NYT Fluff Piece on Clinton and His Philanthropy
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Wednesday, 05 September 2012 04:42 |
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Newspapers are not supposed to do fluff pieces, that is the job of PR departments. Apparently the NYT does not know this, hence the fluff piece on former President Bill Clinton and the various charitable organizations that he has established since leaving the presidency. A serious news piece would have included some discussion of the TRIPS agreement that he inserted into the Uruguay Round of the WTO.
This agreement, which was inserted at the urging of Pfizer and other drug companies, required developing countries to adopt U.S. style patent and copyright protections. The resulting monopolies raise the price of prescription drugs and other protected products by several thousand percent above the free market price. It is a virtual certainty that this agreement will do far more to harm the health of people in Africa, by raising the price that the continent must pay for its drugs, than anything Bill Clinton's charities can do to aid Africans.
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When citing a bald faced lie to justify price gouging Americans for drugs with thousand percent mark-ups, it's important to understand as well how price discrimination is practiced by such powerful monopolists.
Big Pharma understands perfectly well that short run variable cost of producing and distributing drugs is very low, which is why it's willing to sell drugs anywhere in the world for less than priced in America.
It bargains for the highest price it can get from whomever, which then constitutes additional revenue gained otherwise lost, as higher than the marginal cost of providing it. (This also includes low income Americans in some cases, or customers with real bargaining power like the VA, in sharp contrast to the free pass for obscene full prices allowed under Medicare after stripping the government of any bargaining power.)
To claim that because it does not get the highest price charged to Americans from everyone else on earth, that Americans themselves must be charged more to "subsidize" the others, as if sales abroad were incurring "losses" at the margin, is a propaganda lie.
If all sales abroad were ceased immediately, prices in America would not decrease one dime lower to reflect lower "losses" incurred abroad.
There is of course one area in which Big Pharma does not discriminate at all. All politicians are treated equally under the heavy thumb of Big Pharma with no exceptions, Bill Clinton included.