Trump drug pricing and the iron lung fallacy
President Donald Trump is trying to best Sens. Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) in demonizing pharmaceutical companies and using government power to lower drug prices. He announced last week that he will use the buying power of Medicaid to push prices down “to match the lowest prices paid by other developed nations.” The possible savings have not mollified critics of the plan, who say it would preclude larger savings in the works elsewhere.
TL;DR
- President Trump plans to use Medicaid's buying power to lower drug prices to match those in other developed nations.
- Critics argue this plan could prevent larger savings and harm future drug development.
- The 'iron lung fallacy' describes the error of prioritizing fair distribution of current goods over the development of potentially superior future alternatives.
- Government intervention in drug pricing could reduce pharmaceutical revenues and forestall the creation of new life-saving drugs.
- Historical examples, like the March of Dimes funding the polio vaccine instead of just ensuring access to iron lungs, show the value of investing in innovation.
- The article critiques socialism's focus on fairness at the expense of profits, which drives innovation, citing the Soviet Union's inability to innovate as an example.
- The progressive push for fairness above all is compared to a demand for 'iron lungs for all,' which avoids progress.