Health Differences in Australia and the United States: The role of Social Expenditures

Abstract

The U.S has poorer health despite spending more on healthcare than its peer nations in the Organization for Economic Cooperation and Development (OECD). It is often argued that the U.S. cannot be easily compared with other nations due to many factors including geographic size and racial diversity. Australia, an Anglophone immigrant nation of enormous geographic size had similar life expectancy after birth in the 1970’s but has continued to improve, as U.S. health statistics have stagnated. Both Australia and the U.S. spend on social programs not including healthcare, but Australia’s policies have been more effective at improving the social determinants of health. Some of the differences in both health and healthcare in the two nations stems from history; others reflect current socioeconomic reality. As the U.S. debates health and healthcare reform, a focus on the social determinants of health may prove more successful than increasing healthcare expenditure. Adopting and modifying Australian social policies could provide a cost-effective method to improve U.S. health outside of healthcare reform.