Coronavirus

Covid quandry: How do we know which policies have been or will be successful?

April 17, 2020

One does not have to spend a lot of time on political Twitter or following the latest in punditry or among one’s engaged “friends” on Facebook to see that many if not most such people have precisely identified which politicians and which pandemic policy responses and omissions have been catastrophic failures or glorious successes. If you consort with “both sides” and read pundits with whom you rarely agree, you know it when you see it. There has been so much of this that it makes no sense to link examples.

Our own view is that it will be some time — probably after the United States presidential election, unfortunately — before we will know which policies will have worked at an acceptable cost, and which will have worked, or failed, at “too high” a cost. But as early studies do emerge, there will be a meta-struggle, mostly promoted by partisans seeking narrative dominance, about the best way way to measure relative success, failure, and cost.

Herewith, we propose a few measures of ultimate success or failure.

Ultimately, we will know three things in each applicable jurisdiction (itself a hot topic, of which a bit more below): (1) excess deaths (whether from the virus or the stress of the economy and confinement or from local collapse of the healthcare system) over the baseline experience, (2) excess morbidity and mental health problems, and (3) the decline in the jurisdiction’s GDP per capita against the baseline. Those three things in a given country or state will be the indicators of success or failure.

Now, there will be many arguments to be had in that big partisan quarrel to dominate the narrative. How to compare jurisdictions? How to weigh the value of excess lives lost vs. non-lethal physical and mental health and social problems vs. GDP? (And if you are one of those shallow thinkers who recoil with disgust at the idea that we would measure lives in dollars, please go read some other moron’s blog.) How to attribute the effects of public policy to overlapping jurisdiction in a federal system? How much credit should be given to cultural propensity to follow the direction of governmental, business, and social leaders? What was the role of private sector responses and innovation, and should political leaders get the credit for it?

Regarding jurisdictions, we’ve noticed that people who truly hate President Trump without fail want to compare the policy and social responses in the United States, as a whole, to Singapore, Taiwan, South Korea, Iceland and — if the milk of intellectual honesty compels the concession — Germany. Expect Republicans to compare red states with blue states, or the outcomes for Republican governors compared to Democrats (knowing full well that Republican governors preside over more wide open spaces), or New York State to Lombardy. All such comparisons would be — how you say? — rubbish. Or, if you prefer fruity metaphors, “apples to oranges.”

Having dabbled a bit in social science and having, er, gleaned more than enough from an erstwhile mother-in-law who was a professor of sociology, we say with at least the usual blogger’s expertise that the accepted method would be to identify “paired” jurisdictions with similar known parameters that turn out to matter. Competent social scientists can and will identify pairings among relevantly similar states and between countries to measure the effectiveness of policy responses. Suppose (for the sake of argument) it turns out that the attributes in a jurisdiction most closely correlated with excess mortality are average or median age, poverty, obesity, and density of the population in proximity to heavy travel flows from Europe and China. It might be silly to compare New York and Texas, but it might make sense to compare Florida and Texas. It might be pointless to compare Iowa and Illinois avec Chicago, but it might make sense to compare Iowa with Illinois excluding Chicago and the “collar counties.” Or Minnesota and Wisconsin or the Dakotas with each other. You get the point.

As for the rest of our questions and the many more we have not considered, file them away so you can detect partisan nonsense from actual scholarship in the months to come.

Coronavirus Yellow Journalism

Could we please use the word “rate” correctly?

April 17, 2020

In these parlous times, the media would do well to use words correctly, especially when incorrect usage is alarmist rather than calming. Since, you know, there is a bit of a surplus of alarmism just now.

This has been especially true, it seems to us, of the word “rate,” which is best understood as “rate of change” but which is often used to describe “increase in absolute quantity.” See, for example, this bit of click-baiting that popped up in our inbox moments ago:

Hashtag and bubble added.

A quick examination of the “trends” tab at the Texas Covid-19 dashboard shows rather clearly that the rates of change of both infection and death — the point of the sub-headline — are actually declining. Yeah, sure, the absolute numbers are increasing and will for a while, but the rates of change are in evident decline. The words “rates” and “increase” need to maintain social distance for the headline to be even remotely true.

So, basically, the headline writer is either lying, presumably to bait clicks, or doesn’t understand rate of change. Given the constant public discussion about “flattening the curve” it seems a little late in this cataclysm for the latter to be true.

