How would you guys argue against this claim: Countries with single payer systems are more efficient. People living in Australia, Canada, France, Germany, Japan, Norway Sweden, England etc. have a life expectancy that is about 3 year higher than in the U.S. However, these countries spend half as much of their GDP on healthcare as compared to the U.S. Their per capita expenditure is also about half that of the U.S."
I tried to point out that those countries ration healthcare considerably, violate individual rights, and that anytime the government gets involved in an industry it becomes hugely less efficient, but the person I’m argueing against ignores these points. Are there better ways I could present my argument to make it clearer/stronger?
Thanks
The idea that government bureaucrats can be more efficient than the market has been argued for more than a century, but every, repeat, every such effort has failed, and failed badly.
“Efficiency” is what they mean by central planning, planned economies, socialism, communism. “Efficiency” was what was admired in Soviet Russia for many years.
The criticism of central planners is one of von Mises’ many achievements, read Socialism or Planning for Freedom. I am sure that Andrew Bernstein and George Reisman have good passages as well. I recently finished How Capitalism Saved America. It has many examples of attempts to establish central planning for the purpose of “efficiency” in the United States, and their utter failure.
As von Mises pointed out, a “planner” is not any more intelligent than anyone else. He is (or they are) incapable of determining what to provide to whom at what price thousands of times a day. The result will be exactly like the Soviet experience of having plenty of brown left shoes, but no right ones. The market looks inefficient because it has many actors. To the person who wants power it looks like chaos. But is people acting on their own behalf, seeking their own values, cooperating with others. It is very efficient.
Another point to remember in these discussions is that what we have now is not a free market. It is terribly regulated. Further, the inflationary effect of the Medicare expenditures has distorted the medical sector. That has gone on for over 40 years. Anyone born after 1950 has no idea what a fairly free market for medicine might look like. Regaining freedom for medicine will require ripping out an amazing amount of garbage. If you haven’t read Dr. Peikoff’s “Medicine: The Death of a Profession”, do so. It has a wealth of background and ammunition.