Corporate toadies to the last

Submitted by Bill St. Clair on Mon, 28 May 2001 10:03:10 GMT
FROM MOUNTAIN MEDIA
FOR IMMEDIATE RELEASE DATED DEC. 27, 2000
THE LIBERTARIAN, By Vin Suprynowicz
Corporate toadies to the last

Ever mindful of the wishes of their corporate backers, the Clinton administration first balked at the bill proposed by Sen. James Jeffords, R-Vt., to allow the re-importation of U.S.-manufactured pharmaceuticals which sell at lower prices overseas.

(U.S. prices for popular arthritis, depression, and cholesterol-lowering medications are often 30 to 50 percent higher than in other nations -- even after factoring in the cost of shipment.)

But the idea of allowing pharmacies to re-import the less expensive drugs won bipartisan congressional approval when Democrats and Republicans proved unable to agree on any more comprehensive scheme to federally subsidize prescription drugs, particularly for the elderly (an expenditure which, for the record, the Congress has no constitutional authority whatever.)

Faced with widespread popular support for the re-import measure, President Clinton finally signed it, praising GOP congressional leaders at the time for agreeing "in the face of the drug companies' opposition, to give Americans access to prescription drugs that are cheaper in other countries."

But implementation procedures contained a loophole -- they were subject to an OK from the Secretary of Health and Human Services.

And guess what? Tuesday, outgoing HHS Secretary Donna Shalala -- think there's any chance of landing some hefty new drug research grants down at the U of Miami next year, Madame Secretary? -- again placed the ongoing pharmaceutical industry protection racket above the ability of America's poor and elderly to buy affordable prescription medicines, announcing she would not even request the $23 million appropriated to start the program because "Flaws and loopholes ... make it impossible for me to demonstrate that it is safe and cost effective."

Humbug. If it's not cost-effective, pharmacies simply won't re-import. But how could it not be cost-effective to re-import drugs which sell at half price overseas? And as for safety -- does the Secretary imply she's allowing U.S. manufacturers to ship out unsafe drugs to our foreign friends and allies?

The great Austrian economist Ludwig von Mises -- whose English was far from perfect in the early years after he immigrated here -- once halted a discussion between Murray Rothbard and others of his New York students to ask "What is this word 'loophole' you keep using?" When the young Americans had finished explaining the colloquialism, von Mises sagely observed, "Ah. So you call it a 'loophole' when the government still allows you some freedom."

A theoretical objection can be raised that by re-importing these drugs, Americans to some extent embrace the anti-free-market price caps imposed by more or less fascist foreign governments. But no one forces the drug firms to sell overseas under those conditions -- if they're not making a profit, they can refuse to export there, in the first place.

All forms of competition work to the advantage of the consumer -- including the breakdown of arbitrary price supports imposed by the government's monopoly on armed force through arbitrary bans on "re-importation."

The real question is why millions of dollars need to be spent simply to tear down these protectionist tariff walls, allowing U.S. pharmacies to re-import any drug which meets their own safety standards. Clearly, the extra tens of millions are for hundreds of new inspectors to make sure we're not allowed too much commercial freedom ... when the real solution would be to declare all pharmaceutical imports duty free on humanitarian grounds, from penicillin to Prozac, from coca leaves to Indian hemp.

Thank goodness this current batch of corporate toadies -- any more Tyson Chicken executives in need of pardons, Mr. President? Any more convicted cocaine smugglers to whom you'd like to restore the right to carry a handgun? -- will be gone inside a month. Perhaps Mr. Bush's nominees can do a little better.


Vin Suprynowicz is assistant editorial page editor of the Las Vegas Review-Journal, and editor of Financial Privacy Report (952-895-8757.) His book, "Send in the Waco Killers: Essays on the Freedom Movement, 1993-1998," is available by dialing 1-800-244-2224; or via web site http://www.thespiritof76.com/wacokillers.html.


Vin Suprynowicz, vin@lvrj.com

"When great changes occur in history, when great principles are involved, as a rule the majority are wrong. The minority are right." -- Eugene V. Debs (1855-1926)

"The whole aim of practical politics is to keep the populace alarmed -- and thus clamorous to be led to safety -- by menacing it with an endless series of hobgoblins, all of them imaginary." -- H.L. Mencken

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