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"Planned economy" is an incorrect description of the proposal, because planned economies don't just set prices but they also allocate quantities to producers an
by cyphar 7y ago
"Planned economy" is an incorrect description of the proposal, because planned economies don't just set prices but they also allocate quantities to producers and consumers (something which people would rightly feel unhappy about if you applied such a system to medical supplies).
The system being proposed in the US as part of the M4A bill is how almost every other developed nation except the US handles essential drug prices. The government negotiates the price with the drug companies and they come to an arranged price at which they are sold.
Here in Australia we don't have the same problems you have with run-away drug prices, specifically because our government both covers part of the cost of drugs when purchasing them (as part of Medicare) and negotiates the prices down.
- lysp 7y agoAnd I'm pretty sure the Aus Gov also agree to purchase a certain amount as part of the negotiation.
- cyphar 7y agoI'm not sure if that's the case for drugs, but you're quite right that it's the case for medical devices. The producers are effectively competing for a government contract to be one of the few Medicare-sanction producers for that particular medical device (and being sanctioned for Medicare rebates means that your device will be used by the majority of people who need such a device -- otherwise they won't get coverage for it through Medicare or even private insurance in most cases).
- mixmastamyk 7y agoHair-splitting. Your sibling description sounds defacto planned by these measures. Tired of the false dichotomy of wild-west anything-goes or heavy government control. We could have a functioning market and also punish bad actors, if it was considered a possibility.