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101077Re: Obama and the 'Drug Killer'

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  • Bryon Daly
    Nov 1, 2008
      On Fri, Oct 31, 2008 at 3:48 PM, John Williams

      > http://www.forbes.com/opinions/2008/10/30/obama-drug-medicine-oped-cx_ch_1031hooper.html
      > As I wrote in the Concise Encyclopedia of Economics: "What complicates
      > the picture is socialized medicine, which exists in almost every country
      > outside the United States and even, with Medicare and Medicaid, in the
      > United States. Because governments in countries with socialized medicine
      > tend to be the sole bargaining agent in dealing with drug companies,
      > these governments often set prices that are low by U.S. standards. This
      > comes about because these governments have monopsony power--that is,
      > monopoly power on the buyer's side--and they use this power to get good
      > deals. These governments are, in effect, saying that if they can't buy
      > it cheaply, their citizens can't get it."

      So the claim here is that Americans are almost solely subsidizing the drug
      development costs for the entire rest of the world? And by posting this, I
      assume you think this should remain status quo? Wow, you must really enjoy
      spreading our wealth around! Welcome to the liberal democratic elite! :-)

      > Drugs are not too expensive in the U.S.; they're artificially cheap
      > elsewhere. It's also not much of an exaggeration to say that new drugs
      > are developed for, and as a result of, the American market because of
      > its pricing flexibility.

      And yet the drug companies still sell those under priced drugs in those
      countries? Can't they just not sell them there if a fair price isn't met?
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