The Better Market Way

This NYTimes article highlights why inaction on health care always succeeds in Congress. Democrats seek to assault the machinery of Price-setting, while allowing the structural context of Product Distribution and Financing go unchecked. What does this mean? It implies that the Private Sector is allowed free rein in establishing their Price Schedules, and Consumers (including Government) must compete only for Discounts. What happens? Producers need only find artificial excuse for raising their Price Schedules, and again they receive what they want for their Product even after the granting of artificial Discounts.

I would advocate an alternate venue. I would call for changing the Patent, Copyright, and Royalty regulations now on the books. The basic Patent law I suggest extends Patent and Copyright rights ad infinitum (without end), but that Royalties cannot exceed 12% of the Production Cost per Item at any time; without regard to the amounts of R&D Costs, Distribution Costs, or Retail Costs involved in the Sale of the Product. Suddenly, We have a vast change in the matrix of Product development.

Research and Development becomes a regular Production Cost. The magnitude of Research funding finds limit by the necessary limited Repayment amount allowed in Production. The unlimited Patent right allows for subcontract to Generic Producers without hindrance, at relatively stable Repayment schedule. The artificial padding of R&D Costs disappears, as Developers actually seek to hold down these R&D Costs; placing a Ceiling on Research Salaries and Bonuses. Product Producers must be able to prove Production Costs, in order to obtain their due Royalties. Consumers, both Private and Public, see an immediate Windfall of reduced Product Prices; which have the wonderful benefit of staying lower in Price. It becomes a much more stable World for both Producer and Consumer. lgl