“The COVID-19 Pandemic – Random Thoughts” Sydney Williams
http://swtotd.blogspot.com/
Sensible advice has been offered by many: Scrub your hands, socially distant yourself; isolate yourself if sick. Nevertheless, manifestations of fear and panic are all around us. Restaurants, bars and casinos have closed in the part of the Country where I live. Colleges have sent students home. Schools have been closed, while grocery stores cannot keep up with demand for toilet paper, hand-wipes, latex gloves, disinfectants and many other household and food products. ‘Social distancing’ is nowhere to be seen when it comes to filling one’s larder or closet. Yet, with the exception of products directly related to coronavirus, like hand-wipes and latex gloves, final demand for items like toilet paper and frozen foods will grow in terms of population expansion, or about 0.5 percent. (In Connecticut, population growth will probably decline about 0.2 percent, as it did in 2019.) Understocked shelves will become overstocked.
“Any man’s death diminishes me,” John Donne wrote, and all deaths are, indeed, to be regretted. But perspective should be maintained. The question we all struggle with: Is the fear we exhibit rational? We don’t know, but containment and mitigation seem to be working, at least in China and South Korea. According to their numbers, since last November China has had 190,000 individuals infected with COVID-19 (out of a population of 1.39 billion). Just under 7,500 have died, implying a mortality rate of 3.9 percent. Keep in mind, numbers from China are suspect and between 30,000 and 40,000 people die every day in their Country. South Korea’s statistics are likely more accurate. Their first case was noted on January 20. As of March 16, two hundred and twenty thousand people had been tested in South Korea, out of a population of 51.4 million, 8,320 cases had been confirmed and 81 had died, or just under one percent. Health officials in Seoul claimed on March 9 that their Country had passed the peak of the contagion. They credit their “trace, test and treat” system, where an individual can drive to a testing site and have samples taken from the back of one’s throat and nose. A few hours later, the individual will get a call if the test is positive or a text if it is negative.
The world was slow to take note of the seriousness of the crisis. China, a Communist dictatorship, delayed informing the outside world for a month and a half. More than three weeks after China did, and with the contagion already having infected half a dozen countries, the World Health Organization (WHO) declared, on January 23, that the coronavirus did not constitute a public emergency of international concern. (It would be March 11 before they declared it a pandemic.) Early on, the President was ahead of the curve. He formed a White House task force for coronavirus on January 29, led by Health and Human Services (HHS) Secretary Alexander Azar, and he shut down flights from China on January 31. On February 27, he placed Vice President Mike Pence in charge of the Task Force. Contrary to some reports, the White House did not “gut” the National Security Council’s counter pandemic effort. But he was slow in promoting tests for the virus and urging the search for a vaccine. He was not alone. The press was more interested in impeachment than in informing their readers and viewers of the virus China had exported, which was beginning to contaminate the world.
Throughout most of February and early March, the U.S., President Trump appeared to minimize the health impact of COVID-19, while he emphasized the need for calm. It was not surprising, and he was not alone. As a businessman, he knew what fear and panic do to an economy – creating artificial shortages, while negatively impacting economic growth. Keep in mind, every day the U.S. economy generates roughly $60 billion in national income. Shutting down commerce will have serious consequences for individuals, many of whom will be laid off, even if temporarily. Government will step in to help – the House passed an $850 billion stimulus bill yesterday – but we should not forget that we are already carrying the largest amount of debt, relative to GDP, since World War II. Adding another trillion is important now, but even low-cost debt must be repaid. When (not if) interest rates move back up, the pain is going to be severe – for governments, corporations and consumers. Neither should we forget that an economic system that preserves uneconomic businesses for “humanitarian” purposes is neither compassionate nor financially viable.
The closing of restaurants, gyms, casinos, schools, colleges and churches is critical and will limit the spread of the virus. While there is much that is unknown about COVID-19, it is known to have a high R0 (R naught), a mathematical determination of its contagion properties. Questions remain: Will healthcare be rationed? Will further restrictions be imposed? However, we cannot ignore its effect on the economy, the education of our youth and the social and spiritual well-being of us all. While we cannot return to normal, we must be alert to unintended consequences.
As well, we should be wary of hyperbole, of those who see a crisis as something for personal advantage. Last Sunday, Goldman Sachs, according to Zero Hedge journalist Tyler Durden, spoke to 1500 clients and told them 50% of Americans will contract the virus and that mortality rates could reach two percent. Perhaps they will be right, but that would contrast with less than one tenth of one percent of South Koreans and Chinese who have contracted the disease. In Italy, the 30,000 cases thus far represent about 0.05% of their population. In the U.S., the disease will become more widespread before it abates, but one wonders if Goldman was pandering to hedge funds that were short the market. If they were, they had happy clients on Monday, when the market dropped thirteen percent. It is only to be expected that Democrat Presidential candidates will use the virus against Mr. Trump. (Republicans would do the same were roles reversed.) We should also note the pandemic has brought a cease-fire – probably temporary – in the partisanship that has marked our politics. Both Governor Gavin Newsom of California and Andrew Cuomo of New York have praised the President for his response to the crisis. (A cynic might say they were looking for federal funds). However, Governor Cuomo complained on Monday that “the federal government has been behind on this crisis from day one.” Still, praise is praise.
In a recent column, Peggy Noonan wrote that telling people not to panic is bad advice. I disagree. People should be told to be wary, especially around the elderly and the vulnerable: to wash their hands regularly and vigorously, to avoid unnecessary personal contact, to sneeze or cough into a Kleenex or handkerchief, to use handwipes and surgical gloves when in stores, and to stay home, especially when a fever or cold persists. But we should not panic. “Panic,” as Stephen King once wrote, “is highly contagious, especially when nothing is known, and everything is in flux,” as it is now. Ralph Waldo Emerson wrote, “…panic is the terror of ignorance, surrendered to the imagination.” “Fear,” as Vannevar Bush is quoted in the rubric above, “cannot be banished,” but it can be rationalized. During the depths of the Depression, Franklin Roosevelt said, in a fireside chat, when so many were fearful: “The only thing we have to fear is fear itself.” Our hospitals and healthcare are second to none. Containment and mitigation will conquer COVID-19, so long as we comply with basic rules of hygiene and common sense. We cannot and should not, let fear and panic catapult us into a recession or worse – a situation where Constitutional rights are abrogated.
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