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October 13, 2004
The Market Is the Solution
Adding to Duke's entry below, two important facts need to be pointed out:
- The market, not government regulators, saved people from the contaminated vaccines. Chiron, the vaccine manufacturer, discovered the contaminated vaccine batches and alerted the regulators, not the other way around. Furthermore, the British government--and the FDA indicates it will follow the Brits' lead--has impounded 40 million doses that Chiron tested and found pure. That means 40 million people who could have gotten a safe flu shot won't because of overbearing bureaucrats in both countries.
- There wouldn't have to be rationing of doses in this country if the government didn't subsidize them in the first place. The fact that people can obtain the vaccine for free or at reduced cost means far more people than need it will attempt to obtain it, thus creating the shortages and rationing. If the price were allowed to float on the market, supply would meet demand, and there would be no problem. Yes, people would have to pay more for a quantity in short supply, but then they would weigh the costs and benefits before going out and getting a shot. Voila! People who really need it would get it, and others would just tough it out for a few days of coughs and sneezes.
The market is not the problem. Government is the problem. The market is the solution.
Posted by Mike Tennant at October 13, 2004 01:35 PM