Philanthropy

Fans of Milton Friedman may ask: What’s wrong with market economy and let only those who could afford the treatment have it?

No, there’s nothing wrong – just that I’m afraid the actual market would become even smaller and there will be very little incentive for drug companies to develop any new treatment for uncommon diseases – because the stake is high but the chance of making a good profit is slim.

(You may ask when I am so keen on supporting research and development. No, not because I am a fan of science, but, rather, for a worldly and pragmatic reason – I shall leave the discussion on this topic of supreme importance later.)

But, let’s go back to the original question: If many patients could not afford the expensive treatment, who should pay for them?

Some would suggest a somewhat philanthropic approach: For those who have the money, please pay for it so that the company could make a profit. For those who are not that well off, the drug company has an obligation to provide the treatment.

Alas, I should not tell you my comment on this suggestion directly, but I would like to remind you it is a naive idea to believe drug companies are owned by tyrants with morbid obesity living in Miami or Zurich – many of the shareholders are humble ordinary citizens, widows, retired persons, or your mandatory provident fund.