The Electric Commentary

Thursday, April 20, 2006

Drugs v. Wal-Mart

Remember when the President passed his prescription drug plan and prohibited the government from using their considerable leverage to bargain for lower prices? He was (correctly) criticized for this decision. I don't want the government involved in health care to this extent, but if they are, they have a responsibility to taxpayers to get the best price possible (without resorting to coercion).

It is not uncommon to hear these same people (sometimes in the same breath) criticize Wal-Mart for using their considerable bargaining power to extract lower prices from their suppliers. Typically they feel sympathy for these suppliers, as they tend to be smaller than Wal-Mart, and people regard Wal-Mart as a bully.

But isn't Wal-Mart simply doing what the government should be doing?

1 Comments:

  • i can't stand walmart (big ugly stores, god-awful shopping experience, censor certain books from being sold, etc) but you can't knock their business model. and it's their right to have all those things i mentioned, just like it's my right to avoid them as much as possible (though they have a corner on the market out here for late night beer runs).

    By Blogger ethan, at 2:09 PM  

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