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Lockdowns Hurt Our Kids’ Futures

4/14/2021

 
A recent Wall Street Journal article highlighted the devastating mental health effects of the pandemic on children. Kids have been subjected to stifling lockdowns even though there has been overwhelming evidence that children are at low to no risk of experiencing severe symptoms or transmitting COVID-19. While the article is certainly correct to emphasize the terrible state of America’s youth, it wrongly places the blame—the pandemic did not do this to our children. Government-imposed lockdowns did.

Isolation has taken its toll on everyone, but most especially the very young and very old.

A study conducted at a pediatric emergency department in Texas found that suicide ideation among 11- to 21-year-olds as well as suicide attempts are up significantly from 2019. Mental health-related emergency department visits for minors jumped 11.3% in the first quarter of 2020 and then another 44.1% through October 2020. Remote learning has negatively affected the mental and emotional health of one in four children.

Instead of normal, healthy human interaction, children have been left to their own devices—literally. These include phones, tablets, gaming consoles, and computers, all of which are poor substitutes for human relationships and interpersonal connections.

But the toll on children goes beyond deteriorating mental health and retrograding social skills. Children are falling behind in the classroom, especially in math. Remote learning and so-called hybrid learning have proved a poor substitute in educating many of the young.

Almost half of parents in a study of low-income families reported experiencing food insecurity. Given the sky-high unemployment caused by government-imposed lockdowns, this is not surprising, especially because low-income earners were more heavily affected by this forced unemployment. Parental angst due to economic issues adds to a child’s already increased anxiety.

Like the isolation imposed on children, the source of the nation’s unemployment also has not been a virus, but government-imposed lockdowns.

The proof of this is the comparison between states that implemented lockdowns and those that did not. The lowest unemployment rates are found in states that have essentially returned to normal, or never imposed restrictions in the first place. The highest unemployment rates are found in states that implemented the harshest lockdowns.

While the tightest lockdowns were all in Democrat-run states, this is not strictly a political issue. Among all Republican trifecta states, (where Republicans control the entire legislature and the governorship) Texas has the worst unemployment, as Texas imposed some of the tightest and longest restrictions. Texas must now catch up to states like South Dakota and Florida, which both returned to normal long before Texas.

Just as unemployment has been highest in states with harsher lockdowns, school closures have been the worst in those same states. And yet, despite the severe costs which the lockdowns have imposed upon children, those lockdowns were seemingly ineffective at slowing the spread and reducing the death rate of COVID-19. (New cases and deaths in Texas are continuing their downward trend since the statewide mask mandate was lifted on March 10.) In fact, the chart below shows a slightly positive, although statistically insignificant, relationship between government-imposed lockdowns and state death rates.



In contrast, there is a strong relationship between the severity of government-imposed lockdowns and both school closures and state unemployment rates. Unsurprisingly, the states that forced businesses and schools to close suffered, and continue to suffer, the highest unemployment.



So, while the government-imposed lockdowns failed to achieve their primary stated objective, those lockdowns succeeded in crashing the best economy in half a century and inflicting our children with low-quality educational experiences and mental-health afflictions. Sadly, even after the government-imposed lockdowns end, children are more likely to have depression and anxiety because of this artificial isolation.

The lockdowns were a mistake, but where do we go from here?

First and foremost, we need to return to normal, and not some kind of Orwellian “new normal.” Families need to be allowed to practice personal responsibility rather than be told how to act by politicians or bureaucrats.

Second, our children will need more mental and emotional support, which starts with healthy and robust families, and is buttressed by private organizations (both for-profit and non-profit) that cater to these family issues at the local level.

Finally, this last year has been a massive case study demonstrating why educational freedom is essential. Giving parents more options in how their children are educated is a powerful way to improve educational outcomes because of the competition that arises when students are not forced to attend a particular school but rather choose one that meets their unique needs.

None of these strategies involve growing government or bureaucracy. In fact, they involve limiting or reducing the roles of governments by strengthening institutions and freeing local communities to help children and families prosper. And given how far many children have fallen behind in the last year, they need all the help we can give them.

https://thecannononline.com/lockdowns-hurt-our-kids-futures/

Prioritizing Texas Budget Reductions Amid Deficits Due to the COVID-19-Induced Recession

12/10/2020

 
The COVID-19-induced recession in Texas has strained the ability of many Texans to pay taxes to fund the state’s budget. The Legislature should consider prioritizing budget reductions to cover any potential budget shortfall.

