Is more spending on medicine good?

It's often said that the US spends twice as much as other countries like Canada and the UK, while it's residents live no longer.

So, are we wasting our money?

No.

Simple comparisons are seductive, but misleading.

The US has significantly more obesity than the rest of the world (the health effects of this - diabetes, heart disease, etc are commonly known as "diseases of affluence - this isn't a moral judgement, it's a reflection of the fact that affluence brings more and cheaper food, and less physical labor), and that obesity has been rising during the last 30 years. Obesity has a very large effect on lifespan and morbidity - this has to be taken into account in any analysis.



Further, the US funds drug development for the rest of the world.

Bottom line: as agriculture and manufacturing shrink due to continuing growth in labor productivity, goods give way to services. Which service sectors of the economy would you consider as value added? Which would you target for expansion: entertainment, law, finance, or medicine???