How Money and Health Intersect

For some of my recent projects, I've delved into the bi-directional relationship between health and income. Below, I explore some of the key topics related to the question: Does money make us healthier, and vice versa?

Understanding the Role of Income in Health

When examining people's income and health, a clear trend emerges – the more money one has, the better their health tends to be. This global phenomenon influences factors such as life expectancy and the risk of various health issues. A graphic representation was first shown by Samuel Preston in 1975. The Preston Curve, named after the American demographer, illustrates how a country's income per person links to its people's life expectancy. At lower incomes, a small boost can result in a significant jump in life expectancy. However, as incomes rise, the impact on how long we live becomes less noticeable.

Factors Behind the Money-Health Connection

Digging deeper, we discover that education, nutrition, and public interventions play a significant role. Individuals with higher incomes often invest more in these aspects, directly impacting their health. Additionally, the impact of poverty and how inequality contributes to this connection cannot be ignored.

 

Global Income Inequality

An integral aspect of comprehending the income-health relationship is considering inequality. Income inequality amplifies healthcare disparities, making it essential to address them on a global scale for inclusive and equitable healthcare. Understanding global income inequality is challenging. Some argue it's increasing, especially in countries like China and India, while others suggest the gap is shrinking with the faster growth of Low- and Middle-Income Countries (LMICs). The reality likely lies somewhere in between.

 

Implications for Policies

So, what should we do about it? Policies must consider whether boosting economic growth is the key to better health or if a focus on spreading income more evenly is necessary. The central question revolves around achieving Sustainable Development Goals (SDGs) – should we grow first and then become healthier, or do we need to redistribute income for better health?

 

Measuring Success: More Than Just GDP and Lifespan

Economists are reevaluating what success means, moving beyond traditional measures like GDP and life expectancy. GDP per capita, the traditional measure of income per person, does not account for income distribution and inequality. Additionally, life expectancy is a too simplistic way to measure health outcomes because it ignores the quality of life and health disparities.

 

Summing Up the Money-Health Connection

In a nutshell, having more money tends to lead to better health, but it's not the whole story. Our genes, access to healthy food, where we live, and our lifestyles also matter. Recognizing and addressing the multifaceted nature of this relationship is essential, acknowledging that it is a complex challenge to measure and solve. Let's stay grounded and consider all these factors as we navigate the complex relationship between income and health.

Sources: Samuel H. Preston, 1975; Angus Deaton, 2003.

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