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"Markets" are poorly designed for health care/research investment in general. Just like roads, education, general science research, etc... It just doesn't play
by fjp 7y ago
"Markets" are poorly designed for health care/research investment in general. Just like roads, education, general science research, etc... It just doesn't play well with being largely run with a profit motive.
That's not to say there's on place for the private sector there, but there is massive friction between a profit motive in drug research and you know, building a more healthy society. See the "new Adderalls" like Vyvanse that offer no benefits over Adderall, but Adderall's patent is up so it can be made by generics and isn't as profitable anymore.
- zip1234 7y agoCompetition is what drives down costs in a market. If costs are going out of control, perhaps there is something in the current system that is preventing competition? Lack of price transparency?
- fjp 7y agoLack of price transparency is an issue. There's waaay too many misdirections and misaligned incentives between the price a consumer pays for a drug and the manufacturer's pricing. But again, market-based solutions are just not appropriate for essential health care. You would pay ANYTHING to not die - there's no price elasticity of demand. Every other developed country has figured out that this is simply immoral.
- conanbatt 7y agoCompetition drives down profits, not necessarily costs. If you passed a law that funds pharma startups to produce drugs, you would reduce profits and increase costs (through taxes). Cost goes down with increased productivity. Competition sometimes brings that, sometimes it doesn't. Economics can be complex!