Biotech Sell off and Healthcare Costs

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Biotech-Research-resized-600Listen to the news and you get the reasons everyone likes. I will tell you the real reason. The Biotech stocks sold off today after some comments Hillary Clinton made. These stocks are so incredibly overpriced that there real value is pennies on the dollar. The profits they do make are totally dependent on government subsidies, hype and distorted logic.

Of course these corporations are soaking consumers in every way they can and at an extreme magnitude. Why not? That is what suckers are for. Consumers have no faith in the free market and high prices are their punishment. Stupidity has severe consequences. Perhaps if there is enough suffering, folks will be willing to give free markets a try. There is no other way to lower prices.

Obamacare was passed in 2010 and people still believe it is a healthcare bill. All the bill really does is guarantee insurance companies a big piece of every dollar spent on healthcare. People this dense can’t be helped. Hopefully a few will start figuring it out but don’t expect it to be any time soon.

What will eventually happen with healthcare is that substitutes will start to emerge. Black markets for pharmaceuticals will develop. Doctors overseas will start prescribing drugs for Americans with video conferences. For expensive procedures trips will be made to Asia, Mexico and other areas. Monopolies are self destructive and substitutes start to emerge from amazing places.

Some patients are already discovering that Obamacare removes incentives for doctors to provide actual care. Physicians did not come out that well with Obamacare. To maintain their incomes they have to see more patience in less time. There is a growing incentive to hustle patients into procedures.

For the longest time, Americans have heard the story that subsidies and protections to pharmaceutical companies is necessary to encourage innovation and research. The opposite is actually true. Take away the subsidies and economic protection and innovation in pharmaceuticals will sky-rocket just as it has in computer technology. When corporations get subsidies, they use the benefits to maintain pricing power.

This is all part of a Fascist economy.

The Grazin’ is Good, by Curbside Jimmy.

Available at: Curbside Jimmy’s Free mp3 Download Page

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.

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