If you are to argue that inflation is increasing, and cite to an article citing "expenditures" on drugs, then you are also arguing (implicitly) that this 300 million dollar sum will be spent on the SAME DRUGS during that period.
It has been my observation, however, that newer, better, more effective drugs enter the market at higher prices. Therefore the projected increased expenses also buy better drugs (sort of a "better productivity" argument).
Moreover, older drugs drop in price when their patent protection expires or when they become available over the counter (see, e.g., heartburn medication today v. 4 yrs ago).
In SD home prices have risen significantly over the past three years -- but those home prices had dropped 30% from 1991 - 1995, so if your time frame is the past 10 years, housing prices are really tame. (And if you argue that the time frame on housing we should look at is only 4 years, then I ask you where was Greenspan during the 30% drop in most americans biggest asset? I guess cheering the reverse wealth effect.)
In my small business, i use semi-skilled and unskilled labor. The only inflation we are experiencing is being caused by the rising SBA loan rates -- we had to raise our prices to cover the increased loan costs -- after keeping our prices steady for the past four years. |