Key points:
  • Texas usually ranks high in economic prosperity and must maintain a balanced budget, but the COVID-19-induced recession has put pressure on taxpayers to fund the tax receipts needed to cover the state’s budget.
  • Texas must prioritize fiscal restraint by finding responsible budget reductions to deal with any potential budget shortfall.
  • Statewide elected officials have appropriately begun the process of prioritizing budget cuts by directing some state agencies to identify 5% reductions in their existing 2020-2021 budgets, but additional cuts may be necessary.
  • As with past shortfalls, the Legislature should work with state agencies and adopt zero-based budgeting to prioritize program spending and identify responsible spending cuts while maintaining necessary services.

https://www.texaspolicy.com/prioritizing-texas-budget-reductions-amid-deficits-due-to-the-covid-19-induced-recession/
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Government’s cure shouldn’t be worse than COVID-19

11/30/2020

 
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​COVID-19 continues to take a toll in the U.S., with more than 13 million cases and over 260,000 deaths. The rise in cases has led to interventions by state governments.

Given that the health threat is real, we should learn from what has worked —and what has not. That means we must work hard on a vaccine, protect the vulnerable, and let most people live their lives.

Michigan, New Mexico, Oregon and Washington have closed most businesses. New Mexico has issued a shelter-in-place order. Other states have started mandating masks. Some Texans are pushing for more interventions even as we’ve had a statewide mask mandate since July 2.

While these interventions are well-intended, blanket and indefinite policies simply aren’t warranted. Such policies have already cost millions of jobs.

During the lockdown that started in March, many Texans’ livelihoods suffered a devastating blow. The state’s economy contracted by a record 29% on an annual basis in the second quarter of 2020. This contributed to at least 8,900 shuttered businesses, losses of 1.3 million jobs in the private sector, and an unemployment rate that skyrocketed to 13.5% through April.

In a survey taken at the end of May, 16% of Texans said they were facing financial ruin, and 22% said it would take them a year or more to recover. These figures likely have worsened since then.

After reopening some businesses in May and then reversing course over the summer, Gov. Abbott changed the method for assessing how and when to expand capacity at certain business venues.

The new system—considering COVID-19 hospitalizations as a share of hospital capacity in each of 22 trauma service areas — allowed a more targeted, timely, and temporary approach. And it reflected the intent of the initial lockdown response to “flatten the curve” so hospitals wouldn’t be overwhelmed.

If a trauma service area has a rate for seven straight days in which less than 15 percent of total hospital capacity has been COVID-19 patients, then most businesses there can expand from 50% to 75% capacity. Currently, 94% of Texans are in areas that can be at 75% capacity—contributing to more economic activity.

But state totals of COVID-19 cases and hospitalizations have been at or near their highest since the pandemic started.

This has initiated calls by the Statesman’s Editorial Board for people to act responsibly, for a new path in Texas’ response that has been “marked by high hopes and half measures,” and for a “serious national strategy.”

But Gov. Abbott rightfully said lockdowns are off the table: “Our focal point is going be working to heal those who have COVID, get them out of hospitals quickly, make sure they get back to their normal lives,” he said.

With several vaccines getting closer to being available and with Pfizer announcing a pilot program to deliver the vaccine quickly in Texas, there is no reason for a lockdown.

Let’s acknowledge we can’t get to zero cases and deaths without eliminating liberty and livelihoods, and let’s better allocate our efforts in a targeted, temporary, and timely way until the vaccine is readily available and population immunity occurs.

https://www.texaspolicy.com/governments-cure-shouldnt-be-worse-than-covid-19/

COVID-19 Must Not Break the Successful Texas Model

11/17/2020

 
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​Shutdowns and stay-at-home orders across Texas due to COVID-19 have spiked unemployment,  slowed tax receipts, and forced the permanent closure of 8,900 Texas businesses since March. This, from one of the most dynamic and fast-growing economies in the world.

A return to previous success is possible, and necessary, by safely reopening Texas and promptly strengthening its institutions.

The Texas Model of relatively limited government, along with the pro-growth policies of the Trump administration, provided an institutional framework that helped create an attractive economic environment to let people prosper.

