London Daily

Focus on the big picture.
Thursday, Jul 24, 2025

The $16 TRILLION bug: Pandemic could cost US economy its entire annual output

The $16 TRILLION bug: Pandemic could cost US economy its entire annual output

The US economy may lose a whopping $16 trillion due to the devastating impact of the Covid-19 outbreak, both in output and people’s lives, new research has found.
While most studies assess the costs of the deadly virus by its impact on the national gross domestic product (GDP), a paper published in the Journal of the American Medical Association earlier this week offered a different approach.

The authors of the study – former Treasury Secretary Lawrence Summers and Harvard University economist David Cutler – also took into account losses associated with those who have died due to the virus, in addition to the purely economic costs.

With the number of coronavirus infections in the US nearing eight million and deaths surpassing 215,000, the researchers believe that the outbreak may result in an estimated 625,000 cumulative deaths in the country through next year. Given the theoretical “conservative value of $7 million per life,” premature deaths linked to the coronavirus could wipe out nearly $4.4 trillion, according to their calculations.

The virus is believed to have long-term effects on health, especially for survivors with severe or critical disease. As those complications lead to increased risk of premature death, they also have far-reaching consequences for the entire economy, with losses amounting to another $2.6 trillion for cases forecast through the next year, the authors noted.

Even those who did not contact the deadly virus could also be affected by it, the paper adds. Suffering caused by the possible death of loved ones, as well as the effects of isolation and loneliness, may lead to deteriorating mental health conditions. This also takes its toll on the economy, which could lose approximately $1.6 trillion due to mental health impairment, according to the research.

The rest of the losses – nearly half of the total – are associated with a drop in income due to the coronavirus-triggered recession. The authors cited a previous estimate from the Congressional Budget Office, which projects a total of $7.6 trillion in lost output during the next decade.

“The economic loss is more than twice the total monetary outlay for all the wars the US has fought since September 11, 2001, including those in Afghanistan, Iraq, and Syria,” the study reads. “The total cost is estimated at more than $16 trillion, or approximately 90% of the annual gross domestic product of the US,” it concludes, adding that the estimated loss for a family of four would reach nearly $200,000.

The paper comes as US lawmakers debate another stimulus package, set to mitigate damage from the virus. The research stressed that any such economic relief should allocate at least five percent of the funds for increased testing and contact tracing, as an investment of approximately $6 million leads to averted costs of an estimated $176 million.

“Increased investment in testing and contact tracing could have economic benefits that are at least 30 times greater than the estimated costs of the investment in these approaches,” the study said. It added that financial support for health measures should not be dismantled even when the concerns about the pandemic begin to recede.
Newsletter

Related Articles

0:00
0:00
Close
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
×