While we are often pedantic — more, certainly than is healthy for us — this is an important substantive point. If the journalism class wants to recover even a bit of its squandered prestige and bolster its now laughable claim that it performs an essential social function, it needs to start using words carefully to communicate rather than to stoke rage and fear.

Coronavirus

When our leaders aren’t serious

March 26, 2020

This tweet, which has been passed around a bit in certain circles, reminds us that politicians will be politicians:

There has been a lot of attention directed to Nancy Pelosi’s gambit this week, which aimed at grabbing all the social change territory she could get while the getting was good. Most of her proposals were not to our tastes, but neither would we have handled things as the Republicans have done. Our proposal for economic crisis intervention is sharply targeted to the problem that needs to be solved, rather than rank pandering to constituents who are not nearly serious enough.

Here in Texas, the politicians have been doing the same thing. Since the milk of intellectual honesty flows through our veins, we’ll start with the right, which decided that the pandemic was the perfect moment to make a gratuitous anti-abortion gesture:

Texas Attorney General Ken Paxton on Monday issued the clarification of Governor Greg Abbot’s earlier mandate on non-essential medical procedures.

A statement from Mr Paxton’s office said “no one is exempt from the governor’s executive order on medically unnecessary surgeries and procedures, including abortion providers”, according to the Texas Tribune.

It noted any providers in violation of the order – which expires 21 April – could be fined $1,000 (£853) or jailed for a maximum of 180 days.

Yeah, because the trivial number of abortion clinics in the state are going to be oh so critical to the coronavirus fight.

What a maroon.

Naturally, Paxton’s interpretation got him all the attention that he wished it would, and it drew the required lawsuit in response.

One need not be pro-choice to see that Paxton, by grandstanding on a wholly unrelated issue in the middle of this crisis, is just not being serious.

Here in Blueberry Town, we have seen a similar sort of gesture from the left, although carried off with the liberal’s usual flair for sneaky legalisms. Two days ago, Austin’s Mayor Stephen Adler (who, it should be said, has generally been ahead of most other cities by a couple of days, probably to Austin’s benefit) issued a “Shelter in Place” order, the text of which is here. By and large it works like other cities in Texas, with one big exception: It bans all construction work, except insofar as it relates to “Critical Infracture,” which is defined as follows:

[a. … o.]

Wait. What?

The backdrop, of course, is that the activists on the Austin City Council hate all the luxury housing going up (even as they use it as an excuse to massively jack taxes), but they have been pushing for one or another wholly counterproductive measure to promote “affordable housing,” and massive government spending on “affordable housing,” for years.

What better opportunity than a global pandemic and economic crisis to shut down housing construction in Austin, except “affordable housing”? Are we actually expected to believe that masked and gloved construction dudes working outside on a tear down in Old West Austin pose a greater risk to the public than Team Affordable Housing?

Again, not serious.

We admit to having generally regarded politicians as narcissistic authoritarians whose purpose in life is to boss other people around in the service of some imagined better world. We very much wish that in the current moment, when we actually need our government, they discredited our prejudices rather than confirming them.

Beautiful Austin

Narrative pivot: Austin breaks a heat record, no mention of climate change!

March 24, 2020

So, today Austin shattered the all time high temperature for March 24. We are amused, mordantly so, but nevertheless, that the Austin Statesman’s coverage of the new temperature record did not include a single mention of climate change. Neither did weather.com’s story predicting the record.

Even reporters and editors hope that a string of 90 degree sunny days burns down the Communist virus. Wish us luck.

Coronavirus

Disaster in New York does not require the same policy everywhere

March 22, 2020

As of approximately 4 pm CDT this afternoon, Italy has the highest confirmed per capita infection rate of any substantial country. There are 978 Italians confirmed with COVID-19 for every million people. Switzerland is not far behind, at 864 per million. There are a few micro states, the largest of which is Iceland (which has a smaller population than greater Des Moines), that have higher per capita rates, but the microstates have such low denominators that they are not very useful yardsticks.

New York State has a whopping 810 cases per million residents, closing in on both Italy and Switzerland fast. And the vast majority of those cases are concentrated in the City and nearby commuter counties. Franklin County, in the Adirondacks (and where your Editor has been known to spend some time) has not yet had a single confirmed case.

By contrast, the other 49 states combined, including such hot zones as Washington and California, are at 54 cases per million residents. That puts the per million infection rate in the “other 49” just between Australia and North Macedeonia. Or China, if you care to believe Commie numbers. Which we don’t.

