RE: Re: Re: state power theory of money

["Brown, Martin - ARP (NCI)" <mbrown@xxxxxxxxxxxx>]

I believe that the father has also advocated for abolishen of the FDA.
While I don't agree with father or son on this at all, I do think it can be
argued that in addition (but not instead of) its regulatory role, the FDA
would serve the public interest a lot better by providing a lot more
information about the products it regulates.  If individual drug companies
are allowed to promote drug directly to the consumer the FDA should also be
obligated to present balanced information about those same drugs, including
information about non-drug or cheaper drug alternative that might be just as
good, including much wider publicity of the information that FDA accumulates
on adverse drug reactions or ineffective drugs through post-market
surveillance and post-market clinical studies.  Such a role is very
consistent with the whole Arrow, Stigletz, Alerloff stuff about information
asymmetry, etc. (and one would think with the Friedman father and son if
they really believe in the virtues of perfect markets) Of course it won't
happen in the U.S. without  a lot of agitation because, if done right, this
would dramatically reduce drug industry profits.  In the early days of the
tobacco wars, there was a period during which tobacco companies were allowed
to continue advertising on TV but anti-smoking ads were also put on the air
during prime time.  This has been shown to be the single most effective
approach to reducing smoking.  After a while this policy was substituted by
ban on tobacco advertising along with a major decrease in the anti-smoking
ads.   If I remember correctly, the latter coincided with decisions that TV
stations had no obligation to carry public service announcements as part of
the "to serve the public interest" component of their license.

The current situation is coming close to ludicrous.  The other day I noticed
a direct to consumer ad for Lipitor followed immediately by one for Zocar.
Hey, you can't take them both!  (For those who don't know, these are two of
the best selling "statin" drugs for the control of high cholesterol).


-----Original Message-----
From: Michael Perelman [mailto:michael@xxxxxxxxxxxxxxxxx]
Sent: Thursday, January 10, 2002 10:51 AM
To: pen-l@xxxxxxxxxxxxxxxxxxx
>Subject: [PEN-L:21288] Re: Re: state power theory of money


Back in the 1960s, I spent a couple of afternoons with him at his apartment.
He had a good sense of humor.  He also thought that his father was too
liberal.  He wanted to abolish the FDA.  Companies that sold bad medicine
would be punished in the market place.

"William S. Lear" wrote:

> On Wednesday, January 9, 2002 at 20:03:44 (-0800) Steve Diamond writes:
> >David Friedman, the anarcho-capitalist son of Milton, has a piece arguing
> >for private money.  ...
>
> This is the same idiot who in his book *Hidden Order* argues that
> Americans give gifts in non-cash form because of a "hostility to
> money" which he claims is "typical of our society". (p. 331)
>
> Bill

--

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx