One reason that people believe Hanson's claim that half of US money spent on medicine is wasted is that other First World Nations spend half as much per person. You seem to imply that Hanson claims that France wastes half of its spending and the US 3/4. He certainly does not do that explicitly.
The link "Gregory Cochran on Education" is actually by Henry Harpending (the other really is Cochran). As Harpending concedes in the comments, he really is missing something and this is not at all evidence of waste.
he really is missing something and this is not at all evidence of waste.
To quote a different commenter:
The jury has been in for decades on spending; it simply doesn’t make a difference. So when you see spending so conspicuously out of whack, you don’t expect Wyoming to be better, you ask what is different about Wyoming.
If you are familiar with the literature you know this is basically true.
If it's worth saying, but not worth its own post, even in Discussion, it goes here.