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Drug Prices Are High Because Government Protects Monopolies

in Healthcare, Liberator Online, News You Can Use by Alice Salles Comments are off

Drug Prices Are High Because Government Protects Monopolies

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Ever since the EpiPen scandal hit the public like a ton of bricks, many outlets contended that greed, not cronyism, was to blame.

pillsBut when looked closely, EpiPen is just another example of corporate influence and lobbying shaping public policy. The ones who benefit are always the same individuals who pressed for changes in the first place.

In an article for the Fiscal Times, Mercatus Center’s Marc Joffe contended that the drug price problem could be fixed by targeting the Food and Drug Administration. But not by giving the agency more regulatory power. Instead, Joffe argues that, stripping the agency of its power would do America a world of good.

In the article, Joffe tells the story of how the FDA obtained its power, noting that it was a morning sickness pill that prompted the nationwide support for the Kefauver Harris Amendment, which “gave the [FDA] most of the power it now exerts in regulating drugs.”

As the FDA expanded its power, regulating every single piece of medication in America, drug prices increased considerably, while access to many life-saving drugs remains restricted. To Joffe, the “drug crisis” we now face as a nation has everything to do with the empowerment of the FDA, prompting the scholar to urge lawmakers to look at the free market for a solution if what they are truly after is to lower drug prices.

In a competitive market, Joffe writes, “price equals the marginal cost of production.” But even in an imperfect world, he contends that, when “prices [are] well above production costs,” firms see an incentive to compete. But if markets are restricted and companies are granted exclusive rights to produce and sell certain drugs, firms are unable to compete. Without competition, monopolies set the rules, making way to high costs and low effectiveness.

In his article, Joffe argues that, if Congress is serious about helping patients from all walks of life, they must stop considering the idea of passing laws to expedite the FDA’s approvals for new drugs. Instead, Joffe writes, “[allowing] multiple organizations to approve drugs, providing competition to the FDA … [or allowing] pharmaceutical companies sell whichever medications they believe to be safe and effective — with the understanding that patients can win large judgments if the companies fail to produce and market their treatments responsibly,” would both be better options that would deliver better, and more effective results.

Freedom, after all, is the answer to most of our problems. And that’s why governments often contend the opposite.

VIDEO: Remy’s “God Bless the USA (Veterans Affairs Scandal Edition)”

in Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 10 of the Liberator Online. Subscribe here!)

If the VA hospital scandal has you outraged, you’re gonna love this smart and savage satire by the great pro-liberty comedian Remy.

Remy reworks the 1984 Lee Greenwood radio hit “God Bless the USA”… for today’s Veterans Affairs administrators.

Your jaw is bound to drop at least once or twice. After you’ve recovered, share this with friends.

It’s another great video from Reason TV. Full lyrics with documentation here.

They Said It… With Ron Paul, Antonin Scalia And More

in Liberator Online by Advocates HQ Comments are off

TAXATION IS CONFISCATION: “The latest scandal in Jay LenoWashington, of course, is raising questions about the IRS. You know, I have a question. Why is it called the Internal Revenue Service? How is having your money confiscated a service?” — Jay Leno May 23, 2013

SOME GOOD FROM TAX SCANDAL: “A Democratic congressman said that he worries that the IRS scandal might have a chilling effect on the IRS and that they might be afraid to audit people. So finally some good is coming out of all of this.” — Jay Leno May 23, 2013

Dr. Ron Paul“While it is important for Congress to investigate the most recent scandal and ensure all involved are held accountable, we cannot pretend that the problem is a few bad actors. The very purpose of the IRS is to transfer wealth from one group to another while violating our liberties in the process, thus the only way Congress can protect our freedoms is to repeal the income tax and shutter the doors of the IRS once and for all.” – Ron Paul, “The IRS’s Job Is To Violate Our Liberties,” Texas Straight Talk, May 20, 2013.

DON’T FUND AL-QAEDA: “We should not aid the allies of al-Qaeda in Syria, nor should we be giving weapons to radical extremists who might use them against Syria’s two million Christians.” — Senator Rand Paul (R-KY) arguing against arming Syrian rebel groups allied with Al-Qaeda. See ten-minute Senate video of Paul arguing this before the U.S. Senate Committee on Foreign Relations here.

CUT GOV’T, END POVERTY: “The Feds spend almost 4 trillion dollars and most people have no clue about what to cut? Well, I have a few ideas. Who needs a Commerce Department? Commerce… just happens. The Education department? Department of Energy? Labor? Cut those too! If we cut government to the limited government the founders had in mind, poverty would become something so rare our kids would have to learn about it in history books.” — libertarian journalist John Stossel, “The Fight Over ‘Austerity,’” May 30, 2013.

Justice Antonin Scalia

SUPREME COURT SAYS NEVER MIND THAT PESKY FOURTH AMENDMENT: “The Fourth Amendment forbids searching a person for evidence of a crime when there is no basis for believing the person is guilty of the crime or is in possession of incriminating evidence. That prohibition is categorical and without exception; it lies at the very heart of the Fourth Amendment. … Make no mistake about it: As an entirely predictable consequence of today’s decision, your DNA can be taken and entered into a national DNA database if you are ever arrested, rightly or wrongly, and for whatever reason. …I doubt that the proud men who wrote the charter of our liberties would have been so eager to open their mouths for royal inspection. ” – Justice Antonin Scalia in his dissenting opinion in Maryland v. King, June 3, 2013. The Supreme Court ruled 5-4 that police can collect DNA from people merely arrested, not convicted of a crime.

THE REAL PURPOSE OF GOV’T SCHOOLS: “The real purpose of public (i.e., government) schooling is to produce good little citizens who defer to the authority of the federal government. Through 12 years of regimentation within an army-lite structure, the minds of people are gradually molded from childhood to trustingly defer to the judgment of federal officials, especially when it comes to things like ‘national security.’” – Jacob G. Hornberger, President of the Future of Freedom Foundation, “An Example of Deference to Authority,” May 31, 2013.

JOBS, WHO NEEDS ‘EM: “President Obama gave the commencement address at Morehouse College over the weekend. Great speech, very inspiring. He told the young graduates their future is bright — unless, of course, they want jobs.” — Jay Leno May 21, 2013.