Drug re-importation?
The current furor over drug re-importation from Canada seems incredibly ludicrous to me. It is incomprehensible that the most powerful nation on the planet, would try to extract the highest prices in the world for drugs from the portion of it's citizenry that has the least capability to pay. It seems a mockery of common sense that we should want to dump our unfunded drug problem on a nation with ten percent of our population. It is even more incredible, when you consider that most of the drugs imported from Canada are made in the United States of America (imported into the USA from US drug company operations in foreign nations, and exported to Canada or shipped directly from US drug companies foreign operations directly to Canada.) This whole situation would be comedic, if it was not that our oldest, most vulnerable citizens are being victimized.
Why then are drugs cheaper in Canada? First, you might think of the exchange rate, but prices are adjusted to account for that. The true answer is that the Canadian government controls the prices that can be charged in Canada, I believe by negotiation. Why doesn't the United States government engage in this practice? To answer that question, I believe you need to look at the role of “soft money” in the electoral process. It seems that our politicians are addicted to “soft money” not unlike a heroin addict. The drug companies have enormous profits, and can afford to buy what they want from the government. Otherwise, how would one explain the FDA's stance on drug re-importation.
In addition to inappropriate influence on our electoral and governmental processes, the drug companies waste vast sums of money on nearly incomprehensible television advertising. For reasons noted above, our government does not see the absurdity of name brand prescription drug advertising that does not even state what the drug is for. Such as “stay in the game.”, Mike Ditka. No mention is made of which game, and why we should want their prescription medicine. To add insult to injury, the drug ads are tax deductable!
I have personally observed some of the drug company provided free lunch and perks that are forced on the medical community from an endless round of drug company representatives. Advertising pamphlets and supplies for drugs are prominently displayed in the clinics I have been to.
In a total vacuum of regulation, the drug companies are doing what comes naturally. They are setup to maximize profits any way they can. The so called “Magic of the Marketplace” cannot apply here, as the drug companies are actively pursuing monopolies based on copyright, trademark, and patent litigation. Most if not all of the drugs in question cannot even be obtained by the private citizenry.
This is all inherent in unregulated capitalism.
Time and again the policy of totally free market capitalism has led to destructive boom/bust cycles. In the end, very few people own almost everything, and there is a dramatic reduction in the general standard of living, coupled with an increase in crime. This becomes a form of stagnation, that leads to a weaker and weaker nation. In our situation, given that most of our politicians are on the take, and to control the medical industry would cut down on their re-election money, it is highly unlikely that anything will be done to change this. We enter a brave new world!