Quote:
Originally posted by Secret_Agent_Man
However, your point rests on the assumption that drug companies will not accept any less profit than they now make in order to remain in business, but will instead wither up and die (or take their money and run away) in the face of price resistance from the U.S. government. The complete lack of proof for this proposition fatally undermines your argument.
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This assumption has merit. They will not accept significantly less profit. Instead what they will do is stop or significantly decrease investing in R&D (an expense) and trim jobs to right size the operation, which will negatively effect technical progress (e.g., good luck coming up with a cure for Alzheimers). They will also be less profitable over the long haul, which will have the effect of producing less wealth for the millions of people who have invested their retirement savings through 401(k)s mutual funds, etc.
I will continue to harp on this, but there are consequences to every action that need to be considered.
