Why Are US Drug Prices So High?

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Tags: Bureaucracy and Regulation, Health, U.S. Economy

05/19/2025 Robert P. Murphy Alexander Tabarrok

Economist Alex Tabarrok joins Bob to review Trump’s executive order on prescription drug pricing. They explore how price discrimination works in global pharmaceutical markets, the unintended consequences of importation policies, and why U.S. consumers often pay more—yet benefit most from drug innovation. Tabarrok also critiques the FDA’s role in delaying treatments and explains how regulatory reform, not price caps, could make healthcare more affordable and effective.

Alex’s Article, “Econ 101 is Underrated: Pharma Price Controls”: Mises.org/HAP500a

The Mises Institute is giving away 100,000 copies of Murray Rothbard’s, What Has Government Done to Our Money? Get your free copy at Mises.org/HAPodFree

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