What Does Economics Have to Say About the COVID Vaccine?

American Thinker.com ^ | July 29, 2021 | Dennis L. Weisman

[Kaslin]

The protracted debate over the government’s role in combatting the spread of the COVID virus has become one of the more divisive issues of our time. Those on the right argue that the decision to wear a mask or be vaccinated should be left entirely up to the individual. Those on the left contend that mask mandates and required vaccinations are necessary to combat the spread of the virus regardless of the individual’s personal preferences; the greater good trumps individual freedom. Neither argument is dispositive, at least as a matter of economics.

It is instructive to conceive of the spread of the COVID virus in terms of a negative externality. An externality may be defined as an action taken by a consumer or producer that has external effects on other individuals that were not party to the decision to take that action. Externalities may be of a positive or negative genre. A flower garden that is aesthetically pleasing to my neighbors is an example of a positive externality. Excessively loud music that annoys my neighbors is an example of a negative externality. Government intervention in the economy is often justified on the basis of externalities wherein competitive market forces cannot be relied upon to produce efficient outcomes. Efficient outcomes require subsidies for actions that generate positive externalities and taxes for actions that generate negative externalities. This explains why in the case of the COVID virus punitive actions have been taken against individuals who refuse to wear masks and financial rewards and prizes have been used to increase vaccination rates.

[rarestia]

A sober, somber, but logical article. It’s not meant to placate any one group but to remind us that “the freedom to choose is not free.”

I work for a large company. I expect they will be mandating vaccines for employees. I’ve already had the very real conversation with my family that I may be unemployed in the near future, but my decision to abstain from vaccination is my own. I won’t make excuses or come up with reasons. I’m just saying, “no,” and if that means I have to pay a price for making that choice, then so be it.

[trebb]

The guy tried to sound rational but my take is he’s a socialism apologist as he accepts some of the moves against our freedom as rational, natural progression, givens.

[LS]

FYI, take a look at my analysis of recent productivity trends under the China Virus:

https://uncoverdc.com/2021/07/28/what-has-the-china-virus-done-to-productivity/

[trebb]

Yeah - those who say productivity is up are part of the plot - more places closing due to lack of workers and supply chain lags all over the place along with purposeful depletion of stock on hand in many businesses.