It’s easy to look at the coronavirus as a one of a kind. After all, who expected this cataclysm that came from nowhere? How could anyone have predicted it?
In fact the world is full of low-probability events that you have to care about. The coronavirus is on a par with airplane crashes and oil-rig explosions. Capitalism is not good at dealing with any of them.
There’s a myth about that sort of thing. Of course we don’t need airline or aircraft regulation, because the companies in question know what a disaster would mean and will take care that such things don’t happen. That’s a nice story, but it’s false. People don’t get promoted because of events that didn’t happen. They do get promoted by saving money wasted on something that’s never going to occur.
If you’re going to stop that sort of thing from happening, you need a different mindset. Government has to spend money on regulation and public health and safe, comprehensive infrastructure. No one else is going to do it. We now know unequivocally that we decided we didn’t have to care about the CDC. It has come back to haunt us. There’s more where that came from.
In fact there’s a whole bunch of other things we’ve decided we don’t have to care about. After all, “I don’t have to care” has been the liberating elixir of our age. Many of these we’ve talked about before, but it’s worth recalling some here:
– Avoiding a depression (clearly relevant now)
– Losing our edge in science and technology
We’ve washed our hands of all of this, blithely punting to a private sector that is no more prepared than for the coronavirus.
The message from the coronavirus is that bad things really can happen, no matter how much we may want to avoid thinking about them.
The coronavirus is the canary in the mine. We’ll get over it somehow, but we’ve had our warning.