Ron Paul, supporter of price controls

Presidential candidate Ron Paul hauled in a nice chunk of change over the last three months (Boston Globe), due in part to his opposition to the liberation of Iraq and in part due to his loud fealty to the Constitution – and his supposed refusal to support any government spending or regulation that goes beyond its enumerated powers.

His supporters might be shocked to know that, in Paul’s mind, “constitutional government” includes de facto price controls on prescription drugs. Three links from National Review Online provide the details on the House Democratic plan. and here, in Roll Call 23, is Ron Paul’s “Yes” vote.

So, in Ron Paul’s’ mind, Saddam Hussein isn’t nearly as dangerous as pharmaceutical companies – and more to the point, neither is intrusive government.

Constitutional government, my foot.

11 Responses to “Ron Paul, supporter of price controls”

  1. Steven CC Says:

    I’m not defending the “yes” vote, but I want to point out that your comment is a little over the top. According to the first of the NR pieces to which you link, the law is arguably the first step down the slippery slope to price controls, and not a form of price controls in itself.

    (“But this legislation is just the first step down the road to Medicare serfdom.” The author then goes on to briefly describe “the tiny legislative tweaks” necessary to actually end up in a regime of “full-blown price controls.”)

    Even if we buy the slippery slope argument, one would be hard pressed to reasonably conclude that a vote in favor of the law means that one supports de facto price controls. That’s just unnecessary and unhelpful hyperbole.

    But I would be interested in seeing other comments explain the “yes” vote.

  2. garetgarrettsghost Says:

    If the pharmaceutical companies don’t want to sell to the government at the price they are offering they don’t have to take part in the Medicare drug program (which Ron Paul voted against by the way).

    You take the king’s shilling, you do the king’s bidding.

    Would you call the Pentagon negotiating on the price of fighter jets price controls?

  3. Anonymous Says:

    Some of Paul’s comments on this bill from the House floor are here.

  4. Anonymous Says:

    Shot in the dark here! Congresman Paul has been in congres for 20 yrs. I’m going to guess that he knows much more about what’s going on than I do.

    That being said, the only thing I can think of off the top of my head is that maybe, just maybe, his “yes” vote was taking into consideration that under the U.N.s Codex program, which hour congres has approved, vitamins, natural health products, and herbs will all be in the control of big pharma. That being the case, maybe everything under it’s umrella will be subject to the same “price controls”, thus avoiding what’s taking place in Europe, under this Codex program, making herbs, vitamins and natural remedies so expensive and not covered by insurance, that a person has no choice but to settle for the synthetic, toxic offerings of big pharma.

    This would be in keeping with his “earmark” stance, in which he asks for them, thus working withing the system as is, but voting against the bills these earmarks are attaced to.

    Just a guess.

    After all, DR. Paul not only has the burden of being the best candidtate, he also has to educate the majority of Americans in a very short amount of time. I’m will, based on his record and integrity, to trust him on this one.

  5. Tommy Boy Says:

    Shot in the dark here! Congresman Paul has been in congres for 20 yrs. I’m going to guess that he knows much more about what’s going on than I do.

    That being said, the only thing I can think of off the top of my head is that maybe, just maybe, his “yes” vote was taking into consideration that under the U.N.s Codex program, which hour congres has approved, vitamins, natural health products, and herbs will all be in the control of big pharma. That being the case, maybe everything under it’s umrella will be subject to the same “price controls”, thus avoiding what’s taking place in Europe, under this Codex program, making herbs, vitamins and natural remedies so expensive and not covered by insurance, that a person has no choice but to settle for the synthetic, toxic offerings of big pharma.

    This would be in keeping with his “earmark” stance, in which he asks for them, thus working within the system as is, but voting against the bills these earmarks are attached to.

    Or maybe he thinks the Dept. of Health & Human Services will actually negotiate on the the recipients behalf (opportunity for scruples in govt…fat chance)

    Just a guess.

    After all, DR. Paul not only has the burden of being the best candidtate, he also has to educate the majority of Americans in a very short amount of time. I’m will, based on his record and integrity, to trust him on this one.

  6. Chad Says:

    Hah!!! OOOooohh! BAD BAD Ron Paul wants to make government-protected monopolies charge less for their products when dealing with the government…

    Ron Paul’s thinking on this is incredibly simple and correct:

    1. The government shouldn’t be providing drugs for citizens. He voted against Medicare etc.

    2. He didn’t get his way and now we have Medicare, so you better believe he’s gonna try to save the taxpayer some money by not paying whatever the hell the Pharmaceutical companies want. If we’re spending the taxpayers’ money, we better get the best price available.

    Anyone trying to say Ron isn’t a real limited government constitutionalist libertarian conservative is really gonna be grasping at this type of nonsense…

    -Chad

  7. Anonymous Says:

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  8. D.J. McGuire Says:

    I’m deeply amused at how government intrusion suddenly becomes OK if Ron Paul approves.

    It appears the rationalization Paul and the Paulites are grasping is this: Medicare D should never have been passed, but since it was, we should at least keep cost low via government negotiation.

    Here’s the problem: Ron Paul is smart enough to know that government “negotiation” will be anything but. The massive size of Medicare, including Part D (and he and I agree it should never have been enacted) ensures the government has artificial monopsony power. Giving it the ability to use it is in and of itself a perversion of the free market. The Ron Paul who wasn’t running for president would see right through this.

    Sadly, we don’t have that Ron Paul anymore, and his legions seem to be drifting right along with him to the left. Nice going, fellows.

  9. Bert Says:

    As far as I can tell, this bill is has nothing to do with price controls in the market and everything to do with the government negotiating prices for what it doles out to seniors. Seeing as Ron Paul is as close to an econ expert as you’ll find in congress, I think it’s safe to say he understands this issue. And as he is a preeminent exponent of free-market values, I think its safe to say he voted correctly on this issue. As the CFG described him: “the perfect is the enemy of the good.”

    What did you think of his comments on the bill?

  10. D.J. McGuire Says:

    Sorry, Bert, he should know better. The government’s too deeply involved into the drug market as it is. If it started negotiating drug prices, it would hve enough market power to set the price for the tnire country.

    That’s what monopsony power is, and it is the very thing the government should NOT have.

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