EconTalk Paul Romer on the COVID-19 Pandemic
May 15, 2020
Paul Romer, a distinguished economist and Nobel Laureate from NYU, shares his insights on navigating the COVID-19 pandemic. He argues for the urgent need to transition from lockdowns to effective testing solutions, emphasizing the role of innovative tests like the 'Jiffy Tube.' Romer highlights how relaxing regulations could create a supply chain for testing, aiding economic recovery. The discussion also covers labor market challenges, showcasing the emotional toll of job losses and the importance of government intervention to support workers.
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Permanent Loss
- The COVID-19 pandemic has caused a permanent loss of opportunities.
- We must accept this loss and choose the best among bad alternatives.
Unsustainable Strategies
- Current mitigation and suppression strategies for COVID-19 are unsustainable.
- A million deaths are possible under mitigation, and suppression is too costly.
Herd Immunity Costly
- The estimated half-percent death rate for COVID-19 in New York City is based on 60% infection rate and 0.5% IFR.
- Reaching herd immunity through infection would take a long time and result in many deaths.