Originally Posted by Zichao
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Surely, then it's far cheaper to treat them for smoking-related illnesses now than it will be to treat them for general decreptidue in the future?
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The key actuarial calculation.
You need to estimate the money you save from their likely early death compared to the cost of treating them when they get sick.
It's rather pointless to speculate about those 2 items - Normally, actuarians, with access to enough data, do a good job of presenting the picture of "as is" and "as was". They suck nearly as much as the rest of us when it comes to "as will be"...
Thus, presuming the calculations have been made, I'd take the results as read.
I've seen analysis of the cost & near-future benefits of people stopping smoking. However, after 5 mins with Google, I cannot find a study comparing that to the increased costs of people living longer. I think I've heard that it was positive i.e. ideally, you actually want people to smoke - and thus die earlier ; even with the extra cancer treatments etc thrown in...
In the Greek case, though, you also have the question of the timing of cash outflows. Paying x in the next 3-5 years due to extra cancers might be less worse than paying 2x in 15-20 years time when those healthy people will enter end-of-life intensive care: The Greek gvt has immediate cash flow issues that, it might hope, will be solved by the time healthy end-of-lifers become a drag...