A time of
crisis appears to be one in which academics will publish articles before they
have been peer-reviewed and accepted for publication. Philip Thomas, Professor
of Risk Management in the Faculty of Engineering at the University of Bristol
has released an
interesting article which relies upon the “J value” (which is a new approach to cost benefit
analysis intended “objectively” to give a value to years of human life saved by
safety measures in industry).
The point which
the
media have picked up on in this article isn’t really about the merits (or
otherwise) of the “J value” but about the following observation;
“This implies that a recession resulting
in a general fall in economic output of 6.4% per person over a prolonged period
would cost more life than would be restored by Option 4 [early 12 month lockdown with widespread
vaccination at the end of the lockdown period using a newly developed vaccine]. The theory behind the calculation assumes
quasi-steady conditions and it is not expected that a temporary fall of 6.4%
followed by an immediate recovery would lead to this drop. However a prolonged
recession of this magnitude would be expected to have such an effect.
For comparison, in the economic
recession of 2007 – 2009, the real-terms GDP per head fell by 6% between 2007
and 2009 (see Figure 7), and did not recover to its 2007 figure until 2015. The
effect of the recession on life expectancy is seen in Figure 8, where the life
expectancy at age 42 is displayed as an approximate proxy for
population-average life expectancy. The effect of the reduction in GDP per head
appears about 3 years after the severe dip of 2008 – 2009 occurs, when the clear
upward trends for both men and women are markedly reduced. Flat-lining is
apparent after 2014.”
The flaw in
this line of argument seems to me that “a
prolonged recession of this magnitude would be expected to have such an effect”
because it has done in the past. In other words, this would happen if the way
we responded to a recession was no different in the future than it was in the
past.
Yet, if the
experience of coronavirus has shown anything, it is that it is quite possible
to do things which seemed impossible yesterday. The Government have effectively
nationalised the railways (for the time being) whilst offering unprecedented
wage subsidies (now extended to the self-employed).
If – instead of
just allowing a recession to diminish our economy as if it were as much a force
of nature as the coronavirus – the Government were to respond to any recession
with a fiscal stimulus and redistributive taxation to improve the living
standards of the poorest (not to mention a Green New Deal) then there would be
nothing whatsoever inevitable about a reduction in life expectancy (because
there would be nothing inevitable about a reduction in per capita GDP).
We must demand
that the Government takes whatever course of action will save the most lives
from this coronavirus – and if that then means we need further social change to
deal with the economic consequences of those public health measures then let’s
bring that on.