Public Health Care Is Not Just a ‘Cost’… It’s an Economic Driver

Spending on Canada’s medicare system is typically understood simply as a major ‘cost’ item for government budgets. Seldom do Canadians consider the other side of the coin: public health care is also a pillar of Canada’s economy, and a powerful driver of growth, job-creation, and innovation.

Moreover, these economic benefits of medicare are becoming all the more important, in the wake of U.S. President Donald Trump’s trade war and other geopolitical disruptions. It is widely accepted that Canada needs to become less dependent on exports of goods and services to the U.S. market, given the unreliability of our major trading partner. Part of that historic shift will involve greater emphasis on the ‘non-traded’ economy: that is, industries which produce output in Canada, by Canadians, for Canadians, and which never crosses a national border.

Health care is the largest single industry in Canada, and it depends first and foremost on domestic work and domestic demand for health care services. In that context, the industry is relatively insulated from Donald Trump’s gyrations—making it a promising source of future investment and jobs as we pivot away from reliance on the U.S. market.

The Centre for Future Work recently partnered with the Canadian Federation of Nurses Unions (CFNU) on several initiatives to draw attention to the economic benefits of universal quality public health care.

With four co-sponsoring authors (including Marc-André Gagnon of Carleton University; Alika Lafontaine, former President of the Canadian Medical Association; Danielle Martin of the University of Toronto; and Steve Morgan of the University of British Columbia), Centre for Future Work Director Jim Stanford penned an open letter highlighting the economic benefits of medicare.

The letter highlights the many economic benefits generated by universal public health care:

Job-creation and growth
Indirect jobs and supply chains
Innovation and research
Labour market advantages (lower labour costs, better labour mobility)
Fiscal savings
Social equality and inclusion

The letter was signed by 275 economists, health policy experts, and experts in related fields, and released coincident with the G7 leaders’ summit in Kananaskis, Alberta. The goal was to stress to government that investing in health care (and other public and human services) is as important to strengthening Canada’s economy in the face of Trump’s disruptions, as the major investments in infrastructure and construction capturing most public attention at the moment.

Please see the public letter, and the full list of signatories here. A French-language version of the letter is available here.

The letter generated considerable media interest—including being featured in a full-page advertisement that ran in the Globe and Mail newspaper on June 17 (the closing day of the G7 meetings… hopefully Donald Trump picked up a copy before he departed early from the summit!)).

Jim Stanford was interviewed about the letter by several media outlets. Here is one feature interview with Dan MacDonald on CKLW800 AM Radio in Windsor explaining the rationale for the letter, and why investing in a stronger medicare system will help to stabilize Canada’s economy as we grapple with the fallout from Trump’s trade war.

In addition to the open letter, Jim Stanford also co-authored a commentary article with Linda Silas, President of the CFNU, summarizing the economic benefits of public health care, and arguing against the fiscal austerity and spending cuts that some politicians are advocating in the wake of the Trump tariffs.