The Pandemic 19
But the overall economic losses are even bigger. Those families who lost a job stopped driving, buying extra goods, and using nonessential services. When you add these ancillary impacts of one-fourth of the population losing its income, there is another one trillion dollars in economic loss. In response to the unemployment level and economic slowdown, the US Congress authorized a $2.2 trillion relief package called the CARES act. It distributed money directly to US citizens, expanded unemployment benefits, and enabled businesses to get “forgivable” loans if they kept employees on the payroll. In addition, the Federal Reserve Bank announced aggressive measures to buy municipal, state, and corporate bonds, lower interest rates, and advance other loan programs to drive “quantitative easing,” all in all amounting to another $2.3 trillion in investment.8 Between economic losses, congressional stimulus, and federal reserve programs, the response to the coronavirus pandemic will cost the United States between $4.5 and $7 trillion. For the rest of this discussion, we will use the relatively conservative figure of $5 trillion, or one fourth of our entire annual gross domestic product. Was It Worth It? This is a subjective question, and it will be debated for years, but if we weigh the amounts spent and the losses to some families against the projected gains by others, it seems hard to say yes, it was worth it. More than likely we have extended the life of very few people, and only by a year or two on average. Even if the number is as high as 250,000 people, at a cost of $5 trillion, this would be $20 million per person. This now begs the painful question, are those lives worth that much money? What is the value of a human life? “Fed Expands Corporate-Debt Backstops, Unveils New Programs to Aid States, Cities, and Small Businesses,” The Wall Street Journal, updated 9 April 2020, https://www.wsj.com/articles/fed-announces-new-facilities-to-support-2-3-trillion-in-lending-11586435450. 8
