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Price controls don't work. This is a solved problem and understood by nearly all economists. They lead to over/under production, huge waste, less efficiency and
by bko 5y ago
Price controls don't work. This is a solved problem and understood by nearly all economists. They lead to over/under production, huge waste, less efficiency and regulatory capture.
The question is why no one is calling for price controls for other products that are produced in a relatively free market. Then ask yourself whats different about the market for insulin that prevents price competition.
Using "fixed" prices to control costs is like using "fixed" thermostat readings to control global warming.
- tsimionescu 5y agoThe way price controls are achieved for medicine in the first world is through negotiation between the state public Healthcare system and pharma companies. This actually, provably works, and has worked for decades, and is much more efficient than in the US in fact - both in terms of healthcare outcomes, and Healthcare costs.
- bko 5y agoI guess you have a lot more faith in "state public Healthcare system". Many comments were about how corrupt the politicians that led to this system were, so I imagine they would be equally as corrupt when they're "setting prices". The alternative would be to allow people to break the third party payer system and allow people to buy and import drugs from whomever they want. You can do this now on the grey market, but it would be great if it were legalized. Then you can probably get it for the same price as any other country, probably even lower. If you want, you can have the state cut every insulin user a check for $10 a year or whatever it would cost in a free market