On March 17, American University’s YAL members gathered for a discussion regarding the rising costs of prescription medication. Chapter member Chase Falcon argued to the club that bureaucracy like the FDA approval process for generic drugs leads to ludicrous prices. According to Falcon, it takes a lengthy three years plus expenses to earn FDA approval for generic drugs. This process hampers the free market by delaying competition and establishing barriers to entry for innovators.
Falcon demonstrated that drug companies price prescriptions highly in absence of competition: a drug firm with one competitor markets a prescription for 94% of its original price, while a firm battling nineteen competitors sells its drug for a minuscule 6% of its original price. Noncompetitive markets, Falcon argued, enable drug producers to increase prices by 5000% for asthma, HIV, and strep throat medications. In consequence, insurance premiums and Medicare expenses skyrocket our personal and national debt respectively.
Afterwards, Chapter President John Nagle introduced an employee from Americans for Prosperity and former YAL Regional Director, Ryan Michie, who spoke to students about internship and volunteer opportunities in advocating for libertarian policies. Nagle then encouraged students to come to a future screening of the documentary “Can We Take a Joke” early next month and our much anticipated hosting of Breitbart reporter Milo Yiannopolous on April 21st.
Disclaimer: The views expressed are based on individual views and opinions. These views and opinions do not necessarily represent those of Young Americans for Liberty.