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by showdeadtest
2134 days ago
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That’s about a month’s worth of deaths. The economic impact would be roughly that of everybody taking a really long vacation. We are past that. And it’s completely besides the point—-it does not seem like that is the calculus going into our policy decisions here in August. |
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Looking at current number of deaths as the outcome for the decision to open stuff up only makes sense if you think we would have seen the same infection rate.
If the infection rate is high enough and fast enough, we surpass the healthcare system's capacity to help with hospitalization, and then we see a large increase in the mortality rate for those infected, as some of those with bad, but not fatal infections that recovered in the hospital don't recover out of the hospital. The faster the spread, the worse (higher) that number is.
> The economic impact would be roughly that of everybody taking a really long vacation.
People come back from vacations. The economic impact would be more like those people all quit at the same time.
> it does not seem like that is the calculus going into our policy decisions here in August.
It is. They're looking at worst case scenarios for COVID-19, and how likely they are, compared to worst case scenarios for the economy, and how likely they are.
Worst case for the economy is a depression, which may take years or decades to recover from, but the workers are still there, still trained, and we can hopefully get them back to work with stimulus, even if it takes a long time.
Worst case for COVID-19 is that instead of hundreds of thousands of dead, we see millions of dead. What's the economic impact of one of every 50 or 100 families loses a parent, and how that affects they flexibility and ability to recover from financial bumps? What's the impact to Apple or Google if a high level exec that's spears a division dies (what's happened at Apple since Job died, and he had plenty of time to groom a successor)? What about the 20 employees of small business that was struggling but surviving when the owner dies? The economic impact of people actually disappearing forever is sometimes equivalent of the cost and time to train a replacement (which is generally multiple months of salary for any non-trivial position), and that's when it can actually be replaced adequately.
Even if you want to completely ignore the humanitarian aspect of it, there's good economic reason to not want people to die, and why locking things down, while economically disastrous, maybe still be less economically disastrous than NOT doing so.