22 October, 2004

Don't Worry, Drug Companies!

Why? Because it will be CANADA, not the FDA that will end the practice of exporting drugs to the U.S.

Revisiting Economics 101, we already know that because the Canadian government forces a below-market price onto the drug makers, a shortage of drugs must exist in Canada in the long run. This shortage will occur, even without U.S. customers factored in... When Canadians wise up and realize that we are only raiding their already pitiful medicine cabinet and deepening their shortage, they will be the ones to turn off the spigot. Eventually, the free market will either win, or Canada can look forward to a steadily worsening health care system. You can't have below free-market prices and a world-class health care system. That would be having your cake and eating it too...

So all these calls for re-importation of drugs from Canada really boil down to this: We will either keep paying free-market prices for our drugs, and have drug companies with tremendous R&D budgets and the ability to rapidly bring life-saving drugs to market, or we will go the socialistic route and force artificially low prices into the system, and then suffer from a lack of medicine. Which is worse-having a light wallet, or dying too young? It's time to choose.

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