Government is a terrible allocator of resources and equally bad at interfering with free markets. A great example is the ham-handed way the Biden administration is trying to force down the price of prescription drugs. Right now, the Administration is working on a plan to lower drug prices in a way that will increase drug prices. Only the government could get something that wrong.

When the Biden administration passed the $1.2 trillion “Inflation Reduction Act,” a bill that actually increased inflation, they created a mechanism for the government to impose a price for selected prescription medicines covered under Medicare. Cloaked in the guise of price negotiations, the federal government has created a complex procedure to force companies to accept a drug’s price. This is a strong-arm tactic for the government to put out a take-it-or-leave-it proposition for drug companies, and it is not going to work.

The way the government tries to bully companies into accepting a price is complex. Ryan Ellis described the procedure........

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