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Wednesday, March 11, 2020

A danger of panicking over the coronavirus

It's striking how much of our super advanced and highly technical society including economy is based on simple trust. I guess that's why economists talk about fiduciary relationships.

However, if that trust is eroded enough, or even dissipates, then I presume our economy and society could potentially come crashing down like a house of cards.

That's one reason why my posts about the coronavirus or COVID-19 have focused on quelling fears and stemming panic. At least as much as a nobody like me can do.

Otherwise, if people become driven by panic, they might take drastic actions. Such as pulling out all their money from their 401k and selling all their stocks. Or yelling at and fighting one another over toilet paper and hand sanitizer. Or looting and rioting. Or worse.

If enough people take these sorts of drastic actions, then it could collapse our economy, gov't, society as a whole.

In this respect, doomsday prophets who have been shouting from the rooftops that the end is near could end up predicting a self-fulfilling prophecy.

Addendum:

Of course, none of this is to say things won't become catastrophic. However, I think there are at least two possible catastrophic scenarios: a catastrophe from the virus itself and a catastrophe from how we react to the virus. As I've maintained, the former could be possible; it's the latter that I'd like to avoid. The simultaneous occurrence of both would be terrible. (And I think Steve has pointed out much the same or similar.)

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