• Tag Archives covid19
  • Why Sweden Succeeded in “Flattening the Curve” and New York Failed

    Coronavirus deaths have slowed to a crawl* in Sweden.

    But the debate over Sweden’s approach to the COVID-19 pandemic, which relied on individual responsibility instead of government coercion to maintain social distancing, is far from over.

    Last week, The New York Times labeled Sweden’s approach to the pandemic a “cautionary tale” for the rest of the world, claiming it “yielded a surge of deaths without sparing its economy from damage.”

    To be accurate, Sweden has outperformed many nations around the world with its “lighter touch” approach and was one of the few nations in Europe to see its economy grow in the first quarter of 2020.

    Meanwhile, Anders Tegnell, Sweden’s top infectious disease expert, continues to defend his nation’s approach to the pandemic.

    “I’m looking forward to a more serious evaluation of our work than has been made so far,” Tegnell said in a recent podcast published by Swedish public radio before taking a scheduled vacation. “There is no way of knowing how this ends.”

    Sweden’s Actual Pandemic Performance

    Sweden has become a global lightning rod, but this has less to do with the results of its policies than the nature of its policies.

    While Sweden’s death toll is indeed substantially higher than neighbors such as Finland, Norway, and Denmark, it’s also much lower than several other European neighbors such as Belgium, the United Kingdom, Italy, and Spain.

    Indeed, a simple comparison between Belgium and Sweden—nations with rather similar populations—reveals that Belgium suffered far worse than Sweden from the coronavirus.

    The reason Sweden is a “cautionary tale” and Belgium is not is because Belgium followed the script. Early in the pandemic, Belgian officials closed all non-essential business and enforced strict social distancing rules.

    All non-emergency workers were told to stay home. Shopping was limited to a single family member. Individuals could leave for medical reasons or to walk a pet or get a brief bit of exercise—so long as social distancing was maintained.

    These lockdown protocols, the BBC reported, were strictly enforced by Belgian police using “drones in parks and fines for anyone breaking social distancing rules.”

    A More Suitable ‘Cautionary Tale’

    Sweden clearly endured the pandemic better than Belgium, which had nearly twice as many COVID-19 deaths despite its economic lockdown.

    Yet the Times chose Sweden as its “cautionary tale” because Sweden chose not to institute an economic lockdown. Sweden took such an approach for two reasons. First, as Tegnell has publicly stated, there is little to no scientific evidence that lockdowns work. Second, as evidence today shows, lockdowns come with widespread unintended consequences: mass unemployment, recession, social unrest, psychological deterioration, suicides, and drug overdoses.

    Even if Sweden has seen its death toll rise more sharply than Scandinavian neighbors such as Finland and Norway, it’s strange that the Times would go thousands of miles across an ocean and continent to find a “cautionary tale.” A far better cautionary tale can be found right under the Grey Lady’s nose.

    A simple comparison between New York and Sweden shows the Empire State has suffered far worse from COVID-19 than the Swedes. Yinon Weiss, an entrepreneur and founder of Rally Point, recently compared Sweden and New York using data from the COVID Tracking Project.

    The first thing one notices about the comparison is that Sweden was able to “flatten the curve,” so to speak. Though the phrase is largely forgotten today, flattening the curve was originally the entire purpose of the lockdowns. To the extent that there was a scientific basis for lockdowns, it was in the idea that they were a temporary measure designed to help hospitals avoid being overwhelmed by sick patients.

    Dr Robert Katz, founding director of the Yale‐Griffin Prevention Research Center, observed that by flattening the curve “you don’t prevent deaths, you just change the dates.” But a temporary lockdown could at least prevent everyone from getting sick at once, which would be catastrophic.

    If flattening the curve was the primary goal of policymakers, Sweden was largely a success. New York, on the other hand, was not, despite widespread closures and strict enforcement of social distancing policies.

    The reason New York failed and Sweden succeeded probably has relatively little to do with the fact that bars and restaurants were open in Sweden. Or that New York’s schools were closed while Sweden’s were open. As Weiss explains, the difference probably isn’t related to lockdowns at all. It probably has much more to do with the fact that New York failed to protect the most at-risk populations: the elderly and infirm.

    “Here’s the good news: You can shut down businesses or keep them open. Close schools or stay in session. Wear masks or not,” says Weiss, a graduate of Harvard Business School. “The virus will make its way through in either case, and if we protect the elderly then deaths will be spared.”

