It is a fascinating question of how the free market solve the problem of the coronavirus? While I don’t know the exact answer, I strongly believe it would not outlaw flights, travel, events, work and shopping. These are all important and necessary things we need for our survival.
But I can imagine that business would adopt practices aimed at reducing the risk of contracting the coronavirus.
For example if the airline were free to do so, they would institute inexpensive temperature screening before flights and deny flying to those who might carry a virus or bacteria. Today, they can’t deny passengers from boarding flights when they have a ticket or else they would sue the airlines and most like cause the loss of millions. The problem here is the monopolized legal system, but that’s the topic of future blog post.
In addition, the airlines could maintain lists of people who pose a risk, that such as people with certain conditions. But again, maintaining such “blacklists” is impossible with the current legal system.
Because the corona-virus constitutes at its core a risk, insurances handle the job of risk/uncertainty in a free market. The price of the infectious-decease insurance premium would skyrocket during such times and would trigger the self-imposed wish to stay healthy. In practice, people would voluntarily implement practices that reduces the chances to contracting the corona-virus. This means we would voluntarily wear masks and gloves, wash our hands much more often, use sterilizers, refrain from mingling among crowds, etc.Continue reading