A couple of days ago I gave my explanation of why California doesn’t have any water left. The basic idea is that when the price of a thing is reduced and limited below what the market would otherwise bare, you will experience a shortage of that thing.
So why is it that very smart people don’t take these lessons to heed?
Dorgan’s drug re-importation amendment is another significant hurdle. Allowing for the importation of cheaper drugs from Canada and European countries is popular among many Democrats and Republicans, giving Dorgan’s proposal a strong chance of passage.
Unbelievable. Drug companies make drugs to sell, at a profit. The market in the US is SO massive that they can sustain gross economic policies in other countries that force these companies to sell thier drugs for less than cost. Now, the US wants to take those drugs from those countries and re-import them here. For a price less than the market can bare.
Guess whats gonna happen?
Hat Tip: Say Anything