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64 sats \ 4 replies \ @Rothbardian_fanatic 7 Nov \ on: How the Government Created Exorbitant Insulin Prices econ
Hello @Undisciplined, I wonder how I missed posting this one! I might have had it queued up but got off on a different trail.
Anyway, it is due to government interference in the marketplace in two particulars: regulation and patents.
Regulations stifle the competition in the retail area and production area and patents interfere with improvements and innovations.
Both areas work to keep the prices down but state cronies profit from the interference, so they can then bribe the state actors in return. Revolving doors.
There are some other mechanisms that have to do with the badly distorted price system.
It's been a while since I went through the details, but there are basically a lot of completely fake prices in American medicine. These phony prices are enormously greater than what anyone actually pays and they enable large tax write-offs and greater nominal profits.
There are a bunch of great episodes of Econ Talk on the subject.
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One of the extras in the prices to hospitals is that they have to supply services to people who cannot pay. So they raise the prices to those who can pay (with and without insurance). Socialism in action.
Three cheers for Obama care!
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There's a socialism element there and a grift. They get to write off the costs of the services that they provided for free. They also negotiate their prices down with everyone who can pay (usually through their insurers). That's what I mean by the prices all being fake.
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Yes, they will not advertise prices for comparative purposes, either.
To me it looks gritty and like cronyism all round.
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