Government Granted Patent Monopolies Lead to Corruption #42,347

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Saturday, 27 April 2013 17:12

When the government grants drug companies patent monopolies that allow them to sell drugs at hundreds or even thousands of times the free market price it gives them an enormous incentive to do things like pay off doctors to prescribe drugs. Everyone who has ever taken an intro economics class understands that fact.

Unfortunately our leading economists do not seem aware of how protectionism in the prescription drug industry leads to corruption that can both raise costs and jeopardize the public's health. That's probably because they are too busy finding reasons why we can't take steps to bring the economy back to full employment.