Monday, September 22, 2008

Economic Policy = Health Policy

Economics and health initiatives are interdependent. The role that each has on the socio-economic and socio-cultural factors integrated within social solidarity is indisputable. I'd like to illustrate this relationship in terms of labor productivity, labor supply, education, and savings/investment.

Individuals with healthier physical and mental health are more likely to increase productivity, efficiency, and adaptability to new workplace settings.

In turn, with a lack of sustainable health, individuals will have reduced wages, and thereby a lower incentive for work productivity. Thereby, the labor supply is affected.

Furthermore, individuals with more sustainable health are more likely to pursue higher education and attain transferable skills into the workforce. On the other hand, individuals in poor health are more likely to increase absenteeism rates and thereby impede the progression toward a more economically productive society.

Lastly, putting all these factors into consideration, health of a population will not only influence the determinants toward income distribution, but also the likelihood of the population to consume, invest, and save their earnings. Source for more information: World health organization, "Dying too young" publication

Cumulatively, this has various impacts on:

- The GDP
- The macro-allocation of resources to health care
- Opportunity costs
- Socio-political dynamics encompassing the prioritization of accessibility& affordability of health
services
- Social solidarity and cohesion toward the commonality of building social capital


No comments: