#242
In anticipation of tonight’s debate, I have a piece in today’s Wall Street Journal with suggestions to reframe the debate over drug pricing: Trump’s Debate Chance on Drug Prices
Mr. Trump could build on his administration’s successes in seemingly unrelated areas to turn a new page on this issue. The article is derived from a project I’ve been working on for several months with valued colleagues called “Big Ideas.” More to come on that.
The Journal piece is behind a paywall, but here’s a quick summary:
During his White House tenure, Mr. Trump wanted to import European drug price controls to the U.S., but sticking to that plan would devolve into an argument with Joe Biden over who would do a better job of price fixing.
Instead, Mr. Trump can change the conversation by focusing on his successes in challenging NATO partners, with Operation Warp Speed, and bolstering American innovation.
Just as Europeans were freeloading off U.S. defense prowess, they also are freeloading on America’s huge investments in pharmaceutical innovation. Instead of mimicking Europe’s destructive price controls, the policy Mr. Trump took toward NATO could be deployed when he pushed allies to increase their defense spending. Make them pay their fair share—on defense and drug prices. This is a trade issue where he has demonstrated success.
A new study was published this month by the National Bureau of Economic Research that shows getting other nations to pay their fair share of R&D costs could significantly reduce U.S. drug prices: Evaluating Pharmaceutical Policy Options
Next, while there is controversy about the COVID vaccines themselves, there is no question that the Trump administration facilitated a remarkable government/private sector partnership that hadn’t been seen since World War II in deploying the vaccines — Operation Warp Speed
Throughout his administration, appointees were directed to reach out to companies to figure out how government could help clear the way to enhance their growth and productivity. He demonstrated he wants government to be a partner rather than an adversary—a sharp contrast with the Biden administration.
Mr. Trump could paint a vision of the future that embraces the innovation ecosystem that can produce modern medical miracles we can only imagine today. Policies that support technological advances are the most humane, effective, and even economical solution to today’s problems.
The motto could be “Keep American Innovation Great!”
Let’s see if any of this makes its way into tonight’s debate.
