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You are under the assumption that everyone in the quarantine cities are or will be infected, which is simply absurd. Vast majority will never come in contact with this virus. Quarantine is not meant to stop it, but reduce the scale of infection.
Look man. I'm not running around here with my hair on fire, but if a 1918 type flu bug came about now, millions would die.
There are 7 billion plus people on the planet. Millions is kind of a drop in the bucket.
A 2% fatality rate means that you have a 1 in 50 chance of dying, even if you catch it, and as you say, not everyone would catch it.
It's not the end of the world, but people would freak the fuck out, and it would impact the global economy.