Say Pandemic response preparation costs $10 billion a year, and the event occurs every hundred years. That means the total cost is $1T over 100 years.
Has the Pandemic caused more than $1T of damage to the United States? We've spent more than $1T just on the government bailout, which doesn't even come close to covering the damage to individuals and the economy as a whole. I'd say it easily exceeds $1T. Far more was spent on the Iraq war than on Covid preparation, yet the latter would have paid massive returns.
Frankly, pandemic response would be a rounding error compared to the defense budget. Even $2B a year in pandemic preparation might have saved us. That's only $200B per hundred years, far less than Covid has cost the US this year.
No. The direct cost at $10 billion a year might be $1T over 100 years. The opportunity cost, which is what I was talking about, is not $1T.
If you want to factor in opportunity cost you have to think of it like compound interest. $10 billion invested today could have a $1T payoff on its own over 100 years.
Inflation alone would make $10 billion in 1920 worth $128 billion today. And inflation doesn't account for any efficiency increases you can gain over time if you had invested the money otherwise.
Say Pandemic response preparation costs $10 billion a year, and the event occurs every hundred years. That means the total cost is $1T over 100 years.
Has the Pandemic caused more than $1T of damage to the United States? We've spent more than $1T just on the government bailout, which doesn't even come close to covering the damage to individuals and the economy as a whole. I'd say it easily exceeds $1T. Far more was spent on the Iraq war than on Covid preparation, yet the latter would have paid massive returns.
Frankly, pandemic response would be a rounding error compared to the defense budget. Even $2B a year in pandemic preparation might have saved us. That's only $200B per hundred years, far less than Covid has cost the US this year.