re: Why can't people understand that socialized medicine will ultimately fail?

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Reform was founded in 2001 out of a concern that the record public spending increases that followed would not in fact transform public services, or improve economic productivity, in the way that was hoped.

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Reform
Established: 2001.

Political links. Good relations with Tories. Nick Herbert, Shadow Justice Secretary helped set it up.
Status: Charity.
Director: Andrew Haldenby, former head of political section, Conservative Research Department.
Aims: to advance free market ideas and show that reform, as opposed to more spending, is the way to improve public services.
Most recent annual turnover: £550,000.
Funding sources: businesses, individuals and philanthropists.

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They seem like the UK version of The Heritage Foundation. Not surprising that they aren't happy with "socialized health care".