rights of way” along roads and railways. That would be a good first step, though eminent domain—the power of the government to take private property and convert it for public use—remains largely within state regulators’ hands. While the Federal Energy Regulatory Commission has authority to grant natural-gas pipelines the right of eminent domain under the Natural Gas Act, there is no equivalent authority for electricity transmission under the Federal Power Act and little momentum in Congress to grant that provision.

For the full commentary, see:

Jinjoo Lee. “Productivity Looks Ready to Pick Up.” The Wall Street Journal Tuesday, April 6, 2021): B12.

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

(Note: the online version of the commentary has the date April 4, 2021, and has the title “Biden’s Grid Proposal May Be a Square Peg in a Round Hole.”)

The Princeton research mentioned above is:

Larson, Eric, Chris Greig, Jesse Jenkins, Erin Mayfield, Andrew Pascale, Chuan Zhang, Joshua Drossman, Robert Williams, Steve Pacala, Robert Socolowi, Ejeong Baik, Rich Birdsey, Rick Duke, Ryan Jones, Ben Haley, Emily Leslie, Keith Paustian, and Amy Swan. “Net-Zero America: Potential Pathways, Infrastructure, and Impacts, Interim Report.” Princeton, NJ: Princeton University, Dec. 15, 2020.

Chinese Chip Central Planning Creates “Stunning Absurdities That Defy Logic and Common Sense”

(p. B1) Liu Fengfeng had more than a decade under his belt at one of the world’s most prominent technology companies before he realized where the real gold rush in China was taking place.

Computer chips are the brains and souls of all the electronics the country’s factories crank out. Yet they are mostly designed and produced overseas. China’s government is lavishing money upon anyone who can help change that.

. . .

(p. B2) In a way, China is hoping to achieve the same kind of liftoff that helped it progress from making plastic toys to crafting solar panels.

With semiconductors, though, “the model starts to break down a little bit,” said Jay Goldberg, a tech industry consultant and former Qualcomm executive. The technology is eye-wateringly expensive to develop, and established players have spent decades accumulating know-how. Europe, Mr. Goldberg noted, once had many “incredible” chip companies. Japan’s chip makers are leaders in certain specialized products, but few would call them bold innovators.

“My point is, there is a ladder — China’s moving up it,” Mr. Goldberg said. But it’s “unclear which outcome they go to.”

. . .

At a top-level meeting on the economy last week, the Communist Party’s leaders enshrined technological self-reliance as one of the country’s “Five Fundamentals” for economic development.

Complete self-sufficiency in chips, however, would mean recreating every part of the lengthy supply chains for some of the most complex technology on earth — a mission that would seem to lead, if not to madness, at least to waste.

. . .

“Up until very recently — this year — the goal had been: With state backing, move up the value chain, specialize where China has a comparative advantage, but don’t really try and fall down the rabbit hole of trying to build everything yourself,” said Jimmy Goodrich, the vice president for global policy at the Semiconductor Industry Association, a group that represents American chip companies.

Now, “it’s very clear that Xi Jinping is calling for a redundant domestic supply chain,” Mr. Goodrich said. “And so the rules of economics, comparative advantage and the supply-chain efficiencies have basically been thrown out the door.”

The government is conscious of the dangers. State-run news outlets have amply covered the recent semiconductor flameouts. The message to other upstarts: Don’t mess it up.

When the state broadcaster China Central Television visited one stalled project in the eastern city of Huai’an recently, it found dozens of giant machines idling on the factory floor, many of them still sheathed in plastic.

“There have been some stunning absurdities that defy logic and common sense,” China Economic Weekly said.

. . .

“There is definitely a bubble in China,” he said. “But you can’t overgeneralize.”

. . .

“Something is bound to accumulate, whether it’s equipment, talent or factories, right?” Mr. Liu said. “If not you or the other guy, then it will be someone else who ends up using it. I think this might be the government’s logic.”