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Question

the average fortune 500 company makes a 5% profit margin annually. Pharmaceutical companies make 20% or more profit margins annually. what gives? its a free market isn't it? NO. the major drug companies cooperate for price fixing, and have successfully negotiated with government and regulatory agencies in the US to have freedom from many anti-trust and price fixing statutes.

is free market private health care or socialized medicine preferable? who knows, America hasn't ever tried either one.

Answer 1

The choice between 'free market private health care' and 'socialized medicine' is a false dichotomy. Republicans like to call -any- alternative to the current system 'socialism', but the word doesn't really apply.

Most Americans think we should have a 'Canadian style single payer plan'. Doctors, clinics, hospitals and even drug companies remain private and competitive. The govt. only handles the insurance, making sure that everyone is covered in the same pool. This keeps insurance companies from 'cherry picking', only wanting to insure the healthiest Americans. The govt. negotiates with the drug companies to buy medicines in bulk, keeping prices down while still allowing the drug companies to make a fair profit. That is not SOCIALISM, fer crissake.

Liberals and conservatives have a completely different idea of what the phrase 'free market' means. To conservatives, a 'free market' means that corporations have the right to do whatever they want--charge whatever they can get, collude to fix prices, merge to create monopolies, bribe politicians, to control regulatory agencies, even to write their own laws. To liberals a 'free market' means a FAIR market--good regulation to insure competition, breaking up monopolies and oligopolies, keeping corporations honest, the greatest good for the biggest number of people.

So you can't use the term 'free market' without explaining what you mean by it. It's lost its meaning in American political discourse, just as 'socialism' has, or 'socialized medicine'.

Answer 2

The difference between most Corporations and Drug Corporations is that Drug Corporations depend on their Research and development investment far more than other corporations.

R&D is a much larger percentage of investment at Drug Companies than it is in other corporations. To attract that investment drug companies have to give out higher returns.

You have some good points, but, the US did try Free Market drug companies and it failed. Research "Patent Medicine".

In the US we have tried socialized Health Care for Veterans, of which I am one, and Military Health Care. I have a nephew who father is in the military and who has some difficult medical problems.

I was kicked off of VA medical in spite of promises made to honorable discharged Veterans because I made too much money one year several years ago. My nephew has a difficult time getting proper treatment. You could also research Medicaid and Medicare, I am currently dealing with both because of my nursing home bound mother.

Government, socialized, Health Care in the US does not work.

We need to do something, but, my background is in manufacturing. Religion, Economics and Politics are hobbies so I can't "solve" this problem and I don't even feel qualified to make a suggestion for a solution.

When a car starts and you hear grinding and banging you do not need to be a mechanic to know it is broken even though you can't fix it or know exactly what is broken.

Answer 3

Like to see your source.

You know what sucks up a lot of the profit it goes back into R&D.

You want all the testing for drugs and you want all the lastest and greatest drugs.

It comes at a cost.

When they come up with a new drug there are years of testing and retesting than it goes to market for a few year than genertics jump into the game and they loose the profit and dump making the drug. So in order to get their money out of it before it goes genertic they start with high prices.

Now look at what happens to a company like Merck when they saw a problem and pulled the drug before the FDA told them too.

We went on suing rage that cost people jobs and R&D staff stop working.

Keep pushing the drug companies and they will fold their tents and go else where and than who will be the winner when you need that new drug and no one wants to make it.

Answer 4

You raise a good point. The current patent laws tend to give drug companies a monopoly on any drug they develope. On the other hand, that monopoly is the reward for investing in research.

Answer 5

Heck, I use to work for a newspaper chain that had a 30% profit margin. Should the government control them?

Answer 6

The pharmaceutical industry is the most profitable industry on earth only the diamond industry comes even close.

Answer 7

What business is it of yours how much profit someone makes?

Really.


The next time you can set-up the infrastructure, research and development and take the risk for 10 years to find a novel drug, give us a call.

Answer 8

Have you done your research?? look at the quarterly statements from big Pharma... If they have 10% growth a year they did well. If you are looking at companies that just produce Generics and are making that statement it really isn't fair now is it?

Answer 9

Corporate corruptions!

Answer 10

Source, please. Next thing you'll be telling us is that jet streams from military planes are actually biotoxins causing cancer to increase sales for pharmaceutical companies.