One question, of course, is whether the rest of the country is just “behind” New York by a few days, or whether there are important differences that should inform policy. We suspect some of both is true. Yes, New York is the land of stainless steel subway poles, where the virus once deposited will linger a particularly long time, cheek-by-jowl restaurant tables, and terribly crowded sidewalks. But New York is also testing heaving masses of people, so it may be revealing its own infections more completely than other states that will soon catch up in the world’s most dubious league table.

Regardless, the vast difference in the apparent rate of infection between downstate New York and the rest of the country (and the considerable differences among the remaining 49 states) suggests that we need not apply precisely the same policies in every jurisdiction. Even in New York State, we do not understand the logic, beyond mere political calculus, for imposing the same burdens on the already poor towns of the Adirondacks as are the bare minimum, if that, in the boroughs.

We are doing enough damage to the economy as it is without doing more than is necessary by treating everywhere, even everywhere in New York State, as if it were the Times Square subway station. Poverty kills as surely as Covid-19, and it may be the one thing we are producing as fast as virus particles.

Fearless state and local leaders, please use a scalpel, not a hacksaw, even if the Manhattan-headquartered national media demands a universal, maximum response everywhere.

Coronavirus

A handy list of Covid-19 drugs in development

March 20, 2020

Courtesy of a JP Morgan analytical report, see below for a fair use reproduction of a table of therapeutics in development that might attack some or another aspect of the Covid-19 problem. Note that these drugs fall in to three broad categories: Vaccines, direct viral inhibitors, and immunomodulators. In rough terms, vaccines provoke your body to develop anti-bodies to the disease, direct viral inhibitors go after the virus directly, and immunomodulators tune your immune system to go after the virus.

In case you haven’t picked it up elsewhere, vaccines take a long time to develop because they are designed to be administered in massive numbers to theoretically healthy populations. If a vaccine is a little bit harmful to a small percentage of people it can still hurt a lot of people, and in most circumstances that vitiates the benefit. Therefore, the received wisdom and regulatory framework require that vaccines be studied in large clinical trials over a relatively long period of time.

Therapeutics are a different animal. Because we use them to treat people who already have the disease, in rough terms they only need to be less harmful than the disease. That is a much lower bar to prove in the clinic, requiring far fewer patients and much less time.

Of course, we might in the end conclude we were willing to take bigger risks with a Covid-19 vaccine than usual, because of the broader public health and economic consequences of prolonging the pandemic. Stay tuned.

Coronavirus Freedom ain't free

A few thoughts on economic assistance and bailouts in the Covid-19 era

March 18, 2020

Our federal government needs more imagination in the crafting of legislation and regulation to protect the citizenry and the economy, and both parties need to give up on their cranky ideological preferences. The bill that passed earlier today leverages employers with new unsustainable obligations (for which they get tax relief) — this being an old trick of the progressives going way back — rather than focusing directly on the critical issue, which is providing relief to people who voluntarily or otherwise lose their incomes in the fight against the novel coronavirus.

So what do people need? Housing, basic utilities, and food for the next two or at most three months.

Why “at most three”? Because we will not, as a society, tolerate the confinement of the current period for longer than that time. Something will give, and it may just be writing off their grandmother or Willie Nelson. That, however, is a different post for a different day. Suffice it to say that we cannot shut down the country for 18 months, even if it is wise to do for two or three (as we believe). Please take that as our assumption for the purposes of this post, even if you do not agree with it.

Our “just-spitballing” proposal to provide people with these means does not burden employers, at least not directly. Rather, we propose putting the burdens on landlords, mortgagees, and utilities, and backstopping them with tax subsidies.

Our proposal for housing:

  • A sixty (60) day moratorium on the payment of residential or business rent by any individual or pass-through entity with less than $2,000,000 in annual revenue (which would cover most local restaurants and other truly small businesses).
  • The foregone rent would be a fully deductible expense against ordinary income for the landlord. In other words, the federal government would pick up roughly a third of the foregone rent, and the landlords would eat the balance. (We are a landlord, so we are putting our money where our mouth is on this one. We believe most landlords could give up the equivalent of 40 days of rent, which is about 11% of the year, in the nation’s service. In rough terms, it would mean giving up all their returns for the year, but not damaging their equity.)
  • All mortgage payments would be suspended for 60 days. Mortgagees (including the trustees of pooled mortgage-backed securities) would be required to recalculate the amortization of such mortgages starting in the third month after the suspension. Given that interest rates are virtually zero, rendering the cost of capital virtually zero, this should be a reasonable sacrifice for mortgagees to make. After all, they made the existing mortgage loans assuming rates would be much higher than they are, so giving up a couple of months of interest is largely just giving back a windfall.

