The Value of Health

How does health shape the economy, and how is health shaped by the economy? In his inaugural lecture as Professor of Public Health Economics, Jochen Mierau explores the two-way relationship between health and our economic system. He argues that health is a fundamental factor of production—without it, economic and societal development is impossible. Large health disparities, therefore, signal that society is not reaching its full economic potential.

Examining the origins of health disparities, Mierau highlights an important shift: whereas past threats to health came from external dangers, today’s health risks emerge from within our economic system. While markets provide livelihoods for millions and drive innovations that improve well-being, health harming industries contribute to a significant share of deaths worldwide. Yet, these industries are not driven by an intent to make people unhealthy—their primary objective is profit.

From this perspective, Mierau demonstrates that the profit motive not only shapes health outcomes but also influences what we know in the first place—impacting research priorities and the policies designed to address health threats. Indeed, markets will always favor treatments that generate private profits over preventive measures that primarily benefit society as a whole. He argues that aligning economic development with public health requires balancing the pursuit of profit with legally enshrined health goals.