The Economic Cost of Malnutrition

Good nutrition is important for maintaining health and reducing the risk of many diseases. Malnutrition is defined as an imbalance in the intake of nutrients required by the body to maintain health, resulting in impaired health and well-being. Malnutrition manifests in two main forms: (1) Undernutrition, the inadequate intake of nutrients required for optimal health and (2) overnutrition, the excessive intake of some nutrients leading to poor health (World Health Organization, 2024).

Close to 13% of households in America experienced food insecurity resulting in about 44.2 million Americans not having enough food to meet their nutritional needs (United States Department of Agriculture, 2023). Undernutrition can lead to lowered immunity and impaired growth and development. Overnutrition on the other hand can result in overweight, obesity and an increased risk of chronic disease (Wells et al., 2020).  About 30.7% of adults in America are overweight while over 40% are obese (National Institute of Diabetes and Digestive and Kidney Diseases, 2021). This double burden of malnutrition not only results in adverse health outcomes but has consequences on economic growth and development (Nugent et al., 2020). Malnutrition has several economic ramifications affecting individuals, families, employers and the entire nation.

Cost of malnutrition to the individual

Both undernutrition and overnutrition come at a high economic cost to the individual. Illness due to malnutrition can deplete economic resources through increased medical bills, medication and other costs involved in treatment (Becker et al., 2022). Incapacitation due to malnutrition can result in an inability to work leading to lost wages and poverty (Bloom et al., 2011; Finkelstein et al., 2005). Undernutrition during childhood can result in stunted growth and poor cognition which can have long-term consequences on earning potential during adulthood (Hoddinott et al., 2013). It is reported that a 1% loss in adult height translates into a 1.4% loss in adult productivity (The World Bank, 2006).

Cost of malnutrition to families

Many families are impacted financially by the consequences of malnutrition. Chronic diseases including stroke, diabetes and kidney failure resulting from poor nutrition can lead to disability, dependency and economic losses to the family (Jayathilaka et al., 2020). When family wage earners become sick or die due to nutrition-related illness it can diminish household income and lead to poverty in families. Family members may also experience stress over the illness or loss of a loved one. Time spent taking care of a sick relative also affects the income of family members. These can result in a vicious cycle of poverty and sickness within the family (Golics et al., 2013).

Cost of malnutrition to employers

Illness, disability and death due to malnutrition result in a loss of human capital for most employers (Centers for Disease Control and Prevention, 2024). Chronic diseases due to malnutrition reduce the number of people contributing to the workforce. Sickness and absenteeism from work result in the loss of a strong workforce and decreased productivity at work (Fouad et al., 2017). About $530 billion is lost per year by employers in America as a result of time lost at work attributed to sickness. Insurance coverage for sick workers also becomes a heavy financial burden for most companies when workers are afflicted with nutrition-related diseases (Integrated Benefits Institute, 2024).

Cost of malnutrition to the nation

The nutritional status of the population can significantly affect the economic growth of the nation. Nutrition-related illness can affect productivity in the workplace (Integrated Benefits Institute, 2024) and decrease government revenue in the form of taxes, goods, services and overall gross domestic product (Schofield et al., 2011). Malnutrition can reduce the number and quality of the workers contributing in various sectors of the economy (Schofield et al., 2011). A sick population also places an economic burden on the government and healthcare system. Most chronic conditions are expensive to manage and cost the country billions in healthcare expenditures each year (Grinza & Rycx, 2020). Diet-related diseases including obesity, cardiovascular disease and diabetes are responsible for about $50 billion in healthcare expenditure in America (Jardim et al., 2019). Low educational attainment, disability and dependency due to malnutrition can increase the number of people depending on federal welfare programs further putting a strain on the national economy (Shahidi et al., 2019).

Malnutrition has tremendous economic consequences, depriving the country of valuable human resources, minimizing productivity and causing millions in economic losses. Addressing both forms of malnutrition is crucial for fostering economic growth and prosperity.

References

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