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The fact remains that Canada has a complete public healthcare system, and one that's actually government run as opposed to our mostly private system. Nothing like what's described has happened there.
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And the fastest growing segment for healthcare delivery and insurance in Canada is private. People are fleeing the public system by coming here and in their own country.
See also:
http://www.cato.org/pub_display.php?pub_id=6378
This describes the court case that overturned a ban on all private care arrangements on the basis that the public system performed so poorly it violated Canadian's civil and human rights, and that an alternative must exist.
Again, while this is a narrow example re healthcare, it demonstrates that government monopolies must have limits, and this conclusion applies to more than healthcare.