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Oxford definition: "an earlier event or action that is regarded as an example or guide to be considered in subsequent similar circumstances."

The operative word there is "similar."

Yes, similar as in "if we don't do that, insert_whatever_crazy_idea_here, we're gonna overwhelm the hospitals!!!"

Because it's been the justification from day 1: "not overwhelm hospitals".

Yeah, that's not how precedent works. Precedent is used to justify the means, not to point out that past actions had the same or similar ends.