Analysis of Economic Determinants of Health and Inequalities

This report examines the economics of health, focusing on social determinants and health inequalities. It begins by exploring why disease is considered an economic issue, highlighting the costs associated with treatment, the impact of diseases like HIV/AIDS, and the economic burden on individuals and society. The report then delves into the concept of the 'cost of inaction,' emphasizing how investments in social determinants such as education, income, and employment can lead to better health outcomes and reduce inequalities. It further discusses the impact of social determinants, such as income and the environment, on health, and analyzes the role of inequalities in creating social injustices. The report concludes with a discussion question on the primacy of income as a determinant of health. This analysis draws on several scholarly sources to support the arguments presented.

The economics of social
determinants of health and
health inequalities
Presenter

Why disease can be considered an economic issue?
 Treatment of disease requires economic resources to meet the costs
associated with the disease.
 Medical expenses of the disease vary from region to region thus some
people can fail to afford.
 Sickness requires resources like doctor fee, testing fee and even
medication which one has to posses to overcome the burden of the
disease.
 Sick people are economically inactive thus reducing the economic
benefits that the economy reaps from.

Ways HIV/AIDS affects the individual economically
 HIV/AIDS affects the individual directly through the costs associated with disease
and its related illness.
 Indirect effects revolve around problems like lower labor force, reduced productivity,
increased demand for health services and high expenditure on health services.
 The outcome is increased expenditure to meet the burden of the disease.
Cost of inaction
Cost of inaction increases education, income, employment and social protection which
lead to better outcomes.
Cost of inaction increases inequity among different groups in the society.
Inaction increases gaps in social equality that makes people suffer more (Meagher &
Wilson, 2008). .
Social cohesion is also reduced through inaction and intergeneration of inequalities
within Australia.

What are some of the impacts of inequalities in social
determinants of health?
 Economic determinants of health increase access to health through
affordability of the medical costs.
 poverty limits access to healthy life through diet that influences better
health.
 Income affects personal life through increasing insecurity and well being of
the individual.
 Social determinants shape the environment that people live in that
determines the nature of their health.
 Higher differences in inequality increase disparities which create social
injustices that lead to poor health.

References
 Bell, C., Devarajan, S., & Gersbach, H. (2003). The Long-run
Economic Costs of AIDS: Theory and an Application to South
Africa. World Bank Policy Research Working Pape, 3152.
 Chisholm, D., Stanciole, A. E., Edejer, T. T., & Evans, D. B. (2010).
Economic impact of disease and injury: counting what matters.
BMJ, 340.
 Meagher, G., & Wilson, S. (2008). Richer, but More Unequal:
Perceptions of Inequality in Australia. Journal of Australian Political
Economy, 61, 220- 243.
 Song, R., Hall, I., Harrison, K. M., Sharpe, T. T., Lin, L. S., & Dean, H.
D. (2011). Identifying the Impact of Social Determinants of Health
on Disease Rates Using Correlation Analysis of Area-Based
Summary Information. Public Health Reports, 126(3), 70-80.

Discussion question
 Most scholars have argued that the income or economic status of the
individual is the overall determinant of all determinants of health. Do
you agree with this argument?