In 2019, Texas led the nation with GDP growth of 4.4% and with the most jobs added of nearly 350,000 (and the fourth-fastest growth rate of 2.7%). Also, Texas had the lowest supplemental poverty measure rate of 13.7%, (the SPM accounts for cost of housing differences across the nation and other key metrics), compared with other large states of New York (14.4%), Florida (15.4%), and California (17.2%)—the highest in the nation.

In addition, the Texas model was strengthened by a voter-approved constitutional ban on a personal income tax last year, property tax relief through reform and reductions, and a track record over the last three sessions of passing conservative budgets.

But these benefits couldn’t withstand the economic destruction of fear.

Fear led the public to decrease their interactions early on during the COVID-19 pandemic, before state and local governments created a whiplash of openings and closures with questionable results.

At the state level, Texas Gov. Greg Abbott issued a disaster proclamation on March 13, near the start of the pandemic, and then a stay-at-home order on March 31.

Some restrictions were lifted on April 17 and more were eased a couple of weeks later before another the rise in COVID-19 cases and positive tests—both have been questionable measures to consider when making policy— over the summer raised concern, resulting in a statewide mask mandate and further restrictions.

This sort of uncertainty makes it practically impossible for entrepreneurs to run a business or for job-seekers to find steady employment.

The recently released GDP by state figures for the second quarter of 2020 accounted for this destruction. Dealing with a U.S. economy contracting by an annualized rate of 5% in the first quarter and 31.4% in the second, Texas’s GDP shrank by a record-breaking 29% in the second quarter. But this put it in the second quintile of best-performing states, if contracting at a record annual pace can be considered “best,” with less loss than Florida (-30.1%), California (-31.5%), and New York (-36.3%).

While the third quarter growth improved dramatically across the U.S., the same is true in Texas as some restrictions were eased.

And on Sept. 17, Texas changed the metric used to evaluate the situation to COVID-19 hospitalizations as a share of all hospitalized patients, which aligns with the initial reasoning for government overreach to avoid overwhelming hospital capacity. This allowed some trauma service areas (TSA) with that metric below 15% for seven consecutive days to open most businesses to 75% capacity.

Then, on  Oct. 7, a new Executive Order was issued that changed the metric to COVID-19 hospitalizations as a share of total hospital capacity, an improvement that better accounts for the flexibility that hospital managers have with beds. This order also expanded most businesses capacity to 75% in TSAs with less than 15% of this metric and allowed bars to open to 50% capacity—assuming a county’s judge approves it, which hasn’t been the case in most large urban counties.

The new metric  results in only three (Amarillo, Lubbock, and El Paso) of 22 TSAs with a hospitalization rate above 15%, as of Nov. 9, meaning that 94% of Texans can have access to 75% of certain business capacity.

As COVID cases rise once more during flu season, calls for a second round of harsh restrictions are sure to happen. What these demands fail to understand is that the re-opening measures in place are not due to a blind indifference to human suffering, but rather a different, better path to evaluate tradeoffs.

In addition, the catastrophic drop in GDP across the state was due in no small part to the swinging pendulum of shutdown to rollback to shut down again, with unemployment rising to a historically high 8.3%. Another statewide shutdown would deal another staggering blow to an economy recovering from the fallout of the pandemic.

The Texas Model was responsible for the economic boom before the pandemic, and what comparative success we’ve had during the COVID-19 crisis was due to efforts to roll back restrictions in line with that model.

If the state is to fully recover, the next steps to do so must be made clear soon as without it the uncertainty and fear will contribute to more job losses and the demise of the once successful Texas Model.

https://www.texaspolicy.com/covid-19-must-not-break-the-successful-texas-model/

Presentation: "Was the Cure Worse than COVID-19?"

11/17/2020

 
Watch my presentation “Was the Cure Worse than #COVID19?” This presentation is part of the Free Market Institute at Texas Tech University's Public Speaker Series, where I explain the economics of how institutions, tradeoffs, and policy matters when dealing with this situation. You can also view my slides below. 
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    Vance Ginn, Ph.D.
    ​@LetPeopleProsper

    Vance Ginn, Ph.D., is President of Ginn Economic Consulting and collaborates with more than 20 free-market think tanks to let people prosper. Follow him on X: @vanceginn and subscribe to his newsletter: vanceginn.substack.com

    View my profile on LinkedIn

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