NumberSix
10-25-2015, 05:58 AM
So, we all remember the story about the guy who bought a drug company and jacked up the price on a particular medicine to $750 per pill, right?
As usual, we had the leftist loons arguing that the government needs fix prices on medicine. Obviously a ridiculous point of view. The sane people argued that it's not the government's place to tell people how much they are allowed to sell their products for and that the market will self correct itself.
Well, it turns out the market did correct itself. Now another drug company has decided to sell the same medicine for $1 per pill. It's a simple economic principle. Competition drives the desire to have better products at better prices.
So there you have it. The guy spent $55 million to buy the drug company and now is going to be put out of business by a competitor who will offer the same drug for 0.13% of the price. He made a bad investment, did bad business and now just a few months later he is screwed. It didn't take the government to tell people what they're allowed to do. All it took was the free press reporting the facts and for a competitor to see an opening to do better business.
As usual, we had the leftist loons arguing that the government needs fix prices on medicine. Obviously a ridiculous point of view. The sane people argued that it's not the government's place to tell people how much they are allowed to sell their products for and that the market will self correct itself.
Well, it turns out the market did correct itself. Now another drug company has decided to sell the same medicine for $1 per pill. It's a simple economic principle. Competition drives the desire to have better products at better prices.
So there you have it. The guy spent $55 million to buy the drug company and now is going to be put out of business by a competitor who will offer the same drug for 0.13% of the price. He made a bad investment, did bad business and now just a few months later he is screwed. It didn't take the government to tell people what they're allowed to do. All it took was the free press reporting the facts and for a competitor to see an opening to do better business.