2 ms·
> So, we're back to someone withholding value that they could be providing to society. The point OP is making is that value to society and money are only loose
by vlovich123 3y ago
> So, we're back to someone withholding value that they could be providing to society.
The point OP is making is that value to society and money are only loosely correlated. Sometimes it correlates well but often not so well. That’s because there’s externalities in any marketplace that aren’t captured by the marketplace itself.
So in the presented hypothetical case, the externality of “provide life saving treatment” is not captured in the costs side of the drug company’s balance sheet, so treating 75% fewer people for 10x more per unit cost makes the company look even more financially positive even though the change is a societal negative. And this externality shift in the balance sheet need not be a conscious “evil” decision. It could simply be market dynamics and competition playing out with the players not even realizing that they’re just making money from an externality and not providing any benefit.
Your argument that it’s the legal system is flawed on several counts:
1. The US (and many places) have regulatory capture so the legislation preventing future competitors is written by today’s competitors. So while it’s the law on one hand, it’s the current set of players that’s the real problem.
2. There’s no collective buying power in places where this is a problem (eg you don’t see the cost of penicillin being an issue in countries where single payer healthcare is a thing). We’re starting to see this with insulin where non profits and California are getting into the game, but it takes a while to ramp up production so even if the price does come back down, the companies involved have managed to make a lot of money in the short term at the cost of lives and financial health of many households.
- randomdata 3y ago> it’s the current set of players Yes, that's right. Because others who could be playing cannot, in this case because society has decided they don't want more players, for whatever reason. However, the original premise still holds true given the constraints the actors are operating in. The 10x represents the additional value offered to society to operate within those rules created by society. So while, again, all acts have negative externalities, we cannot deny that society sees great value in having a limited set of players. In fact, society sees so much value that, in this example, it is willing to pay 10x more and accept that some people will not have access to drugs in order to maintain the benefits.
- jchanimal 3y agoInsane argument that regulatory capture is the best possible outcome. Are you suggesting anything more just would undo society?
- randomdata 3y agoIt is what society deems beneficial. That is not necessarily what is the best possible outcome, to what you see being the best possible outcome. I suggest nothing. That would require injecting my feelings towards the matter, and that would be in bad faith.
- UncleMeat 3y agoWe've truly gone off the rails if considering our own feelings for important matters like these is considered bad faith.
- randomdata 3y agoThe discussion is about how the world is. Our feelings about the merits or failings of that world have no place in the discussion, and even if we were to share them what purpose would they serve? That is where you would find us going off the rails.