Advertisement

Drudge Retort: The Other Side of the News
Monday, March 30, 2020

The costs of slowing the spread of coronavirus are enormous. ... But what are the benefits from this pain of social distancing? It turns out you can put a dollar figure on reducing deaths from COVID-19. And it is an enormous figure: $8 trillion, according to modeling by economists at the University of Chicago, whose economics department is best known for its defense of the harsh orthodoxies of free markets. "These benefits are over one-third of U.S. GDP and larger than the entire annual federal budget," the economists write.

More

Alternate links: Google News | Twitter

The University of Chicago model focuses on the financial value of the lives that can be saved. To calculate this figure, the economists lean on a federal figure called the "value of a statistical life" that government agencies routinely use in weighing the costs and benefits of policy changes like raising the speed limit on the highways or imposing new restrictions for environmental pollutants.

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Oh, and does the U of C also do costing projections with calling a Gun Store a Critical Activity? Or is distancing from guns simply dodging a bullet just south of campus?

#1 | Posted by LesWit at 2020-03-31 02:30 AM | Reply

"Economists at the University of Chicago?"

"The Chicago Boys" have gotten away with completely getting it wrong for so long that it is time they were no longer referred to as "econoists" because they are really just shills for oligarchy.
Liars. Idiots.

#2 | Posted by danni at 2020-03-31 07:09 AM | Reply

#2 you don't believe that it's better to save lives than it is to let them die? Economically speaking?

#3 | Posted by BruceBanner at 2020-03-31 08:58 AM | Reply

Depends on the life. They're using a value of 11 million per life. That estimate seem high for the persons most at risk. Perhaps they should pro-rate the value based on age.

#4 | Posted by visitor_ at 2020-03-31 10:21 AM | Reply

"#2 you don't believe that it's better to save lives than it is to let them die? Economically speaking?"

Of course saving lives is our number one goal but pretending that we are getting a boost to our economy based on social distancing is ridiculous. We will have to pay for this pandemic, but I'm not buying the idea that it is good for us financially. It's just the right thing to do, whether it costs us lots of money or not. And it will, believe me, it will. Our lives are going to change in ways we can't even imagine yet.

#5 | Posted by danni at 2020-03-31 10:52 AM | Reply

"Depends on the life."

Your life has probably already been saved several times by keeping you physically distant from me and also I have stayed out of prison.

Thanks!

#6 | Posted by donnerboy at 2020-03-31 11:07 AM | Reply

"pretending that we are getting a boost to our economy based on social distancing is ridiculous."

It's impossible for me to comprehend how the economy could be better with millions dead from plague.

Can you share your reasoning with me?

#7 | Posted by BruceBanner at 2020-03-31 11:34 AM | Reply

It's possible we won't be able to quickly turn everything back on again. If we can't restart the economy it could lead to instability, war and famine. Most of the world doesn't have our wealth reserves. Historians will tally the bill and we'll have our answer if slowing the pandemic was worth it.

#8 | Posted by visitor_ at 2020-03-31 11:49 AM | Reply

Studies suggest these economy will restart fine and strong.

I'm not seeing why people wouldn't simply get on with their lives.

#9 | Posted by BruceBanner at 2020-03-31 12:05 PM | Reply

Studies of what? This has never happened before. There have been similar events but nothing like this. I hope your "studies" are correct but the longer this goes on, the less likely we can just start up again.

#10 | Posted by visitor_ at 2020-03-31 12:22 PM | Reply

#10 the Spanish flu was of similar scale. I think that's the best data.

Studied economic rebound after ending social distancing.

#11 | Posted by BruceBanner at 2020-03-31 12:37 PM | Reply

I believe we will come back in some form but the world in 1918 was still on the gold standard, the ratio of city workers to farm was reversed and our economy wasn't as interdependent as it is now.

#12 | Posted by visitor_ at 2020-03-31 12:45 PM | Reply

We can rebuild. The good thing is that maybe we'll appreciate that supply side is only half of it. The other side is the strong middle class.

#13 | Posted by BruceBanner at 2020-03-31 12:52 PM | Reply

"Studies of what? This has never happened before."

Seriously ?

Wearing your ignorance like a badge of honor?

Google economic lessons of 1918 pandemic.

lmgtfy.com

#14 | Posted by donnerboy at 2020-03-31 01:07 PM | Reply

Can you share your reasoning with me?

#7 | POSTED BY BRUCEBANNER

Maybe I'm wrong but I think she's caught up on the word "boost" used in the headline.

When it's not a boost, but in fact $8 trillion not lost.

In other words, if we'd just let it ride we'd be in an $8 trillion deeper hole than we are now.

Which is interesting because I don't think people understand how bad for the economy it would have been to ease restrictions in an attempt to "save" it.

#15 | Posted by jpw at 2020-03-31 01:50 PM | Reply

That's great not a lot actionable items relating to restarting an economy that was shutdown.

Can you possibly imagine that an economy that was largely rural and made up of farmers that could grow their own food and make their own clothes, may not be directly comparable to our consumer and services based one?

Turning if off won't be as quick and easy as turning it on.

#16 | Posted by visitor_ at 2020-03-31 01:51 PM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2020 World Readable

Drudge Retort