I saw Cory Booker answer another question at his CNN town hall that was actually worse than his gun control question.
“This is a broken system and we must fix it … Health care is an American right and the current system is definitely wrong. I believe the best way to get there is by having Medicare for all," Cory Booker says. #BookerTownHall https://t.co/8If7Lkd89C pic.twitter.com/Ve2BbE2tg7
— CNN (@CNN) March 28, 2019
Most of the people on the internet criticizing Booker are pointing out that this woman is already on Medicare and supplementary private insurance and Booker is saying that the solution to her issue is Medicare for all.
First, from an economic perspective, while I feel for this woman, if she is on Medicare, supplementary insurance, and because she said she is disabled (presumably) SSDI, than her medical needs are so extreme that policy can barely touch that.
This is a rule borrowed from engineering applied to politics, but a policy that does the best for the 95% of people within two standard deviations of the mean won’t work for the outliers, and a policy that works for the outliers isn’t optimized for the 95%.
To put it bluntly, you can’t make car that has enough cab room and seat travel to fit both Verne Troyer at 2’8″ and Yao Ming at 7’6″ and still have it be affordable for your average consumer. That’s why design engineers design things to fit the 95% percentile and Shaq has to have his cars modified for him.
Any one-size-fits-all policy that is designed to help this woman in her extreme need is going to be unreasonably expensive for the rest of the population that doesn’t go through $100,000+ a year in health care.
Second, he says that part of the problem with our “broken system” is that “all that money doesn’t go to patient care, doesn’t go to support folks like you.”
So he wants a big, bloated government bureaucracy to manage healthcare because government is so effective in eliminated needless overhead and inefficiency?
Somebody remind Booker of the Iron Law of Bureaucracy. Go ahead and create Medicare for All. Within five years Medicare will be the largest branch of government by far, with more federal workers pushing papers in the Medicare offices than doing everything else combined.
But I digress….
No, the point that stuck out to me was how Booker plans to tackle drug prices.
“If you raise your drug prices higher than that in other countries… we’re going to take away your patent and let the generics come in and undercut those prices.”
WOW, Booker just killed drug and medical device R&D in the United States, and the rest of the world.
See, as the Wall Street Journal puts it “Other Countries Freeload on U.S. Drug Research.”
Across Europe, the government monopoly on the drug market allows them to price fix, which drives down profitability forcing the drug companies to up the cost in the US.
When it comes to R&D, the United States is responsible for 57% of new drug development.
So we spend more money and develop more drugs in the US than all of Europe combined.
Now factor in that it takes about $2.5 Billion to develop a new drug.
Booker saying that if US prices for drugs are higher than Europe’s price fixed prices for drugs, Booker will yank these companies patents and give them to generics.
That will destroy the financial impetus for drug R&D in the Unites States.
Not just that, it will effectively destroy the non-generic drug manufacturers.
I get it, nobody liked it when drug prices went up in the closing years of a patent.
Here is the problem, American insurance companies prefer generics because they are cheaper. As a drug is coming close on patent protection, the drug company has to try and recoup its billions in investments. They may raise prices accordingly, knowing that soon as the drug comes off patent and goes generic, insurance companies will switch to the generic and their sales will drop.
Booker’s response to this is to understand the reason for the cost increase but to become a price fixing Socialist son-of-a-bitch fucking asshole and strip a company of their intellectual property.
This is no different that Maduro’s nationalizing of businesses if he deemed prices to be too high.
Being a free market guy and R&D engineer, my solution would be to extend the patent protection and create a licencing scheme that would allow drug companies that do R&D to capture more money by licencing production generic manufactures over a longer period of time.
Booker is going to kill drug R&D and then the US drug industry, all in the name of reducing costs.
Countless people will suffer because of this plan to help the poor, which is the history of socialism everywhere.
If Booker gets elected, stock up on your drugs before he wipes out the pharmaceutical industry.
I was reminded of something by one of the comments to this post.
It’s shocking just how similar Booker’s solution to the cost of healthcare is to Directive 10-289.
As the Democrat primary heats up, I swear this could easily be a speech given during a DNC primary debate.