Cancer Cure Economics

Cure for Cancer worth $50 trillion

Article published by THE ECONOMIST

A cure for cancer would deliver a staggering economic windfall to the United States, estimated at approximately $185 trillion to $197 trillion in total value over a 35-year period. This reflects an annual economic gain of roughly $15,000 to $1,000 per American or about $41,684 per household.

Primary Economic Gains

• Increased Longevity: The most significant value comes from extending lives; researchers use federal standards to value the 380 million life-years that would otherwise be lost to cancer.

• Workforce Productivity: Curing cancer would prevent massive productivity losses caused by premature mortality and morbidity, which were projected to exceed $300 billion annually.

• Reduced Healthcare Spending: Direct cancer-related medical costs are projected to reach $246 billion annually.. A cure would eliminate most of these expenditures for patients, insurers, and taxpayers.

• Household Financial Stability: Elimination of cancer would prevent medical bankruptcies and the $21 billion annual "patient economic burden," which includes out-of-pocket costs and time spent seeking care.

• Fiscal and Societal Implications / IRR

• Public Finance: Longer, healthier lives would lead to stronger public finances through increased tax revenue from a larger, more active workforce.

• Investment Returns: Viewing cancer research as an investment, experts estimate an internal rate of return (IRR) between 537% and 1,024%, far exceeding standard market investments.

Cure For Cancer Worth $50 Trillion, Study Says

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2006/04/060426174214.htm#google_vignette

University of Chicago Press Journals

A new study calculates the prospective gains that could be

obtained from further progress against major diseases.

Kevin M. Murphy and Robert H. Topel, two University of Chicago researchers, estimate that even modest advancements against major diseases would have a significant impact -- a 1 percent reduction in mortality from cancer has a value to Americans of nearly $500 billion. A cure for cancer would be worth about $50 trillion.

IMPORTANT NOTE: This financial worth study was projected in 2006. Taking into consideration a conservative inflation rate of 2.4%, in today’s dollars the cure for cancer would be worth closer to $80 trillion. Yes, it’s hard to fathom, but it is based on the research of two of our nation’s most prominent, highly credible, accredited, and award winning, researchers.

RESEARCHERS: University of Chicago Press Journals

KEVIN M. MURPHY, Biography: https://www.chicagobooth.edu/

faculty/directory/m/kevin-m-murphy

Kevin M. Murphy is the first professor at a business school to be chosen as a MacArthur Fellow. In addition to his position at the University of Chicago, Murphy works as a faculty research associate for the National Bureau of Economic Research.

ROBERT H. TOPEL Biography: https://www.chicagobooth.edu/

faculty/emeriti/robert-h-topel#biography

Topel is a Research Associate of the National Bureau of Economic Research, an elected member of the Conference for Research on Income and Wealth, an elected founding member of the National Academy of Social Insurance. He has held visiting and research positions at a number of institutions, including the Board of Governors of the Federal Reserve, the World Bank, the Economics Research Center of the National Opinion Research Center, and the Rand Corporation.

The University of Michigan is a public research university in Ann Arbor, Michigan, United States. Founded in 1817, it is the oldest institution of higher education in the state. The University of Michigan is one of the earliest American research universities and is a founding member of the Association of American Universities.

Recognized as one of the Public Ivy institutions, the university is also classified as an "R1: Doctoral Universities – Very high research activity" by the Carnegie Classification.