Proposition 78


My take on CA Proposition 78 - No

This is part of my ongoing series of posts on each of the Propositions we'll be voting on. Here is the original post, with my ground rules for evaluating propositions, my scorecard and links to each of my arguments.

Proposition 78 - No

Summary - One of the two competing prescription drug propositions (the other being prop 79), this prop seeks to solve the issue of cheaper medicine by setting up a way for the drug companies to rebate their drugs to Californians. If both this and prop 79 pass, the one with the most votes wins.

Commentary - This prop is a very close call for me. My first quick take on the matter would simply be to appeal to rule #1 - ties goes to No. I also don't think that there is much broken about prescription drugs. People complain incessantly about the high cost of prescription drugs and they seem to forget these are the very drugs that make life easier, better, longer. They are expensive because they require a lot of initial investment of R&D to develop, and because they have a very high demand - people put a high value on life and quality of life and are consequently willing to spend to get it. This is Economics 101 - nothing is "too expensive" if people are willing to pay for it and the market will certainly correct any price imbalances over time. Furthermore, even if you grant the idea that prescription drugs are too expensive, why should government (even simply in a role as negotiator) do anything to fix that? And why should we believe that government, given the task of fixing it, is at all capable of doing the job?

So why am I contemplating a yes vote? Mainly because I think that prop 79 is a bad idea, I fear it will pass, and prop 78 would trump 79 if it passes with more votes. In other words, a yes vote here on 78 is like casting an extra no vote on 79 - and I'd love to have a few extra no votes on 79 (check this post for my reasons why).

Ultimately, I think I'm going to have to combine an appeal to rule #1 - tie goes to no - with a little convincing logic I just found on Lest Darkness Fall: "Why would I want to pay more for my drugs so that other people can pay less for theirs? There's no such thing as "free" drugs, so the only way discounts will be possible is if people not eligible for the program pay more. No thank you." Good point, LDF. This one gets a no.

Posted: Sun - November 6, 2005 at 03:02 PM | | | | | | |

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