In this article, we aim to develop a political economy of mass hysteria. Using the background of COVID-19, we study past mass hysteria. Negative information which is spread through mass media repetitively can affect public health negatively in the form of nocebo effects and mass hysteria. We argue that mass and digital media in connection with the state may have had adverse consequences during the COVID-19 crisis. The resulting collective hysteria may have contributed to policy errors by governments not in line with health recommendations. While mass hysteria can occur in societies with a minimal state, we show that there exist certain self-corrective mechanisms and limits to the harm inflicted, such as sacrosanct private property rights. However, mass hysteria can be exacerbated and self-reinforcing when the negative information comes from an authoritative source, when the media are politicized, and social networks make the negative information omnipresent. We conclude that the negative long-term effects of mass hysteria are exacerbated by the size of the state.
In fact, prior scientific research on disease mitigation measures during a possible influenza pandemic had warned against such invasive interventions and recommended a more normal social functioning . Moreover, in reaction to past pandemics such as the Asian flu of 1957–1958, there were no lockdowns , and research before 2020 had opposed lockdowns . From this perspective, the lockdowns have been a policy error. We have shown that these policy errors may well have been produced by a collective hysteria.