Coronavirus and NIH/CDC Funding

Chris EdwardsThe rapid spread of coronavirus (Covid ‐​19) is focusing attention on the health agencies that are helping to fight the pandemic. This year, the National Institutes of Health (NIH) will spend about $38 billion on research and the Centers for Disease Control and Prevention (CDC) will spend about $8 billion on controlling infectious di seases and other activities.The health agency budgets have become a  political football in recent weeks withvarious claims being made regarding spending levels under President Trump. Let ’s look at some data.Figure I  shows total outlays on the NIH and CDC in real (or inflation‐​adjusted) dollars since 1962. The data is from the most recentfederal budget released February 10. It includes estimated spending for 2020 and Trump ’s proposals for 2021. I used the budget’s deflator to convert spending to real 2020 dollars.Real NIH spending soared from the mid ‐​1990s to 2011. It was then cut under President Obama but has rebounded under President Trump. Real CDC spending soared from around 1990 to 2010 but has been roughly flat since then. New legislation tackling the coronavirus will increase spending above these levels going forward.How much should we spend on the NIH and CDC? I  don’t know, but there is a stronger argument for government spending on activities that are “public goods, ” which are items that create broad benefits but are underprovided by markets. NIH and CDC research into infectious disease an...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs