Question

Please discuss the economic impact of the social determents ( affordable housing, nutritious food, clean water…) on the health care costs in the United States today. Included in your response please propose a potential solution to these social determents and what potential consequences they may have on the U.S. economy and the health care system.

Answer 1

Economic impact of social determents on the social healthcare costs in the USA. It is clear that affordable housing, nutritious food, clean water leads to less expenditure on health care costs as all these determents raise standard of living.

It also leads to creation of better human capital which leads to more growth and development of a country. It also makes USA to rank high in per capita income and also in human development index.

All state provisions also has opportunity costs as money spent on these heads may be spent on education or creation of infrastructure that will lead to more sustainable development and growth in the longer run.

US spends around 18% of its GDP on healthcare and allied social health determents. Amount is around $3.7 trillion which is more than GDP of many countries.

Possible solution is a long term one and requires focus on supply side policies which aim at creation of infrastructure, investment in research and development. This will facilitate market players to prosper and as capacity is built , state will not have to intervene. However, income inequality is increasing and state will still have to pay for healthcare costs as it becomes inevitable for a welfare state.