Friday, April 10, 2020

Universal testing for Coronavirus is good for business


The thing that's driving me crazy about the federal response to the Coronavirus crisis is how broadly the problem is perceived to be the economic fallout rather than the virus itself, and that the people in power in the federal government's main response is to throw piles of cash at businesses.

Their response is particularly strange because, for once, the incentives for big business happen to line up with public health priorities. If they really want to get the economy back to normal, we need to stop COVID-19. That means shoveling all the resources we can towards widespread testing, getting medical equipment (e.g. ventilators and masks) produced and distributed efficiently, and research on both better tests and any possible cure. In other words, our economic problem is not that the vacation sector doesn't have enough money, it's that no one can leave their house to spend money, so you need to do everything you can to create the conditions that will allow people to go out again.

Also do it quickly. The longer it takes before people can go out and spend money, the more our businesses will wither on the vine. Wall Street should be up in arms, demanding trillions of dollars for medical supplies and research. That stuff can both help with the health crisis and is the only real way to get through the economic crisis.