Introduction
In the United states, one can find many industrial sectors. McKesson Pharmaceuticals is found within the healthcare sector. The company distributes much needed drugs to doctor’s offices, hospital, and pharmacies throughout the United States. This paper will look at the how the industry is affected by GDP and the nation’s inflation rates over a five year period.
By looking at the charts below for the healthcare industry, one can determine the changes which have occurred within the industry from the years 2003 - 2007. When looking at the nation’s GDP, one can see the healthcare sector has increased approximately five times faster than the nation’s GDP. By looking at the two factors, it can be determined that the increase is due to people spending more money on healthcare than other sectors of the economy. When looking at inflation, the charts show healthcare has not increased as significantly greater than the national inflation rate. With this information, one can deduce healthcare is being driven by the rise in the nation’s inflation rate.
GDP (%) 2003 2004 2005 2006 2007
National 2.51 3.64 3.07 2.87 2.19
Healthcare 15.80 15.90 16.00 16.00 15.80
Inflation 2003 2004 2005 2006 2007
National 106.838 109.689&nbs ...