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There's certainly a lot of waste, but that data point about cost and outcomes is a dubious one for a number of reasons (e.g., obesity).

See here for an in-depth analysis: https://randomcriticalanalysis.com/2019/11/07/a-tale-of-two-...



The obesity explanation doesn't pass the sniff test. Canada is 12% less obese than the U.S., but it spends 6% less of its GDP on healthcare. Put differently, if obesity was the reason for excess spending, the U.S. would save $1.1 trillion for every 12% of its population that is cured of obesity. If true, that would peg the marginal cost of obesity at $27,777 per person per year (1.1 trillion/.12*330 million), or 9x the annual salary of a doctor in Cuba. That is beyond the realm of believability, even if I introduce the other population-induced causal factors which you implied but didn't specify.

Additionally, the government would be more invested in the population's health under a single-payer model. It would actively work to reduce the prevalence of obesity and lower its costs. That would include taxing consumable goods with a negative health externality, commensurate with the magnitude of that externality. That would also include incentivizing the consumption and production of goods with positive health externalities and investing in pro-health infrastructure.

Imagine if a city faced the following math: "A network of bike lanes would cost us $40 million and $10 million to maintain over the next 10 years. It would also save around $50 million in health expenditures every 10 years. After one decade, it will cost $10 million and continue to save us $50 million." All the bike lanes you could dream of would be built overnight, assuming there would be subsidies by a M4A healthcare program. I'm more excited at the prospect of converting roads into pedestrian walkways and scooter highways. That wouldn't seem like such an expensive proposition if the government would recoup the cost in healthcare savings.


> The obesity explanation doesn't pass the sniff test. Canada is 12% less obese than the U.S., but it spends 6% less of its GDP on healthcare.

It's my blog (RCA). My argument is that obesity substantially explains US health outcomes in relation to other countries. I never claimed obesity is the cause of high national health spending (as in, "inputs"). To the contrary, I have consistently argued US health spending is well explained by its wealth (technically income levels).

https://randomcriticalanalysis.com/2018/11/19/why-everything...

To a first approximation, national health spending is entirely explained by the average house income level in the long run. While time, healthcare technology, and other factors are assocatied with rising spending, these changes are ultimately very well explained by changing income levels. Amongst high-income countries, a 1% increase in income is robustly associated with a long run increase of about 1.8% (it's highly elastic).

https://i0.wp.com/randomcriticalanalysis.com/wp-content/uplo...

The US spends more than Canada because it's still a much richer country (which isn't to say Canada isn't a nice place!).

> That is beyond the realm of believability, even if I introduce the other population-induced causal factors which you implied but didn't specify.

Again, I never said this, but other population health risk factors such as age structure, disease rates, and the like are of negligible significance when it comes to long run aggregate spending. Such factors may be highly predictive within countries and may have some say in the short run (within budgetary constraints), but in the long run national picture the evidence suggests these factors amount to little more than noise. National household income levels trumps everything.

> Additionally, the government would be more invested in the population's health under a single-payer model.

US government programs, namely Medicare and Medicaid, spend more on healthcare than most other high-income countries do in total (even more so comparing public-to-public). Just how much more incentive do we need before these magical effects kick in? Higher health spending predicts higher obesity rates in time series and cross-sectionally (though this is likely ultimately mediated by long-run income levels and by time).

https://i0.wp.com/randomcriticalanalysis.com/wp-content/uplo...

Where is the evidence that these programs have large, sustained effects and are cost effective? Most data indicate these programs have negligible effects in the long run and they almost always cost more than they save (which isn't to say we shouldn't necessarily do it, but the economic rationale is v. weak).

~ RCA


Obesity is not an independent variable - socialized healthcare does a better job of controlling obesity with preventative health measures. As it is now in the U.S., patients only go to medical professionals when there is a problem, making obesity epidemics one of the effects of how U.S. handles healthcare.


> Obesity is not an independent variable

Nothing is perfect, but most experts believe this has little to do with healthcare today because healthcare interventions tend not to be effective causes of long-run weight loss and most countries aren't doing enough of the stuff likely to have large effects (e.g., surgical interventions) to explain much of the variance. Even if you could argue it might explain something, say 0.5 mean BMI points, other factors are clearly highly important. Cultural * and genetic factors are likely to play a significant role amongst high-income countries. Further, obesity rates rise with time and income levels despite higher health spending.

https://i0.wp.com/randomcriticalanalysis.com/wp-content/uplo...

> socialized healthcare does a better job of controlling obesity with preventative health measures

evidence?

> As it is now in the U.S., patients only go to medical professionals when there is a problem

The US spends more on preventive medicine than almost any other country, though preventative medicine generally has very-small-to-modest effects on outcomes and rarely, if ever, saves money (usually quite the other way around)

~ RCA

note: * some of these "cultural" factors may be residual economic influences... the US escaped the malthusian trap long before almost all other high-income countries and this may have latent effects on attitudes towards food, diet, etc)


How so? Anti-obesity laws?


>"And we will have white/black lists for food. I don’t trust the same people who brought us the food pyramid and low fat as a reliable arbiter of what’s good and what’s bad."

It's telling that, whenever the government (rarely) enacts laws that tax or ban consumables with negative externalities, they actually target the right thing. After troves of empirical evidence, they heavily taxed smoking and banned trans fat (I'm aware of the government's misguided early endorsement of trans fat vs. saturated fat, but science has progressed a lot since then). Recently, local governments have tried to tax excess added sugar. That has been less successful, but it's guided by the right thinking. Excess sugar in our food supply is unequivocally, empirically bad. The government has less of a basis to tax it since it's not paying for all our healthcare, but that would change under M4A. Moreover, there would be more money behind nutritional/health research, because that research would have a more tangible payoff: an approximate dollar amount saved in public healthcare expenditures.


And we will have white/black lists for food. I don’t trust the same people who brought us the food pyramid and low fat as a reliable arbiter of what’s good and what’s bad.




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