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Politics : A US National Health Care System?
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To: Road Walker who wrote (13305)2/8/2010 2:48:15 PM
From: TimF  Read Replies (1) of 42652
 
Its not an on and off switch, they aren't likely to stop doing R&D, but to the extent the activity is less profitable they will do less of it. Make it sufficiently unprofitable (which isn't very likely IMO) and they will eventually stop doing it completely, but that's not what I'm worried about. Its not "no R&D", its "less, perhaps much less R&D".

A good argument could be made that this is an instance where the government is distorting the market by NOT allowing government negotiation.

When the government really negotiates prices, it often pays more than the private sector. Witness the old story about the $500 toilet seat, or whether or not that's real, look at all sorts of government projects both civilian and military.

It gets a bargain when it sets itself up as the monopsony buyer and uses that power to force down rates.
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