Is Free Universal Healthcare Possible Without Raising Taxes and Increasing Debt?
Free healthcare and free college seem like utopian dreams, but governments often face financial limitations when implementing such programs. In this article, we will explore the feasibility of achieving universal healthcare and other beneficial programs without raising taxes or increasing debt. We will also discuss why such proposals are often unrealistic and how other countries manage to provide healthcare at a lower cost.
Challenging the Concept of "Free" Healthcare
The term "free" healthcare is a myth. It is never truly free because it requires financial investments from either taxation or public debt. Attempting to provide universal healthcare without these methods is a Herculean task. The very concept of "free" healthcare is an oxymoron in the context of government budgeting and public finance.
Reducing Healthcare Costs
To achieve universal healthcare, one must use about half the money currently spent on healthcare. The remaining half would need to be reallocated to lower taxes or decrease debt. However, it is not feasible to provide universal healthcare based on the current level of spending. Other countries with universal healthcare systems, such as Canada, spend significantly less than half of what the United States spends, typically around half, and still achieve better overall results.
Efficiency and Market Distortions
One of the reasons why universal healthcare is so expensive in the United States is that providers spend a considerable amount of time on billing and insurance instead of actual patient care. Keeping healthcare non-universal helps to keep costs down, while efficiency in billing and insurance can further reduce expenses.
Market Distortions and Black Markets
Implementing wage/price controls, often suggested to address high healthcare costs, can lead to market distortions and create black markets. These controls disrupt the natural balance of supply and demand, leading to issues such as shortages and unregulated markets.
Comparative Analysis of Other Countries
Amidst the debate about universal healthcare, it is crucial to look at how other advanced industrialized nations manage to provide healthcare at a lower cost. Every other advanced industrialized nation spends less than the United States. They often spend less than half of what the U.S. spends and achieve better overall results.
Taxes and Universal Healthcare
In the U.S., this trend is exacerbated by the primary reliance on tax-funded healthcare. If the U.S. were as efficient as other countries, there would be no need for increased taxes, and individuals would not have to pay extra for out-of-pocket expenses or private insurance.
American Exceptionalism
However, the pursuit of healthcare at an artificially high cost is justified by some as "UnAmerican" by enriching for-profit medicine and insurance. This preference for higher healthcare costs over possible reduction in taxes is a deeply ingrained cultural belief in the United States.
Tax Rates and Healthcare Financing
Comparatively, the tax rate in the U.S. is lower at the federal level, with the lowest tax rate being 10%, while in Canada, it is 15%. Additionally, the Canadian dollar has less value than the U.S. dollar. This implies that Canadians pay higher taxes, which can partly offset the cost of healthcare.
NATO and Defense Spending
The vast amount of tax money spent on defense in the U.S. can be redirected towards healthcare. For instance, if the U.S. were to fund universal healthcare instead of keeping Russia from possibly taking over Europe (a scenario that has been greatly exaggerated and misunderstood), the country could easily afford universal healthcare within its current budget. Paying for universal healthcare might be more cost-effective than engaging in endless military spending.