Response to: Public Versus Private Cost Control in Health
bahahahahahahaha
Krugman quotes Austin Frakt explaining how much better the government is at controlling costs:
But what government systems do well is hold down costs. They use central planning. They use their large market power to negotiate for reduced reimbursement (see Part 2). They buy drugs cheaper. They eliminate profit and overhead. This is what government does well. It’s why every other country that has more government involvement than ours spends less than we do.
Krugman himself adds:
Yep. But the GOP doesn’t want to hear it. It’s the triumph of what they want to believe over the evidence; why, next thing you know they’ll be denying the evidence for climate change, and even the evidence for evolution.
EVIDENCE? That “what government systems do well is hold down costs?”
Is this real? Is this a joke?
Here’s some “evidence,” Smugman…
The Government’s pet project, Amtrak, was recently embarrassed by the revelation that it pays $16.15 for the cheeseburgers it sells - at a loss - for $9.50. Frakt isn’t kidding when he says “they eliminate profit.” Trouble is, taxpayers still pick up the difference. McDonalds makes a profit on $1 cheeseburgers, while the government has you paying $6.65 for every cheeseburger someone else eats! Chalk one up for the private sector.
There are really too many examples of ridiculous government excess to warrant further reply. But, on its face, the Krugman/Frakt argument is ridiculous. ”It’s why every other country that has more government involvement than ours spends less than we do.” Is that why the Soviet Union went bankrupt?
The government doesn’t do anything efficiently. Even in the industries where it has COMPLETE monopolies (passenger rail, post office), they lose money while providing terrible service at a high cost. They don’t “use their large market power to negotiate” anything.
Seriously. People believe this stuff? And Krugman feels confident enough to smugly report it? At what point in your life have you ever had an interaction with government and thought, “GEE! This sure is efficient and cost effective!”?
Here’s more “evidence” on government efficiency and their ability to “hold down costs”… Wastebook: A Guide to Some of the Most Wasteful and Low Priority Government Spending of 2011
Yep. But the GOP doesn’t want to hear it. It’s the triumph of what they want to believe over the evidence;
You’ll note Krugman doesn’t actually provide a shred of “evidence” that the government is more efficient than the private sector - he just quotes another idiot’s opinion. That’s the level of “scientific observation” we get from the esteemed Nobel laureate. Well, I just provided a bunch of actual evidence with actual numbers. Good luck getting the same from him.