    This is precisely the prescription Dr. John Ioannidis, a Stanford University epidemiologist and one of the most cited scientists in the world, has advocated since the beginning of the COVID-19 pandemic.

    Like Tegnell, Ioannidis early on expressed doubts about the effectiveness of lockdowns and warned they could produce wide-ranging unintended outcomes.

    “One of the bottom lines is that we don’t know how long social distancing measures and lockdowns can be maintained without major consequences to the economy, society, and mental health,” Ioannidis wrote in a STAT article in March. “Unpredictable evolutions may ensue, including financial crisis, unrest, civil strife, war, and a meltdown of the social fabric.”

    Sadly, many of the adverse consequences Ioannidis predicted have since come to pass, as he has acknowledged.

    Is Sweden Truly a ‘Cautionary Tale’?

    Tegnell and Swedish leaders have mostly stood by their lighter touch approach, although there is a recognition that they, too, could have more effectively protected at-risk populations.

    “We must admit that the part that deals with elderly care, in terms of the spread of infection, has not worked. It is obvious. We have too many elderly people who have passed away,” Sweden’s Prime Minister Stefan Löfven said in June.

    Yet it’s a mistake to label Sweden’s approach a failure. As noted above, Sweden is being criticized less because of the results of their public health policies and more because of the nature of them.

    By embracing a much more market-based approach to the pandemic in lieu of a centrally planned one, Sweden is undermining the narrative that millions and millions of people would have died without lockdowns, as modelers predicted.

    Without Sweden and a few similar outliers, it would be far easier for central planners to say, Sure, lockdowns were harsh and destructive. But we had no choice.

    In the wake of the most destructive pandemic in a century, there will be considerable discussion as to whether the lockdowns, which stand to trigger a global depression in addition to other psychological and social costs, were truly necessary.

    In a sense, the disagreement over the pandemic largely resembles a much larger friction in society: should individuals be left free to pursue their own interests and weigh risks themselves or should they be guided, coerced, and protected by planners who want to do all this for them.

    As Ludwig Von Mises noted long ago, modern social conflict is largely a struggle over who gets to design the world, individuals or authorities. Mises saw few things more dangerous than central planners seeking to supplant the plans of individuals with plans of their own, which they see as a preeminent good.

    It was partly for this reason Mises saw market economies as superior to command economies.

    “Whatever people do in the market economy, is the execution of their own plans. In this sense every human action means planning,” Mises wrote in Socialism: An Economic and Sociological Analysis. “What those calling themselves planners advocate is not the substitution of planned action for letting things go. It is the substitution of the planner’s own plan for the plans of his fellow-men. The planner is a potential dictator who wants to deprive all other people of the power to plan and act according to their own plans. He aims at one thing only: the exclusive absolute pre-eminence of his own plan.”

    When Mises speaks of the “pre-eminence of his own plan,” it’s hard not to think of New York Gov. Andrew Cuomo, who in March sounded downright indignant when a reporter asked about nursing homes objecting to his plan of prohibiting them from screening for COVID-19.

    “They don’t have the right to object,” Cuomo answered. “That is the rule, and that is the regulation, and they have to comply with it.”

    Cuomo clearly saw his central plan as superior to that of individuals acting within the marketplace.

    The policy of forcing nursing homes to take COVID carrying patients, which was adopted by numerous US states with high virus death tolls, is a stark contrast to Sweden’s market-based approach that trusted individuals to plan for themselves.

    “Our measures are all based on individuals taking responsibility, and that is … an important part of the Swedish model,” Hakan Samuelsson, the CEO of Volvo Cars, observed in April.

    Sweden’s approach of encouraging social distancing by giving responsibility to individuals may very well explain why the Swedes fared so much better than New York, where authorities disempowered individual actors and prevented nursing homes from taking sensible precautions.

    It’s almost absurd to look at New York’s pandemic plan and declare it superior to Sweden’s, yet many in the intellectual class will continue to hammer away at Sweden while ignoring the catastrophic numbers in New York, New Jersey, Massachusetts, and other states.

    This likely would have been no surprise to Mises. As he pointed out, the central planner is primarily concerned with a single factor: the pre-eminence of his own plan.

    Once this truth is understood, one can finally understand the drumbeat of criticism against Sweden.

    *This article was updated to remove language specific to daily COVID death total in Sweden, since figures change daily. 


    Jon Miltimore

    Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.

    Bylines: The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.

    This article was originally published on FEE.org. Read the original article.


