Global Pandemics Are Incompatible With Widespread Prosperity

August 9, 2022

As viewed over the long arc of history, there are lessons to be learned from both pandemics and vaccines that inform our understanding of global prosperity. Good health and longevity are cornerstones of prosperity.

Seventy years ago, in 1952, polio cases exploded in the USA. Grade school students felt the brunt as they were kept at home, unable to play with friends and kept out of swimming pools, all because the consequences were so dire. If it sounds reminiscent of 2020 and COVID-19, it should. Fortunately, the iron lung had been invented to aid breathing for the sick. Unfortunately, there were not enough. People died. Bodies were deformed.

In 1955, Jonas Salk created a vaccine, and became a hero. In a televised broadcast he was asked who owned the patents to the vaccine. He famously answered, “Well, the people I would say. There is no patent. Could you patent the sun?”

It took almost no time for a fearful community to accept the vaccine. Shortly thereafter, in the spirit of continuous improvement, Sabine refined the vaccination process. Children returned to playing together and swimming.

But this was not an American story. Polio did not respect national boundaries. Nor did the rapid vaccine adoption in the USA describe a global response. Vaccinations cost money. Distributing vaccine is a supply chain challenge. People are not all receptive to the good intentions of a “Western remedy.” The United States and the United Nations and other organizations championed a global response, funded a global response, and ultimately achieved most of the goal: decades later.

By 1979, the U.S. was declared polio-free. Yet globally, in 1980, only 22 percent of one-year-olds were vaccinated against polio. This increased to a coverage of 86 percent of the world’s one-year-olds in 2015. Cases of polio have fallen dramatically over time. In 1980, there were over 50,000 reported cases of polio worldwide. By 2021, this number was below 1,000 with various small estimates from different sources.

In his book “Enlightenment Now,’’ Steven Pinker focuses on public health and childhood mortality improvements such as the Global Polio Eradication Initiative as examples of global improvements in many aspects of life. By 2015, polio was very rare outside of Afghanistan, Pakistan, and Nigeria. Germ theory, antibiotics, vaccines, and other medical interventions substantially increased life expectancies in the last century. In 1840, life expectancy was about 40 years; in 2020 it had risen to 75 years. Reduced childhood mortality was the major explanation.

In this context, an article in The New York Times (July 16, 2022) headlined ‘Sharp Drop in Global Childhood Vaccinations Imperils Millions of Lives’ catches our attention. A vaccination rate of 94 percent is generally thought sufficient to create herd immunity. From 2019 to 2021 vaccination rates for DTP3 fell five points to 81 percent. While UNICEF continues to be a major supplier of vaccine addressing a broad array of diseases, people must engage with programs to make a difference. There is reason to fear that the loss of herd immunity across an array of childhood diseases will allow them to remerge.

The 1918 flu epidemic, and the 2020 COVID pandemic both briefly shortened the pattern of increased life expectancy. Decreases in global herd immunities may do so again. In recent days, NPR, the AP, The Washington Post and The New York Times have all featured news of the first polio case in the U.S. in almost a decade.

How does all of this affect the UConn School of Business? It reminds us of the importance of history, of understanding human behavior and decision making, and of the global interconnections of lives today. Our students take about 50 percent of their coursework in the liberal arts and sciences. We seek to educate global citizens, as well as prepared professionals. The AACSB, our accrediting body for high aspiration business schools, refers to our collective mission as supporting global prosperity. It is important to frame that goal as a quality-of-life goal, not a personal wealth goal.

 

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Widespread Literacy: Key to a Functioning Democracy?

July 26, 2022

Dateline Scotland, UK, Summer 2022

After more than two years of virtual living without benefit of vacation, we landed in the UK for holiday. It created an opportunity to read (“Upheaval: Turning Points for Nations in Crisis,’’ by Jared Diamond) and explore history up close and personal.

Diamond’s book explores crisis and change in seven countries over many decades: Finland, Japan, Chile, Indonesia, Germany, Australia and the USA. A notable quote is: “Fundamental to any functioning democracy are widespread literacy, recognition of the right to oppose government policies, tolerance of different points of view, acceptance of being outvoted, and government protection of those without political power.”

These words evoke the notion of the Scottish Reformation, a process that led Scotland in the late 1500s to grow a Protestant tradition and move away from Catholicism. It led to a commitment to universal education. Schools were built and the university system was reformed.

“Upheaval” and Reformation created a fitting backdrop for exploring the area around Stirling, the former center of Scotland, and to visit the nearby Innerpeffray Library. Innerpeffray is the first free lending library in Scotland dating to 1680. The library kept careful records and today many people visit to learn what their relatives from centuries ago were reading and learning. Lara Haggerty is the Keeper of Books, a title associated with the library for hundreds of years. She oversees the 5,000 titles still managed in the library. As Lara points out, “Scotland became a real literary nation. This place was a little spark that started the flame burning.”

