printWhen there is a shortage of a good, it is safe to say that it is a result of government incursion into the economy. And there are reported “shortages—“severe” shortages—in “drugs for chemotherapy, infections and other serious ailments.” The shortages, reports the Richmond Times-Dispatch, are “endangering patients and forcing hospitals to buy life-saving medications from secondary suppliers at huge markups because they can’t get them any other way.”
How would consumer demand have been heeded in an unhampered market?
The urgent demand for a drug would have been followed by a shortfall of supply. Large demand and short supply would initially send the price of the drugs rocketing. Profits in an unhampered pharmaceutical market would signal to the many drug makers that it’s pedal to the metal: time to enter into accelerated production of this scarce commodity.
Walter Olson of CATO provides more details about “the federal government’s widely publicized crackdown in recent years on pharmaceutical manufacturing and quality-control practices” to have played a role in current shortages.
A number of years ago, I suggested to a friend – she is a member of a North American Indian Tribe that has its own Tribal Lands, not a reservation, and as such I believe it is considered a Sovereign Nation – that she introduce a recommendation for the Tribe to consider: The Tribe should establish a private, Tribe-owned and operated hospital to counter any Fed-Gov regulatory mandates. It seems it may be feasible to do the same research into pharmaceuticals production and dispensation. [As well as a tax haven.]
There may be more than one way to skin a cat…and make a profit while meeting consumers needs.
Imagine that. The government intervenes and things go to hell. I’m sure they’ll get it right eventually…right?
Just another one of the government’s many death panels.
By Dennis on 10.17.11 4:15 am
Dr. Rich proposed the same:
http://covertrationingblog.com/general-rationing-issues/black-market-healthcare-a-few-concrete-suggestions
Hey Nancy, my suggestion to my friend was not for a “black market” endeavor, but to propose the idea to Mayo Clinic, Cleveland Clinic, Johns Hopkins, etc. The deal would be for a renowned medical center to lease, at very favorable rates, the structure, train and employ tribal members for positions for which they are competent, and cater to those who do not want Gov-Med.
Remember, do not do anything outside the law since they have more money, more lawyers, and more time to pursue convictions.
The idea of the Indians utilizing their land for providing the needs of citizens in the future is one with great potential. Lets not stop with medical (good; but more available) Energy, the Navajo and Osage and Cherokee have vast reserves of natural gas. Electrical generators and the Navajo have access to nuclear energy too. With their own power, they could open numerous manufacturing plants for anything you can imagine. Unfortunately, the natives have the same bureaucracies as the feds; ain’t gonna happen. However, there are many medical enclaves in Mexico and the Orient already doing a thriving trade. I would like teeth implants, In the US it is 5K, there is a community in Mexico that specializes in implants, 2K and they do other types of implants too for a lot less. Private hospitals in Mexico charge approximately 35 dollars a night. Not only that but an artificial knee is less than a quarter of the cost in Thailand compared to the US. With the way things are going here, the overseas market is going to jump by leaps and bounds.
Dennis, that’s what Dr. Rich proposed also. None of what he suggested would be illegal (though he warns it will be someday). He used the term “black market” because he’s delightfully snarky like that.
I also like his floating medical center idea, but if the U[F]SA ratifies the UN’s Law of the Sea Treaty, it would put the kibosh on that business venture.