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The public health effect of economic crises and alternative policy responses in Europe: 
an empirical analysis

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David Stuckler PhD a b, Sanjay Basu PhD c d, Marc Suhrcke PhD e f, Adam Coutts PhD g, Martin McKee MD b h
a Department of Sociology, Oxford University, Oxford, UK
b Department of Public Health and Policy, London School of Hygiene and Tropical Medicine, London, UK
c Department of Medicine, University of California San Francisco, CA, USA
d Division of General Internal Medicine, San Francisco General Hospital, CA, USA
e School of Medicine, Health Policy and Practice, University of East Anglia, Norwich, UK
f Centre for Diet and Activity Research (CEDAR), Cambridge, UK
g Oxford Department of Politics and International Relations, Oxford, UK
h European Observatory on Health Systems and Policies, Brussels, Belgium

The Lancet, Early Online Publication, 8 July 2009
doi:10.1016/S0140-6736(09)61124-7 

Background http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(09)61124-7/fulltext 

There is widespread concern that the present economic crisis, particularly its effect on unemployment, will adversely affect population health. We investigated how economic changes have affected mortality rates over the past three decades and identified how governments might reduce adverse effects.

Methods
We used multivariate regression, correcting for population ageing, past mortality and employment trends, and country-specific differences in health-care infrastructure, to examine associations between changes in employment and mortality, and how associations were modified by different types of government expenditure for 26 European Union (EU) countries between 1970 and 2007.

Findings
We noted that every 1% increase in unemployment was associated with a 0·79% rise in suicides at ages younger than 65 years (95% CI 0·16—1·42; 60—550 potential excess deaths [mean 310] EU-wide), although the effect size was non-significant at all ages (0·49%, −0·04 to 1·02), and with a 0·79% rise in homicides (95% CI 0·06—1·52; 3—80 potential excess deaths [mean 40] EU-wide). By contrast, road-traffic deaths decreased by 1·39% (0·64—2·14; 290—980 potential fewer deaths [mean 630] EU-wide). A more than 3% increase in unemployment had a greater effect on suicides at ages younger than 65 years (4·45%, 95% CI 0·65—8·24; 250—3220 potential excess deaths [mean 1740] EU-wide) and deaths from alcohol abuse (28·0%, 12·30—43·70; 1550—5490 potential excess deaths [mean 3500] EU-wide). We noted no consistent evidence across the EU that all-cause mortality rates increased when unemployment rose, although populations varied substantially in how sensitive mortality was to economic crises, depending partly on differences in social protection. Every US$10 per person increased investment in active labour market programmes reduced the effect of unemployment on suicides by 0·038% (95% CI −0·004 to −0·071).

Interpretation
Rises in unemployment are associated with significant short-term increases in premature deaths from intentional violence, while reducing traffic fatalities. Active labour market programmes that keep and reintegrate workers in jobs could mitigate some adverse health effects of economic downturns.
Funding - Centre for Crime and Justice Studies, King's College, London, UK; and Wates Foundation (UK).

Comments

Mr Strauss-Kahn said the global recovery remained "fragile"
The International Monetary Fund head has warned that the global economy could experience another downturn - a so-called double dip recession.
Dominique Strauss-Kahn said countries should not exit from stimulus packages that have bolstered growth through huge amounts of government spending.
"We have to very cautious because this recovery remains very fragile," Mr Strauss-Kahn said.
He added that China and Asian economies are leading the recovery.
"Recovery in advanced economies has been sluggish," Mr Strauss-Kahn said. "The best indicator is private demand and employment."
"In most countries, growth is still supported by government policies. For as long as you do not have private demand strong enough to offset the need of public policy, you shouldn't exit."
He added that tackling high levels of government debt will be a priority for many governments.
He suggested that the IMF would raise its growth forecasts for this year.
The IMF is currently predicting the global economy will grow by 3.1% in 2010.

For More Information:
http://news.bbc.co.uk/2/hi/business/8464774.stm

Following the precipitous drop in the global economy during the end of the Bush Administration, very aggressive actions have been taken to stabilize the U.S. and global economy. That said, employment in the advanced economies has not rebounded. Investments made to date have propped up failing institutions. However, return on those investment is questionable.

We have to ensure that we are investing in sustainable and resilient infrastructures. We have to make investments that will protect the health and human security of Americans. We have to prepare for the scenario of more "L-shaped recoveries" until our spending comes in line with our economic resources and our ecological footprints match what is sustainable. From that base, we can grow a new, green economy.

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