In public choice economics there’s a phenomenon known as “regulatory capture.” Briefly, regulators sculpt regulations which benefit certain industries, and industry influences regulators, by promising a lucrative career, to create regulations which give them an advantage. Remember, regulations are a barrier to entry — successful capitalists love regulations, aspiring capitalists hate regulations.
"Off the top of my head, I can give several examples of regulatory capture in health care — electronic health records (EHRs), meaningful use, acceptable radiation dose for CT scanners, maintenance of certification, etc. Just follow the careers of advisors to Obamacare. Very few advisors have ended up in Buddhist monasteries in Lhasa"
number of Indian possibly israeli and chinese companies want to flood the US market with theses cheap alternatives .
but due to the "safety concerns " they are asked to undergo billion dollar drug trials all over again.
who is the loser .
"The relationship between the FDA and industry, even if in the future tense, not present tense, risks dulling industry’s imagination. But appreciate why. There’s a trade-off between security and innovation, and we have chosen security over innovation — because if unregulated innovation produces breakthroughs, unregulated innovation also produces dangerous products, and we can’t tolerate danger. The FDA is a phenotype of our risk-averse DNA. If the FDA continues unabated in its mission, we will be left with missionaries in missionary positions, making the world a safer but duller place."
Many paragraphs of this blog post are from the article below.
I Congratulate Saurav for his wit and humor
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