I think you're making the right point. On the medical side, Italy is showing what happens when a first world country has its medical system overrun. It's not pretty. We might talk blithely about losing "only" 4% of our population if this runs amok but that is a hellacious impact on a country emotionally and economically. I have no doubt that doctors in Italy are making some really hard decisions right now. Like who gets care and who gets left to die. Someone you or I care about might get left on the wrong side of that equation here in the US if this gets out of hand. Which is why I think extreme precautions are warranted.
On the economic side, there's talk (not here but within the populace) that the media's clickbait coverage is tanking the stock market. The market is not the economy, let's get that out of the way. But I can also promise that institutional investors do not care a flip what CNN or Fox News has to say about the pandemic. Nor are banks, airlines, or business executives making decisions based on Wolf Blitzer's latest "breaking report." Parts of China have been on de facto lockdown for a couple of months. That impacts the economy. We're also in an oil price war and dealing with the implications of a lot of build up of asset prices over time. Not to mention the corporate debt buildup. It's all coming to a head at once.