| > For instance, if everyone stores several years worth of food and water at home 1. That wouldn't allow us to pause all economic activity. Not even close. Not even remotely close. Notice that 0% of the economic damage caused by coronavirus could have been prevented by stockpiling food and water. 2. Lots of economic activity is not possible to pause. Think about e.g., large construction projects or any manufacturing process. There's an enormous amount of economic activity that just can't easily be paused, at varying timescales. At the short timescale, for example, you can't simply stop pouring a foundation and come back to it later. On a longer timescale, you simply can't restart an oil well at $0 cost. These facts aren't due to bad planning. They're due to the fundamental laws of physics. And for any given type of disaster scenario, even the most resilient and localized supply chains might be disrupted. In fact, it's not really clear that localized or even redundant supply chains/processes would make you more resilient in any given scenario. There are likely fundamental tradeoffs and, even if not, individuals and small firms simply can't plan for every possible apocalypse. 3. That level of food/water stockpiling would be enormously expensive. Stockpiling would become a nontrivial drag on GDP, not only through unproductive resource allocation but also due to new frictions (e.g., moving 2 states over now becomes a five figure investment). 4. Like it or not, most folks simply don't have the means to stockpile at that scale. A waitress working 80 hours a week will never be able to afford the space and continuous investment necessary to maintain a multi-year food and water stockpile. Heck, even the largest firms with the best margins have to take on some existential risk in order to operate. At some point, the choice is between extreme resilience and having a given sector of the economy. 5. I can't find the problem you're trying to solve with multi-year food/water stockpiling. I'm having trouble figuring out what scenario would only last a few years, and would result in substantial destruction/disruption of the agricultural sector, but would not result in either a) also damage stockpiled food/water or b) trigger extinctions/mass-deaths that aren't possible to prevent through stockpiling. Literally no massive natural disaster or attack I can think of fits that bill. Not blight. Not super volcanoes. Not pandemics. Not nuclear war. Not bioterror. In none of those scenarios would stockpiling likely be particularly helpful at a multi-year timescale. Maybe in some of those scenarios stockpiling buys you a full growing season, if all of the other stars perfectly align. |