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Re: Pharmaceutical giant 'plotted to destroy cancer drugs to drive prices up 4000%'
Great, you agree then that lack of normal market forces like choice and competition is fundamental to a healthy market. If I want a television, I can buy a number of different brands, look at different sizes, picture quality, features, prices, etc. Or I can skip the TV and do netflix/hulu. Or I can buy a playstation. Or a tennis racket, these are all "entertainment dollars." Best of all, if nothing on the shelf is something I am willing to buy for the price, I can walk away and buy nothing at all.
Now, when I need health care... what's my choice? Where's my competition? If I need hip surgery... I need hip surgery. I can't get chemotherapy or antibiotics instead. There aren't competing products, and I don't have a choice to walk away. Failing to get healthcare can be life or death. Or ignoring a problem can make it get worse over time, which also isn't a realistic option.
So I can only find competition in who actually performs the surgery... but that's not real competition either. Go ahead, try and shop around for hip surgery. Ask them what it costs. Nobody will tell you.
And let's get back to good ol' Econ 101. Supply and Demand. Health care is an almost ideal inelastic product. The demand curve for continuing to live is infinity.
Just how on earth are market forces supposed to solve this?
No, it can't and if the government is running the whole industry, there can't be any choice, nor competition.
Great, you agree then that lack of normal market forces like choice and competition is fundamental to a healthy market. If I want a television, I can buy a number of different brands, look at different sizes, picture quality, features, prices, etc. Or I can skip the TV and do netflix/hulu. Or I can buy a playstation. Or a tennis racket, these are all "entertainment dollars." Best of all, if nothing on the shelf is something I am willing to buy for the price, I can walk away and buy nothing at all.
Now, when I need health care... what's my choice? Where's my competition? If I need hip surgery... I need hip surgery. I can't get chemotherapy or antibiotics instead. There aren't competing products, and I don't have a choice to walk away. Failing to get healthcare can be life or death. Or ignoring a problem can make it get worse over time, which also isn't a realistic option.
So I can only find competition in who actually performs the surgery... but that's not real competition either. Go ahead, try and shop around for hip surgery. Ask them what it costs. Nobody will tell you.
And let's get back to good ol' Econ 101. Supply and Demand. Health care is an almost ideal inelastic product. The demand curve for continuing to live is infinity.
Just how on earth are market forces supposed to solve this?