“Where do you draw the line between business of greed?”
Recently in the news, the high cost of the Epipen has caused quite the controversy. And for those of you who are unfamiliar with the Epipen it was is designed to inject epinephrine into the system. The shot’s purpose is used in the case of severe allergic reactions. It aids in blood flow, keeping muscles from becoming constricted, improves breathing, and increases heart rates. The pharmaceutical company Mylan branded the pen for over $600. But the original amount that consumers were spending was $50 – $60 for a pack. So in response to the outcry from the public, the company stated it would roll out the generic version for $300.
Now, it sounds like they’re giving a deal, but it’s not. Especially considering the original amount was less than $100. Price hikes came a result of trying to remain competitive in the marketplace. But I ask the question; when does competition becomes pure greed. You mean in order for a company to compete, the prices needed to be raised from $50 to $600. There was also criticism over the CEO receiving, or better yet, giving herself a raise. And we’re not talking a few dollars or even a few hundred thousand dollars. She received a nearly $20 million payday, about $18 million up from her previous salary.
Now as a society, we’re always hearing about the government getting tough on insurance companies for their practices. But what about the pharmaceutical companies as well. If you don’t already know, not even a few years ago, another businessman purchased an AIDS vaccine. After purchasing the pills, the price was taken from $13.50 to $750 per pill. The move prompted the government to intervene. And this is why we have so much federal regulation in the United States as it pertains to the corporate world.
But at what point is it greed? How much money is enough or is there ever enough? While these multinational corporations generate revenues hand over fist, the average American suffers. Who can can afford to pay an increase in Epiepen shots even if the cost is down to $300. Still, I have been waiting to hear from the president, but still no answer. I wish that I could say it’s a particular administration, but it’s all of them. None of them will come out and attack what should be illegal business practices.
Charging the highest amount that the market is willing and able to afford, while shifting deadweight loss to the consumer sounds familiar. Oh yeah, it’s called a monopoly. Monopolies under the law are suppose to be prohibited, but we have other names for companies that fit under monopoly like categories such as Oligopolies. Which is few competitors in the marketplace who control nearly the entire market. The government says it makes it easier for them to regulate having the big four or the big five instead of the big ten or big twenty.
Whatever the case may be, I don’t much regulation. It seems as if the government’s regulations are no more than words on paper. Words that only are used to make people feel good, yet never enforced. In the end price increases are normal in business, but not by hundreds of percent. Prices that are so high it’s beyond obvious that the company raising the prices are getting over on the consumers.