Biotech Sell off and Healthcare Costs

Listen 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.