Even at a 0.7% mortality rate, you’re talking about a small percentage of a
very big number. Up to 70% of the world’s population may become infected. [0] In that case, a 0.7% death rate converts into 37 MILLION deaths.
The runs on toilet paper are the irrational panic of humans. I saw some comments on the internet early on in the outbreak telling people to buy anything they can’t live without for two weeks, with particular emphasis on toilet rolls, so that’s probably where that came from.
With regards to the extreme measures, my understanding is that this is primarily to try to prevent health care systems collapsing.
Around 20% [1] of people with COVID-19 are sick enough to need hospitalisation, and 1/4 of those (5% of total cases) require intensive care. The number of hospital beds is finite, and the number of ICU beds even smaller. Most health care systems already run near maximum capacity, and right now we’re barely past the peak of flu season [2], so there is very little buffer.
The rate for new infections is dictated by the number of people exposed to an infected person and the probability of each exposure becoming an infection [3]. As such, the primary lever we have to try to “flatten the curve” is to reduce the number of people exposed to an infected person, and the way to do that from the top-down is to ban as many congregations of people as possible. Again, since this is exponential growth we’re talking about, even a tiny downward shift in the number of exposures results in an unintuitively large reduction in total cases.
The rate of infection today is still exponential—doubling every 6 days in most places—and there are enough infections already that just a few more case doublings in many areas will overwhelm hospital systems, leading to situations equal or worse to what we are seeing already in Italy [4].
Once hospitals are full, it will be impossible for every person who needs hospital care to receive it. People with treatable injuries and illnesses will die simply because there is no more capacity—and this is every person, not just those infected with COVID-19.
In the state where I live, which has a population of ~5.6 million, we’ve got about 500 free hospital beds right now. Without these extreme measures to reduce the infection rate, it’s obvious that we’re headed toward catastrophe. We lost the luxury of using a light touch approach because the case numbers are already too high to gently steer the ship away from the iceberg. We’re going to hit it anyway, but more people will survive if we don’t crash into it full steam ahead. [5]
[0] https://www.cbsnews.com/news/coronavirus-infection-outbreak-...
[1] http://weekly.chinacdc.cn/en/article/id/e53946e2-c6c4-41e9-9...
[2] https://www.cdc.gov/flu/weekly/weeklyarchives2019-2020/image...
[3] https://www.youtube.com/watch?v=Kas0tIxDvrg
[4] https://www.theatlantic.com/ideas/archive/2020/03/who-gets-h...
[5] https://www.flattenthecurve.com/