  • Yes, There Are Tradeoffs between Disease Prevention and Economic Destruction

    The COVID-19 pandemic has really highlighted how differently economists and noneconomists think. All over the world, variations of the same discussion have taken place over the last week or so. It goes as follows. An economist discusses the cost of the governmental responses to the pandemic and is quickly met with accusations of cynically trying to “put a price on a life.” The economist camp tries to explain its reasoning while the noneconomist camp is horrified that anyone would “let old people die to protect the rich” or “prioritize economy over health.”

    What is really going on here is that economists and noneconomists have vastly different mindsets. Economists are constantly thinking in tradeoffs. It is second nature. It lies at the very core of economics. All of the problems economists attempt to solve involve various possible choices and finding the most optimal one.

    This is based on the understanding that we live in a world of scarcity. All means are scarce, so allocating them to serve certain ends must necessarily leave other ends unsatisfied. Economists attempt to ensure that scarce resources are used efficiently. This is not as simple as putting two numbers on a piece of paper and choosing the largest one. All choices happen under uncertainty. We do not have full knowledge, and as such there is always the possibility of making the wrong choice.

    The concept of opportunity costs is one of the first things budding economists are taught. The benefit of every action should be weighed against the missed benefit of the action not taken. Opportunity costs are by definition unseen and thus can be easily overlooked.

    Notice that the concept of priorities has deliberately not been introduced so far. Economists and noneconomists alike are generally looking for the choices that will bring the highest amount of human well-being, now and in the future. In this case, economists are questioning whether the extensive actions taken by governments to limit the spread of COVID-19 are hurting the economy too much.

    Now this is not because the economists are worried about the bank accounts of the richest people in the world, but because economic depressions carry a plethora of bad effects and limit our future options. It is well established that economic depressions lead to more stress-related deaths and suicides. But utilizing our scarce resources to battle COVID-19 at all costs, thus sacrificing our economic well-being and limiting our future growth, also means that we will be relatively poorer in the future and may then be unable to save as many lives then as in an alternative scenario where we do not use such drastic measures against the pandemic.

    This basically equates to a trolley problem, the ethical thought experiment in which a runaway train is about to run over five people. The only way to save them is to actively divert the train to a sidetrack, killing another person in the progress. This, of course, represents a clash between utilitarianism and deontology such as Kantianism.

    It seems that noneconomists, met with discussions about the tradeoffs of the COVID-19 response, unwittingly refuse to acknowledge the limitations of the trolley problem. “We should save everyone—today and tomorrow!” But just as we cannot make the trolley fly and avoid either proposed outcome, we cannot at the same time commit all of our means to multiple ends. There simply has to be a tradeoff. It is no less of a law of nature than gravity.

    What many economists these days are imploring is that the decision-makers remember this and do not blindly push all the chips to the middle of the COVID-19 table, with no concern for other valued ends. If they evaluate the benefit of the current efforts and find that they do indeed outweigh the cost, including the unseen opportunity cost, then great! Sharing the analysis with the public will most likely help convince the skeptics that the current course is the right one.

    To conclude: no, economists are not cynical bastards who are so blindly obsessed with the stock market that they do not care whether your grandmother dies. They, like everybody else, want to maximize human well-being. In general, when met with an opinion that seems crazy, there are two options: try to understand the argument or assume that the other person is stupid and/or evil. These days, too many people are choosing the latter.

    Claus Wiemann Frølund


    Claus Wiemann Frølund

    Claus W. Frølund is Assistant Professor of Entrepreneurship and Innovation at the University of South-Eastern Norway. He was educated at Copenhagen Business School. Discovering Austrian Economics was nothing short of a revelation for him, as it helped make sense of a lot of his beliefs, many of which are far from mainstream in Scandinavia.

    This article was originally published on FEE.org. Read the original article.


  • Why Taiwan Hasn’t Shut Down Its Economy

    As the Austrian school of economics demonstrates in the calculation theory of socialism, no central planning body has the capacity to organize society based on coercive mandates. The main reason is that the central planner is unable to obtain all the necessary information to organize society in this way, as information has subjective, creative, dispersed, and tacit qualities. This principle is fully applicable to the containment of a pandemic. Individual responsibility along with transparency of information are crucial to stopping a pandemic. Taiwan makes a very good case for how individualism and voluntary cooperation work effectively in resisting the coronavirus pandemic.

