I find it weird that a publication like the Wall Street Journal wouldn't use economics!
One thing all of these types of articles seem to forget is the simple risk-reward models set up by the federal govt and updated by those "liberals" Reagan and Bush. (I know they were Republicans. No need to write about that.) In the mid 80's, there was an update to the risk-reward calculations to say that a human life is worth $3,000,000. Now that is up to $10,000,000. So, each life saved is $10,000,000.
Suppose that the lock downs saves 100,000 lives. The net gain would be ($10,000,000)(100,000) = $1,000,000,000,000
If 1,000,000 lives were saved then the benefit is $10,000,000,000,000 or about half a years worth of GDP.
That's all assuming that people are not smart enough to stay home on their own. And that people would be spending at the same rate as they were before.
Meaning that if a lock down saves enough lives, it is a NET POSITIVE for the economy. But, the longer it goes, the less it is worth it. Basic economics. That is what they should be reporting.
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Andrew Ekstrom
Statistician, Chemist, HPC Abuser;-)
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Original Message:
Sent: 04-27-2020 11:14
From: David Kaye
Subject: COVID-19 Scattergram in Wall Street Journal
Yesterday's Wall Street Journal contained an op-ed piece entitled "Do Lockdowns Save Many Lives? In Most Places, the Data Say No: The speed with which officials shuttered the economy appears not to be a factor in Covid deaths" (T.J. Rodgers, April 26, 2020 3:55 pm ET). The op-ed included a scattergram.
https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_G_20200426130615.jpg 540w,https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_9U_20200426130615.jpg 700w,https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_11U_20200426130615.jpg 860w,https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_16U_20200426130615.jpg 1260w" sizes="(max-width: 140px) 100px,(max-width: 540px) 500px,(max-width: 700px) 660px,(max-width: 860px) 820px,1260px" src="https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_9U_20200426130615.jpg" data-enlarge="https://si.wsj.net/public/resources/images/ED-AZ636_Rodger_16U_20200426130615.jpg" alt="" title="" class="img-responsive" data-mce-hlimagekey="33e2cbfb-8378-fd6b-2a08-a383c150f9fd" data-mce-hlselector="#ReplyInline_a071849ad52a4f5891f6380d1f192eb5-tinyMce" />The author explained that
"To normalize for an unambiguous comparison of deaths between states at the midpoint of an epidemic, we counted deaths per million population for a fixed 21-day period, measured from when the death rate first hit 1 per million-e.g.,‒three deaths in Iowa or 19 in New York state. A state's 'days to shutdown' was the time after a state crossed the 1 per million threshold until it ordered businesses shut down.
We ran a simple one-variable correlation of deaths per million and days to shutdown, which ranged from minus-10 days (some states shut down before any sign of Covid-19) to 35 days for South Dakota, one of seven states with limited or no shutdown. The correlation coefficient was 5.5%-so low that the engineers I used to employ would have summarized it as "no correlation" and moved on to find the real cause of the problem. (The trendline sloped downward-states that delayed more tended to have lower death rates-but that's also a meaningless result due to the low correlation coefficient.)
"No conclusions can be drawn about the states that sheltered quickly, because their death rates ran the full gamut, from 20 per million in Oregon to 360 in New York. This wide variation means that other variables-like population density or subway use-were more important. Our correlation coefficient for per-capita death rates vs. the population density was 44%. That suggests New York City might have benefited from its shutdown-but blindly copying New York's policies in places with low Covid-19 death rates, such as my native Wisconsin, doesn't make sense."
He then proceeded to talk about "common-sense guidelines" in Sweden.
We don't usually see scattergrams (and r^2) in the news. I have not thought through this one, but it might prompt some reactions.
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David Kaye
Penn State Law
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