Lara shared some wonderful stories with us. We held some very old books, including “Cookery and Pastry’’ as taught by Mrs. MacIver (1787).
Reading that early cookbook, I should not have been surprised that it did not include cooking temperatures and times, since cooking was not done in devices where you could specify the temperature. It was surprising that recipes did not include quantities of ingredients, and the typesetting was strange. It seemed that there were two versions of the letter “s.” One of them was much like this “s” and one more akin to an “f”. Lara explained that it was a response to early printing presses where the traditional “s” had a tendency to attract blobs of ink and become illegible, especially when adjacent to another “s” or “e” or “a.” The larger “f” form did not suffer that problem, so this innovation made books more legible.

Their records allowed them to learn that the most popular books dealt with history, and many people were frequent borrowers. She shared the history of one borrower, John Barclay, who as a young man read history, went on to begin study as a minister, and then shifted his focus to natural science. He ultimately became a professor in the university system. As Lara and I talked, I imagined a borrower bringing a book home and during the month or so that books typically were outstanding, the borrower and the family would have read, perhaps together, perhaps out-loud. They would have discussed the material and have become the educated electorate needed for Scotland’s reformation and for Diamond’s notion of an effective democracy.

When we visited, they were celebrating innovation, and had on display a working model of a passive heat-dissipating device, a close-cycle heat engine, developed by one of their readers and patented in 1816. It was created by Robert
Stirling, hence its name, “Stirling Engine.” Over the years, refinement and redesign have made it faster, better and cheaper. It is now an element for temperature management in some laptops.

And of course, the very existence of Innerpeffray arose because of the invention of the printing press. The printing press was introduced around 1450 and was adopted rapidly. Jeremiah Dittmar of the London School of Economics has demonstrated that about half of the 100 largest European cities adopted printing technology. Early on it was a craft and early cities that adopted it not only grew the printing activity but had significantly higher, broad economic growth than non-adopting cities. Indeed, Innerpeffray Library was only possible because the printing press had enabled large-scale production of books at “affordable” prices. By 1680, David Drummand, the founder, had collected a library which could and did support the reading needs of a community.

The Scottish Reformation and Innerpeffray Library seem to exemplify Diamond’s quote above: “Fundamental to any functioning democracy are widespread literacy, recognition of the right to oppose government policies, tolerance of different points of view, acceptance of being outvoted, and government protection of those without political power.” At UConn, and in the School of Business, we champion free inquiry and access to information.

It was great to explore how those themes played out hundreds of years ago. Today, there are those who want to ban books and control information, but Innerpeffray exemplifies the right idea: share the books, encourage reading and exploring ideas. Who knows from whom the next revolutionary ideas will come? Reading and debating will prime the pump. I am privileged to work with faculty, staff, students, and alumni who believe in ideas, and in investing today for a better tomorrow.

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Ask the Experts: Winning the Credit Card Popularity Contest

July 11, 2022

WalletHub – Is it fair for consumers to assume that the most popular credit cards are the best credit cards?

“Popular” need to be defined as “most used,” or as one of the current ad campaigns says, “What’s in your wallet?” In this sense, it is not really a matter of fairness, it is a matter of delivered value.

A recession could last 2 years according to Connecticut economics experts

June 15, 2022

Fox 61 – CONNECTICUT, USA — Two respected economics experts from Connecticut universities said a recession is coming and it could be a couple of months before the economy straightens out.

America is enduring the worst inflation in 40 years, spurred on by the COVID-19 pandemic. Soon, it’s expected the Federal Reserve will hike interest rates for the first time in four years.

Inflation: Economists from Connecticut and beyond on how we got here and where we’re going

June 14, 2022

Yahoo! News – Jun. 11—The average consumer probably isn’t pondering how PepsiCo controls more than 80% of the dip market when they’re standing in the grocery store picking up a Tostitos creamy spinach dip for a cookout or Super Bowl party.

But when setting the backdrop for a conversation about the factors in inflation — which economists mainly cite as pandemic-induced disruptions in supply and demand and the war in Ukraine, with dispute over the impact of stimulus packages — lack of market competition is something economist Fred Carstensen can’t emphasize enough. He cites the impacts of the United States largely abandoning antitrust policy over the past 40 years.

2022 State Farm Insurance Review

May 31, 2022

WalletHub – State Farm is a pretty good insurance company overall, earning a rating of 3.4/5 from WalletHub editors, good customer reviews, and great scores from organizations such as the Better Business Bureau (BBB) and J.D. Power.

At-Risk High Schoolers Learning Personal Finance Basics at UConn

UConn Today – About 50 students from four high schools in Hartford and East Hartford have been traveling by bus to UConn’s Storrs campus for several Saturdays this spring to learn the basics of personal finance. Among those lessons are how to open a bank account, managing personal spending, and ways to fund a college education.