Six ways public health care makes our economy stronger
On open letter to Prime Minister Carney signed by over 270 economists and health policy experts says Canada’s universal public health care system – commonly known as Medicare – delivers significant economic benefits to Canada.
“Given global economic uncertainties and trade pressures, particularly arising from the U.S., it is more important than ever to understand the economic value of sound public health care policies in Canada,” write the experts.
Prime Minister Carney has put attracting investment in Canada at the top of his agenda. The economists remind him that public health care is a major economic pillar, supporting employment, innovation, and fiscal efficiency, all of which contribute to Canada’s economic resilience amidst global uncertainties and trade pressures.
Six ways Medicare makes our economy stronger:
- Employment and economic growth: Approximately three million Canadians work in the broad health care sector, earning an average of over $50,000 per year.
- Supply chains and indirect jobs: The health care system relies on and supports a supply chain consisting of hundreds of input industries: from materials and equipment to construction and specialized services.
- Innovation and research: Over $7 billion per year is invested in health research and development in Canada, pushing the frontier of knowledge in many fields and underpinning successful commercialization of procedures, medicines, and medical equipment.
- Labour market advantages: Universal, public health coverage keeps employer health costs well below those in the U.S., which can exceed C$25,000 per worker per year.
- Fiscal savings: The administration costs of Canada’s Medicare system are 80% lower per person than in the mostly-private U.S. system, an annual saving of $180 billion, while delivering superior outcomes in longevity, infant mortality, and infectious disease.
- Social equality and inclusion: When health care is provided irrespective of income, all segments of society can access this essential service. This contributes to greater life chances, and less disfunction and polarization across society.
This full page ad appeared in The Globe and Mail on June 17, 2025
The co-sponsors of the letter are Marc-André Gagnon of Carleton University, Past President of the Canadian Medical Association Dr. Alika Lafontaine, Dr. Danielle Martin of Women’s College Hospital, Steve Morgan of UBC, and Jim Stanford of the Centre for Future Work.
Lind Silas, President of the Canadian Federation of Nurses Unions and one of the over 270 signatories, said, “Public health care is a powerful driver of economic growth. It’s a nation-building investment that supports millions of jobs, fuels world-class innovation, and creates a healthier, more productive population. Healthy people build a healthy economy and it’s time we treat public health care as essential to Canada’s future.”
