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Sunday, January 06, 2008

Demonizing Drug and Oil Companies - Not Just the Democrats Playbook

From last night’s debate:

MCCAIN: ... have sued the pharmaceutical companies because of overcharging of millions of dollars of Medicaid costs to their patients.

MCCAIN: How could that happen? How could pharmaceutical companies be able to cover up the cost to the point where nobody knows? Why shouldn’t we be able to reimport drugs from Canada?

It’s because of the power of the pharmaceutical companies. We should have pharmaceutical companies competing to take care of our Medicare and Medicaid patients.

ROMNEY: OK, don’t leave me. Don’t send the pharmaceutical companies into the big bad guys.

MCCAIN: Well, they are.

ROMNEY: No, actually they’re trying to create products to make us well and make us better, and they’re doing the work of the free market.

And are there excesses? I’m sure there are, and we should go after excesses. But they’re an important industry to this country.

But let me note something else, and that is the market will work. And the reason health care isn’t working like a market right now is you have 47 million people that are saying, “I’m not going to play. I’m just going to get free care paid for by everybody else.” That doesn’t work.

Number two, the buyer doesn’t have information about what the cost or quality is, or different choices they could have. If you take the government out of it to a much greater extent, you’d get it to work like a market and it will rein in cost.

McCain is saying the same things that Huckabee is saying in their pandering to the masses and the populist rhetoric.  It is important to note these kind of statements as one can expect that McCain and Huckabee will take on drug and oil companies, though with less veracity than the Dems.  But the thinking is still the same.

From Fox News:

Calling himself “a different kind of Republican,” Huckabee often appears to be channeling John Edwards or Lou Dobbs. He rails against high corporate profits and attacks free trade agreements. As governor, he raised the minimum wage and increased business regulation. He says it is “a biblical duty” to pass more regulation to fight global warming.

Comments

Avatar for Lestat

Actually pharmaceutical companies have very little interest in finding cures.  They have an interest in finding treatments which will keep sick people buying their drugs for years and decades.  That is why the government should subsidize scientist at Universities and nonprofits to find cures.  They are the only ones that will.

Lestat on January 6, 2008 at 08:21 pm
Rob
Rob
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I don’t actually think that’s true, Lestat.  Drug companies compete like any other industry, and they have an interest in making people feel better...not just marginally better off than they were before.

I think yours is a baseless accusation, though I’d certainly be open to hearing some support for your theory.

Of course, I do agree that government has a role to play in funding and facilitating research.  How extensive that role should be, of course, is a matter we could debate about as well.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

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Rob on January 6, 2008 at 08:34 pm

Lestat, you are like some kind of parody of a mush-headed leftist.

The idea that a company like Pfizer would turn down the hundreds of billions they could earn for, say, a cure for cancer to instead keep their customers sick is just pathetically moronic.

Ken McCracken on January 6, 2008 at 08:38 pm

Drug companies absolutely find cures.  Things like Prozac and Zocor and Lipotur and so on cannot cure depression, heart disease, etc.  There is no magic pill for these things.  But there are cures for bacterial infections.  They are called antibiotics.  There are close to cures for HIV with rhetrovirus inhibitors.  There are treatments for all kinds of illnesses.

I am not a fan of funding colleges and universities with block grants for most forms of research.  The problem is that government tends to fund the wrong kind of research.  Take for instance HIV funding.  Why is it that only 33M people world wide have the HIV virus, yet it gets 4x as much funding as cancer?  And why is it that certain forms of cancer get far more funding than other more common kinds simply because some celebrity says it needs it or some ad campaign comes out and convinces Congress to throw money at it?  Why is it that states throw billions of dollars at Fetal Stem Cell research, when adult stem cell research is far more lucrative in terms of actually finding cures?

It is true that pharmaceutical companies are driven by profit motive.  But their profit motive is derived by creating lucritive drugs.  Academia is driven by profit motive too, but their profit motive is not about results so much as it is about securing the next research grant or writing the next paper to advance the university or the doctor’s career.  When private funds are invested into R&D, the results are far better than when government funds are given to academics to “research” things.  But that is generally the case in all things--the market is far better than government at fixing problems.

I assume that Lestat, like the Dems and probably Huck and McCain, wants the government to tax the shit out of pharmaceutical companies profits, then reallocate the money back to universities to do r&d.  Then he wants price caps on what companies can charge for drugs.

Justin B. on January 6, 2008 at 09:31 pm
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