So price controls never work, but that's never discussed in the context of price discrimination in my economics classes. This is a solid idea and I guess the president could do this for prescriptions bought through medicaid and medicare. This would be a major shot at the pharma cabal which I do support.
Here is what happens: - Generic drug makers continue steaming along with basically no changes. - Headlines will reflect death and destruction among the population without their prescriptions. - MEDICAID runs out of birth control pills. - Price gouging will be shifted first to the uninsured and then the privately insured as contracts get renegotiated. - Shortages worsen and become more apparent with the help of the news. The shortages will be acute in name brands - but they will never discuss generic alternatives such as the previous generation statin or whatever. Those will be in generic supply.
Hopefully everybody stops taking a bunch of bullshit drugs that don't really help them anyway.
I bet even the generic drugs are sold for more in the US than other countries.
If drug makers increase their global prices a bit so they can sell higher in the US it will cause a massive affordability crisis in poor countries. The media will be all over that and they will blame it on Trump.
You describe a market with price controls in foreign which will be removed.
There is already a shortage there because drug makers limit loss making sales. Increasing those prices increase supply but also price. Nobody talks about the existing shortage.
An actual market discovered Price is good, and this may be one step closer to that.
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