Covid-19: Managing the Crisis: Wasted Lives & Wasted Money
Worldwide, there
have been 25.8 million cases of Covid-19 and 859,000 deaths by the end of
August 2020. Different countries have
taken different approaches to managing Covid-19. For example, on January 31, 2020, President
Trump announced a travel ban on people coming from China. Within ten days other nations imposed a
similar ban. Those countries allowed
their citizens to return home, but tested them at the airport and quarantined
those who tested positive. The U.S.
allowed 40,000 citizens and relatives to return to the U.S. from China during
the two months after the ban, but did not test nor quarantine. The U.S. has 4% of the world population and
22% of the deaths from Covid-19 in the world.
A comparison of the
U.S. to Germany reveals differences in approach and results. Germany is the largest country in the
European Union and utilized approaches similar to other western democracies.
Preparation
In 2015, Bill Gates
predicted a pandemic like the 1918 Spanish flu that would spread very
quickly. Germany was prepared for a
pandemic with diagnostic testing, which produced same day results or next day
results. They also implemented contact
tracing. They had adequate personal protective gear, ventilators and other
necessary medical devices. In the U.S., Obama
established the Directorate for Global Health Security and Biodefense to
prepare for a pandemic. Trump dismissed
this group, leaving his administration with no preparation nor strategy for
managing a pandemic.
Results
German GDP declined
10% in the second quarter.
U.S. GDP declined
33% in the second quarter.
German unemployment
rate is 4.1%.
U.S. unemployment
rate is 10.1%.
Germany’s public
debt rose to 82% of GDP.
U.S. Government’s
public debt rose to 120% of GDP.
U.S. death rate from
Covid-19 is four times the German death rate.
Angela Merkel’s
approval rating rose from 40% to 70%; Donald Trump’s fell.
The Congressional
Budget Office estimated the cost of Covid-19 to be $8 trillion.
Other
Countries
Germany
is not the best performing country on Covid-19.
The U.S. death rate from Covid-19 is more than 50 times the death rates
in the east Asia countries – Japan, South Korea, Singapore and Taiwan. Taiwan, with a population of 24 million, has
seven deaths to date. Florida, with a population
of 22 million, has 12,786 deaths to date.
Taiwan had no shutdowns. Instead,
they tested, tracked and quarantined
The United
States
The U.S. has led the
world in scientific expertise, biomedical knowledge and immense resources, but it
failed to utilize them effectively. In
no other industrialized country have political leaders departed from expert
advice in this crisis as frequently and significantly as the U.S.
At the beginning, the seriousness of this
pandemic in the U.S. was underestimated.
Trump said on January 22, “We have it totally under control,” and on
February 10, “Looks like by April, you know, in theory, when it gets a little
warmer, it miraculously goes away.” On February 27, he said, “It’s going to
disappear,” and on March 10, “We’re prepared.
And we’re doing a great job with it.
And it will go away. Just stay
calm.”
The U.S. was slow to initiate diagnostic testing. When testing was ramped up, much of it was ineffective due to lengthy time periods to receive results. In addition, the U.S. lacked testing materials, personal protective gear, drugs, and devices. Efforts to track and trace infections have been largely ineffective.
Unlike other
countries, the U.S. made Covid-19 a political issue. The U.S. is the only country where citizens
divided over wearing masks based on political affiliation. President Trump tweeted, “Everyone is
lying. The CDC, Media, Democrats, our
Doctors, not all, but most that we are told to trust.” Public health officials have been threatened
and harassed and some have resigned for personal safety reasons. This has not happened in other industrialized
countries.
Summary
If
the U.S. had adopted the procedures implemented by Germany and other countries,
140,000 American lives might have been saved to date, assuming the U.S. had the
same death rate as Germany. In addition,
the U.S. could have saved at least $2 trillion if it handled Covid-19 more effectively.
That is as much as the cost of Social Security and Medicare combined in one
year. In 2017, President Trump projected
that the U.S. would have a balance budget by 2020. Instead, with Covid-19 and the related waste the
deficit will exceed GDP. The ratio debt
to GDP will be higher than levels during the World War II era. This ratio of debt to GDP will put the U.S.
in the company of Greece, Italy and Japan