Tuesday, February 4, 2020

The non-obvious costs of the corona virus: measured reaction or panic?

The U.S. stock market fell 600 points on Friday, January 31. China is closed. Tech stocks are vulnerable. Airline travel is down precipitously. More than 10,000 people have been infected in the past two months and, of those, at least 213 have died (as of the end of the day on Friday)[1]. All in all, a pretty big impact for a pretty tiny virus. Speculation regarding the longterm economic impacts of the Wuhan coronavirus continues apace with experts predicting potentially significant and lasting damage to (at least) China’s economy.

The availability of instantly available information—a stream of “data” addressing the spread of the virus, new cases, speculation on modes of transmission, efforts to contain it—has likely magnified its impact materially. On the positive side, that information is absolutely critical to public health officials efforts to track and contain the spread of the virus. At the same time, the easily available but not-always-reliable information stream has exacerbated the response and the panic surrounding spread and risk of infection. Interestingly, while the virus is a cousin of the SARS virus, and while there is a world of information available regarding the spread, containment and trajectory of SARS, little or none of that real data seems to be filtering into either public or market response. The evident impact that the Wuhan virus is having foreshadows greater risk to world stability arising from other more and less deadly viruses in the future. As the human population expands, it will undoubtedly encounter new viruses and will have to address the risk of exposure and illness in a thoughtful and more targeted fashion. It seems unlikely that humans can rely on that these exposures will obtain on a once every decade and a half time frame.

~~ David M Walsh

1: Veiga, Alex. “Stocks sink on fears virus outbreak will dent global economy.” The Seattle Times (Seattle) 31 January 2020. 

7 comments:

pamala palz said...

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pamala palz said...

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Unknown said...

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Hello everyone out there, i am here to give my testimony about a herbalist called dr imoloa. i was infected with herpes simplex virus 2 in  2013, i went to many hospitals for cure but there was no solution, so i was thinking on how  i can get a solution out so that my body can be okay. one day i was in the pool side browsing and thinking of where i can get a solution. i go through many website were i saw so many testimonies about dr imoloa on how he cured them. i did not believe but i decided to give him a try, i contacted him and he prepared the herpes for me which i received through DHL courier service. i took it for two weeks after then he instructed me to go for check up, after the test i was confirmed herpes negative. am so free and happy. so, if you have problem or you are infected with any disease kindly contact him on email                            drimolaherbalmademedicine@gmail.com. or  / whatssapp --+2347081986098.
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ABBY HARRIS said...

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Unknown said...

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