I'm not confusing anything. On the contrary you seem to be completely discounting the real negative effects, leaving entirely aside considerations of the share markets, that curtailing all international travel would have on economies. Effects which would arguably be so great that governments would have no hope of propping up all those who would otherwise become bankrupt. You seem to be blithely ignoring the inter-connectedness and fragility of the global economic system. — Janus
The explanation you propose of why you are not confused, is exactly the confusion I am talking about.
The economy, viewed as thing that keeps people alive, is not complicated. People need food, water, shelter, clothing and a list of things diminishing in difficulty to provide in a short term crisis.
Shutting down international travel simply doesn't have the crazy affects that you describe, especially temporarily. And all the negative affects, because it is temporary, can be easily dealt with by simply allowing the companies affected to temporarily lay off employees with the government paying unemployment through existing or new schemes. Without employees to pay, costs are very low to simply put a business on hold and whatever ongoing costs can't be avoided, could be just bailed out.
Such a travel freeze could have come into affect at first for a period of, say 3 weeks, time to come up with an effective containment strategy for the outbreak. Travel bans and strict quarantine measures would then be in place when travel resumes.
The current attitude is that "containment was never possible, so it wasn't a mistake not-to-try". This is wrong. Not only was containment possible full stop (as was achieved with Sars, Mers and ebola), effective containment could have radically slowed the spread of the virus globally.
Without simply stopping international travel, however, then yes, containment is impossible.
So, had travel been stopped, the cost of paying unemployment, bailing out airlines and tightly related industries, extending low-interest loans to severely affected industries, etc. is quite low. By having an effective containment strategy, international travel could then resume between countries with no cases. So a lot of the world gets back to normal with very little disruption to the business of the airlines.
More critically, entire sectors of domestic economies would not be essentially arrested simultaneously around the globe at the same time.
Italy has just implemented severe internal restrictions on gatherings, shopping, restaurants, etc. (what the news calls a quarantine but is not really a quarantine, just lot's of restrictions). The economic impact of this is extremely high.
For the sake of trying to keep things normal for airlines, these intense measures will be soon essentially global,, affecting all sectors simultaneously.
This is orders of magnitude (several orders of magnitude) higher economic damage and far harder to deal with than simply bailing out a few large airline and air-related companies (like airports etc.).
Instead of a few dozen billions of dollars, maybe a few hundred depending on how early and effective the plan was put into place, to deal with temporary disruption of shutting down international travel (essentially insignificant problem for central banks) now the damage is likely a worldwide economic depression.
So, by not making the hard decisions of stopping international air travel for 2-3 weeks the time to get a handle on things, followed by a travel ban of all countries that have cases in that time, followed by a gradually restarting travel with effective containment and testing measures ... a big cost but far lower than the economic impacts in just Italy (which is just a single country).
Time would have also allowed for far better understanding of how the virus transmits, what treatment strategies are effective, and most importantly scaling up production of the items, starting with simple masks, that could be first distributed to medical communities around the world and second distributed to the population, so that when epidemics to arrive in a country, transmissibility can instantly lowered through everyone wearing a mask and the medical community would not be powerless against themselves becoming infected, infecting others, lowering moral and care workers available (a ridiculous thing to let happen when there was a window of opportunity to avoid it).
Right now we don't know if reinfection is possible (reports but no way to confirm compared testing errors), nor do we know the long term life-cycle of the virus (it could lay dormant in other organs), nor do we know of the long term health consequences (it could cause long term damage to lungs and other organs). Without such knowledge there's no way to calculate the cost benefit of favouring "the economy" compared to lives to begin with. Nor do we know how exactly the virus propagates and with what relative probabilities (such as surfaces, asympotamics etc., all critical to know to have an effective containment strategy). Stopping global travel to get a better understanding has all sorts of benefits along with slowing things down to enable better preparation.
Claiming "well we didn't know how it spread so of course we couldn't contain it" is not an argument, as it could have been much better contained the time to figure those things out.
Finally, effective global containment, even if it did transition to a pandemic, would have staggered the peak in each region and country, allowing the global medical community to help each other and human and equipment resources moved around from peak to peak. This is a massive benefit for dealing with the pandemic our leaders decided to forego in favour of simultaneous, short term, medical overload
and for much worse economic effects. Staggering the epidemics in each region would have not caused a economic crash, as the global economic affect of only one region being disrupted at a time is far lower than all regions simultaneously.
Our leaders listened closely to airline CEO's, as Trump and Pence are simply proud of, but it turns out airline CEO's didn't have any understanding of epidemiology nor the massive economic consequences of their desire to ignore the problem as long as possible. Our leader listened to neoliberal economists who provided the non-containment case of "it's only old people", but it turns out none of them had ever teamed up with an actual scientist and mathematician to model the "let's let it go out of control" fallout (because economists aren't real scientists that expect their propaganda to ever have meet up with facts that are shot term enough for large amounts of people to notice).
It's true, with a fatality rate of "only 1 to 4" percent, from an economic perspective we could just let those people die and continue as normal, maybe even good for the stock market at resources go from older spend-thrift people to their younger spendy inheritors.
However, people simply don't accept "just letting a few million people die in our country" as public policy, and, despite the complacency and bravado of their leaders at first, quickly demand action is taken when their loved one's start dying in terrible conditions. As I mention in an early comment, complacency was also political suicide. People aren't going to be happy about "choosing the stock market over lives" and that goal wasn't even achieved due to no epidemiologist ever bothering to investigate under what conditions might it seem just letting people die is a good idea economically but actually is a really bad idea when model things things through competently. Epidemiologist thought their job was to save lives, not the stock market, and that's why they failed the politicians in conveying in the perspective of the stock market (that letting thing run rampant is actually worse for the stock market; had leaders understood this, action would have been swift, immediate and effective).
The basic problem, that which is creating the conditions for runaway capitalism, industrial farming practices, resource depletion, soil, land and ocean degradation and pollution, is overpopulation. It is the continuing growth of the human population that necessitates endless growth economies. It is also arguable that such a growth would never have been possible without fossil fuels, the supply of which has already peaked. — Janus
Yes, I agree with capitalism being the basic problem. With a social safety net, these "hard decisions" are not even that hard decisions, as the institutions are in place to make sure no one dies of economic disruptions.
However, I disagree that population is the problem. Of the equation "Impact = Population x Technology x Affluence" there's no feasible way to lower population significantly (to 0.1 - 0.2 of current levels) without collapsing the ecosystem ... which is what we're trying to avoid. However, our technology and affluence can be easily (compared to global genocide) reduced by a factors on the order 0.1. Indeed, I would argue it's possible to reorganize economies to benefit nature and have a positive impact overall (through radically different ways of living). This is a discussion for another thread though.
The current epidemic will help the environmental movement I believe, but only because it will unmask neoliberalism as an incapable governing ideology. If world leaders did not have this ideology they would have moved instinctively and decisively motivated by the preservation of human life (and in turn, preserved the global economy though they would not have known that at the time); therefore, the disease of neoliberalism would not have needed to be cured by a world wide pandemic due to incompetence, corruption, and a deluded neoliberal inspired belief that "getting it over with" would be good for the economy even if a few old people die.
We're about to witness a significant (i.e. noticeable decrease in capacity) part of the medical community die for no reason around the globe, which isn't good for anyone.