The economy is made up of a lot of people doing stuff, selling stuff, and building stuff. if nobody is building stuff, and nobody is doing stuff, and nobody is selling stuff, we have no economy. That is what we are seeing now. And we aren't talking about one month, we are one week 10 or 11 of this shit.
Asking "why is it worse than people dying" is like me asking why we still have cars when we have tens of thousands of car accident deaths every year. We don't have CNN out there saying cars should be banned and they take pictures of car dealers asking why we are choosing "cars over lives." People die, we don't stop civilization over it. Especially when the people who are dying are an almost totally distinct cohort from the people who keep the economy afloat and need to take care of their families. I would argue there is a good way to implement policies that help both (strict policies for nursing home employees, intake, etc.) without forcing everyone to stay inside and be tracked by their government.
I don't know if this is an american problem. But we never got into this situation here in germany. Sure some things had to slow down, but things are pretty much back to normal now and never really went into "no economy".
Also your anology with the cars is a faulty one. People ( yeah even old people ) can survive without driving a car. You can't survive without leaving your home and in the result getting infected.