That deals with housing expenses in the next 60 days with no disruption of long-established employment arrangements.

What about utilities (by which we mean electricity, gas or oil for heating, water, and basic internet for your phone, which is now a virtual necessity)?

  • The nation’s electrical utilities should provide electricity for the next sixty days for free. The government should pick up 75% of the lost revenue for the year, less the regulated rate of return. We use about 4 trillion kilowatt hours in the United States per year at an average cost of $0.132 per. Call it $88 billion for two months of free electricity, split 75/25. Chump change. The shareholders of the utilities should pick up the balance, because shared national sacrifice is part of fighting this pandemic.
  • The heating bill is going to fall rapidly in the next two months, because spring is coming and oil and gas are dirt cheap, but let’s go for the same 75/25 split between the government and the shareholders of the providers. Small local purveyors of heating oil get a deduction on their taxes for their share just like the landlords.
  • The federal government should pay all household water bills, subject to a cap, for two months. Just what a family needs for cooking, cleaning, laundry, and so forth. Lawns and your pool are a luxury, not the taxpayers’ problem.
  • Order every cell phone provider to give every subscriber a 50% reduction in their contracted cell phone bill for the month, and pay them for it. (The aggregate wireless revenue in the United States is about $180 billion per year, or $15 billion per month. Half of that for two months is $15 billion. Again, chump change.)

That pretty much deals with the utilities, again no major upending of employer-employee relationship. Are you still with me?

For food, send every adult with adjusted gross income last year under $150,000 a check for $300 per month for the next two months, and $300 per month for every minor child in residence. Is that enough? Sure, because it will only infrequently be the only money that a person has available to spend on food. Is it possible to live on that? Absolutely. Learn to love Ramen noodles, rice, beans, and Spam, which was basically my diet during law school.

What if this lasts more than 60 days? Well, it depends what this is. If this is the virtual shutting down of the American economy and enforced social distancing such that many businesses cannot operate, we do not believe it will be sustainable under any circumstances beyond 90 days. We will need and get a new plan. So make all of the foregoing extendable for 30 days by presidential fiat, after which we will need a Plan B regardless.

If, however, this is a merely shitty economy that persists for a few months, we know how to deal with that. We have done it many times before. No need to restructure the employment relationship or anything else in an atmosphere of crisis, the very worst time to enact these things.

As for bailouts, it needs to be said: The government should not lift a friggin’ finger to bail out the equity (stock) owners of public companies. We write this as somebody who has invested in public companies for more than 50 years. To bail out the common stockholders would be the worst sort of crony capitalism. What about our all-important airlines? Remember, they were delighted to go bankrupt during the 1980s to break their unions, and they still flew their planes. The airlines will fly, the only thing that will change is that their creditors will become their owners.

The same rationale can apply to virtually every other industry that is in particular pain, including hotels, cruise ship lines, casino companies, restaurant chains, and the like. The current stockholders will lose a lot if not all of their money, and the creditors will end up in charge.

There is nothing wrong with that. It happens during every national economic crisis. That is why stockholders get much higher returns than creditors during normal times, to compensate them for the risk that catastrophe strikes, as it does every 10-40 years, depending on the industry. It does not matter, as President Trump constantly says, that it is “nobody’s fault.” That is an intellectually dishonest rationale for the worst sort of crony capitalism.

Along these lines, the Congress should authorize a significant increase in the number of federal bankruptcy judges and the courthouse capacity to manage a much larger caseload, because we are going to need them very soon.

Finally, here is what we should absolutely not do, but your Editor fears that we will do: Concede major changes in the American system of capitalism to the left in order to save the equity of the current stockholders of public companies. Elizabeth Warren, for example, has proposed a laundry list of “reforms” to be imposed on “bailout” recipients that would, by and large, be very bad news for the long-term health of American capitalism. Any business corporation that accedes to or lobbies for Warren’s regulations in exchange for rescuing current stockholders, who already cut their deal for higher returns in order to bear this risk, is a traitor to the American future. There is no other way to say it.

