David Laws, Consultant Anaesthetist, City Hospitals Sunderland NHS Foundation Trust, Sunderland, Tyne & Wear, SR4 7TP
Professor Charles S. Adams, Department of Physics, Durham University, Durham, DH1 3LE
The unquestioned assertion that a highly developed currency-issuing nation cannot afford high quality healthcare  is based upon a set of inter-related and almost universally-held false assumptions:
Money is in limited supply (as there is no ‘magic money tree’).
Taxes fund government spending.
Private banks lend out pre-existing savings.
NHS spending is a burden on the economy rather than a boost to the economy.
Excellent, a physicist and an anaesthetist decide to tell us about economics and money.
So, they’ve grasped what Modern Monetary Theory is saying about money. OK. We may or may not have our issues with that but let’s just accept their points for the moment.
They’ve still missed the damn point. Economics isn’t about the allocation of money – although there is most certainly that interesting subsection, monetary economics. Economics is about the allocation of scarce resources. And as they point out, money in the sense of fiat money isn’t a scarce resource. Yes, quite obviously we can just make more – with interesting effects no doubt. But that still doesn’t solve our problem, because we still face scarce resources.
There are only so many people in the country, there’s only so much labour. We’ve some limited number of buildings, the resources to build more, labour, land, cement, they’re all scarce.
Having more pieces of paper with which we price those resources doesn’t change the fact that the resources are scarce. Which means that if you want more resources to be applied to health care then there are other things we are not doing as a result of that resource allocation. Nothing you can say about money changes this, absolutely nothing.
We’re not worried about the allocation of money, we’re worried about the allocation of resources. Thus the insistence that we’ve no shortage of money to allocate doesn’t solve the problem.