Saturday, May 31, 2014

Inequality obsession can kill

Megan McArdle has an interesting article (Would You Pay $84,000 for a New Liver?) that can be read as "A drug company develops a drug that saves money and lives.  But, because the company was motivated by profit and not solely by caring, the company is actually evil and should be forced to sell the at a loss." The story is partly about ignorance of the difference between average and marginal costs, and partly about whether those who do good should make money because of it.