Maybe at least according to Tyler Cowen. Here’s an excerpt from his conversation with Dan Wang:
Wang: …Health care is what, 20% of US GDP?
Cowen: 17 points something. That’s a lot, isn’t it?
Wang: This is too much. This seems like too much to me. I think we should achieve better efficiency here.
Cowen: However, according to other standards it does not seem high enough. The more happiness you get every moment. If you live longer, or you have better painkillers, or we can fix your broken hip, your life is much better. Why shouldn’t it ultimately be 30%, 35%?
Wang: Yes, I don’t know. Should we spend 35% of GDP on health care, i.e. doubling our share?
Cowen: In 30 years, yes.
Cowen’s point was less about arguing for a specific number, but rather that consumption on goods and services can only increase your utility so much. However, if spending on health care can prolong your life and help you live pain/disease free, the demand for it is likely unlimited. An interesting argument.
do you agree with it?
