Drugs and the concentration of wealth 2

Title: AARP: Drug costs rise faster than inflation
Source: Associated Press
Date: July 1, 2004

From the article:

Drug makers raised prescription prices by nearly triple the rate of inflation in the first three months of this year - just before Medicare began its pharmacy discount card program - negating much of the savings the government promised to seniors, according to an AARP survey released Wednesday.

The thing about drug prices is that there is no limit to them. If you have a debilitating or fatal disease, and there is a drug keeping you alive, and the drug manufacturer raises the price, what are you going to do? Take less of the drug? Obviously not. You have no choice but to pay the higher price. It is a perfect way to concentrate wealth.

As a result of this process, the top five drug companies are able to pay over $10 billion per year to their shareholders. They are able to pay their executives billions of dollars more. Their hundreds of highly paid lobbyists are able to convince congress to eliminate price competition. And so on.

See also this post and this one.