Daily Archives: 10 August 2022

And to Reduce Development of New Drugs

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The Wall Street Journal headline reads Democrats Vote to Raise Drug Prices. That’s in response to the Senate Progressive-Democratic Party’s unilateral vote to pass President Joe Biden’s (D) Build Reduced Back Act last Sunday. Included in that bill is a capability for Medicare to “negotiate” the prices on a select list of drugs. Negotiate: accept Medicare’s offer or pay a 95% tax on revenues. Nice drug you got there….

This is one inevitable result:

If drug makers must give Medicare steep discounts on certain drugs, they will compensate by increasing prices in the commercial market.

Even the Progressive-Democrat Senator Chris Murphy (CT) recognized the foolishness of the price control, even as he voted for it Sunday:

You can’t untangle the private sector from the public sector—one doesn’t work without the other.

Except that Murphy is wrong in one regard, a regard to which Progressive-Democrats everywhere are blind: the private sector works just fine without the public sector. Better, even.

There’s another inevitable outcome for which the Progressive-Democratic Party voted with their just passed Medicare price controls, and it’s far longer lasting and far more dangerous to Americans’ health. That outcome is the delayed effort to innovate and the reduced level of drug development that will occur even then, given the severe restrictions that will exist on a pharmaceutical company’s ability to recoup its cost of development, much less turn a profit on the development, and therewith have funds for further development.

Duplicity

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The American Civil Liberties Union and Southern Poverty Law Center are at it, this time.

‘Way back in 2019 the Tennessee legislature created Education Savings Account pilot programs for Davidson and Shelby Counties. The ESAs grant money to students accepted into the programs; the funds facilitate students’ departure from poorly performing schools in favor of better schools.

The two county governments promptly sued to block the ESAs from taking effect, and the Tennessee Supreme Court ultimately ruled, last May, that the ESAs were jake, and in June that court denied the counties’ petition to reconsider.

Now the ACLU and SPLC are suing on the legally frivolous (IMNSHO) premise that that delay, manufactured by the county governments, is sufficient reason to further delay implementation of the ESA pilot program.

That’s how desperate the Left is to keep poor and minority kids—especially in Shelby County, although Davidson has a significant poor and minority population—trapped in bad schools instead of letting them transfer and actually get an education.

Nor am I sympathetic to the county school districts’ imagined plight. Those school districts really did have all that time since 2019 to prepare their budgets: they had no reason to ignore the possibility that the ESAs would be upheld and to prepare accordingly. It’s also not at all beyond the districts’ capabilities to have prepared two budgets, with one being centered on no ESA impact and one centered on an ESA impact.