When 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.