President Trump loves the promises that have been made, the promises kept. Without a significant correction of course, the President will not maintain one of his most important promises to the American public – restoring economic prosperity.
A post-election analysis from New CBS He noted that “two -thirds of voters described the economy as bad, and those voters who made great for Trump”. Voters trusted Trump for Harris because life had become unacceptable and future economic prospects seemed dim. And according to these perceptions, the actual average income of households increased much faster during Trump’s first term than Biden’s time.
Unfortunately, voters will be seriously disappointed on the basis of the policies pursued by President Trump. There are many examples. Two of the most annoying are his obsession with the invoices and the constant beating of US businesses.
Starting with the latter, Trump’s targeting of the pharmaceutical industry, which is consistently referred to as “Big Phrma”, is alarming – not only for its impact on an important economic anchor on the US economy, but also the previous one it sets for other industries.
As I have faced earlier, there are problems with the US drug pricing system that need to be corrected. However, the solution is not threats of price control. However, July 31F the Chairman “He sent letters to top medicinal manufacturers describing the steps they need to take to reduce the prices of prescription drugs in the United States to match the lowest price offered in other developed countries.”
It is important that the President threatened the manufacturers “that if they” refuse to accelerate “, the federal government will develop every tool in our arsenal” to ensure that the President’s will will be imposed. These threats are not so covered with the proposal of the most favorable nation.
MFN sets the price for a drug at the lowest price charged to other developed countries (OECD), each of which has drug price checks. Logic for applying MFN is simple – If patients in the United Kingdom, EU or Canada pay less money for a drug then patients in the US should
The only reason why prices for innovative drugs in many OECD countries is lower than the US is because they impose strict price controls and avoid their responsibility for covering the cost of innovation. Forcing these values here, President Trump threatens to impose drug price checks in the US
Making this policy even worse, the administration is steadily complaining that “Europeans are freeloading” and do not cover their fair share of the costs needed to create innovative drugs. And it’s right, but the MFN sentence doesn’t end this freeloading. Converts the US into a freeloader.
There will be high costs for patients if the US is simply another freeloader that includes reduced drug availability in current patients and reduced hope for new treatments for patients living today with diseases who have not been treated. Ironically, policy could even increase overall expenditure on healthcare, because reduced drug availability will increase the need for higher cost healthcare services, such as hospitalization, surgery and visits to emergency departments.
Then there is the signaling problem that arises when the US government leader openly threatens US companies. This jawboning undermines one of our basic competitive advantages-a business-based business environment.
The president’s obsession with invoices – either on medicinal products, steel or in all imports from a nation – is equally alarming. Invoices are taxes for US households and businesses. And on the occasion to store non -tax imports, the costs for families is now prepared to increase. Invoices will also increase the costs for consumers in goods produced by the domestic market because domestic businesses are based on imports to produce better and more affordable products.
As Msnbc It was reported that “Procter & Gamble and Walmart explicitly increase prices due to invoices”. Small businesses which have smaller margins and less capacity to absorb higher costs also increase their prices. Facing increased costs, households will be forced to consume less.
Particularly remarkable, given the focus on reducing the cost of drugs discussed above, invoices will increase the price of lower costs, which account for 90% of all medicines forecast annually. Therefore, the President’s pricing policies work in cross -checking in his desire to reduce the cost of medicines for patients.
The highest burden on invoices will not be burdened exclusively by families, domestic manufacturers and retailers of imported goods also carry some of these expenses. These higher costs reduce the profitability of domestic businesses in a variety of industries, including cars and pharmaceuticals. As New York Times It was reported that “General Motors, Stelandis, Tesla, Mercedes-Benz and Volkswagen mentioned all invoices as one of the main reasons why their profits fall.”
Reduced sales and lower profitability weaken the economy and reduce employment opportunities – as evidenced by the latest job reporting, both President of President Trump. The lowest growth environment will then reduce the amount of investment in the US economy. As a result, households across the country will see the increase in their profits stagnant, while their costs on both imported and domestic products will increase.
Whether through trade or regulatory policies, Trump’s administration seeks a policy agenda against development. The results are fully expected – a weaker economy with a slower increase in employment and reduced opportunities for families across the country. These results violate the fundamental promise made by candidate Trump while running for president – to restore prosperity.
