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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: RMF who wrote (308846)11/3/2006 10:20:00 AM
From: Brumar89  Read Replies (1) | Respond to of 1572719
 
Yes Walmart does squeeze companies using their buying power - and there is a similarity between govts doing the same. The difference is though that govts with socialized health care systems constitute the only buyer.

One of the bad effects of that is squeezing off the funds for research & development of new drugs. The US market provides a defacto subsidy for drug r&d to the rest of the world. Drug companies spend a lot of money developing drugs so they can make profits in the US they aren't allowed elsewhere. If that were eliminated, the new drugs mostly wouldn't happen.

With drugs the per unit cost is usually pennies, except for the first one where the unit cost is say, $1 billion.