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.

 

RELATED ARTICLES

Halving super drawdowns helps wealthy retirees most

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

A hard dose reality check on vaccines

banner

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

US election implications for investors and Australia

The return of Donald Trump to the US presidency brings the prospect of more US tax cuts and deregulation, but also more tariff hikes, trade wars and policy uncertainty. Here's what it means for markets going forward.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

The rising tension between housing debt and retirement balances

Australians are taking more mortgage debt into their 60s than ever before. Retirement planning assumptions haven’t adapted and could result in future income projections that ultimately disappoint retirees.

Latest Updates

Shares

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Superannuation

Addressing the gender super gap

The harsh reality is that most women retire with significantly less superannuation than men. There are many reasons for the gender super gap and here are some possible solutions to fix the long-running issue.

Superannuation

Meg on SMSFs: Where are the risks in our major super sectors?

Given the amount of money in super, it’s not surprising that there is a lot of focus on risk. SMSFs are often portrayed as the riskier option for the community as a whole, but does that tell the full story?

Superannuation

Global pension reforms and how Australia can improve

With plans to retire next year, Mercer's David Knox looks back at the global pension index he helped create, the key trends and developments since inception, and what Australia can to do to get better.

Shares

Cyclical stocks will drive markets higher in 2025

Magellan's Head of Global Equities, Arvid Streimann, thinks that although stock price momentum will slow next year, cyclical companies will lead the pack. He outlines the risks to his forecast and the stocks he likes best.

Economy

How this GDP per capita recession compares to history

GDP was 0.3% for last quarter but the real story is this was Australia’s seventh consecutive quarter of negative GDP per capita growth. How does this economic drought compare to past ones, and what can we expect in future?

Investing

The mispriced investment opportunity in global defence

Markets benefitted from peace for 40 years, but a military resurgence is now underway, fuelled by geopolitical tensions and technological advancements. Defence spending is soaring, offering potential opportunities for investors.

Sponsors

Alliances

© 2024 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.