Economic Policies, Political Considerations and Overall Health

Socioeconomic factors play a crucial role in determining physiological and psychological health levels of the population. The level of unemployment, income inequality and poverty levels are largely affected by economic policies and the economic cycles. Economic policies can also influence the occurrence of economic cycles which in turn influence socioeconomic factors and therefore health inequalities. Economic policies are influenced by political considerations as the historical record of many countries indicates. The paper discusses the conduct and the effects of economic policy on health inequalities. It starts with a discussion of the need and of the instruments of economic policy and also its effectiveness in smoothing the economic cycle. It also examines the interplay between main policy targets such as unemployment and inflation with political considerations. Finally, it concentrates on the effects of economic policies for health inequalities in view of economic recessions.