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Medicare should spend 1% of its budget each year to buy pharma stocks. Slowly it will become neutral to drug prices since what it pays for expensive drugs will
by dave333 2y ago
Medicare should spend 1% of its budget each year to buy pharma stocks. Slowly it will become neutral to drug prices since what it pays for expensive drugs will be returned in the stock value.
- the_third_wave 2y agoNo, slowly it will pay out on one side and get back a bit on the other until it becomes a major stock holder and the whole house of cards collapses.
- dave333 2y agoWhy would it collapse? Can limit govt holdings to say 25% of each company to maintain profit motive. I think this would attract other investment - front running the govt money - and greatly increase the ability to research new drugs. Can also direct some research money into drugs with significant benefit but little profit. Over time increased investment would allow lower prices. Over time compounding would help fund medicare.
- the_third_wave 2y agoIt collapses because by the time it is the majority owner the state will pay for it's own "profits".
- Jensson 2y ago> Medicare should spend 1% of its budget each year to buy pharma stocks People would just raise the price for pharma stocks then. Maybe that is a good thing since it would make it harder to buy pharma stocks for others, but the government will still pay too mcuh.
- dave333 2y agoLike quantitative easing raises the whole market? Govt would dollar cost average at least and can spread out buys to avoid front running. Larger market cap with investors holding for the long term helps increase the R&D spend and timeframes.
- sunflowerfly 2y agoMonopolies for drugs that received even a penny of government subsidies should not exist. We should simply pay for research and open the patents on the results, or outlaw drug patents outright. Let the drug companies compete on manufacturing.