The coronavirus outbreak which was first reported in January shows few signs of slowing. As of February 6th, there have been more than 28,000 cases in China, 45 cases in Japan, 30 cases in Singapore, over 20 in Thailand, Hong Kong, and South Korea, and even 12 cases in the United States. More and more people are being diagnosed every day, and the demand for protective face masks have been on the rise. However, because many people are unable to return to work, the supply and production of the masks are far below the demand.
In many Asian countries, the government has taken measures to try to ensure that the prices of the masks do not increase and is available to as many people as possible. For example, in Taiwan, the government has started a system where each person could only purchase 2 masks a week. They would be able to get the masks at pharmacies and hospitals based on the number of their medical card. This policy occurred because people were willing to go to automatic dispensaries which charged increased prices and encouraged hoarding. The worry is that by hoarding masks, those who actually need it (medical professionals, elderly, workers in crowded areas) would not be able to get it.
This shortage has become apparent all over the world. Even in the United States, online purchases of masks are also severely limited. How should the world regulate hoarding and combat facemask shortages? Should the government even be involved?
Hui, Mary. “The Scramble for Masks amid the Coronavirus Outbreak Is a Crash Course in Econ 101.” Quartz, Quartz, 4 Feb. 2020, qz.com/1793749/wuhan-coronavirus-mask-shortage-illustrates-basic-economic-theory/.
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I think this is a really interesting and nuanced facet of the coronavirus incident. The whole issue is a really good look into supply and demand. Do you think there's a standout solution to this shortage? Some that I've thought of are increasing production (sketchy because increasing production within China will be difficult with the circumstances and importing masks to China will also be difficult because they will still be subjected to sale by China), using alternatives for masks (i'm not sure of the science behind the masks or why people can't just use like scarves). What do you think the best course of action is?
ReplyDeleteThis is interesting because I read that face masks do not actually help contain the spread of the virus. In order to effectively contain the spread, people have to get a special, more-expensive face mask which most people do not have. The culture and inner panic coming from this disease makes people hoard these masks. People should not have to pay hundreds of dollars to feel safe, while other people are profiting off their fears. I think the plan they have in effect is smart because it allows everyone to have the same opportunities and security.
ReplyDeleteThis was interesting because I had not thought about how the coronavirus is affecting the demand of certain goods like face masks. The policy which limits the number of masks someone can buy seems like a step in the right direction but it may not be enough to solve this issue. Having people use alternatives to face masks or making the policy more strict (maybe only a certain number per household per week) could also help this problem.
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ReplyDeleteWhen it comes to public health and safety I feel it is the government's job to get involved and regulate supply of these masks. Mainly because I could foresee an opportunistic individual who would buy up as many masks as possible wait for the price to increase because the supplies solo and then sell these masks increase price. I don't think in the middle of a Public Health crisis is where you want people making their money at this point I feel that resources to help stop the spread of the virus should become a public good provided by the government or at least regulated by the government.
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