Economists: Don’t open up until 90% vaccinated

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The federal government’s plan to reopen the economy once 80% of Australians aged 16+ have been fully vaccinated against COVID-19 is based on advice from the Doherty Institute.

However, a group of economists and medical researchers has warned that this threshold is too low. They contend that the government should instead aim to fully vaccinate 90%, including children.

Australian National University economics professor Quentin Grafton says that retaining the 80% threshold could potentially result in 25,000 deaths from COVID-19 and some 270,000 cases of so-called ‘long Covid’.

From The Australian:

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“Assuming 80 per cent vaccination coverage for only those over 16, as per the national plan, there could be approx­imately 25,000 fatalities and some 270,000 cases of long Covid,” [ANU economics professor Quentin Grafton] said.

“In contrast, and if children are also fully vaccinated, national ­fatalities – for all age groups – would be reduced to 19,000 with 80 per cent adult vaccination coverage. This would fall to 10,000 at a 90 per cent adult vaccination coverage…

University of Western Australia medical researcher Zoe Hyde said there would still be a substantial number of deaths under the best possible vaccine coverage.

“Even if the country achieves the four steps we are calling for, fully relaxing public health measures to eliminate community transmission could still, eventually, result in some 5000 fatalities and 40,000 cases of long Covid,” she said.

“For all these reasons and more, it’s simply too dangerous to treat Covid-19 like the flu.”

Economist Phil Soos rightly pointed out that forecasts of Australian COVID deaths were wildly exaggerated last year:

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So why should we believe these dire forecasts now?

Moreover, lots of activities such as smoking and drinking alcohol are deadly and far more preventable than COVID deaths, yet the government allows them to remain:

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Australia’s policy makers need to balance the ‘costs’ of lockdowns against the ‘benefits’ of preventing COVID illness.

Keeping Aussies locked down for months on end as we await for a 90% vaccination rate is a ‘bridge too far’ and does not properly balance benefits with costs.

There is more to life than avoiding death.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.