Free Market and the Flu Vaccine Shortage

[voyager]

Many drug companies are reluctant to manufacture vaccines -- even flu shots, of which tens of millions of doses are need each year. Industry executives say the vaccines don’t generate enough profit, despite strong sales. (NPR Feb. 10, 2004)

This is the free market of supply and demand. Without government controls needed commodities do not get produced.

How would you solve this problem?

[Nono]

Tax and spend. Subsidize vaccine production. Or possibly set up a publicly owned company to produce the vaccine.

Why is there still nothing effective to deal with malaria? Because only poor people get it, that's why. But just wait till it moves north with a warming climate. Then they'll suddenly start discovering stuff.

[RickSp]

I don't claim to understand the nitty gritty details regarding the purchase of vaccines but it has all the ear-marks of government purchasing rather than free-markets.

I know from experience in government contracting that the Federal Acquistion Regulations often result in squeezing out the lowest price but in the process only attracting marginal and, in some cases, simply unqualified bidders. (Of course, in the end the government often ends up paying more or not getting the goods and services they contract for.)

The mere fact that the government contracted with only two vaccine providers seems blatantly stupid. A problem in one facility has resulted in the loss of half of the yearly vaccine supply.

In a free market, demand invariably generates suppy at a price that works for both buyer and seller. Obviously vaccines are not the same a your run of the mill consumer goods. That being said, the vaccine debacle looks far more like a problem with government contracting than with the free market.

[voyager]

[quote=Nono,]Tax and spend. Subsidize vaccine production. Or possibly set up a publicly owned company to produce the vaccine.

Who would invest in a company with out profits?

[Evil Baby]

Originally posted by voyager, Who would invest in a company with out profits?

The government could, or a larger company that needs a tax right off. You invest in a company that makes little to no money and you use it to lower your tax bracket.

[rhod01]

And why should there be private finance of a public company? it's providing medicine, so there should not be either private investment nor up-front fees.

[Technosoul]

According to President Bush during the last debate we import the flu shost from England or Canada, some were contaminated and could be used and that is why we have shortage (the excuse this year). He went on to say that American compaines cannot afford to produce them because of the high insurance costs because such shots are risky and so law suits could be great if something went wrong.

The problem with flu shots is as follows. If you get a flu shot every year the flu germs will evolve and get stonger, which will require a new (stronger) medicene for the next season. Meanwhile as long as you are shot dependant you own natual immune system is not evovling along with the flu germ's evolution and so you become relatively weaker as the germs and the medicene becomes stronger. That will eventually lead to the day when your own immune system will be too weak to deal with the flu shot medicene or the flu, because you stay the same while they get stronger and stronger evoloving above the more powerful medicenes. So you could reach a stage when both the medicene as well as the flu could kill you because you did not allow your own immune system to fight off the illness.

Please note that I am not a doctor and not authorized by any medical organization to say this, in fact, they might not even know about it.

Technosoul.

[bishop]

things like vaccines serve a higher function than capitalism... the laws of supply and demand are the reason why we currently have such a shortage of flu vaccine. certain things should be controlled by government for the public good.

*edit*

and, we should also get in the business of making our own damn vaccines... i love how our government tries to save a buck by importing important items like vaccines.. meanwhile, they'll readily piss away tax dollars on greenhouse projects in iowa, or on healthcare for iraqis.

[voyager]

The pharmaceutical conpanies can maker even bigger profits? Medicine being necessary in order to live a good life shouldent the government just socialize the drug companies?

making a lot of money off healthcare is BASE. it is ELITISM. it negates the poor who cannot afford to compete economically for medicine.

this is why we need controlled non-capitalist healthcare. this is why we need healthcare coverage for all americans.

...this is why bush recommends starting a 'nest egg' to save for health costs as his "healthcare plan". it is actually a tax shelter for the rich and a way of taking more of the poor's money. do you see the evil in his plan?

where's the delete button?

[Patrick Henry]

I'm sorry no one has mentioned the obvious: This "shortage" is the result of government price controls. The US government puts a price cap on the vaccine, creating an excess of demand.

I'm sure everyone wants laser eye surgery too, but if the government decided that doctors could charge only 10 bucks for the procedure, no one would be able to get it.

voyager, Morgan gave the basic situation regarding the problem. It would be solved by reversing the impact of Slick Willie's wife and her policy to prevent free market activity in vaccine manufacturing.

Socialist policy generally leads to shortages as this example in which Slick Willie's wife pushed price control on vaccine manufacturers clearly proves. Hillary should be impeached.

[Dieval]

I would bet part of it, maybe a small part, would be lawsuits...if a company that makes a vaccine has a problem, they'll get seud right into the poorhouse...