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Health
Issues

NHS

•  Started
in
1948

•  Beveridge
report
had
iden:fied
poor

   healthcare
as
a
problem
during
WWII
(along

   with
educa:on
and
social
security)

•  Labour
government
made
it
a
priority
to

   eradicate
“Want,
Disease,
Ignorance,
Squalor

   and
Idleness”

•  The
free
market
system
before
1948
had
not

   worked
well
as
a
lot
of
the
popula:on
did
not

   have
healthcare

Health
care
pre
1948

•  Charging
for
healthcare
led
to
this
being

   under‐consumed

•  What
problems
may
this
under‐consump:on

   have
caused?

Health
as
an
externality

•  Healthcare
has
posi:ve
externali:es


•  Income
is
redistributed

•  Less
is
wasted
because
of
ill
health
e.g.

   produc:vity

•  Disease
is
not
so
easily
spread
because
of

   vaccina:on

•  Less
will
need
to
be
paid
out
through
sickness

   benefits

Problems
since
the
start…

•  Medical
advances
including
new
treatments
and

   beUer
diagnosis
have
led
to
a
massive
increase
in

   demand
for
the
NHS

•  Educa:on
was
not
delivered
well
e.g.
ea:ng,

   smoking,
drinking
alcohol


•  Drugs
were
developed
which
are
expensive
to
the

   NHS

•  The
government
ini:ally
thought
that
the
cost
of

   the
NHS
would
FALL
aWer
a
period
as
health

   improved!

Supply
and
demand

•  When
the
price
is
zero,
demand
is
unlimited

•  There
will
always
be
excess
demand,
unless

   funding
is
unlimited

•  Supply
is
determined
by
the
budget
for
the

   NHS
and,
poten:ally,
through
equipment
and

   staffing

Supply
and
demand
in
NHS

How
do
you
deal
with
unlimited
demand?


•  Wai:ng
lists
were
the
tradi:onal
way
–
and
to

   some
extent
s:ll
are

•  Introduce
charges
(prescrip:on,
dental,

   op:cian)
for
those
who
can
afford

•  Set
up
NICE
–
Na:onal
Ins:tute
for
Clinical

   Excellence

•  Encourage
preven:on
–
obesity,
smoking,

   drugs,
alcohol

•  Medicare
Australia
–
AU$60
for
visi:ng
GP

NICE

•  Aims
to
spend
money
where
there
is
the

   biggest
benefit

•  An
economic
decision
is
made
whether
or
not

   to
approve
a
drug
or
procedure
on
the
NHS

•  This
is
not
a
quick
process
and
NICE
tries
to

   balance
this
by
looking
at
how
produc:ve

   people
would
be,
could
they
recover?

•  High
cost,
liUle
benefit
treatments
are
usually

   not
given
approval

Taxing
harmful
ac:vi:es

Taxing….

•  Aims
to
reduce
consump:on

•  Reduce
nega:ve
externali:es
by
internalising

   these

•  Can
alcohol
be
treated
the
same
as
smoking

   tobacco?


Tobacco
and
alcohol

•    Alcohol
is
less
inelas:c
(more
elas:c)

•    Tobacco
is
always
harmful

•    Moderate
alcohol
is
not!

•    Thousands
of
jobs
related
to
alcohol
(and
tax

     revenue)

Discussion

•  Should
the
government
be
involved
in
our
lives

   by
saying
what
we
should
and
should
not
do?

•  Should
fat
pa:ents
be
made
to
wait
for

   treatment?

•  Should
we
be
doing
more
to
reduce
alcohol

   consump:on?


•  Should
healthcare
be
provided
free
at
the
point

   of
care?

•  What
are
the
failures
of
UK
healthcare?

•  How
could
these
failures
be
eradicated?

Environment

Environment

•  There
is
discussion
about
the
effects
on
the

   environment
of
human
ac:vity

•  It
is
generally
accepted
that
humans
have

   caused
damage

•  Most
damage
is
done
by
developed
na:ons

•  Some
developing
countries
are
rising
fast
to

   become
big
polluters,
and
many
more
are

   likely
to
follow

Who
should
pay?

•  Developing
na:ons
argue
that
developed

   na:ons
should
pay

for
the
damage
as
they
are

   causing
most
of
it,
and
that
developing

   na:ons
have
liUle
resources
to
deal
with
the

   issue

Poten:al
solu:ons

Kyoto

•  Signed
in
1997

•  Developed
na:ons
aimed
to
reduce
carbon

   emissions
by
5.2%
below
1990
levels
by

   2008‐2012
(recession
analysis
point)

•  141
countries
ra:fied
the
agreement

•  EU
chose
a
‘market’
solu:on
–
tradable
permits
–

   buy
and
sell
permits
as
required
with
financial

   gain
or
loss
–
s:ll
a
generous
allowance
but

   (analysis)
the
scheme
is
in
place
so
allowances

   may
fall
and
it
may
have
more
of
an
impact

Kyoto
and
the
non‐signers

•  US
and
Australia
refused
to
sign

•  Australia
has
since
signed

•  US
sees
Kyoto
(and
Copenhagen,
2009)
as
a

   serious
threat
to
the
development
of
its
economy

•  Analysis
–
if
the
US
does
not
reduce
and
there
are

   serious
environmental
problems
in
the
US,
who
is

   to
blame?

•  Could
the
oil
spill
in
the
Gulf
of
Mexico
be
a

   consequence


The
problem
with
China

•  China
has
had
a
growing
economy
for
a
long

   :me
and
this
is
having
an
impact
on
its

   emission

•  The
growing
economy
has
led
to
an
increase
in

   demand
for
raw
materials
and
consumer

   goods,
which
all
have
a
pollu:ng
effect

•  In
addi:on,
cars
and
airplane
journeys
are

   increasing
which
create
more
pollu:on

China

China

•  ¼
of
the
country
is
now
desert

•  Every
major
river
system
has
been
affected
by

   untreated
sewage

•  70%
of
the
world’s
discarded
computers
end
up

   in
China,
some
parts
reused
and
the
rest
dumped

   in
landfill
sites
–
toxic
effect

•  Acid
rain
causes
problems
in
neighbouring

   countries


•  Much
development
has
not
taken
account
of
the

   environmental
(or
social)
impact
of
these
–

   causing
nega:ve
externali:es
which
will
last
for

   years

China

•  The
demand
for
resources
has
led
to
forests

   being
destroyed
in
the
Philippines,
Thailand

   and
Cambodia

•  In
order
to
get
resources
from
Africa,
the

   Chinese
have
helped
to
build
dams,
roads
and

   bridges
in
Africa
without
care
and

   considera:on
for
the
environment

Discussion

•  Should
the
US
and
China
have
signed
up
to
Kyoto

   and
why?

•  How
can
UK
consumers/government
help
to

   convince
China
and
the
US
to
be
more

   environmentally
aware?

•  Do
the
nega:ve
externali:es
only
affect
one

   country?

•  Is
the
carbon
trading
scheme
in
the
EU
the
best

   way
to
go
about
reducing
pollu:on?

•  Have
we
learned
anything
since
the
ozone
crisis

   in
the
late
1980s?


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