- Aug 24, 2001
And you missed mine. The reason those drugs are homogenized is because the patents have expired on them. One of my son's asthma medicines just had its patent expire and the price dropped dramatically.Originally posted by: BradAtWork
Originally posted by: Queasy
You're right, Wal-Mart selling prescriptions for $5 and Publix giving away prescriptions for free clearly shows that that the market cannot work.Originally posted by: BradAtWork
That's exactly what I was saying. If you went UHC, there would be no more R&D money.Originally posted by: jonessoda
A major reason drugs are so expensive in America is because countries with socialized medicine put price caps on the drugs, and the drug companies aren't able to recoup their expenses from sales at that price, so they have to charge a lot in the countries where they can.Originally posted by: BradAtWork
Most medical technology comes from the US. Why, because your health care is so expensive , and companies can charge whatever they like from their new products, notably drugs. So they spend huge on R&D, knowing they can charge $4000 for AIDS meds or whatever.
In nearly every other country the goverment say, "Sif you're charging $4000 for those drugs. You sell it for $100 or you GTFO."
If the US went to UHC, and forced drug companies to sell their drugs at $100 instead of $4000, what is that going to do to R&D?
It's not the job of government to take care of us from cradle to grave. That's our own responsibility. At least, it used to be, and it should be.
It's not the job of government to take care of us from cradle to grave.
Mmm, that's a little naive. I'm a Libertarian, so I would normally agree, but not in this situation.
Pure Market is prefect for everything, EXCEPT products without a supply/demand curve.
If Sony charge $10,000 got a PS3, everyone would buy a Xbox360. The market forces sets the price.
If you have AIDS, you NEED the drugs. If they cost $4000 you still need them. As the price rises the demand doesn't go down. There is no motivation for the company to make a better product when they can already charge you whatever they want to the current crappy product.
Monopolies are illegal. collusion is illegal. So why should price fixing be legal? Which is what drugs companies are going. When there is no supply/demand curve the company is seting an arbitrary price. Thats called price fixing where I come from.
And yes, there is motivation for companies to make a better product. Because as soon as their patents run out, every generic drug company around than the patent holder loses any advantage. So, they have to work on a better drug when that happens.
The drugs that cost $5 are homogenized, and thus have a supply/demand curve. You just proved my point.
If you take away the patent process, you take away the incentive for companies to produce a product because all their hard work and money will be for nothing as soon as the product hits the shelves. Same thing if you put in price controls. Price controls inevitably lead to shortages and rationing.