Will President Trump protect the American future? Whether he does, or not, will be the measure of the man in history.

Coronavirus

Covid-19 and the crying of wolf

March 17, 2020

There is, or at least was, a school of thought in some circles that we — meaning virtually the entire global leadership — are overreacting to the novel coronavirus. We should all hope that this is so, and if the infection rate and death toll remains low we can anticipate a robust debate online shouting match between the Covid-19 “deniers” — to borrow a handy bit of opprobrium from the climate debate — and the believers in “science,” to misappropriate another. The deniers will say that our policy response was wasteful in the first place, and the, er, sciencists will counter that the policy response led to the successful outcome and that the heavy interventions saved lives.

That’s one pointless online food fight we sorely hope comes to pass.

In any case, the skeptic/denier predictions are not holding up in these still early days. Just two days ago, we saw this prediction from a conservative whose work we otherwise admire (the author is a friend of mine, so please be gentle):

Here’s what I think you’ll find if you track things for the next week. The number of cases will go up by 500-1000 cases per day for the next couple of days. Then the increase will start to decline. The number of deaths will also go up, but modestly. I suspect that by the end of this coming week the total number of cases will be around 6000, the total number of deaths 100-150. For context, so far this year, the total number of deaths from the common or non-Wuhan flu is about 14,000. (Bold emphasis added.)

At late afternoon today, far from the end of the week and only 2-3 days in to the forecast period, American cases were at 6137 6211, and we had already added discovered 1474 1548 cases today alone. Our guess — go ahead and consider it a stake in the ground — is that we will discover at least 2000 cases a day for the remaining four days in the week, and that we will have between 17,000 and 22,000 cases in the United States by the end of the day Saturday.

Most such skeptic/denier assertions — that the overreaction is the result of “media hype” rather than a genuine threat — lack my friend’s courage to make a numerical prediction, other than to compare the current Covid-19 casualties to those of seasonal flu. See examples here, here, here, and here. And, of course, President Trump at least postured a denialist stance until the last week or so.

We have been predicting a massive problem, far exceeding the seasonal flu, since the end of February, but we absolute understand skepticism. We — meaning all of us — have been warned about something like this for 25 years or more, sometimes in strident terms, without the scary predictions coming to pass. Most people can only take so much crying wolf.

Just remember how that fable ends.

Coronavirus

A little bit of Covid-19 math

March 16, 2020

Every time we fight our way through the comments to a Covid-19 storysomebody needs to do – there are more than a few that suggest that the American response is a media-fed frenzy not justified by the cases or casualties to date. There are indeed some otherwise very bright people who have written as much in just the last day.

Sigh.

If you are among those who do not accept that the stakes in the fight against the novel coronavirus are very high, the example of Italy really ought to persuade you otherwise.

Only three weeks ago, the first Italian died of Covid-19. Since then, at this writing, 2158 have, and the death rate is accelerating rapidly.

2158 dead Italians is the proportionate equivalent of 11,760 dead Americans.

In three weeks.

Annualized, assuming no acceleration from the average Italian Covid-19 death rate of the last three weeks (and we know it is accelerating rapidly), the equivalent in the United States would be 200,000 Covid-19 deaths, multiples of any normal flu season. And if it gets out of hand, it probably really gets out of hand. That is the rough basis for the CDC model you have seen that shows potential deaths north of a million Americans.

So, we definitely don’t want to turn out like Italy.

The good news is that our deaths are not, at least yet, rising as quickly as in Italy. Two weeks after Italy’s first death, 233 people had died (scroll through the link for the daily Graph o’ Death). Two weeks after our first death (eight days after Italy’s) we only had 57 deaths. We do not know the reason for the difference, but various learned pontificators have pointed out that Italy’s median age is seven years older, and its social circumstances are quite different, and maybe some of its hospitals are now being overwhelmed.

Those factors and more may explain the difference in the death rates.

Sadly, our trajectory in cases seemed very similar just five days ago. See below. Therefore, we Americans may have to rely on our lower Covid-19 death rate to keep our casualties in the thousands — like a seasonal flu — rather than in the hundreds of thousands.

We will learn soon whether the aggressive American response in the last few days is enough to bend the curve favorably. You are not going to win a lot of friends, though, arguing that the potential benefits are not worth the game.

And, in case it isn’t clear, if you do this you are a giant bag o’ douche who might possibly actually cause somebody else to die.