By Arnold Kling
Marginal Revolution found RangelMD, a doctor who was willing to criticize the economics of single-payer government funded health care.
In order to expand Medicare to cover every citizen and pay for all medical treatment and all medications that Americans have become accustomed to would require increasing the federal budget by over a third to over $3.5 TRILLION dollars (from the current 2.1 Trillion). Of course in order to offset what would be a $1.5 Trillion dollar deficit would require such a large tax increase that even Europeans would be pitying us. Overall this represents a massive transfer of wealth from the majority to about a quarter of the population that regularly uses three quarters of the health care in this country. “Free health care” is little more than a misnomer in these systems.
For Discussion. What answers can one give to the argument that a single-payer system would reduce administrative costs and overhead?