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

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

What to expect from the Australian property market in 2025

The housing market was subdued in 2024, and pessimism abounds as we start the new year. 2025 is likely to be a tale of two halves, with interest rate cuts fuelling a resurgence in buyer demand in the second half of the year.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

Howard Marks warns of market froth

The renowned investor has penned his first investor letter for 2025 and it’s a ripper. He runs through what bubbles are, which ones he’s experienced, and whether today’s markets qualify as the third major bubble of this century.

2025: Another bullish year ahead for equities?

2024 was a banner year for equities, with a run-up in US tech stocks broadening into a global market rally, and the big question now is whether the good times can continue? History suggests optimism is warranted.

The 20 most popular articles of 2024

Check out the most-read Firstlinks articles from 2024. From '16 ASX stocks to buy and hold forever', to 'The best strategy to build income for life', and 'Where baby boomer wealth will end up', there's something for all.

The challenges with building a dividend portfolio

Getting regular, growing income from stocks is tougher with the dividend yield on the ASX nearing 25-year lows. Here are some conventional and not-so-conventional ideas for investors wanting to build a dividend portfolio.

Latest Updates

Retirement

Retirement is a risky business for most people

While encouraging people to draw down on their accumulated wealth in retirement might be good public policy, several million retirees disagree because they are purposefully conserving that capital. It’s time for a different approach.

Investment strategies

Why ASX miners will handily beat banks in the long-term

After a stellar run for banks, investors are wondering whether they can continue their outperformance or if a rotation into miners is imminent. There’s a good case that a switch is coming, and it may last decades, not just years.

Investment strategies

After DeepSeek, what's next for the big US tech companies?

DeepSeek has surprised investors, but it shouldn't: it's part of a normal capital cycle. Big tech companies have made a lot of money, which attracts capital and competition, and eventually hurts returns and incumbent share prices.

Economy

The case for Australian AI

If Australia is to control its own destiny in an AI-enabled future, it must build its own infrastructure, not rent it from overseas. Creating homemade AI is the first critical step in the long process of building Australia's AI economy.

How Nextflix is staying ahead of the competition

The TV streaming business has become increasingly competitive, yet Netflix has managed to grow market share and become the dominant player. Here's how it's done that, and the opportunities it has moving forwards.

Investment strategies

The million-dollar banana and the power of story

Markets are not driven by numbers alone. Examples from Tesla shares to Sydney houses show that investors must evaluate not just tangible assets or financials, but also the intangible story that magnifies their value.

Retirement

An alternative asset class for income-seeking retirees

A big market sell-off can force pensioners to 'sell cheap' in order to meet their miniumum withdrawal requirements. Investing in less volatile assets that also deliver regular income could provide an alternative.

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.