2:45 PM 06/12/2019 | Opinion
Stephen Moore | Contributor
Almost all Americans want to see lower prices for prescription drugs. Americans don’t deserve to be gouged when they need life-saving drugs. It’s also unfair that Americans often pay higher prices than customers in developed nations around the world. To solve these issues, too many in Congress want to impose state-mandated price controls.
The research is clear that this would only inhibit the development of such life saving drugs — which can cost as much as $1 billion to develop in the first place. It’s simple economics. When the government arbitrarily sets the price of any good, the costs are felt elsewhere.
In the case of prescription drugs, price controls remove the incentive for firms to innovate and develop new and better drugs. The U.S. leads the world in pharmaceutical innovation. Price controls, if they delay the introduction of new drugs, would therefore be detrimental to the race for the cure of deadly and painful diseases — from cancer to MS to Alzheimers — that benefit Americans and billions of people around the world.
The solution to the high domestic costs of prescription drugs is not to import other nations’ price