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russ_watters
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You've changed the subject and I agree with what you are now saying: One death/life saved is worth a lot of money, and it is reasonable to spend a lot of money/endure economic harm to save lives.StatGuy2000 said:First of all, in the realm of seriousness, death will generally trump economic impacts. [snip]
These statements variously contradict each other and/or your prior statement, alternating between it is and isn't acceptable to not consider the economics, by adding or not adding a delay. Either you are taking into account the long-term impacts *now* - when you make the decision - or you aren't. If you are taking them into account *later*, then you aren't taking them into account *now*, at the time the decision is made. In my opinion, that's foolish, and never a good idea.No, I am not saying that is acceptable to not consider the long-term impacts of one's decisions. What I am saying is that in certain circumstances, there are requirements to act quickly in the best interests in both the health and economic impacts in the immediate present in the face of an extraordinary situation (which a pandemic clearly consists).
Questions of long-term impacts should be considered, but wise administrators and governments will be taking that into consideration once the immediate threat has abated. Various countries around the world, including Canada, has done this more or less successfully, gradually re-opening their economies and taking stock of what to do to mitigate the potential long-term impacts of previous necessary lockdowns.
So let's try putting some numbers to it based on the current scenario for the USA vs a hypothetical no-response scenario:[paste]
And you also ignore that widespread death or serious illness of a population will have created negative economic consequences that will have exceeded the negative impact of the shutdowns...
It does not seem self-evident to me at all that shutdowns cause more economic harm than an unchecked pandemic, and to even suggest this is hard for me to believe.
An unchecked pandemic with hospitals and health care systems so overwhelmed will have a severe impact economically. Furthermore, the more people fall ill due to an unchecked pandemic, that's more cost in terms of lost productivity, lost wages, higher medical costs, etc. (Also keep in mind that people recovering from COVID-19 may potentially experience damage in terms of lung, heart, or even neurological damage, leading to lost work time and productivity).
Without shutdown, worst case (USA):
50% infection rate
2wk ave loss of work (that's probably high due to a near 50% asymptomatic rate)
80% of workers have paid sick leave/vacation
1 yr
=0.4% lost production/income/GDP (that's the employment impact on GDP only)
With shutdown and assuming effectively zero infection rate:
13% unemployment for 3 months (so far) vs 3.5% in Feb.
Annualized, that's 2.4% lost production/income/GDP
You may notice I didn't include deaths. 75% of deaths are in people who aren't part of the production economy (they are retired). And 100% of people who die are not included in per capita GDP anymore. So while total GDP could be lower by 0.125% ongoing (at a 1% death vs infection rate), the per capita GDP/income in a country should go up due to COVID deaths.
I also didn't include the cost of hospitalization. While hospitalization is a high personal cost, it isn't necessarily a high societal cost; it is a transfer. Hospitals/doctors/nurses make more money when more people are hospitalized.
I also didn't include the cost of government stimulus, since the "with shutdown" case is actually the true US outcome, which would have been worse without the stimulus, and the cost is in the trillions of USD. In other words, the damage of the shutdown is substantially worse than what I've been able to capture. The cost of the stimulus -- the delayed harm -- is substantially larger than 2.4% of GDP. But beyond saying "trillions" I haven't had much luck finding projections for the cost.
Then I have no idea what point you are trying to make as pertains to what I said. Of course every recession has a recovery. So what? Nor does it seem in alignment with your prior statement, which seemed pretty clear-cut that it was the harm in the recession that could be undone retroactively: "essentially wipe out the past damage and reduce or eliminate the debt accumulated during the pandemic."You are fundamentally misunderstanding the point that I am stating. Of course lost wages due to unemployment over the 3 months of the lockdown will not come back, nor canceled vacations, restaurant meals, services, etc.
What I am talking about is economic recovery once the pandemic has stabilized or passed. In other, the shape of the future. What I am talking about are future economic activity, as industries and businesses and households recover. Every recession in history has led to some form of economic recovery (from the Great Depression of the 1930s right through to the Great Recession of 2008-2010). Because life does not stop, and demands for products and services always come back.
So I'll say it again, perhaps in a different way: Debt is future economic harm endured for the purpose of mitigating present economic harm.
I certainly never have, nor never would say such a thing. But conversely, many of the claims made about the success of mitigation efforts are versus an "unchecked" scenario, which of course isn't even true in Sweden. But it is a convenient baseline to use when one wants to estimate a really big benefit for mitigation efforts.[reversed order]
It seems to me that you are arguing that the US or other countries should not have carried out lockdowns to stop or limit the spread of COVID-19, and instead to let the pandemic run unchecked.
No, I'm not saying that. I'm saying the claim made in the article about Sweden vs everyone else (or just Scandinavia?) that the shutdowns caused no more economic harm than not shutting down is absurd. So far, that's it.Follow-up note: @russ_watters , I'm frankly confused as to what you are ultimately trying to argue. Are you suggesting that the US and other countries around the world are doing the wrong thing in trying to stop the spread of COVID-19? What alternatives would you have done, if you were the president of the US, or a lawmaker in Washington?
I've repeatedly declined to make a value judgement on this issue and only point out the absurdity of the prevailing view because the reality is really complicated and nuance isn't a strong component of these discussions.
But I will say now what my real preference is, which I've hinted at before: The vast majority of the world has approached COVID "wrong" [opinion/value judgement], and has chosen a path of both more health and economic harm than was necessary. And it's done so while hypocritically/falsely claiming to value life/health above all other considerations. In reality, by far the primary consideration has been avoiding an undefined privacy risk. Despite being undefined, a large fraction of the world - specifically the West - has decided that avoiding that privacy risk is worth enduring many thousands of deaths and an economic catastrophe. And we're going to continue on that course indefinitely. And I think that's just despicable. I'm really angry about it.
I'm speaking of course of the South Korean compulsory digital/automated mitigation model. Denmark was highly lauded in the article vs Sweden, but Denmark has so far endured twenty times as many deaths per capita with a shutdown than South Korea has had without a shutdown.
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