Open Letter on Coronavirus

For all friends in the Bozone … this is letter I sent to a community list earlier today:

I appreciate the timely information from Chris Mehl. I’d like to emphasize a few points. I’m largely drawing on my thinking from an epidemic model that I posted here a few days ago, https://youtu.be/mxUsBI0Wr2M

It’s unfortunate that we now have our first confirmed COVID19 case, but we knew it was coming. One case likely means several more exposed asymptomatic are already here. Things could develop quickly: Italy went from 3 cases to 3858 in two weeks, although some of that is illusory due to the expansion of testing. However, that is not necessarily our fate – we may be luckier, and we definitely can change some things.

Two key points about this disease:
– The Covid-19 virus is transmissible before people become symptomatic. We therefore cannot wait to take action until there are confirmed or presumptive cases, or even people who have potentially been exposed, in our social networks, faith groups, communities, workplace, towns, or cities.
– This is not just about us individually. The disease disproportionately attacks older people, and people with compromised immune systems. The life you save through personal behavior may be your grandmother’s.

The response has a lot of moving parts.
1. The end of the line is treatment for the severely ill. The flu peak is typically 5-6% of ER admissions in Montana, so something just as widespread and 10x more serious is an obvious threat. It’s critical to avoid overwhelming (and infecting) our precious and limited health care workers, because if we don’t, fatality rates go up, as happened in Italy and Wuhan.
2. We can reduce contacts with the infected through monitoring, quarantine and isolation. This is the public health bailiwick, but I would expect that a large caseload could overwhelm them as well. I hope they’ll reach out to the community for help if needed. Independent of that, perhaps we can make it easy on people who are self-isolating, by organizing delivery of essential services? For employers, I hope that generous sick leave is a matter of enlightened self-interest: do you want 1 employee out for a week, or all of them out two weeks later?
We have two options that scale up well:
3. We can reduce the risk of each social contact by avoiding proximity and touching (elbow bumps instead of handshakes) and cleaning everything – handwashing, hard surfaces, etc. Lots of good info out there on this. (Sadly, hoarding sanitizers doesn’t contribute.)
4. Finally, we can reduce the number of contacts per person, aka social distancing. Cancelling nonessential group events, or moving them online, is very influential. One Biogen company meeting spawned 100 infections in Boston. The Atlantic has a nice discussion of the nuances: https://www.theatlantic.com/…/coronavirus-what-does…/607927/
If half the infected are isolated, and we have half as many contacts, and those contacts are made 50% safer, then we’ve reduced the transmission of infection by 87.5%. That’s enough to slow the infection rate to less than the recovery rate, so the disease will die out.

If we do that, we’re not quite out of the woods. Social distancing is going to be hard to sustain. But if you stop to soon, the disease comes back. So we’ll need a plan for transitioning from more disruptive social distancing measures to things we can sustain.

When we have to close schools, which I think is likely, we will need to find ways to provide good nutrition and safe spaces for kids, without risk of infection. We can help.

Social distancing is also disruptive to the economy. Our tourism industry and performing arts, and surely other sectors I haven’t thought of, are going to have a rough time. We need to mitigate that.

It’s hard on our social fabric, so things like the Renewal Network’s recent links are important. We need to figure out how to support, comfort and play interact with each other … six feet apart, like the Italians singing from their balconies in the darkness of locked-down Siena.

Fortunately, some bad outcomes are very unlikely. There’s no reason for the food system to break down, for example. Inventories are large and the working-age population won’t have high mortality. So keeping a decent stock of food in case you’re sick is prudent, but panic buying of massive quantities is unproductive. This is not the zombie apocalypse.

There is a Cassandra’s curse here. If we succeed, the worst-case scenarios won’t come true, and some will accuse us of overreacting. That takes courage.

Finally, a personal note. David Brooks had a gloomy piece in the New York Times a day or two back, detailing social breakdown during historic plagues. I think that is not our fate. We have new tools at our disposal, i.e. the internet, that did not exist in previous pandemics. Incredibly, I know – by just one hop on social media – people involved in several of the defining events of this epidemic, including the Siena singers. W now have a powerful and non-infectious way for us to stay coordinated; we just have to be sure that we find ways to reach out to people who are not so digitally connected.

