VOX Trump is blaming Mexico for the US’s drug problem. He should blame a failed war on drugs.
Trump threatened to close the border “if the drugs don’t stop.” But the problem isn’t Mexico.
Some interesting concepts...
"First is a concept known as the “profit paradox.” One of the primary goals of the drug war is to make drugs more expensive by limiting their supply; the idea is that a drug habit is much more difficult to sustain if drugs are more expensive."
"There’s also the “hydra effect”: When one source of drugs shuts down, another takes its place. The name comes from the mythological hydra, a beast that, in some versions of the story, grew another head when its previous one was cut off."
Trump threatened to close the border “if the drugs don’t stop.” But the problem isn’t Mexico.
Some interesting concepts...
"First is a concept known as the “profit paradox.” One of the primary goals of the drug war is to make drugs more expensive by limiting their supply; the idea is that a drug habit is much more difficult to sustain if drugs are more expensive."
"There’s also the “hydra effect”: When one source of drugs shuts down, another takes its place. The name comes from the mythological hydra, a beast that, in some versions of the story, grew another head when its previous one was cut off."
4 comments:
It's an elasticity issue.
When prices are elastic, when you raise the price of something, you sell fewer of it. When you lower the price, you sell more of it. But not all prices are elastic. There are things you would pay any price for, life saving drugs being one such example.
The prices of life savings drug may be inelastic, but that doesn't mean they aren't subject to other economic forces that affect prices such as supply and demand.
--Hiram
Monopolists can have a lot of pricing power, but their pricing power isn't necessarily unlimited. The higher they raise prices, the greater the incentive is for others to enter into the market place. This happens both legally and illegally. In the drug context, if one manufacturer raises the price of a patented, i.e. monopolized drug, people will look for alternative treatments legally, or violate the patent illegally. The wise monopolist is aware of these possibilities and searches for ways to ameliorate them. That's why you see multiple drug prices, coupons and that sort of thing. One dynamic at work in the drug market is that the drugs themselves can be very cheap to produce. It's only the first pill that costs a billion dollars. This allows manufacturers to be flexible in their pricing because they make a profit at virtually any price they sell for.
--Hiram
It seems you may have shifted off of how to stop our illegal drug "epidemic"... :-)
So American citizens get addicted for some reason...
They are then willing to pay high costs for their fix...
Many suppliers from all over the world want into this huge market...
Non-addicted citizens are sad that their family members / friends are suffering / dying...
Government tries to stop production and transportation of illegal drugs...
What is the solution? How do we stop new users from starting?
No ideas???
Post a Comment