| 
			
 
 
  by Lambert Strether
 April 29, 2020
 from 
			NakedCapitalism Website
 
 
			  
			  
			  
			
			 
				
					
						| 
						
						Donald Trump 
						
						(left side) | 
						
						Entrepreneur and venture capitalist Peter Thiel is one 
						of the billionaires who is backing the group. He is said 
						to be worth  
						$2.3 
						billion 
						
						(center) | 
						The 
						group consisting of 
						a dozen doctors is led 
						by 33-year-old Dr. Thomas Cahill a 
						physician-turned-venture capitalist 
						
						(right side) |  
				
				
				Photo's Source 
			  
			  
			  
			The Wall Street 
			Journal (also at MSN website) 
			produced an intriguing piece the other day, "The 
			Secret Group of Scientists and Billionaires Pushing a Manhattan 
			Project for Covid-19," which while picked up and signal-boosted 
			by other venues, 
				
			 
			...doesn't 
			seem to have generated any additional reporting.    
			The scientists, 
			billing themselves as "Scientists to Stop COVID-19," have produced 
			an oddly untitled deliverable [1]  
			  
			It's worth 
			a read...! 
				
				(Two hours ago, 
			news came that
				the administration has initiated "Project Warp Speed," which 
			seems inspired by this project, but there's no reporting on 
			personnel, and it's not clear they adopted the recommendations of 
			the scientists.    
				I'm guessing that 
			the issues I am about to raise for the deliverable of the "Secret 
			Group" will also apply to Project Warp Speed). [2] 
			Given that 
			"personnel is policy," I'll first reduce people mentioned in the 
			
			
			Wall Street Journal story, and the scientists who signed the 
			March-April deliverable to tabular form.  
			  
			After that, I will take a 
			quick look at the scientists' deliverable, focusing especially on 
			issues of governance and restoring our economy. 
			  
			The Manhattan 
			Project cost $23 billion in US dollars and employed 130,000 people. 
			I don't think anything of that scale is being proposed, 
			unfortunately.   
			Now let's look at 
			the billionaire and multimillionaire backers of… well, whatever the 
			project is really called... 
				
				I'll call it, following the Wall Street 
			Journal, the 'Secret Group'... 
			In addition to 
			backers, there are also 
			fixers, who connect the backers and the scientists to the 
			administration, agencies, and other firms, primarily 
			
			in Big Pharma.   
			I have ordered the 
			backers and fixers, not alphabetically but by net worth. 
			  
				
					
					
					Table I: The Backers (and Fixers) 
				
					
						| 
							
								| 
								
								Non-Scientists | 
								
								Firm(s) | 
								
								Net Worth | 
								
								Other |  
								| 
								
								Michael Milken | 
								
								Milken Family 
								Foundation | 
								
								$3.7 billion | 
								
								Convicted felon |  
								| 
								
								Peter Thiel | 
								
								Clarium Capital, 
								Palantir | 
								
								$2.2 billion | 
								
								Venture capitalist |  
								| 
								
								Brian Sheth | 
								
								Vista Equity 
								Partners | 
								
								$2 billion | 
								
								Private equity |  
								| 
								
								Jim Palotta | 
								
								Raptor Group, 
								Tudor Investment | 
								
								$1 billion | 
								
								Private investor |  
								| 
								
								Thomas Hicks, Jr. | 
								
								Hicks Holdings, 
								LLC | 
								
								$700 million | 
								
								Private equity, 
								Chair, Republican National Committee, Trump 
								National Finance Co-Chairman |  
								| 
								
								Steve Pagliuca | 
								
								Bain Capital | 
								
								$450 million
								 | 
								
								Private equity |  
								| 
								
								David Solomon | 
								
								Goldman | 
								
								$100 million | 
								
								CEO |  
								| 
								
								Nick Ayers | 
								
								America First 
								Policies | 
								
								$12-$54 million | 
								
								Aide to Pence |  |  
			  
			  
			In essence, the 
			country would be betting on venture capitalists and private equity 
			specialists to solve the COVID-19 epidemic; oligarchs, in other 
			words.    
			I'm not entirely 
			sure that's a good bet, even leaving aside debacles like Uber; 
			private equity is, after all, responsible for a range of social 
			ills, including
			
			surprise billing from practices in privatized emergency rooms, 
			to our
			collective difficulties in getting a good night's sleep on a decent 
			mattress.    
			The presence of 
			fixers in the form of Trump's finance chair, in addition to Pence's 
			gofer, is also interesting.    
			It is rational to 
			develop connections to the current administration; however, the 
			backers may well regard saving the Trump administration's bacon as 
			the first priority - he has, after all,
			
			done very well for them - with the successful taming of 
			SARS-COV-2 as a happy by-product, but a nice-to-have, not a 
			have-to-have.    
			But perhaps I'm too 
			cynical.    
			Now let us turn to 
			the scientists. I have listed them in alphabetical order, but I 
			removed all their degrees because they messed up the table. 
			   
				
					
					
					Table II: The Scientists 
				
					
						| 
							
								| 
								
								Scientist   | 
								
								Primary Base   | 
								
								Serial 
								Entrepreneur | 
								
								Broad Institute of 
								MIT and Harvard | 
								
								Howard Hughes 
								Medical Institute |  
								| Dr. Thomas J. 
								Cahill | Newpath Management |  |  |  |  
								| Dr. Benjamin 
								Cravatt | Scripps Research 
								Institute | • |  |  |  
								| Dr. Lynn R. 
								Goldman | Milken Institute 
								School of Public Health |  |  |  |  
								| Dr. Akiko Iwasaki | Yale |  |  | • |  
								| Dr. R. Scott Kemp | MIT |  |  |  |  
								| Dr. Michael Z. Lin | Stanford |  |  |  |  
								| Dr. David Liu | Harvard | • | • | • |  
								| Dr. Michael 
								Rosbash | Brandeis |  |  | • |  
								| Dr. Stuart 
								Schreiber | Harvard | • | • |  |  
								| Dr. Edward 
								Scolnick | Merck |  | • |  |  
								| Dr. Jonathan W. 
								Simons | Prostate Cancer 
								Foundation |  |  |  |  
								| Dr. Ramnik Xavier | Harvard |  | • |  |  |  
			  
			  
			This certainly is a 
			list of the best and the brightest (If I had a column headed 
			"Nobel," there would be two).    
			Nevertheless, in 
			essence, the country would be betting a committee dominated by 
			serial entrepreneurs in the biomedical field and by two institutions 
			- the Broad Institute of MIT and Harvard, and the Howard Hughes 
			Medical Institute - to come up with the correct recommendations to 
			solve the pandemic.    
			That seems more 
			than a little risky.  
				
				Where, for 
				example, is Johns Hopkins?    
				And why there 
				are no epidemiologists?  
			Having looked at 
			personnel, I'm going to look at two policy recommendations. 
			   
			(I'm skipping over 
			the Committee prioritizing remdesivir; [2] my layperson's sense is 
			that there are a lot of potential treatments out there, and it makes 
			more sense to accelerate many rather than one. I also note that the 
			stock market just had a massive pop based on a preliminary 
			remdesivir result from Gilead, and I certainly hope that none of the 
			backers were front-running it.)   
			First policy 
			recommendation: Massive testing. 
			 
			  
			From the Taleb-adjacent New England Complex Systems Institute,
			Chen Shen and Yaneer Bar-Yam, "Massive 
			testing can stop the coronavirus outbreak": 
				
				At this time in 
				many places in the world, including the US, there are 
				insufficient tests to achieve widespread testing. This limits 
				our ability to use this approach.    
				Still, it is 
				possible in principle for the test to be produced rapidly and 
				cheaply and then applied massively to identify cases limiting 
				the need to use other approaches such as lockdowns. 
				   
				Once a large 
				number of tests are available, massive specific testing can 
				achieve the desired outcome of stopping the outbreak. 
			The scientists 
			write on page 12 of 'Scientists to Stop COVID-19' (footnotes omitted): 
				
				All employees 
				and students must certify (via 
				smartphone app), before leaving home, that they are not 
				experiencing enough of the following COVID-19 symptoms 
				to exceed a calculated risk, weighted by symptom frequency, of 
				being infected with SARS-CoV-2 (incidence frequency and standard 
				error areshown, with data sources): 
					
						
						
						Fever 
						(0.64±0.030)2–4
						
						Sinus 
						pain (0.50±0.18)4
						
						Cough 
						(0.46±0.032) 2–4
						
						Reduced 
						or altered sense of smell or taste (0.44±0.17)
						
						
						Expectoration (0.32±0.036)
						
						Stuffy 
						nose (0.25±0.15)
						
						Chills 
						(0.18±.044)
						
						Fatigue 
						(0.18±0.025)
						
						Sore 
						throat (0.13±0.039)
						
						
						Headache (0.13±0.037)2,4k. Difficulty breathing 
						(0.11±0.034)2,4l. Joint or muscle pain(0.099±0.023)3,4m. 
						Diarrhea (0.056±0.015)
						
						
						Vomiting (0.026±0.018) 
				This 
				certification should detect the vast majority of symptomatic 
				cases, including mildly symptomatic ones, among those who 
				accurately respond.    
				None of these 
				individual symptoms are specific to COVID-19, but in aggregate 
				they can be used to assess an individual's risk of being 
				infected with SARS-CoV-2, and even if caused by other pathogens 
				are a prudent basis for staying at home.    
				The acceptable 
				level of calculated risk may differ among occupations (for 
				example, nursing home caregivers could be subject to a very low 
				risk threshold).  
			First,
			
			the Complex Systems Institute lists five approaches to mass 
			testing:  
				
				Self-reporting 
				and diagnosis, contact tracing, lockdown - geographic community 
				identification, neighborhood generic symptomatic testing, 
				massive specific testing, and targeted random sampling. 
				   
				The scientists 
				have opted for the first approach, but I would expect some 
				discussion. Instead, they simply self-reporting and diagnosis 
				via an app.  
			Second, 
			 
				
				What 
				on earth could "certify" possibly mean?  
				  
				What is the "certifying 
				authority"?    
				Local health 
				agencies?    
				The State?
				   
				The Federal 
				Government?   
				Facebook...?
				   
				What is the 
				penalty for a false claim?    
				Or is this 
				simply a "nudge theory" endeavor, with the certification 
				performing the function of the "Close Door" button on an 
				elevator that does not actually function? 
			Third, 
			 
				
				What 
				happens to the data, which includes a person's identity, their 
				home - or, I suppose, wherever they slept last night - and 
				medical data?    
				Given 
				
				Peter Theil of Palantir's presence as a backer, one might suspect 
				nothing good... 
			Fourth, only
			
			81% of the United States population has a smart phone. 
				
				What about 
				them?    
				Will there be a 
				subsidy to buy them?    
				And what about 
				people who prefer to use contract phones?    
				What happens if 
				you lose your phone?    
				What happens if 
				you lend your phone?    
				What happens if 
				a whole family has one phone only?  
			Fifth, 
			 
				
				Surely this 
				depends on each individual having a unique identifier? That 
				amounts to a national ID, which is, to say the least, 
				controversial. 
			Sixth, 
			 
				
				A mere 
				"certification," in the absence of free testing and 
				free treatment, is simply an incentive to game the system.
				   
				If people need 
				to feed their families, certification will be a secondary 
				consideration.  
			All in all, one 
			might speculate that the backers and the scientists are both a 
			little detached from the majority of the population. 
			   
			'Second policy 
			recommendation: An "empowered council', 
			from page 10 of 'Scientists to Stop COVID-19': 
				
				We propose that 
				the federal government appoint an empowered council 
				that will work with U.S. and global stakeholders to coordinate 
				the required development and investment actions in an efficient, 
				time-sensitive, and non-partisan way.    
				The proposed 
				centralized approach has proven effective in the past while 
				responding to global emergencies.    
				A similar 
				approach effectively accelerated the development of a polio 
				vaccine in the 1950s.   
				In this 
				celebrated case, the private National Foundation for Infantile 
				Paralysis (later known as the March of Dimes) provided 
				centralized funding and technical decision-making to ensure the 
				development and availability of a vaccine for what was at the 
				time a devastating infectious disease.   
				Such 
				coordination requires centralized decision making to manage the 
				activities across multiple individual promising approaches, and 
				among the supporting functional and funding efforts - thus our 
				recommendation to appoint an "empowered council". 
				   
