First estimate of the cost of the Wuhan panic shutdown
The estimated lose to the U.S. economy due to the shutdown over the Wuhan panic is now estimated at $32 trillion, more than the entire annual gross national product for the country.
That number is of course preliminary, but for a first guess I think it is probably low, especially because it does not include the following:
- Lost opportunity cost for businesses
- Lost opportunity cost for individuals who had to delay dreams, plans, etc.
- The loss of freedom (priceless)
- The cost of not educating millions of students and falling further behind in academic standards
It also assumes we get back to work relatively soon. Should the shut down extend through May, I think the Great Depression will appear like a lark in comparison.
Note that the overall social cost of this panic and shutdown cannot be measured, as it is also establishing new social distancing customs that are probably overwrought and counter-productive for a healthy society.
The estimated lose to the U.S. economy due to the shutdown over the Wuhan panic is now estimated at $32 trillion, more than the entire annual gross national product for the country.
That number is of course preliminary, but for a first guess I think it is probably low, especially because it does not include the following:
- Lost opportunity cost for businesses
- Lost opportunity cost for individuals who had to delay dreams, plans, etc.
- The loss of freedom (priceless)
- The cost of not educating millions of students and falling further behind in academic standards
It also assumes we get back to work relatively soon. Should the shut down extend through May, I think the Great Depression will appear like a lark in comparison.
Note that the overall social cost of this panic and shutdown cannot be measured, as it is also establishing new social distancing customs that are probably overwrought and counter-productive for a healthy society.
