The ACA is an ugly patch on an ugly system - and I don't think it's worth mentioning in the context of price or quality transparency.

We have a nation where the elite thinks it's OK to advocate a war and send the lower-income people to do the fighting. It's natural for such a people to think that the lower-income people should also have a worse health care experience. And the other countries are not there - I always say, not there yet. I tell the Germans and the Swiss, "You're not there yet, but if you're not very, very careful, if we Americans come over there and rearrange ... your health care system, you will be just like us."

The bad things are that our financing of health care is really a moral morass. It is a moral morass in the sense that it signals to the doctors and hospitals that human beings have different values depending on their income status.

Americans keep telling me they hate government. I always tell them: "Man, I've got a country for you: Go to Afghanistan; they don't have one." So if you're of that ilk, yes, you can have your private paradise, but if you're comfortable with government, then go with government.

The issue of universal coverage is not a matter of economics. Little more than 1 percent of GDP assigned to health could cover all. It is a matter of soul.

We economists, in our classes, teach students that to some degree, price discrimination is actually a good thing; that it allows you to serve lower-income people. Take Africa, with AIDS. They could never finance what an AIDS cocktail costs here, over $10,000 a year. But if you sold it to them for $300 a year, which just barely covers cost, they could probably serve quite a few of their citizens, with World Bank help. We economists say that will be beneficial. But it's a two-tier system; yes, African people pay less than we would pay.

Americans believe that the private sector is always more efficient and cheaper than big government, and particularly when you go among Republicans, even after five beers, they still believe it. But I always say, "If it's really true, why would they need that 12 percent extra on a traditional government program? Explain to me why something that costs more saves me money as a taxpayer.".