The United States currently provides something like 80-90% of the profits on new drugs and medical devices. Perhaps you think you can slash profits 80% with no effect on the behavior of the companies that make these products. I don't.
Last week, during a Washington Post online chat, this exchange took place:
Anonymous: You said that medical innovation will be wiped out if we have a type of national health care, because European drug companies get 80% of their revenue from Americans. Where did you get this statistic?
Megan McArdle: It wasn't a statistic--it was a hypothetical.
The mind reels...