When talking about economic damage it is also worth thinking about what we are trying to avoid in the US- if SARS-Cov2 gets to 60% of the population, then at a 2% case fatality rate we are looking at 4 million excess deaths. Most importantly, that is a humanitarian tragedy that we must avoid. However, having numbers also let’s us put an economic value out there for what we are trying to save.
A 1% reduction in the case fatality rate saves roughly 2M people. Let’s assume that each would live another 10 years and that each person year is worth $100k. That means a 1% reduction in the case fatality rate is worth 2 trillion dollars. That’s roughly 10% of GDP. You can play with the numbers a bit, it’s hard not to end up in the “taking a multi year recession might be worth it” territory. Obviously, there are decreasing marginal returns to various actions, but the it’s important to keep in mind the scale of what we are trying to avoid.
A 1% reduction in the case fatality rate saves roughly 2M people. Let’s assume that each would live another 10 years and that each person year is worth $100k. That means a 1% reduction in the case fatality rate is worth 2 trillion dollars. That’s roughly 10% of GDP. You can play with the numbers a bit, it’s hard not to end up in the “taking a multi year recession might be worth it” territory. Obviously, there are decreasing marginal returns to various actions, but the it’s important to keep in mind the scale of what we are trying to avoid.