Current Event #9: Generic Drug Producers Are Paid Not to Produce

        The over pricing of brand name medications calls for generic brands of the same product. These generic brands are usually significantly cheaper than their expensive twins but because the selling of these products harms the demand rates of the more expensive companies, they are forced to resort to other measures. In order to prevent companies from producing generic drugs, larger companies have been paying them not to produce.
        According to the Associated Press, President Barack Obama says that these "pay to delays" harm the consumer by forcing them to pay a higher price. Having no option in who they buy medicines from, consumers can enc up paying hundreds of dollars more than they need to. It is not a surprise that the president is siding with the consumer in this case. One of the main roles of government is to help maintain the American economy. When these large companies pay the smaller companies not to produce, they are doing away with the competition and taking away the consumers choices. By stopping these illegal pay-offs, the government will be preventing the many negative externalities that they lead to.
photo from:: (http://ownthedollar.com/2009/11/understanding-generic-medicines-brand-names-save-real-money/) ::Accessed on April 29th, 2013

                                                           
                                                         --Arishonne Frye^_^