Would improvement of health services in poorer countries benefit their economy?

Question

I get that it would help the people in the country but wouldn't it

help their economy too? I mean, I guess it would if they don't have to spend so much money on health care right?

I'm just trying to clarify some things for my economics class. :]

Answer 1

you are correct in what you have written so far. better health care would increase peoples life expectancy, child birth, etc. which will in turn translate into more resources needed to accompany the growing of population. remember an economy is based on GDP, gross domestic product which is what a country's flow of goods and services equate out to be. in theory, people with great health care is better at preventing disease and therefore able to spend the money elsewhere as well. but then again in a free market society like we have in the united states, it could do the opposite effect. health care costs rise out of control and it can negatively effect an economy.