Two days ago, I blogged that Americans spend too much for health care as a result of the bizarre health care financing system that has been fostered by government regulation and tax provisions. Michael Tanner subsequently responded that my claim makes little sense in a free society–Americans, who are wealthy, consume more health care because they simply prefer more health care and they have the money to buy it.


Permit me a response to Michael’s response. I offer a lengthy counter on my own blog; here is an excerpt of my reply:

I think of the American health care system not as a free‐​market system, but as a government‐​designed contraption constructed to vacuum money out of the pockets of consumers and into the pockets of health‐​care providers. A lot of this contraption is built into state regulations of health insurance and provider licensing. The Federal government adds an important layer by encouraging “employer‐​provided health insurance” (i.e., vacuuming wages into prepaid health plans).


[…]


Our difference is tactical. Tanner wants to put libertarians on the side of saying, “The American health care system is the finest in the world. Don’t mess it up with a socialized system like everyone else’s.”


I think that tactic is vulnerable to charges that people in other countries are healthier, charges which very well may be true. I would rather be in the position of attacking our vacuum contraption than defending it.

The debate continues…