Why the COVID-19 vaccine should be mandatory

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ArtikelDigital.com, SHARES As governments, research organizations and pharmaceutical companies race to find vaccines for the novel coronavirus, a recent survey published in The Lancet found that only 67 percent of the United States population would accept a vaccine for COVID-19 if it were recommended for them.

Within weeks of the survey, a major vaccine trial at Oxford University was paused after a participant fell ill.

This may confirm the suspicions of those afraid of vaccinations, but the pause in the development of the vaccine after one participant out of 30,000 fell ill shows that the researchers are following strict safety protocols.

The question is: Once vaccines hit the market, what then? From the perspective of maximum social welfare, everyone should be vaccinated.

As governments, research organizations and pharmaceutical companies race to find vaccines for the novel coronavirus, a recent survey published in The Lancet found that only 67 percent of the United States population would accept a vaccine for COVID-19 if it were recommended for them.

Within weeks of the survey, a major vaccine trial at Oxford University was paused after a participant fell ill.

This may confirm the suspicions of those afraid of vaccinations, but the pause in the development of the vaccine after one participant out of 30,000 fell ill shows that the researchers are following strict safety protocols.

From the perspective of maximum social welfare, everyone should be vaccinated. Globally, as of Sept. 10, there have been more than 27 million confirmed cases of COVID-19.

Southeast Asia contributes about 5.1 million cases, exceeding Europe at 4.6 million cases. More than 900,000 people have died, and the number is still climbing.

The estimates of the cost to the global economy range from US$5.5 trillion to $8.8 trillion, according to Asian Development Bank.

When a vaccine is ready to produce, the world needs more than 7.5 billion doses. And if each person needs two doses, that figure doubles.

It is a massive demand that producers cannot fulfill by 2021, even if the vaccines obtain approval by the end of 2020.

An equitable allocation of vaccines will be the most challenging task due to short supplies. Two critical questions emerge: Should the government make it mandatory? How should vaccines for COVID-19 be allocated?

For the first question, we can apply the economic theory of “merit goods”. A merit good is characterized by its meritorious impact, and despite the fact that it is not typically a public good, pubic funds may be used to provide it for mass consumption (Musgrave, 1959, 1998).

Economic discourse may contest the position of merit goods, but public policy applies it in practice. Primary education and health care are among the most common merit goods recognized in many countries, especially in countries with substantial welfare states.

How does the COVID-19 vaccine fit within this analysis? The arguments for coercion to consume merit goods include the potential for people to act irrationally, increasing consumption of important goods for the beneficiaries, and maximizing social welfare.

Social welfare is the most critical argument for the COVID-19 vaccine viewed as a merit good. Culyer (1971), a prominent British health economist, argued that externalities in merit goods could serve as a justification for the government to intervene in the market.

The global loss from the COVID-19 pandemic is huge and still counting if the world fails to control it.

There are both positive and negative externalities in imposing the COVID-19 vaccine. Positive externalities include additional protection for large populations, which can reduce virus transmission, thus reducing health workers’ burden and freeing up space in hospitals for non-COVID-19 patients.

The treatment costs for one COVID-19 patient could reach tens of thousands of dollars, far higher than the deemed maximum price of the vaccine at $40 per dose (GAVI Alliance).

On the other hand, negative externalities of not being vaccinated mainly come from negative impacts. A nonvaccinated person potentially becomes a virus spreader and infect others who are not yet vaccinated, and those who have been vaccinated but have yet to develop the antibodies.

Economic costs include: high treatment costs, productivity loss, overwhelmed health workers and crowding out non-COVID-19 patients.

Mandatory vaccination deals with social welfare maximization. It is not about the government overruling the individual preference for the risk of isolated impacts.

Especially as global connectivity is essential for economies, while the period of immunity is still unknown, failures to contain this virus in one country means a higher risk of triggering the next pandemic wave across other countries.

On Sept. 2, Erick Thohir, the Executive Director of the Indonesian government’s COVID-19 Response and Economic Recovery Committee, said the government planned to provide free vaccines for only 93 million Indonesians and let the rest pay for themselves.

If Indonesia still experiences waves of infections in the coming years, economic recovery will be just a fantasy.