Wednesday, November 2, 2011

Price ceilings can kill

I've read a few articles in the press about the growing number of drug shortages in the U.S.  What these articles lacked were basic attempts at explaining the causes of the shortages.  Being an economist, I couldn't help but suspect that they were due to government meddling in the prescription drug market, but I didn't know any details.  Today's Wall Street Journal finally provides the explanation: price ceilings.  True to form, the New York Times thinks the problem is too little meddling.