Benefits vs. Costs and COVID-19

Walter E. Williams   Apr 22, 2020

One of the first lessons in an economics class is everything has a cost. That's in stark contrast to lessons in the political arena where politicians talk about free stuff. In our personal lives, decision-making involves weighing costs against benefits. Businessmen make the same calculation if they want to stay in business. It's an entirely different story for politicians running the government where any benefit, however minuscule, is often deemed to be worth any cost, however large.

Related to decision-making is the issue of being overly safe versus not safe enough. Sometimes, being as safe as one can be is worthless. A minor example: How many of us before driving our cars inspect the hydraulic brake system for damage? We'd be safer if we did, but most of us just assume everything is OK and get into our car and drive away. The National Highway Traffic Safety Administration estimates that 40,000 Americans lose their lives each year because of highway fatalities. Virtually all those lives could be saved with a mandated 5 mph speed limit. Fortunately, we consider costs and rightfully conclude that saving those 40,000 lives aren't worth the costs and inconvenience of a 5 mph mandate................

The absolute worst part of the COVID-19 pandemic, and possibly its most unrecoverable damage, is the massive power that Americans have given to their federal, state and local governments to regulate our lives in the name of protecting our health. Taking back that power should be the most urgent component of our recovery efforts. It's going to be challenging; once a politician, and his bureaucracy, gains power, he will fight tooth and nail to keep it...................To Read More.....