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Our income tax system gives each of us a stake in the work of others – the more money others make, the more we each get via taxes. In principle we could use this fact to justify a great deal of intervention in everyone’s work lives. For example, one might argue: why should we let folks choose fulfilling but poorly paid jobs like social worker, veterinarian, or forestry agent, if they are capable of becoming an lawyer, doctor, or engineer? Or why should we let folks work part time to focus on a music or acting hobby, or choose to live anywhere but the city where their skills are worth the most?
To most folks such regulations seem intolerably intrusive. But when people are asked to justify our common and extensive regulations and subsidies of medicine and education, they often mention exactly this issue – that such interventions make sense because we all have a stake in the work of others via the income taxes those folks pay. Why the asymmetry? Why do folks think these arguments make sense regarding medicine and education, but not regarding choice of career or location?
My guess: humans inherited intuitions that the community should have more say in and contribute more to medicine and education. This is the way our distant ancestors did things in their small nomadic forager bands, and we intuit we should act similarly today. The stuff about managing our cut of others’ income is just a rationalization.
Managing Our Cut
I don't get your medical cost analysis. I'm guessing you are saying that the fixed costs of funding a cure for a disease are much higher than the marginal benefit to any one customer. But in a market society people do invest in such assets, one group of people build something and then charge everyone else who wants to use it a fee - eg how many of the people who visit Disneyland would pay for the entire park to be built?
Is it really a matter of status? I've encountered situations where the neighbours had no respect for my need to sleep, and I am not unique. I mostly eat good food because I don't buy the other sort and can cook. This has been true throughout my adult life.
How good is the food and respect for need to sleep in the military? How about when it was a conscription military? I think it's a matter of how easily you can switch to other options, not how low or high status you are.