Thursday 30 May 2013

Austerity and Asparagus


I live in the countryside and the local farm is now selling the new season’s asparagus. I’ve a lot of friends to say thank you to so I bought six boxes at £5 each, much cheaper than in the shops, but coming to £30.  This week’s Guardian newspaper has a whole section of its Cook! Magazine devoted to this wonderful though expensive vegetable. Today’s Guardian carries a feature on a new report from a number of charities including Oxfam, and Church Action on Poverty suggesting that half a million people in the UK are now “forced to live on food banks for sustenance”. The report, 'Walking the Breadline’ links the UK government’s swingeing cuts to the benefits system, unemployment, low and falling incomes and rising food prices. The chief executive of Oxfam is reported as saying that the cuts have gone too far, “leading to destitution, hardship and hunger on a large scale. It is unacceptable that this is happening in the seventh wealthiest nation on the planet’. Indeed.

These kinds of inequalities, where I can afford asparagus but where £30 is what many families might have to feed themselves for a week, were pointed out by Wilkinson and Pickett’s ‘Spirit Level’ and also by the Commission on the Social Determinants of Health. The evidence in both is carefully constructed but one could say ‘it’s hardly rocket science’ to suggest that where people do not have the basics, their health will suffer. Another publication just out (on May 21st) brings the political and epidemiological analysis up to date and considers the effects of the austerity measures promulgated by some western democracies on public health. David Stuckler and Sanjay Basu in ‘The Body Economic: Why Austerity Kills’ argues that there is a cause and effect relationship between austerity measures and public health declines, and that it is not recession per se but austerity measures that are causing these declines in public health and wellbeing. The key is how governments manage recession, so that a recession could be as equally bad in two countries but the effects are better mitigated by some governments than others.

They give the example of Iceland which suffered a catastrophic banking failure, and its total debt went up to 800% of GDP, far worse than debt faced by any European country today. But rather than make austerity cuts, more money was pumped into health care, diets improved through better use of local resources, investment was made in jobs and people were protected from homelessness. There has been no rise in depression or suicide and moreover, GDP growth exceeds 4% (higher than other European countries suffering recession), and unemployment is below 4%. In 2011 Iceland ranked the happiest in the world.

This is in contrast to Greece, where health care funding has been cut by 40%. Suicide rates have increased by 60%, charity helplines say they are facing unprecedented demand and rates of depression have gone up dramatically. Greece is used as the most devastating example of the mismanagement of recession, with HIV rates going up by 200%, infant mortality reportedly rising by 40%, and even malaria returning. Ireland too, has seen huge rises in suicide rates, and health care is being cut. Stuckler and Basu describe the false economy of austerity measures and how many of the actions required are counterintuitive. You could say to follow an alternative path to austerity requires more imagination than many politicians can muster, and there appears to be an appalling lack of health promotion thinking in terms of acting to prevent the inevitable public health problems that follow increased inequality and the concomitant failure to provide the basic determinants of health.

The historical approach of the book enables us to see that for example, where Sweden and Finland endured huge financial crashed in the early 1990s, their social safety nets were preserved, leading to no increases in mental health problems or other public health disasters. All in all, the analysis leads Stuckler and Basu to argue against austerity measures and for stimulus measures. The decision taken by the Icelandic people in a referendum, to reject the austerity measures suggested by the IMF, has been vindicated. There are thus robust examples of where stimulus measures have been shown to work, not only in restoring the health of economies, but also in not damaging the health of people. There need not be a tension between fiscal health and public wellbeing.

An article in the New York Times by the book’s two authors sets out aspects of their argument: http://www.nytimes.com/2013/05/13/opinion/how-austerity-kills.html?pagewanted=all&_r=0


No doubt the book requires careful scrutiny to assess the strengths of the arguments, and I am not well enough versed in health economics to do so without a more in-depth consideration. But the book makes ‘common sense’ to me and certainly other reports, such as that mentioned in the first paragraph of this blog post, would support the need for stimulus measures and highlight the shortsightedness of austerity measures. Another report just out from the International Labour Organization, Global Employment Trends for Young People 2013, shows that for 15-24 year olds, unemployment has reached 13%; this masks the true level of unemployment as so many young people are doing jobs for which they are over-qualified or where there is a skills mismatch. Global youth unemployment is reaching a ‘crisis peak’ such that many young people have given up hope of finding any meaningful work. That societies are not using the valuable talents and skills of young people is a personal tragedy as well as a huge loss to those economies. Being meaningfully occupied is a vital dimension of health; work is not the ‘be all and end all’, but it is a vital source of self-esteem, identity and self worth. Moreover of course, it provides other vital social determinants of health based on income and the ability to buy basic services, social support, companionship and hope for the future.  Lack of employment at young ages does not bode well for creating happy young people who have an investment in the societies of which they are a part. These last months have seen the death of Margaret Thatcher who came into power when one in seven children in the UK were living in poverty. When she left power, one in three children were living in poverty. These kinds of inequality have not improved since, alongside it being the norm for many never to find work. I cannot believe that the austerity measures of the current coalition government are doing anything other than storing up more future inequality and more public health consequences for many, if not most, of those in the bottom half of the income range. Meanwhile those like me, in good jobs, eat asparagus.