Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 356

Four ethical challenges in exiting Covid-19 rules

In France, to leave their houses, people must fill in a form that allows them to perform essential jobs, attend medical appointments or go shopping for daily needs, an errand for which people have one hour only and must stay within one kilometre of their homes. The certificates must be shown on demand. Breaching ‘confinement’ rules risks fines and jail. A relaxation on some of these rules is currently underway.

Such is life in France under the ‘lockdown’ imposed to stop new infections from the coronavirus. This ‘suppression’ strategy is one of two broad options leaders in charge of democracies have adopted to fight the disease.

Liberty suppressed at the expense of the economy

These lockdowns dispense with liberty to halt the transmission of the virus. The suppression option comes with about as brutal an economic shock as can be self-inflicted because all physical businesses but essential services are shut down. But if the medical emergency were beaten and the public were confident about resuming normal life, the economy would be poised to recover. Risks of this approach include that lockdowns are never all encompassing so there is no guarantee the disease can be eradicated.

Most problematic of all is that the disease could resume its menace when the population is ‘unlocked’.

These countries, after isolating the vulnerable, try and slow the spread of the virus through their populations in the hope to suppress it enough for medical authorities to cope and a vaccine might be developed (though none appears likely soon). Within this strategy, at the relaxed end of restrictions, sits the aim of allowing a population to develop a community, or ‘herd’, immunity or resistance to the disease via a manageable level of infections and possibly a vaccine, a common way for most viruses to be contained.

When pursing mitigation, officials shut as little of society as possible until the spread of the virus is contained. (The northern hemisphere hopes warmer weather will slow the pandemic.) How much of the economy is closed varies across countries. The risks with the mitigation approach are that more lives might be lost, infections might spiral beyond the ability of medical facilities to cope and the economic shock, though initially milder than compared with the lockdown blow, persists longer and proves larger, especially if a spooked public voluntarily locks itself down.

Lives versus livelihood

How then to judge the ethics behind choosing suppression or mitigation? At a surface level, the decision appears an ethical choice between lives and livelihood, though, at a deeper level, the choice is between the lives taken by Covid-19 versus the lives lost and ruined over the longer term by the steps taken to contain the pandemic.

Given such unenviable choices and with no clear ‘right’ answer, one approach to answering this question might be to draw upon different forms of ethical traditions to install guidelines for policymakers.

First, the cost of the decision must be spread fairly across society, and the disadvantaged, vulnerable and ill must be protected.

Second, measures should be reasonable both in their intent and their consequences even amid extreme circumstances.

Third, to do the least harm, policymakers should evaluate the unintended effects of their decisions and take steps to mitigate the damage.

Fourth, extreme steps, such as army patrols and curtailments on freedom, should be relaxed as soon as possible.

Even within this framework, policymakers are in an unenviable situation because the scientific characteristics of COVID-19 are unclear. Policymakers had to judge what the death toll might be from either approach and think through the unintended consequences of each option. Flow-on effects of lockdowns might be a jump in family violence and mental health issues. Officials needed to estimate the economic damage of each approach with no precedents to guide them. They needed to ask themselves which option might be less likely to ruin a generation’s job prospects and impoverish society for decades, which can lead over time to an increase in deaths of stress, despair, substance abuse, etc.

Even though the battle against COVID-19 is far from won, we can say that both approaches can be supported by sound ethical arguments even if the logic behind each judgement call is different. While only hindsight will prove which approach was the most effective, it would be hard to say any democratic government has acted unethically in its fight against the coronavirus, even allowing for mistakes.

It can be said too that, given the economic and social damage Covid-19 will inflict, policymakers are bound to confront even harder ethical choices in coming years than those they faced during the emergency phase of the crisis.

To be sure, it won’t be much consolation to think that policymakers acted ethically if the social and economic consequences of their decisions prove immense. In some ways, the ethical choices surrounding covid-19 are no different from other weighty decisions governments make all the time when they implicitly put a price on life.

Perhaps, in time, COVID-19’s greatest ethical lesson might be how it exposed the ethics of societies before the pandemic hit. The countries that might be judged to have failed the common good would be those with poor healthcare systems, no pandemic contingency plans, few locally produced essential medical supplies, limited manufacturing to convert and, having stretched government finances, had scant ability to protect their populations without risking their prosperity. That would be many of them.

 

Michael Collins is an Investment Specialist at Magellan Asset Management, a sponsor of Firstlinks. This article is for general information purposes only, not investment advice. For the full version of this article and to view sources, go to: https://www.magellangroup.com.au/insights/.

For more articles and papers from Magellan, please click here.

 

  •   6 May 2020
  • 2
  •      
  •   

RELATED ARTICLES

Why a deflationary shock is near

Halving super drawdowns helps wealthy retirees most

The green lining of COVID-19: a time for change

banner

Most viewed in recent weeks

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Latest Updates

A speech from the Prime Minister on fixing housing

“Fellow Australians, I want to address our most pressing national issue: housing. For too long, governments have tiptoed around problems from escalating prices, but for the sake of our younger generations, that stops today.”        

Taxation

Family trusts: Are they still worth it?

Family trusts remain a core structure for wealth management, but rising ATO scrutiny and complex compliance raise questions about their ongoing value. Are the benefits still worth the administrative burden?

Exchange traded products

Multiple ways to win

Both active and passive investing can work, but active investment doesn’t in the way it is practised by many fund managers and passive investing doesn’t work in the way most end investors practise it. Here’s a better way.

Economy

The Future Fund may become a 'bad bank' for problem home loans

The Future Fund says it will not be paying defined benefit pensions until at least 2033 - raising as many questions as answers. This points to an increasingly uncertain future for Australia's sovereign wealth fund.

Investment strategies

Managed accounts and the future of portfolio construction

With $233 billion under management, managed accounts are evolving into diversified, transparent, and liquid investment frameworks. The rise of ETFs and private markets marks a shift in portfolio design and discipline. 

Property

Commercial property prospects are looking up

Commercial property is seeing the same supply issues as the residential market. Given the chronic undersupply and a recent pickup in demand, it bodes well for an upturn in commercial real estate prices.

Infrastructure

Private toll roads need a shake-up

Privatised toll roads in Australia help governments avoid upfront costs but often push financial risks onto taxpayers while creating monopolies and unfair toll burdens for commuters and businesses.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.