    At the moment in Taiwan, the infection has been completely contained despite being one of the countries with the highest risk of suffering a pandemic, given that the Republic of China (ROC) is very close to the Chinese mainland (the People’s Republic of China (PRC)). Until January there were flights between Taiwan’s capital, Taipei, and the epicenter of Wuhan, China. However, as of March 21 there were only 153 infected at the same time that Europe, far away from the Chinese mainland, has more than ten thousand affected by the coronavirus. However, in Taiwan and other parts of Asia, including Singapore and Hong Kong, no massive mandatory quarantine or containment has been applied so far.

    How did Taiwan achieve this?

    The first cause of Taiwan’s success is the transparency of information, which stopped the rapid growth of infection. The containment in Taiwan has been carried out with relatively high transparency. As early as December 31 of last year the Ministry of Health and Welfare of Taiwan began to take serious the potential danger of the Wuhan pneumonia, informing citizens every day about the developing trends of the infection and its status. The information provided by the Taiwanese authority also includes whether the infected in Taiwan contracted the illness from overseas input, which helps people take measures to protect themselves in a timely manner. In the constant press conferences, the Taiwanese government provides different options and recommendation that people can choose to adopt voluntarily but are not imposed coercively. The abundant information provided continuously has allowed individuals to make their own informed and balanced decisions under conditions of uncertainty. In contrast, the governments of the European Union countries reacted slowly and as late as February did not provide sufficient information about the potential pandemic, making the situation difficult to handle.

    The type of quarantines established by the Taiwanese government are mostly self-quarantines. The Taiwanese government acknowledges that it is crucial to rely on people’s voluntary actions to resist the pandemic. As we have noted above, most cases of contagion in Taiwan come from outside and are almost always detected at the border.Taiwanese people’s voluntary self-protection is effectively suppressing the spread of the coronavirus in their country, and forced quarantines are usually for the most serious cases, for example, the infected Taiwanese evacuated from the Chinese mainland.

    One of the problems with the coronavirus has been maintaining a balance between economic activity and containing the infection. In this regard, different from what the southern European countries such as Italy and Spain do, the Taiwanese government’s policy is not to take preventive measures to stop the outbreak by impeding economic activities. Taking the schools as an example, the beginning of the course was delayed for two weeks at first. Currently schools’ policy is to take students, teachers, and workers’ temperaturesIf fevers are detected, classes in that school are suspended, but massive class suspensions do not occur. At the same time, online teaching is being encouraged, but is not being forced by the government. In many Taiwanese universities, online teaching is being promoted in order to let those who are not able to attend class in person to take courses. Although it is true that online education as a way to avoid infections has already been adopted in other countries, the peculiarity of Taiwan lies in the fact that it has not been imposed by government order. Not everyone is required to study online or telecommute, but there has been strong encouragement to do so. The government’s transparency of information has also given the Taiwanese enterprises the time they need to voluntarily prepare and adopt teleworking progressively. Other countries instead suddenly shut many businesses down through mandatory government orders, as Spain did on March 13, without giving enterprises and their workers time to prepare for quarantine.

    The Taiwanese government is controlling the spread of the infection with flexible policies, which leave much room for individuals to take initiative and make their own decisions. Each individual can take the most appropriate measures for their own situation, having their own incentives to be cautious. Likewise, the fact that the Taiwanese citizens have been warned since the beginning of the infection has created a generalized awareness to make the necessary preparations and has given citizens enough time to assume that they must make changes in their lives in order to avoid being infected.

    This flexibility in containment and transparency policies has led to a high degree of individual responsibility. Proof of this is not only in the population’s tendency to wear masks that the Taiwanese population, which can be observed in any means of communication, but also in the adoption of new ways of continuing daily activities so as to avoid contagion. Private sectors have also taken quick actions to protect their clients. Most residential buildings have at least one ethyl alcohol dispenser so that everyone who enters can disinfect his or her hands. For example, ethyl alcohol has been available in Uber cars for several weeks.

    To conclude, with transparency and diligence the Taiwanese government has avoided many problems. The key is that the Taiwanese government and the Taiwanese people understand that the individual’s own responsibility and actions are essential to suppressing the coronavirus pandemic, not a mandatory massive shutdown. This is what the world needs to learn.

    This article was reprinted from the Mises Institute. 


    Javier Caramés Sanchez

    Javier Caramés Sanchez is a PhD candidate in Chinese Literature at the National Taiwan University and a Spanish language teacher who lived in Taiwan for more than seven years. He received one master’s degree in Classical Philology at Salamanca University, Spain, and another one in Chinese Literature at National Taiwan University. He also taught courses at Tamkang University and National Taiwan University in Taiwan and at IE University in Spain.

    This article was originally published on FEE.org. Read the original article.