There is no diffrent between an individual spending money on healthcare and the government spending money on helathcare.Spending money on healthcare is always a drain. It is throwing money out of the window. However when the government controls the healthcare, the spending gets lower. For instance France spends 9.7% of GDP on HC and has a much much better healthcare system than USA. Total expenditure on health as % of GDP statistics - countries compared - NationMaster Health For instance a rich person spending money on plastic surgery is a massive socioeconomic loss. It would have been a lot better if he put his money into for instance a export industry. As a nation it would be wise if the government can cut healtcare spending so that more money can be directed into creating real private sector jobs. At the same time government HC will relief the burden on companies that isnt competitive internationally because of HC covering. So the best way is to make it free, then HC spending will be cut and more money directed into creating jobs.