Thanks to decades of gangster films, we all know how gangster capitalism works: the cost of “protection” goes up whenever the gangster wants to increase revenues, any competition is snuffed out, and “customer demand” is jacked up by any means available– addiction, for example.
This perfectly describes the pharmaceutical industry and every other cartel in America. You might have read about the price increase in Acthar gel, a medication to treat Infantile Spasms. (via J.F., M.D., who alerted me to the repricing of this medication from $40 in 2001 to the current price of $38,892.)
The compound first received approval in 1950, and various branded versions have been approved in recent years. Let’s be clear: this medication did not require billions of dollars in research and development, or decades of testing to obtain FDA approval; it’s been approved for use for the past 68 years.
Yes, you read that correctly: a medication that’s been in use for 68 years went from $40 a dose in 2001 to $38,892 today. Don’t you love the pricing? Not a round 38 grand, but $38,892. You gotta love these gangsters!
There’s another related term to describe this form of capitalism: racketeering.That’s what mobsters do–operate rackets.
. . .
Gangster capitalism is the new model of “growth” in America, the model used by every cartel from higher education to Pentagon contractors. Eliminate actual competition, raise prices in lockstep with other cartel members, lobby the government to pay your extortionist prices, and threaten any resisters with severe consequences.
There’s more at the link.
I highly recommend that you click over to Mr. Smith’s blog and read the whole thing. He’s got a graph representing the rise in prescription drug expenditure in the USA over the past couple of decades. It’s grim viewing – and almost all the increase is because of corporate greed such as the case he highlights above.
The question is, what are we going to do about it? Are we simply going to throw up our hands and give up, or will we demand that our elected representatives do something about such naked profiteering? The RICO Act is there for a reason. Why aren’t we using it?