Monday, December 28, 2015
What is happening to drug pricing is an example of why government cannot allow unbridled capitalism. Some pharmaceutical companies are beginning to charge what the market must bear for medicine, and since there are no other places for consumers to go, they have to fork over bank accounts for life-saving drugs. This is wrong. The companies know it. It is monopoly, and it shouldn't be allowed to force patients to determine whether they can function or not. It is bad public relations, and there is hardly a message that can be constructed to defend sudden, massive price increases. Drug companies will say it is to pay for R&D, but that is a hollow claim. It is greed. These companies are spurring the government to act, and if they dislike intrusion into their affairs now, wait until there are price controls. A few bad actors can and will disadvantage an entire industry. If ethical pharmaceutical companies are smart, they will band together soon to isolate unethical firms and pressure them to moderate their pricing before the government takes action.