There’s a huge trove of digital resources here:
https://coronavirustechhandbook.com/

Tom Continue reading “Open Letter on Coronavirus”

A Community Coronavirus Model for Bozeman

This video explores a simple epidemic model for a community confronting coronavirus.

I built this to reflect my hometown, Bozeman MT and surrounding Gallatin County, with a population of 100,000 and no reported cases – yet. It shows the importance of an early, robust, multi-pronged approach to reducing infections. Because it’s simple, it can easily be adapted for other locations.

You can run the model using Vensim PLE or the Model Reader (or any higher version). Our getting started and running models videos provide a quick introduction to the software.

The model, in .mdl and .vpmx formats for any Vensim version:

community corona 7.zip

Update 3/12: community corona 8-mdl+vpmx.zip

There’s another copy at https://vensim.com/coronavirus/ along with links to the software.

Having a Blast in Bozeman

I don’t often get to read about my adopted hometown in the national papers; it’s usually pretty obscure. When FAA analysts look for a small-time airport to poke fun at, we’re first on the list. However, today the NYT has covered the gas explosion that destroyed half a block of downtown, including some wonderful historic brick buildings. The blast was so powerful that we heard it from our house, 6 miles away with an intervening ridge. Sadly there’s no recovery for one person, but I hope the rest of downtown bounces back quickly.

Can Montana Escape Recession Ravages?

The answer is evidently now “no”, but until recently the UofM’s Bureau of Business and Economic Research director Patrick Barkey thought so:

“As early as last summer we still thought Montana would escape this recession,” he said. “We knew the national economic climate was uncertain, but Montana had been doing pretty well in the previous two recessions. We now know this is a global recession, and it is a more severe recession, and it’s a recession that’s not going to leave Montana unscathed.”

Indeed, things aren’t as bad here as they are in a lot of other places – yet. Compare our housing prices to Florida’s:

MT vs FL house price indexes

On the other hand, our overall economic situation shows a bigger hit than some places with hard-hit housing markets. Here’s the Fed’s coincident index vs. California:

MT coincident index of economic activity

As one would expect, the construction and resource sectors are particularly hard hit by the double-whammy of housing bubble and commodity price collapse. In spite of home prices that seem to have held steady so far, new home construction has fallen dramatically:

MT housing

Interestingly, that hasn’t hit construction employment as hard as one would expect. Mining and resources employment has taken a similar hit, though you can hardly see it here because the industry is comparatively small (so why is its influence on MT politics comparatively large?).

MT construction & mining employment

So, where’s the bottom? For metro home prices nationwide, futures markets think it’s 10 to 20% below today, some time around the end of 2010. If the recession turns into a depression, that’s probably too rosy, and it’s hard to see how Montana could escape the contagion. But the impact will certainly vary regionally. The answer for Montana likely depends a lot on two factors: how bubbly was our housing market, and how recession-resistant is our mix of economic activity?

On the first point, here’s the Montana housing market (black diamonds), compared to the other 49 states and DC:

State home price index vs 2000

Prices above are normalized to 2000 levels, using the OFHEO index of conforming loan sales (which is not entirely representative – read on). At the end of 2003, Montana ranked 20th in appreciation from 2000. At the end of 2008, MT was 8th. Does the rise mean that we’re holding strong on fundamentals while others collapse? Or just that we’re a bunch of hicks, last to hear that the party’s over? Hard to say.

It’s perhaps a little easier to separate fundamentals from enthusiasm by looking at prices in absolute terms. Here, I’ve used the Census Bureau’s 2000 median home prices to translate the OFHEO index into $ terms:

State median home prices

Among its western region peers, a few other large states, and random states I like, Montana starts to look like a relative bargain still. The real question then is whether demographic trends (latte cowboys like me moving in) can buoy the market against an outgoing tide. I suspect that we’ll fare reasonably well in the long run, but suffer a significant undershoot in the near term.

The OFHEO indices above are a little puzzling, in that so many states seem to be just now, or not yet, peaking. For comparison, here are the 20 metro areas in the CSI index (lines), together with Gallatin County’s median prices (bars):

Gallatin County & CSI metro home prices

These more representative indices still show Montana holding up comparatively well, but with Gallatin County peaking in 2006. I suspect that the OFHEO index is a biased picture of the wider market, due to its exclusion of nonconforming loans, and that this is a truer picture.