Health: US health care vs Canadian, part 1

Self-tutoring about health care in the US vs Canada: the tutor mentions an article.

The following is according to my understanding.

I encountered this article by John R. Graham, Fraser Institute, that compares spending on health care in the US vs in Canada. It’s from 2016, so may be somewhat academic by now, but is definitely interesting.

As I read it, Graham’s main point in the article is that health care spending, by percent of GDP, is higher in the US (around 17% in the US, versus around 11% in Canada, for the year 2013). With that, he gives an equivalent dollar amount per person: 9086 per American, while only 4569 per Canadian. By that reckoning, Canada comes out ahead, it seems.

Graham continues with another comparison, for that same year, of GDP per capita: 53135 for the US, while 42701 for Canada. One can realize that the US GDP per capita exceeds Canada’s by more than the average dollar amount paid by the American for health care. Therefore, if the American earns the average GDP, then pays the average medical cost in the US, they are left with more money than the Canadian GDP per capita.

Graham’s point is that although US health care is more expensive than Canada’s, the American earns enough, on average, that they can afford US health care and still have more money left over than the average Canadian. The idea follows that US health care, even with its challenges, doesn’t seem to affect the prosperity of the US. In fact, it might enhance it.

Such is my understanding, and it’s an interesting angle Graham takes, because it allows both sides to claim victory. The free-marketeer can claim the US system is better, because it still leaves more money in the typical American’s pocket. Then again, the person who believes in socialized medicine can argue the Canadian system is more economical.

Interesting, eh?