Drugs are cheap, government-granted patent monopolies make them expensive Drug companies DO NOT want a free market https://cepr.net/in-a-free-market-drugs-are-cheap-government-granted-patent-monopolies-make-them-expensive/
Center for Economic and Policy Research · In a Free Market, Drugs are Cheap, Government-Granted Patent Monopolies Make Them ExpensiveThis simple point was left out of a Washington Post article on the legal battle surrounding the Biden Administration’s efforts to negotiate lower prices for drugs purchased by Medicare. This point is important because the drug companies are definitely not trying to get the government out of the market, as the industry claims. The industry […]
@DeanBaker13 this applies to all drugs. Cost of production is far far far lower than willingness to pay, so monopoly rents are higher than for other goods.