Is a dollar spent on health care as productive as a dollar spent on, say, home building?
I’m wondering if there is a difference in productivity between the different sectors of the economy. Suppose we could make health services so much more efficient that we could cut health spending by 25% and give better service.
How different would that be than if we could cut manufacturing costs by 25% and provide better products more cheaply?
Obviously, if you get more efficient in health care, hospitals will close and people will lose jobs. Is that good or bad? Do we need make work for doctors programs? Or, if smart people start working in other sectors of the economy, will productivity be enhanced even more and we’ll all be better off?
If you don’t get what I’m asking, please ask more questions. I’ll try to explain it more.
This question is in the General Section. Responses must be helpful and on-topic.