I was in an argument today about healthcare, and the person said; Canada which has universal healthcare only spends 10% of GDP on its healthcare, while America being mostly private(one can argue =]) spend 20%.
His main point was that the reason medicine is so expensive is because in America we have different firms, and therefore the cost for medicine is more costly, while the government can order all its medicine in bulk therefore paying less. I tried to tell him that it is unethical to force people to pay for this, and that without the FDA, and other government regulations healthcare would be less expensive. Another person there just laughed and said, “Those crazy Libretarians”.
Does anyone have any pertinent essays or good answer on this topic ty.
Talking about monopolies, it’d also be helpful to know which services the Canadian UHC scheme encompasses and to what extent it hinders the emergence of certain niche products.
For example, does a UHC system allow for the same diversity of plastic surgery that you find in still relatively free places such as the US? Does a UHC system allow for some diversity concerning price/performance, so you’ll also have super-expensive treatment for super-rich people, or will everyone get their bread-and-butter treatment for the same price? Are people actually pleased with the treatment they get, or would they rather invest more money and get satisfactory services for it?
Comparing GDP statistics and concluding “Canada pays less, so Canada gets better healthcare” is pretty much non-sequitur.
The mythology as I understand it from the American perspective, is that in Canada, treatment and drugs are free, and everyone is constantly being cared for. That is completely false. In Canada, we have lower overall standards and service, because the system has too many free riders, and is forced to ration. Many lower class Americans, would not be able to get the quality of care in Canada they get from Medicare. Many upper class Americans would find that they would not have the access or care that they are accustomed to in the US.
I think the reason why the US has not gone to public healthcare, is that it will end the empire because the costs are off the chart. Americans won’t tolerate the lower levels of care and service we have in Canada. They will demand top notch care for free.
Eric, as to your friend, if the government can make things cheaper by buying in bulk, then shouldn’t they be buying food and clothes, and ipods and laptops, and bath towels and houses for everyone? [;)]
Isn’t GDP distorted by price controls? But Universal Healthcare is a price control, so we can’t be certain that the 10 percent figure is a true one. Indeed, nor can we be sure that the 20 percent (due to medicare) is true too no?