Pandemic Could Cost U.S. Economy Its Entire Annual Output -- Survey
MOSCOW (RT) - The U.S. economy may lose a whopping $16 trillion due to the devastating impact of the Covid-19 outbreak, both in output and people’s lives, new research has found.
While most studies assess the costs of the deadly virus by its impact on the national gross domestic product (GDP), a paper published in the Journal of the American Medical Association earlier this week offered a different approach.
The authors of the study – former Treasury Secretary Lawrence Summers and Harvard University economist David Cutler – also took into account losses associated with those who have died due to the virus, in addition to the purely economic costs.
With the number of coronavirus infections in the U.S. nearing eight million and deaths surpassing 215,000, the researchers believe that the outbreak may result in an estimated 625,000 cumulative deaths in the country through next year. Given the theoretical "conservative value of $7 million per life,” premature deaths linked to the coronavirus could wipe out nearly $4.4 trillion, according to their calculations.
The virus is believed to have long-term effects on health, especially for survivors with severe or critical disease. As those complications lead to increased risk of premature death, they also have far-reaching consequences for the entire economy, with losses amounting to another $2.6 trillion for cases forecast through the next year, the authors noted.
Even those who did not contact the deadly virus could also be affected by it, the paper adds. Suffering caused by the possible death of loved ones, as well as the effects of isolation and loneliness, may lead to deteriorating mental health conditions. This also takes its toll on the economy, which could lose approximately $1.6 trillion due to mental health impairment, according to the research.
While most studies assess the costs of the deadly virus by its impact on the national gross domestic product (GDP), a paper published in the Journal of the American Medical Association earlier this week offered a different approach.
The authors of the study – former Treasury Secretary Lawrence Summers and Harvard University economist David Cutler – also took into account losses associated with those who have died due to the virus, in addition to the purely economic costs.
With the number of coronavirus infections in the U.S. nearing eight million and deaths surpassing 215,000, the researchers believe that the outbreak may result in an estimated 625,000 cumulative deaths in the country through next year. Given the theoretical "conservative value of $7 million per life,” premature deaths linked to the coronavirus could wipe out nearly $4.4 trillion, according to their calculations.
The virus is believed to have long-term effects on health, especially for survivors with severe or critical disease. As those complications lead to increased risk of premature death, they also have far-reaching consequences for the entire economy, with losses amounting to another $2.6 trillion for cases forecast through the next year, the authors noted.
Even those who did not contact the deadly virus could also be affected by it, the paper adds. Suffering caused by the possible death of loved ones, as well as the effects of isolation and loneliness, may lead to deteriorating mental health conditions. This also takes its toll on the economy, which could lose approximately $1.6 trillion due to mental health impairment, according to the research.