The daunting question of the value of a human life is an issue policy makers consider constantly and is a question at the centre of the Covid-19 response.
Professor W. Kip Viscusi, whose benefit analysis calculation is used by the US Federal Government in its policy making, appeared on TVNZ1’s Q+A to talk about how much a life is worth.
Professor Viscusi said it was estimated Covid-19 social distancing policies in the US would save at least one million lives – saving the country US$10 trillion (NZD$16.5 trillion) by his life-worth calculations.
“That’s huge, that’s a real economic loss from the health risks that you can prevent by social distancing," he said.
“I’m a big fan of social distancing, from an economic perspective it’s a slam dunk.”
He said a life in the US had been calculated to be worth US$10 million (NZD$16.5m).
“These are numbers the government use for everybody," he said.
"An 80-year-old and a 20-year-old each received the same value. The actual amount people are willing to pay to reduce risk does vary with age, but the good news for the older people is that does not drop off the table.”
When asked about the risk supermarket workers now face working in a pandemic environment coupled with low pay, Professor Viscus said if it continues, the pay should go up.
“In the long run to attract people to these jobs, the pay is going to need to go up if you’re exposing them to serious health risk.”
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