Opinion: Forming interstate compacts to buy Covid-19 tests could spur the testing expansion needed to suppress the pandemic
Republicans should favor compacts because they devolve power from the federal government to states, so states can solve a problem shared with their neighbors. Democrats should favor compacts because they empower states to escape zero-sum bidding wars and co-create a larger economic testing pie.
Both parties should favor compacts because cheap, abundant tests enable states to move beyond the false choice between lockdowns or staying open —both of which destroy lives and livelihoods—to pursue a better policy option:Already, informal coalitions have been forged in the Northwest, Northeast, and Midwest to coordinate purchases of protective equipment and testing supplies.
Congress will be tempted to give the $25 billion for tests to states without providing them an incentive to join compacts. But states are currently locked in a collective action problem where their own interest is to buy only as many tests as they need and free-ride off of improvements in testing capacity made by others.
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