A Congressional Budget Office estimate found that a pandemic the scale of which occurred in 1957 would reduce real GDP by approximately 1% ''but probably would not cause a recession and might not be distinguishable from the normal variation in economic activity.
We also find relatively mild estimates in a 2009 World Bank report estimating the economic consequences of new pandemics.
Not even the 1918-19 pandemic, which caused an astounding ten times as many deaths per million as the 1957-58 pandemic, was an economic disaster comparable to the COVID-19 pandemic.
Although the US entered the 1918-19 pandemic in poor economic shape thanks to the Great War, according to economists Efraim Benmelech and Carola Frydman,.
So why the enormous difference in economic effects? The answer almost certainly lies in the fact that governments in 2020-unlike in any other period in American history-engaged in widespread business closures, "Stay-at-home" orders, and other state-mandated and state-enforced actions that led to widespread layoffs and plummeting economic output.
In a modern industrialized economy, that sort of economic damage is only achievable through government intervention, such as socialist coups, wars, and forced economic shutdowns in the name of combating disease.
One study contends that the current economic downturn could lead to seventy-five thousand "Deaths of despair." This is not shocking since the fatal effects of unemployment and economic decline have been known for decades.
https://mises.org/wire/why-past-pandemics-america-didnt-destroy-economy
We also find relatively mild estimates in a 2009 World Bank report estimating the economic consequences of new pandemics.
Not even the 1918-19 pandemic, which caused an astounding ten times as many deaths per million as the 1957-58 pandemic, was an economic disaster comparable to the COVID-19 pandemic.
Although the US entered the 1918-19 pandemic in poor economic shape thanks to the Great War, according to economists Efraim Benmelech and Carola Frydman,.
So why the enormous difference in economic effects? The answer almost certainly lies in the fact that governments in 2020-unlike in any other period in American history-engaged in widespread business closures, "Stay-at-home" orders, and other state-mandated and state-enforced actions that led to widespread layoffs and plummeting economic output.
In a modern industrialized economy, that sort of economic damage is only achievable through government intervention, such as socialist coups, wars, and forced economic shutdowns in the name of combating disease.
One study contends that the current economic downturn could lead to seventy-five thousand "Deaths of despair." This is not shocking since the fatal effects of unemployment and economic decline have been known for decades.
https://mises.org/wire/why-past-pandemics-america-didnt-destroy-economy
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