[Mises] Media pundits and politicians are now in the habit of claiming it was the pandemic itself that has caused unemployment to skyrocket and economic growth to plummet. The claim is that sick and dying workers, fearful consumers, and disrupted supply chains would cause economic chaos. Some have even claimed that economic shutdowns actually help the economy, because it is claimed allowing the spread of the disease will itself destroy employment and economic growth.1
Leaving aside the fact there's no evidence lockdowns actually work, we can nonetheless look to past pandemics—where coercive government interventions were at most sporadic—we should see immense economic damage. Specifically, we can look to the the pandemic of 1957-58, which was more deadly than the COVID-19 pandemic has been so far. We can also look to the 1918-19 pandemic. Yet, we will see that neither produced economic damage on a scale we now see as a result of the government mandated lockdowns. This thoroughly undermines the claims that the lockdowns are only a minor factor in economic destruction, and that the virus itself is the real culprit.
Economic Reactions in 1957—58, and in 1918—19
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The CDC estimates that as of May 18 this year approximately ninety thousand Americans have died of COVID-19. Adjusted for population size, that comes out to a mortality rate of 272 per million.
This is (so far) less than half the mortality rate for the 1957—58 flu pandemic. In that pandemic, it is estimated that as many as 116,000 Americans died. Yet, the US population was much smaller then, totaling only 175 million. Adjusted for population size, mortality as a result of the "Asian flu" pandemic of 1957—58 was more than 660 per million.
That's the equivalent of 220,000 deaths in the United States today.
Yet, Americans in 1957 did not respond by shutting down commerce, forcing people into "lockdown," or driving unemployment up to Depression-era levels. In fact, reports show that Americans took little action beyond the usual measures involved in trying to slow the spread of disease: hand washing, staying home when ill, etc.
Although the virus does appear to have been a factor in the 1958 recession, the economic effects were miniscule compared to what the US now faces from the reaction to the COVID-19 virus. This suggests that most of the economic damage now being experienced by workers and households in the US is more a product of the policy reaction to the virus than to the virus itself....
The 1918—19 pandemic, which caused an astounding ten times as many deaths per million as the 1957—58 pandemic, also failed to produce economic disaster. Although the US entered the 1918—19 pandemic in poor economic shape thanks to the Great War, according to economists Efraim Benmelech and Carola Frydman,
The Spanish flu left almost no discernible mark on the aggregate US economy....According to some estimates, real gross national product actually grew in 1919, albeit by a modest 1% (Romer 1988). In new work, Velde (2020) shows that most indicators of aggregate economic activity suffered modestly, and those that did decline more significantly right after the influenza outbreak, like industrial output, recovered within months.
Nor can the pandemic be blamed for the 1921 recession, because "by then the decline in output had all to do with a collapse in commodity prices when post-war European production finally recovered."...
Defenders of government-coerced "lockdowns" have insisted that fear of the virus would have destroyed the economy even without lockdowns, but there is no historical precedent for this claim, and no current evidence to support it. Although some survey data has been proffered to suggest that more than 60 percent of Americans say they plan to comply with stay-at-home orders, this merely tells us how people make plans when threatened with fines, police harassment, and other coercive measures.
In reality, the experience of the 1957–58 pandemic‐or even the 1918–19 pandemic‐gives us no reason to believe that joblessness should be increasing at unprecedented rates and that GDP would collapse by catastrophic levels. In a modern industrialized economy, that sort of economic damage is only achievable through government intervention, such as socialist coups, wars, and forced economic shutdowns in the name of combating disease.
The cost in terms of human life will be significant. One study contends that the current economic downturn could lead to seventy-five thousand "deaths of despair." This is not shocking, however, since the fatal effects of unemployment and economic decline have been known for decades.
Defenders of lockdowns will likely continue to claim that "we have no choice" but to continue lockdowns for long periods of time. At the very least, many claim that the lockdowns until now have been "worth it." Yet the efficacy of lockdowns remains an open question, and has hardly been proven. Meanwhile, the world faces the worst economic disaster experienced in centuries. It didn't have to be this way. 
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