Human endeavor creates value. Healthier people endeavor more. Thus, health is a creator of value, of prosperity. The converse is also true. Wealthier societies demand more health care. When life is grand, people want to live longer and they want to maintain healthy bodies. Therefore, health and wealth form a virtuous, feed-forward cycle.
Growth in Total Health Expenditure Per Capita, U.S. and Selected Countries, 1970-2008 (source: Kaiser Family Foundation)
Empirically, the data supports this view. Let’s roughly assume GDP is a proxy for a society’s wealth. Longitudinally, as the GDP rises in any country over time, the percentage of GDP attributed to healthcare also goes up.… Read More