COVID Test Shortage Worsens Over Holidays

Written by Edgard Lacayo

Due to the rise of the Omicron variant, there has been an increase in demand for COVID-19 tests. The rise of the variant also coincided with the holiday season, causing further stress on national resources. Due to millions of Americans traveling during the season, there has been an increased strain placed on the supply of the tests. For many, this shortage has come as a surprise and the answer as to why it is happening might seem obvious. More people travel during the holidays so it is natural that the demand would exceed the supply. Even though this is the answer an economics professor might give, the real causes are more complicated. 

Due to the increased focus on vaccines and vaccine production, test production has slowed down. Most of the government’s focus has shifted towards funding and distribution of vaccines. This shortage has not come suddenly. In the months leading up to the holiday season, there has been limited government investment in producing tests. The companies that make these tests also have been facing issues with obtaining raw materials and workers due to labor shortages and COVID-19 restrictions.  Other factors hampering test production are regulations surrounding their production. It is a slow process so there is little room for other companies to produce tests since it will take a long time for them to be approved. Another often ignored factor in the shortage is stockpiling. Many institutions like schools and companies bought tests in bulk earlier in 2021 in order to speed up reopening. There are also resellers who have been stockpiling in order to profit off the increased demand for tests during the holidays. 

Congress has taken action to help with this shortage. 50 senators, including high profile democrats like Bernie Sanders, wrote a letter to President Biden urging to ramp up production.  They suggested that the president should use the Defense Production Act in order to speed up production. This act dates back to the Korean War, and it enables the president to order private companies to produce supplies needed for a national issue. In this case, it would be used to speed up the production of COVID-19 tests. 

President Biden announced that Americans can sign up on a government website to receive free tests through the mail. Visit www.covidtests.gov or visit your local pharmacy to learn more about acquiring COVID-19 tests.