ABSTRACT
According to the General Accounting Office, pharmaceuticals is the only one of the 11 high-tech industries that it studied which did not lose ground internationally during the 1980s, but rather "maintained their strong position over the decade". Before the government "reforms" pharmaceuticals, it needs to recognize some important facts about the industry. In the case of pharmaceuticals, the system is working: a highly competitive industry is leading the world in the discovery and marketing of new treatments and cures. Although drugmakers have an incentive to invest heavily in R & D, pharmaceuticals account for a lower proportion of total medical expenditures than in socialized systems, while at the same time helping to hold down overall medical expenses. If the administration and Congress nevertheless put ideology before prudence and tighten controls over the drug industry, they risk killing the golden goose that has provided so many benefits for so many patients.
