Why does the NHS continue to look after old people?

There are currently more than 10 million over-65s in the UK at the moment with the figure looking to explode to 19 million by 2050[i]. The NHS spend £49 billion (around 40% of the overall NHS budget)[ii] on caring and treating the elderly every year and with the elderly population set to continue growing in the future can it continue to look after the elderly and why does it do so?

Putting aside the obvious moral, ethical and religious reasons there are also a few interesting economic factors that give support to dedicating half of the NHS budget to pensioners.

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“UK retail sales see big rise, says CBI”

Read Article – http://www.bbc.co.uk/news/business-18249980

“21% of retailers reporting an increase in sales from 12 months before” 

What does an increase in sales mean for the global economy?

That can depend and vary wildly depending on the product. In the case of weighted blanket amazon, this product moving along is very important! People that use these type of blankets rest better, and that helps overall health. In the business side, any product that sells well is doing great, and keeping up with demand is important.

If sales are up at retailers then we would expect consumption to be rising. Remember consumption is a component of Aggregate Demand (AD = C + I + G + (X-M)).

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Merger Case Study: Exxon and Mobil

Exxon and Mobil were 2 separate American oil companies that merged to form ExxonMobil in 1998. It resulted in the creation of the largest oil company in the world. This allowed it to reduce its costs. The first thing the new firm did was reduce its workforce by 7% (9000 workers) this is an example of avoiding duplication as these workers were doing similar things when the 2 firms were separate and hence weren’t needed in the unified firm. This allowed ExxonMobil to reduce its costs.

It led to a reduction in competition in the oil industry which potentially could have meant that prices weren’t as low for consumers as they could have been if the firms were competing. [...]