The $ HAS to go down

. We made that bed long ago. In fact, our economy was overheated by its inflated value. This is in part due to China's exchange rate manipulation, but mostly due to US policy. You're absolutely right about overspending...long, costly wars across the globe can't be waged forever. Domestic spending efficiency has been spotty too.
You can make the argument that government spending on healthcare would drive its costs down, but I wonder if it could truly compete with a well-regulated system run by private organizations pricewise - especially in the US. The middle class still has to pay taxes toward healthcare regardless.
Basically: Having the government run healthcare can't possibly lower its basic cost (i'm talking the materials expense, labor hours, and operating times). They're going to be fixed regardless of the system run. All other costs come from how it's organized. Clearly, it's organized poorly in the US. Granted, the US is bigger than many countries, and the way local/state/federal levels interact isn't seamless. Problem is, it would be even harder to change the government infrastructure into something more efficient, because the people running it don't want to! Regulated private organizations would start to very much resemble the Canadian system described above if handled properly (competition would be necessary in this scenario I think). Hell, you could still give vouchers to people who need care (basing it on whatever) so that tax money goes to support them if you want, but I DON'T want to see the government RUNNING it. It's been a terrible mess and it keeps getting worse.
Personally, I believe government should be involved as little as possible while still ensuring that the standards of care demanded by the public are consistently met. Businesses focus on core competencies, and in government this suggests national security, laws, agreements with other nations, etc. It does not mean dipping hands into specific elements of business/personal lives past what is necessary to make sure the country meets the standards the voting public desires. It certainly does not mean MICROMANAGEMENT of various industries. If the only reason the government fails is because it is set up improperly, so be it. However, good luck changing THAT.
Education is a mess too. Throwing more money at it won't fix it...non-collegiate education needs a fundamental overhaul, perhaps starting with our society's cultural view of it in general (it really irks me how 70% of the American people I bump into or more are "bad with math". Has it occurred to them that this is a fabricated weakness based on bias as they were raised? Likely not). Studying doesn't have to be one's life, but at the same time the system here seems to miss the point. Colleges are still pretty good at least, though I wish they wouldn't dilute bachelor's degrees so much. Actually, more money would probably help if it exists in the form of incentives to teachers (or would we do away with the classroom setting and go for a different approach entirely? It's and option worth exploring with technology available).