Thursday, July 16, 2009

Healthcare Monopoly = Education, Amtrak, Postal Monopoly

The results of the nearly complete monopolies that Government holds in education and mail delivery and passenger trains is a very good predictor of what healthcare will look like in 5 years if Obamacare passes. It will be more expensive and much less effective in delivering results. In short, it will be a bloody disaster.

Far from being an engine of wealth creation, the education system is bleeding the economy to death. The U.S. spends 2.3 times as much per pupil in real, inflation-adjusted dollars as it spent in 1970, but the return on this ballooning investment has been less than nothing.

Student achievement at the end of high school has been flat for nearly 40 years, according to a recent study by the Education Department, while the graduation rate fell over the same period, according to a report by James Heckman, a Nobel laureate economist.

If the efficiency of U.S. public schooling had merely remained at its 1970 level, the country would enjoy the equivalent of an annual $300 billion tax cut.