If government is the main buyer for prescription drugs, then prices will go down… just like prices go down at the Pentagon!
Here’s a report from the lefty magazine “Mother Jones” on the wastefulness of military spending. The same magazine also promotes the idea that prescription drugs would be cheaper IF ONLY government were the sole buyer for them. So much for consistency…
“Should the Government Use Its Monopsony Power to Reduce the Price of Drugs?” by Gary Becker and Richard Posner (Monopsony: a market structure in which only one buyer interacts with many would-be sellers of a particular product)
Wikipedia on Reagan’s Packard Commission
Click below for high resolution version of the image: