Fully agreed.
Narendra Modi government is following the foot steps of Indira Gandhi some 40 years back.
Controls just don’t work anywhere. Open and conducive policies help in creating right environment for investment and more opportunities.
Price Control is required in following circumstances:
1. One or a small group of manufacturers controls the entire supply
2. The product in question is an essential commodity with widespread and inelastic demand (i.e. demand doesn’t abate if prices are increased nor does it increase in case of reduced prices)
3. Current prices are not consistent with cost of production, there is an undue emphasis on ‘royalty’ or ‘intellectual premium’ which is increasing the end user prices.
Coronary Stents meet the above conditions and hence justified for price controls.
I didn’t see so much angst when the DPCO order curtailing drug prices was introduced. Are some big hitters being hurt with the stent price control order? It looks like that based on the high profile cribbings!
2 replies on “Maximum Interference, Minimum IQ”
Fully agreed.
Narendra Modi government is following the foot steps of Indira Gandhi some 40 years back.
Controls just don’t work anywhere. Open and conducive policies help in creating right environment for investment and more opportunities.
Price Control is required in following circumstances:
1. One or a small group of manufacturers controls the entire supply
2. The product in question is an essential commodity with widespread and inelastic demand (i.e. demand doesn’t abate if prices are increased nor does it increase in case of reduced prices)
3. Current prices are not consistent with cost of production, there is an undue emphasis on ‘royalty’ or ‘intellectual premium’ which is increasing the end user prices.
Coronary Stents meet the above conditions and hence justified for price controls.
I didn’t see so much angst when the DPCO order curtailing drug prices was introduced. Are some big hitters being hurt with the stent price control order? It looks like that based on the high profile cribbings!