tailieunhanh - EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL OF ECONOMIC ADVISERS

In this paper, we also build on existing research by quantifying the impact that the ECE industry has on California’s economy in terms of parents’ purchasing power, economic output, jobs, and tax rev- enue. We found that parents who rely on paid ECE services have purchasing power of $ billion, based on their annual earnings. We also found that every dollar spent on the ECE industry yields two dollars in economic output for the entire California economy. This is because ECE spending creates demand for suppliers and at the businesses where ECE workers and their families shop. Spending on ECE supports nearly 200,000 jobs, both direct. | EMBARGOED UNTIL TUESDAY JUNE 2 Executive Office of the President Council of Economic Advisers The Economic Case for health Care Reform June 2009 EMBARGOED UNTIL TUESDAY JUNE 2 THE ECONOMIC CASE FOR HEALTH CARE REFORM Executive Summary The Council of Economic Advisers CEA has undertaken a comprehensive analysis of the economic impacts of health care reform. The report provides an overview of current economic impacts of health care in the United States and a forecast of where we are headed in the absence of reform an analysis of inefficiencies and market failures in the current health care system a discussion of the key components of health care reform and an analysis of the economic effects of slowing health care cost growth and expanding coverage. The findings in the report point to large economic impacts of genuine health care reform We estimate that slowing the annual growth rate of health care costs by percentage points would increase real gross domestic product GDP relative to the no-reform baseline by over 2 percent in 2020 and nearly 8 percent in 2030. For a typical family of four this implies that income in 2020 would be approximately 2 600 higher than it would have been without reform in 2009 dollars and that in 2030 it would be almost 10 000 higher. Under more conservative estimates of the reduction in the growth rate of health care costs the income gains are smaller but still substantial. Slowing the growth rate of health care costs will prevent disastrous increases in the Federal budget deficit. Slowing cost growth would lower the unemployment rate consistent with steady inflation by approximately one-quarter of a percentage point for a number of years. The beneficial impact on employment in the short and medium run relative to the no-reform baseline is estimated to be approximately 500 000 each year that the effect is felt. Expanding health insurance coverage to the uninsured would increase net economic wellbeing by roughly 100 billion a year which