Friday, August 18, 2017

"Trust Busting" the Pharmaceutical companies


In the early 1900s corporations such as Standard Oil had bought up much of the competition and established business arrangement that essentially limited the possibility of completion. These significant Industrial Monopolies were called "trusts." Although Congress passed had the Sherman Anti-Trust act to provide some federal oversight on Trusts, The Supreme court had largely limited the regulatory aspects of the legislation.Little was done to address the economic and societal concerns of this way conducting business affairs until the Presidency Theodore Roosevelt. TR who like myself "a pick a fight with the biggest guy" in the bar" kind of politician attempted to reign in investment banker JP Morgan. Morgans Business practices included gaining control of a corporation, appointing his own management and reorganizing it to create a more substantial profit. His methods helped stabilize the economy,built monopolies and earned the wrath of the Roosevelt administration. Morgan invested heavily in railroads, and it was these investments that helped bankrupt the Northern Pacific railroad company. With the addition of the Northern Pacific railroad company Morgan and James J Hill created the Northern Securities corporation, which essentially controlled the 3 major intercontinental rail roads.Roosevelt believed it was a monopoly which violated the Sherman Anti-Trust act and ordered the Justice Department to break up the Corporation.The Supreme court upheld this decision 5-4 citing that Morgan's actions restricted free trade. In 1905 the Administration won another landmark court case in Swift and Company vs US which broke up the Beef Trust. Roosevelt's actions gave him the reputation of a Trust Buster. So where in today's society can we find a "modern day Trust"? Pharmaceuticals. Companies like American PHRMA have spent years erecting public policy barriers to effective drug markets while rolling around in piles of public funds and tax subsides for their research and to protect that research in courts via intellectual property suites and making ludicrous decisions such as hiking up prices for medical needs such as insulin to make a quick buck. Although our friends on the far right have forgotten the legacy of President Roosevelt and have created a party that believes in absolute and unrestricted right to individualism when it comes to business, there were those who once believed in the absolute and unrestricted right to slavery so we need not pay them any attention because It's past time to "Trust bust " the Pharmaceutical companies and we can start by allowing drugs from other entities and parts of the world to sell in US Markets

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