By Kevin D. Williamson
Friday, January 08, 2021
I would like to direct your attention to an excellent
column by Virginia I. Postrel about the crucial role of middlemen — market
intermediaries — in making the world work.
By guaranteeing large purchases,
the federal government gave manufacturers strong incentives to produce the
vaccines. It was a smart move, and it worked. But now we’re experiencing the
downside. Buying up the supplies and bestowing a vaccine monopoly on state
governments blocked the normal distribution channels connecting producers with
vaccinators.
Whether you’re laying fiber optic
cable or delivering packages, that last mile is the tricky, labor-intensive,
expensive part. To reach individuals, the system has to go from centralized
operations to decentralized ones. That’s why we have retailers rather than
ordering our toilet paper from Georgia-Pacific, and why they, in turn, often
rely on distributors. “Cutting out the middleman” is a catchy slogan, but intermediaries
make the system work.
A few years ago, Bernie Sanders inspired a good deal of
laughter by insisting, in his exasperated-old-man way, that we have too many
different kinds of deodorant for sale. (This is not obvious from the Vermont
hippies who keep Senator Sanders in office.) But Sanders was making a very old
progressive argument — a fallacious one.
The progressives who believe that a rational central plan
can be imposed on society — that the nation can be organized as though it were
one big factory — have long recoiled from the complexity, waste, redundancy,
etc., that they see in market-driven business operations. But, very often, what
seems like waste or inefficiency is the shortest route to a different end: A
grocery store assumes that a certain amount of produce will go to waste, but
the buyers don’t reduce their orders — the little bit extra is used as a hedge
against unpredictable swings in demand, a way to avoid the real costs of
running out of something and thereby irritating customers. You don’t buy your
cars from Honda or GM, and you don’t buy your milk from a dairy producer. Those
extra steps and layers are not inefficiency — they are efficiency that Bernie
Sanders doesn’t understand.
We have some relatively well-governed states and some
terribly misgoverned ones, but none of them is going to get Americans the
COVID-19 vaccines as efficiently as Walmart can bring you a pair of socks from
the other side of the planet. That’s because Walmart isn’t Walmart — it is a
vast, complex ecosystem of production and distribution involving thousands of
firms and millions of workers in dozens of countries.
There are very few simple solutions to complex problems.
There are a lot of complex solutions to complex problems.
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