				A prospective 
				agreement must be established primarily among the regulators, 
				the key funders, and key global stakeholders to ensure that the 
				empowered council has the authority to direct the overall 
				enterprise.    
				The empowered 
				council should have a strong technical/scientific background 
				with direct experience in the previous development of infectious 
				disease vaccines.    
				Such a central 
				coordinating and decision mechanism can ensure alignment among 
				regulatory requirements for clinical and pre-clinical evaluation 
				of vaccine candidates and can effectively manage the large 
				at-risk scale-up and manufacturing investments needed to ensure 
				ready availability of a vaccine as soon as its safety and 
				efficacy has been demonstrated.    
				It can also 
				manage the complexities of the multiple parallel technical 
				approaches that will be required. 
			They really do love 
			that phrase, "empowered council," don't they?  
			  
			(It reminds me of how, 
			back in the day, affirmative debaters would propose "a magic board" 
			to solve whatever problem the status quo had been unable to solve).  
			  
			Note, however, that "the federal government" doesn't appoint 
			anybody; the executive branch typically does, the legislative branch 
			sometimes does, and I suppose the judicial branch might.  
			  
			So already 
			I think that the "empowered council" has stumbled coming out of the 
			gate.    
			Anyhow, I have 
			questions. 
				
				First, 
				will the proceedings of the "empowered council' be open to the 
				public? Will minutes be published? Will there be any democratic 
				accountability at all?   
				Second, 
				can the authors really believe that the
				
				March of Dimes is an appropriate precedent? It was 
				legitimated by FDR and it was in existence for twenty years (not 
				"warp speed"). It proposed that every child in the United States 
				contribute a dime - that's why there's an FDR dime - for the 
				eradication of polio. (Industrial production of the vaccine was 
				also organized by - gasp - the Soviet Union, which led to 
				testing in the United States). What's obvious about the March of 
				Dimes is its deep small-d democratic roots, which I can only 
				think would be very useful in vaccine compliance. The scientists 
				propose nothing like that.   
				Third, 
				who enforces the "prospective agreement" and what form does it 
				take? Is it an international treaty?   
				Fourth, 
				what on earth is a "global stakeholder"? What kind of document 
				can 
				
				Bill Gates, Giliead, the United States, and the Wellcome 
				Foundation all put their names to, as if Bill Gates (say) were a 
				sovereign, and the United States was a private person? Lawyers 
				in the readership?   
				Fifth, 
				what are the conflict of interest requirements?   
				Sixth, 
				for vaccines and treatments developed under the aegis of the 
				"empowered committee," what are the intellectual property 
				rights? Will they be equivalent to the Salk and Sabine vaccines, 
				given that the March of Dimes has been cited as a precendenty?   
				Seventh, 
				how long can members of the "empowered committee" serve, and 
				will the committee be sunsetted?   
			I must conclude, 
			but I don't think I can say much more than I have already said. 
			These matters seem to be moving very fast. It's not clear to me that 
			"efficiency," as neoliberals understand it, should be the primary 
			goal.    
			The 
			
			Manhattan 
			Project, after all, was very different institutional from this 
			proposal, and had a very different social basis, as did the March of 
			Dimes.         
			NOTES 
				
					
					
					Opening 
					sentence: "We are a group of passionate 
					citizen-scientists…." Ugh, "passionate." What is this, an 
					intern's cover letter? As for "citizen scientists," please 
					refer to Table I below. 
					  
					
					
					
					Infection Control Today: "Those close to the project 
					have requested to remain anonymous because it hasn't been 
					officially unveiled to the American public." Oh. Another 
					secret group? Or the same one?  
					
					The words 
					"patent" and "intellectual property" do not appear in the 
					scientists deliverable. 
				
					
					  
					  
					
					Table I: The Backer and Fixers 
				
					
						| 
							
								| Non-Scientists | Firm(s) | Net Worth | Other |  
								| Michael Milken | Milken Family 
								Foundation | $3.7 billion | Convicted felon |  
								| Peter Thiel | Clarium Capital, 
								Palantir | $2.2 billion | Venture capitalist |  
								| Brian Sheth | Vista Equity 
								Partners | $2 billion | Private equity |  
								| Jim Palotta | Raptor Group, 
								Tudor Investment | $1 billion | Private investor |  
								| Thomas Hicks, Jr. | Hicks Holdings, 
								LLC | $700 million | Private equity, 
								Chair, Republican National Committee, Trump 
								National Finance Co-Chairman |  
								| Steve Pagliuca | Bain Capital | $450 million | Private equity |  
								| David Solomon | Goldman | $100 million | CEO |  
								| Nick Ayers | America First 
								Policies | $12-$54 million | Aide to Pence |  |  
			  
			    |