Lutnick to Newsmax: US Pays for Pharma, 'World Free Rides'

The issue of pharmaceuticals is at the forefront of reworking the global trade order, making it arguably the telltale one among all industries, according to Commerce Secretary Howard Lutnick on Newsmax.

"Like pharmaceuticals, for a minute, you realize the United States of America pays for drugs, and the rest of the world free rides," Lutnick told "Rob Schmitt Tonight" in an exclusive sit-down Wednesday.

"You know how you can understand the rest of the world? We pay for the drug, and they pay the copay.

America is the "inventor" of everything in the world, but it has effectively offshored its production elsewhere at our own cost and peril, Lutnick told host Rob Schmitt in a near 25-minute, wide-ranging interview.

"We create the drug and we pay for the drug," he continued. "Like it costs us $1,000 for the drug and these other countries pay $50."

"The idea is for the president to say, 'really?'" Lutnick said. "How about we change that?

"And all of a sudden, fairness starts to come in. Like: You're making the medicine; you're making it! You're selling it to us for $1,000, and you sell it in your own country for $50?"

"How about this: We're going to bring that home," he said. "How about we bring that here.

"Since we're the customer: Come on," he said, bring up both hands in wave countries in. "Here we go.

That is the term for the April 2 tariffs unveiling that roiled world markets and ultimately spooked global investors and countries, and led to the global trade restructuring — if not outright war with relation to China, according to Lutnick.

If I am reading this correction, it is a reinforcement of the FACT that...

The USA subsidizes the world’s pharmaceutical development and supply. How? Because most of the rest of the world has strict price controls on all drugs - even brand new drugs. But in the US, we have no such regulation of drug pricing - beyond what is negotiated by insurance companies and their PBM’s. When a lawsuit targets a drug - and a judgement (or settlement) is reached - the big pharmaceutical companies cannot pass on that cost to most of the world’s medication consumers/patients - but they do to US consumers.

Americans eat the vast majority of pharma costs, quite literally subsidizing the rest of the world

Thank you for referencing that article SoConPubbie.

"Lutnick to Newsmax: US Pays for Pharma, 'World Free Rides'"

FR: Never Accept the Premise of Your Opponent’s Argument

Oppressed US taxpayers pay for Pharma "World Free Rides" as a consequence of the corrupt, post-17th Amendment ratification Congress's abuse (imo) of its repealable (hint) 16th Amendment powers (direct taxes).

The 16th Amendment is the pot of gold at the end of the rainbow for organized crime, that amendment wrongly weakening 4th Amendment protections imo, and needs to be repealed along with the 17th Amendment, popular voting for federal senators.

We'll call the repeal amendment Trump's Boston Tea Party II Amendment.

"16th Amendment: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived [emphasis added], without apportionment among the several States, and without regard to any census or enumeration."
"4th Amendment: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
“If the tax be not proposed for the common defence, or general welfare, but for other objects, wholly extraneous, (as for instance, for propagating Mahometanism among the Turks, or giving aids and subsidies to a foreign nation, to build palaces for its kings, or erect monuments to its heroes,) it would be wholly indefensible upon constitutional principles [emphases added].” — Justice Joseph Story, Commentaries on the Constitution 2 (1833).
The congressional record shows that Rep. John Bingham, a constitutional lawmaker, had clarified the federal government's constitutionally limited powers as follows.
”Simply this, that the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Constitution, is in the States and not in the federal government [emphases added]. I have sought to effect no change in that respect in the Constitution of the country.” —John Bingham, Congressional. Globe. 1866, page 1292 (see top half of third column)
“Cherish, therefore, the spirit of our people, and keep alive their attention. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, judges and governors, shall all become wolves [emphasis added]. It seems to be the law of our general nature.” - Thomas Jefferson (Letter to Edward Carrington January 16, 1787)
Pelosi: "We have to pass the bill so that you can find out what is in it." (non-FR; 6 sec.)
Illegals are indeed getting immediate Social Security, contrary to Democrat claims (7.11.24)
Arizona Sheriff: Illegal Immigrants Being Handed $5,000 Visa Gift Cards, Cell Phones, And Plane Tickets (12.7.23)
Democrats [and RINOs] Are Terrified Of An Educated And Informed Public (3.12.23)

One model would be for a US company to design and test a drug, then produce it here in the US. I doubt that we can produce a drug for less than India. However, we would be able to price as we wish.

The most obvious approach to pricing is to charge all customers the same price. Charging different prices is known as “price discrimination.” If you have insurance, you may pay considerably less than the person behind you in line who does not have insurance.

The average cost of a pharmaceutical drug, to include development, is much greater than the marginal cost of a pill coming off the assembly line. Any contribution towards fixed cost helps the producer. The producer might be inclined to charge less in a poorer country, just so they can get some sales.

Americans eat the vast majority of pharma costs, quite literally subsidizing the rest of the world

One of the reasons I dislike Canadians is that years ago, Canada told all the drug companies in the US, "Your drug prices are too high. We don't like it. You *WILL* either lower your prices to levels we will accept, or we *WILL* revoke all your patents in Canada, and allow Canadian companies to start producing *YOUR* drugs, at the prices we like."

Basically, Fascist style intimidation of our drug companies so that Canada can pretend their stupid medical system works.

A real president would have told Canada, "Try that, and we will hammer you with tariffs and other hostile acts."

The Euroweenies, seeing that Canadian intimidation worked, decided to give our drug companies the same ultimatum, and of course our drug companies folded, leaving just we Americans to pay the research and development costs while the Euroweenies and other parasites, ride for free.

I Believe corrupt coward Bill Clinton was president when all this happened.

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