- Feb 17, 2017
- 10,400
- Tinnitus Since
- February, 2017
- Cause of Tinnitus
- Acoustic Trauma
You are on my Ignore list, but I happened to see your post.
The way he did it, multiple firms were producing his vaccine and not paying Him anything. If he were to have a patent, he could determine the licensing fee paid by those firms, and surely the cost of the vaccine going up by a couple of cents wouldn't have an impact on its availability while making him rich. It is strange that he hasn't applied for a patent. Perhaps he couldn't do it even if he wanted to, as a lot of the development of the vaccine was done in collaboration with the scientists from USSR.
I am afraid the above doesn't say much about the pharmaceutical industry. Sabin could develop his vaccine at his lab and then he was able to test his vaccine on US prisoners and people in the USSR. [Aside: It so happens that this testing hasn't resulted in any deaths. But the reason those tests are necessary is that deaths are Possible. Of course we shouldn't apply our current values to evaluate the people from the past, but do you still feel like using his image as your avatar?] Modern pharmaceutical firms face much higher development costs. For every research project that is successful there are many projects that are a waste of money or even projects that result in lawsuits. The price of the successful drug has to cover the costs of development of all of the firm's projects. It also has to ensure that the investors receive a return that is the right return for the amount of risk one takes when one invests into a firm like that. If the price of a drug is forced to be below the price that ensures the above the investors will learn to not invest into the development of new drugs and that will be that. And before you suggest nationalizing those drug firms, you will want to study the experience of the countries that had tried that. You will see that medical drugs ended up being developed in countries that Haven't done it.
By the way another documented impact of a price ceiling are good shortages.
I could go on, but I guess forum posts aren't an appropriate venue for this.
United States has antitrust regulations that should ensure that all industries remain competitive. Sadly those regulations either haven't been enforced, or haven't been stringent enough to achieve their stated goal.
Investment firms make production and innovation possible by ensuring that society's savings are allocated to the most promising R&D projects and to the most efficient firms (i.e., the firms that won't waste resources). When decisions like that have to be made, small differences in ability will make a huge difference in how successful the firm is, and so if salaries measure one's contribution we would expect those decision makers to be earning large salaries (which of course are lower than the actual contribution).
The head of trading at JPMorgan has been facilitating the creation and the manufacturing of countless products used by countless doctors and countless other people. So, without a doubt his or her contribution is higher than that of One doctor.
I realize that people like you want a war against reality. The reality is that everything Has value. Pretending that it doesn't or assigning a value that is different from its real value causes serious problems.You are obsessed with attaching a monetary value to everything.
I don't think glorifying self-sacrifice for the good of the others (and working towards the replacement of the profit motive with the motive of self-sacrifice) is a good idea. [It goes against human nature and the world's 20th century experiences (compare East and West Germany, North and South Korea, USSR and USA) proves that it results in a reduction of people's well-being.] I also don't think that risking your own life or the life of a loved one to help save the lives of, say, 10 strangers (I know that a doctor seems more patients than that, but nobody is irreplaceable) is rational. Normally people discount the well being of strangers when trading it off for their own well being. But just because there is discounting, doesn't mean that they place zero value on the lives of others. If we keep increasing the number of lives saved eventually the number gets large enough to make the trade worthwhile.From what you write he must be an idiot in your book, a naive man, a stupid idealist.
I have no idea what the above is saying. If pharmaceutical industry wasn't involved in manufacturing his vaccine, then who was? My guess is that the above is a bizarre way of saying that he wasn't interested in abandoning his academic career and creating his own firm that could charge a monopoly price. This isn't surprising if we take into account that he was a top scientist/professor. He wasn't just a researcher, he was the head of pediatric research at a university. It is safe to say that he was Very well off to begin with.Sabin refused to patent his vaccine, waiving every commercial exploitation by pharmaceutical industries
The way he did it, multiple firms were producing his vaccine and not paying Him anything. If he were to have a patent, he could determine the licensing fee paid by those firms, and surely the cost of the vaccine going up by a couple of cents wouldn't have an impact on its availability while making him rich. It is strange that he hasn't applied for a patent. Perhaps he couldn't do it even if he wanted to, as a lot of the development of the vaccine was done in collaboration with the scientists from USSR.
I am afraid the above doesn't say much about the pharmaceutical industry. Sabin could develop his vaccine at his lab and then he was able to test his vaccine on US prisoners and people in the USSR. [Aside: It so happens that this testing hasn't resulted in any deaths. But the reason those tests are necessary is that deaths are Possible. Of course we shouldn't apply our current values to evaluate the people from the past, but do you still feel like using his image as your avatar?] Modern pharmaceutical firms face much higher development costs. For every research project that is successful there are many projects that are a waste of money or even projects that result in lawsuits. The price of the successful drug has to cover the costs of development of all of the firm's projects. It also has to ensure that the investors receive a return that is the right return for the amount of risk one takes when one invests into a firm like that. If the price of a drug is forced to be below the price that ensures the above the investors will learn to not invest into the development of new drugs and that will be that. And before you suggest nationalizing those drug firms, you will want to study the experience of the countries that had tried that. You will see that medical drugs ended up being developed in countries that Haven't done it.
By the way another documented impact of a price ceiling are good shortages.
I could go on, but I guess forum posts aren't an appropriate venue for this.
In the absence of monopolies and oligopolies - yes. When anything (a good, one's labour) is exchanged (for another good or for money) voluntarily it means that the exchange benefits both parties or it wouldn't take place. So when you pay $1000 for a smartphone, the value that you place on the phone exceeds $1000. The corporation that sells the smartphone to you values the smartphone at less than $1000. So corporation's revenue is a lower bound of their contribution to society's well being (what the people paid for this corporation's goods is less than the value those people place on it). This revenue is split between the costs of the inputs and profit. The input cost is the lower bound on the contribution of the owners of the input. In other words, when a corporation hires someone (i.e., the supplier of the labour input), that person's contribution has got to exceed the person's salary, or there is no reason to hire that person. Profit is the return to the entrepreneurship input, or in the case of corporations the return to shareholder investment. Shareholder investment makes the production process possible.do you really believe for a second that people are paid in proportion to how helpful they are to society?
United States has antitrust regulations that should ensure that all industries remain competitive. Sadly those regulations either haven't been enforced, or haven't been stringent enough to achieve their stated goal.
When the corporation has to compete with other corporations (in the absence of monopoly or oligopoly), they are forced to make sure that what they pay for their inputs (including the labour input) corresponds to the input's actual contribution.The head of equity trading of JPMorgan probably makes hundred of times the money of key medical researchers or surgeons. Who do you think is more helpful to society?
Investment firms make production and innovation possible by ensuring that society's savings are allocated to the most promising R&D projects and to the most efficient firms (i.e., the firms that won't waste resources). When decisions like that have to be made, small differences in ability will make a huge difference in how successful the firm is, and so if salaries measure one's contribution we would expect those decision makers to be earning large salaries (which of course are lower than the actual contribution).
The head of trading at JPMorgan has been facilitating the creation and the manufacturing of countless products used by countless doctors and countless other people. So, without a doubt his or her contribution is higher than that of One doctor.