According to a study covered in The Hill, the ten-day Sturgis motorcycle rally attended by over 400,000 people contributed to 266,000 cases of COVID-19. Assuming $46,000 of medical costs per case, this means that Sturgis added approximately $12 billion in health care costs.
Or, looking at this another way, the Sturgis motorcycle rally added $12 billion to America's GDP. Those debits in one column are credits to someone else.
The United States has long been positioned as the largest economy in the world, and yet the method by which this is calculated should be re-examined.
A recently-retired high-earning financial services manager who stopped working because of health issues remarked to me: "I've been fortunate to always made a good living, and to feel that I had contributed my share to the economy in taxes. But I realize that I'm adding more to the economy now, by constantly being in the hospital and becoming an annuity for the medical sector. I never billed $50,000 or $100,000 in a single day. But now I'm adding that to the bottom line of the hospitals on some days."
By the generally-accepted approach, this retired, high-income worker has been adding more to the GDP since he stopped working than he ever did while he was employed.
Extending this thinking into other areas makes us wonder whether the United States economy is artificially inflated to some degree. In Europe, education is seen as a fundamental right, and is understood to add to the economy overall by creating more skilled citizens. In the United States, students face crushing levels of school loans that essentially limits educational opportunities to those whose parents can afford to subsidize their learning. As of 2020, school loans represented $1.6 trillion in collective debt, representing the second-largest sector after mortgages.
Did the Sturgis rally add $12 billion to the U.S. economy, or cost it $12 billion? Does $1.6 trillion in school debt add to the U.S. economy, or represent an unnecessary expense that prohibits young people from moving forward with their lives, buying property, and forming households?
For market commentary or for data regarding a story, please contact us at (917) 447-8800.
© 2012-2017 NeighborhoodX Corp. All rights reserved.
All information regarding property for sale, rental, exchange, or financing, as well as data regarding neighborhoods, boundaries, zoning, transit, historic districts, public housing, and analytics derived from any of these sources, is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale, rental, or withdrawal without notice. Please see Terms of Service for additional restrictions.
All square footage dimensions are approximate. For exact dimensions, you must retain the services of an architect or engineer. The number of rooms and bedrooms listed should not be considered a legal conclusion. Each person should consult with his/her own attorney, architect or zoning expert to make a determination as to the number of rooms in the unit that may be legally used as a bedroom. Nothing herein shall constitute an offer or solicitation with respect to the purchase or sale of any property in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make an offer or solicitation.
A trademark can be a word, phrase, symbol, or design that distinguishes the source of the goods or services.
The NeighborhoodX name and logo are registered trademarks of NeighborhoodX Corp.
The following is a non-exhaustive list of NeighborhoodX's trademarks and service marks. The absence of a trademark from this list does not constitute a waiver of NeighborhoodX's trademark or other intellectual property rights concerning that name or logo.
A SALE OF TWO CITIES
HOMES IN THE RANGE
REAL ESTATE REGRETS