We know that rational people compare marginal costs and marginal benefits when they make decisions. So does our government. Here is an interesting Planet Money podcast about the costs and benefits of shutting down the economy to fight Covid-19. This was a big decision in US back in March of last year. Fortunately the vaccine is here but it is a monumental task to vaccinate everyone to reach herd immunity. With each new wave infections, each country had to adjust its response based on the level of risk. Each time it is a very tough decision with difficult trade-offs. Each time costs and benefits need to be weighed carefully as described in the podcast. When you listen, pay attention to the challenging economic tasks of assigning a dollar value to a human life.

“Episode 991: Lives Vs. The Economy” by Sarah Gonzalez and Kenny Malone, Planet Money, April 15, 2020. (Links to an external site.)

https://www.npr.org/2020/04/15/835571843/episode-991-lives-vs-the-economy
For transcript, click on the top right button on the blue title stripe.

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