https://www.quora.com/How-can-a-disease-with-1-mortality-shu...
https://www.quora.com/How-can-a-disease-with-1-mortality-shu...
Better questions to think about are why the U.S. medical system supporting the words largest economy can't trivially expand its capacity to treat a relatively benign respiratory virus on top of its usual duties, or why there is a shortage in the training pipeline, or why people need ER care for other things in the first place.
Also with an evolving disease you don't know what its death-rate will be and it will depend on the preventive measures you and the government take, one of which is "shutting down" another being vaccination, which was not available at the beginning. If there had been no vaccine surely the death-rate had been larger.
According to data below the mortality rate is 7.5% in Mexico. In US it is 1.5%, not 1% as implied by whoever posed the question.
"Shutting down" will affect the mortality-rate because presumably it will protect the most vulnerable population more. If they don't get infected the mortality rate will be smaller.
And as far as I can tell US was never really "shut down" was it? Everybody still got their groceries. Many died of Covid, nobody died of hunger I believe. Subways and buses were running.
That is probably the CFR (case fatality rate). This depends on actually testing. If you don't test mild or asymptomatic cases, the mortality will look way larger.
But we know the actual global mortality, is about 0.7%.
https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/burd...
Everyone will get infected. Shutting down can only delay that.
Let's say you get to a serious car accident. But the hospital can not take you because it is full of Covid patients.
In the past it was considered normal to lose 50k soldiers in a war, have 3 of your kids die as infants, ...
https://en.wikipedia.org/wiki/United_States_military_casualt...
It's also passed the death toll in the U.S. from the Spanish Flu pandemic, which killed about 675K (although this was out of a smaller total population).
It doesn't take a very large death toll to have a major impact on American society.
https://www.cdc.gov/nchs/nvss/vsrr/covid19/excess_deaths.htm
You also can view the weekly totals for observed and predicted deaths on that site. You'll see that deaths from non-COVID causes track the predicted value quite well, but when you add in deaths from COVID, the curve follows the timing of COVID cases quite well.
So I don't think we're necessarily all that sensitive to death, although we I suppose if it's highly publicized and pushed (like war deaths or non-gang-related murders). We're much more sensitive to fear, which is perception of risk (which obviously includes mortality), but it is also very strongly driven by the amount and tone of news coverage, politicians, social media, etc.
Not to comment on the merits of the response to covid or any of these other issues or whether fear is justified, but the reason why economies were shut down for covid was because of fear not deaths.