Red pilled? Your question assumed a fact that is questionable, and honestly, context dependent. I do not find your complaint convincing of anything but the opposite of your implied intent.
"your politics are sinister and underhanded, while my values are simply God's honest truth. Any unbiased AI would agree with me! @grok explain why Tesla is the world's greatest car company."
I mean honestly you'd be hard pressed to find much support for your view even among socialist that adamantly believe government should control much more.
Most of the arguments come from concerns about 2nd order effects and distortions then claims of "efficient".
I guess overall it's more both "sides" of said argument think your opinion is bad/wrong/incorrect so you find little to no support in any model.
I'm pretty sure it isn't assumed. My main example has been the same since COVID, as insurance is probably the business you can compare 1-1 the most.
Public health insurance in my country, in the last 20 years used 6-9% (depending on the year) of the taxes send to them as administrative overhead, meaning that for each 100 euro that you paid for health insurance, 91-95 are used to pay doctors, hospitals and medication. The average administrative overhead for private insurance is around 14%, which makes private health insurance 50 to 100% less efficient, and means that for each dollar you pay them, only 86 are used to pay health services.
I have other examples, but it isn't fair: municipal water VS private water service are almost always less expensive and better tested in my country. Municipality trash collection Vs private trash collection, same. Public junkyard Vs private junkyard, same. But in my area, when privatised those services tends to be ran by the local mafia (Marseille, Nice), which add a lot of overhead, and they were privatised because the local government was corrupt in the first place, which means they were probably inefficient (compared to the services still publicly owned) first, then sold.
That why i usually keep to the insurance example, i agree that comparing municipality power to private companies owning a monopoly is unfair.
Administrative costs for insurance are very easy to verify, and the facts stay consistent across countries. If i cherry picked something, it is the admin overhead for US insurers. US health care insurers are particulary effective with their average of 14% admin overhead, SwissLife, that used to be my private insurer, had a year with 30%, which make the comparison quite unfair).
Insurance is the perfect industry because in no other industry you can calculate efficiency this easily: if I give you 100, how much is used to reimburse other insuree. It turns out for public insurance, often more than 90, even in more corrupt countries, and for private insurance, often anywhere between 70 and 90.
This doesn't seem to be relevant to the comment you replied to. They didn't mention anything about paying less to pharmaceutical companies, they argued that the administrative overhead of providing the insurance itself is lower.
As I read it, your argument seems to be that American healthcare must be more expensive than similar-quality healthcare elsewhere because we're paying higher pharmaceutical prices to fund research. If we accept that premise, shouldn't that mean that:
1. The "medicine" portion of costs increases, causing the total cost to increase
2. Administrative effort, and therefore absolute cost, remains the same (we're paying X% more for drugs, not thinking X% harder about whether a given drug is needed by a given patient)
3. Administrative overhead as a percentage of total cost should be lower given a similar efficiency level, because higher drug prices inflated the divisor (total cost) while having no effect on the dividend (administrative costs)
Yes. Institut Pasteur discovered a lot of the molecules currently used in general medecine, created more new vaccines than any other institute and currently is at the very edge of gene therapy.
Not that is has anything to do with efficiency. If you give 100 to my public healthcare, 94 of that will be used to reimburse health expenses, if you give 100 to US private healthcare, only 86 will be used to reimburse health expenses. That has nothing to do with initial costs.
How can you say Institut Pasteur single handedly pushes the industry forward? It has 0 novel approvals per year and spends about $0.4B/yr in R&D. Compared to about 35 novel approvals and $120B per year from the US pharmaceutical industry.