How does a government-supported health care system affect that country’s currency exchange rate?
Craig asked:
For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!
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For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!
January 11th, 2010 at 10:08 am
Health is an international business in which the biggest companies in the world are involved. Most machines used in hospitals and labs and most medicines are imported. Government through taxes on citizens pay for that. The situation will be the same no matter who pays for the equipments either taxes or direct income. The fact is that the country should develope better medicines and create more efficient equipments to make the canadian dollar stronger. azkazk2005