Question

In: Economics

Debate Topic : Does federal government of Canada should increase their spending on healthcare.Give information on...

Debate Topic : Does federal government of Canada should increase their spending on healthcare.Give information on cons/negative impacts if the government increase their spending on healthcare.Give statistics,proof,evidence.

Please provide appropriate answer.

Solutions

Expert Solution

The federal government of Canada should increase their spending on healthcare;

Healthcare is one of the most important reflections in the Western world. While Canada’s situation diverse from that of the US, as well as EU nations and even the UK, there are matters affecting the health care industry of Canada, including long wait times to get treatment.
According to the Canadian Institute for Health Information (CIHI), in 2019 Canada is expected to expend $264 billion on health care, which relates to $7,068 per Canadian citizen.
Desertionisiom due to illness is not only dreadful for production but also means loss of wages for labourers. With the job market decreasing, people will have limited resources to spend on healthcare. It is such times of depressed economic activity that the government should spend more on healthcare.
Healthcare expenditure can result in improve provision of health opportunities, which can establish human capital and improve the productivity, thereby contributing to economic performance.

Negative impacts if government increase their spending on healthcare:-

Healthcare expenditure is negatively related with multi-factor productivity, it is positively related with the symbols of labor productivity, personal spending, and GDP.
Increased government spending is likely to reason a increase in aggregate demand (AD). This can lead to better growth in the short-term. It can also possibly lead to inflation.
If spending is centered on welfare benefits or pensions, it may decreased inequality, but it could crowd out more productive private sector investment.

Diagram:-Impact of government expenditure on economy;


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