Quoted: Please explain to me how making it illegal to buy prescription drugs is not controlling the price. Wouldn't allowing people to get their drugs from where ever they want be the least intrusive and least controlling of the price?
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Yes, but only if the market they purchase from is also not subject to those controls. People will always seek the lowest price. Problems occur when that low (or high) price does not occur naturally. Think about it. You've developed a useful drug. If someone creates law that makes your useful drug indistinguishable from a failed one in the marketplace (by greatly reducing your profits, as does Canada), what's the point of it? How will you continue to refine, invent, or produce? Good intentions? They don't keep the lights on.
In the case of our drug companies, they compensate for being forced into controlled markets by charging what they can, in markets that are not controlled. That's why, in the end, US consumers are responsible for subsidizing 'cheap' canadian drugs.
Re-importation only accelerates the negative effects of foreign price controls, by making all US drug consumers, effectively, canadians. Eh?
Allowing re-importation of these drugs is economically much like letting someone legally buy pirated goods. If it was legal to buy stolen goods, profits would quickly shift entirely from those who actually design and build these items, to those who are the best at stealing and reselling them. It destroys the incentive structure to create, and to optimize those creations - neither of which the pirate can do. But the pirate does win a lot of friends short-term by delivering things 'cheaply.' Sound familiar?
In this case, those profits shift to the Canadian government, in the form of political support for a failing healthcare system and to provide the short-term illusion of a free lunch. But the real costs to develop and produce these things still exist, and shift unequally to the american consumer. If in response, all consumers are allowed to buy from Canada, it just falls apart faster.
Since those doing the 'stealing' don't have the smarts to invent these things, the industries that do slowly contract, while becoming less able to produce adequate supply. This causes scarcity and real shortages. That's the last thing anyone needs.
Long term, it can't last if everyone does it. Allowing reimportation would, basically, let 'everyone do it.' And because of the coercive actions of
foreign governments, no less.
Not surprisingly, this follows the typical American role in the world. Americans often do the heavy lifting, be it innovation or defense of freedom - bearing the costs, while many others do little, and benefit from it.
I'm not trying to argue with you, only playing Devil's Advocate because I know these will be questions she will ask me and I want to be prepared.
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Sure. No problem.