The Economic Impact of Obesity - Essay Example

?Effects of Obesity When weight increase happens to such an extent that it starts affecting someone’s health, this phenomenon is called obesity. There is a certain range of weights given in Body Mass Index for every age and if the weight is more than what the range allows, a person is said to be obese. It can lead to Diabetes, blood pressure and other chronic diseases. Our poor diet habits and lack of physical activity are leading to obesity; also, the technological advancements have made our lives so busy that we do not have time to physically keep ourselves fit. If we see in the context of the US, the obesity epidemic has affected the national budget. Research has identified obesity effects at four levels i.e. direct medical costs, productivity costs, transportation costs and Human capital costs (Ross A Hammond). More than two thirds of Americans are overweight and obesity rates have been doubled since 1970 to over 30 % (Ross A Hammond).Due to the diseases caused by obesity, absenteeism is increasing and accounting the largest part of productivity pressures caused by obesity (Ross A Hammond). In addition, it contributes to loss of productivity because obese people are less active and therefore less productive (Ross A Hammond). Also an increased level of obesity means more transportation and large vehicles required to transport employees or commuters (Ross A Hammond). So obesity is also affecting the US economically, increasing not only health costs but also the economy is suffering in terms of productivity and human capital. If we see the international effects of obesity, World Health Organization says that obesity has been tripled in the last twenty years (Douglas) . Dr. Meera Shekar, senior nutrition specialist with World Bank, says that malnutrition cuts two to three percent of GDP of large countries, and growing rate of obesity can do the same (Douglas) . As obesity is supposed to reduce life expectancy, obesity is affecting the global economy as well (Douglas). A study proposed that by 2050, people will live five years less then now, if efforts are not done to reduce obesity globally (Douglas) . Also the prevalence of obesity is now being shifted from rich to poor in developing countries and this is what happened in France where obesity is five times more prevalent in low income groups than high earners, according to a regional advisor of WHO, Dr. Franceso Barsa (Douglas). Globalization has been proved to be a very useful phenomena as it increased knowledge, enhanced technology and proved out very useful for big Multinationals. However, at the negative side it has caused such social and economic shifts that have increased wealth and obesity as well (Globalization and Obesity). Obesity was a public health problem in a few countries over the last two decades, but now it has become a global problem and some call it ‘globesity epidemic’. Worldwide, one out of every three adults is obese. If this trend continues, 60 percent of the whole world will be obese by 2030 (Globalization and Obesity). Overweight is becoming a bigger problem than malnutrition in poor and middle income countries. Fast food culture is one of the main reasons of increasing obesity and nowadays it is becoming more common as people have less time. Obesity not only increases health costs but also imposes a lot of economic costs of countries. The indirect impacts of obesity are more than the direct health impacts (Derek Yach). In poor countries the public pays for their own healthcare and so the diseases caused by obesity are badly affecting the economic situation of citizens (Derek Yach). The cost of treatment is high which makes it unaffordable for lower income groups. In India, 15-25% of household income is spent on medical treatment (Derek Yach). In Tanzania, this cost constitutes 25 percent of lowest wage or 20 times the per capita health expenditure. In Bangladesh, this expenditure is 6 to 12 month’s wages or $160 per year (Derek Yach). So these costs are increasingly causing poverty (Derek Yach). A recent survey in China, almost 30 percent of poor households attributed their poverty to healthcare costs. People in developing countries face a lot of financial difficulties because of Diabetes and many of them avoid medical treatment because of financial constraints (Derek Yach) Also due to significant financial burden, employers have a tendency to reduce obesity of workforce or hire less obese force. Obese works have a high rate of absenteeism, they get ill more often, they ask for more compensation and health benefits, so they are more costly to employers (Economic Impact of Obesity). According to a research, a firm with 1000 employees faces $285,000 per year as extra cost of obesity (Economic Impact of Obesity). In the end we can say that obesity not only costs a nation for medical treatment costs but also obese people become a burden for the society. Economically, such people are hard to be managed by organizations, as they require more health benefits and less productivity. Globalization has improved the living standard of many people but has made them so dependent on machines and technology that physical activities have become extinct. Technological innovation of vehicles has helped human beings, but has also made them complacent and dependant on technology. There is a need to achieve a work life and health balance because obesity is increasing heart diseases and decreasing life expectancy rates. Efforts should be made at policy making level; certain rules should be made for companies and schools to make physical education necessary. Obesity is also causing lower income people of all the country to become poorer and increasing the gap between rich and the poor. A reasonable percentage of monthly income is being spent on medical treatment by poor households, which further aggravates their financial situation. Also transportation costs increase because of obesity as more vehicles are required for less number of people. There is a need of awareness spreading about the fatal affects of obesity. The decreased life expectancy rate can prove out to be alarming news for the obese people after which they might start wondering about their health. References Derek Yach, David Stuckler, Kelly D. Brownell. "Epidemiologic and Economic consequences of Global Epidemics of Obesity and Diabetes." 2006. Douglas, Jerome. "Obesity could cost global economy as much as malnutrition, warns World Bank ." 17 Novemeber 2006. naturalnews.com. 17 April 2012 . "Economic Impact of Obesity." n.d. "Globalization and Obesity." Harvard School of Public health (2011). Ross A Hammond, Ruth Levine. "The economic impact of obesityin the United States." Dove Press Journal (2010). Read More