How's That? - Pioneer Press

How's That? - Pioneer Press columnist Edward Lotterman may or may not know much about economics - but like most PiPress columnists, he can be expected to carry water for the DFL, as he does in this column about Gov. Pawlenty's proposal to import Canadian prescription drugs.

The hits start coming early:

Remember the Hessians, the mercenaries from Germany that King George III hired to help put down the rebellion in the 13 colonies?

The king did not want to cause domestic political problems by sending English boys off to die in a distant, unpopular war. So he got his German relatives to do the dirty work.

King George's resort to a proxy army is a good analogy for Minnesota Gov. Tim Pawlenty and U.S. Rep. Gil Gutknecht's enthusiasm for retail imports of prescription drugs from Canada.

No, it's a lousy analogy.

A better one would be Americans attending minor-league baseball games when the price of major-league baseball tickets climbs out of control; without the majors, minor league ball wouldn't be nearly as interesting to watch, but the minor-league game is a lot friendlier on the pocketbook.

Sure, the analogy is strained. But it's not as bad as Hessians...

Both officials hail from the conservative wing of a political party that historically has expressed deep opposition to any interference by government in the free enterprise economy.

True, if you assume - as I'm sure Lotterman does - that "Republican" and "conservative wing" are the same thing.

If you're a Republican? Pawlenty and Gutknecht are, and have always been, from the pragmatic center of the party; to the right of Dick Day and Sheila Kiscaiden, to the left of Brian Sullivan.

Implementing Canadian-style negotiated drug prices would violate GOP principles. So, these modern Republicans want to enlist Canada as a drug-pricing mercenary to do the dirty work that they won't do themselves.

Alternate explanation; since Canada's drug industry essentially works out a low-priced deal for the products whose development is paid for by American consumers, Pawlenty wants to draw the Canadian system into the free market - with its commensurate sales pressure. Can the strictly structured Canadian system stand up to the market pressure of providing a genuine free market with drugs?

See how well their market for surgical services has done?

Both speak favorably of the Canadian system and see it as a means of helping households that face high prescription costs. The governor, in particular, sees it as a way to mute state employee discontent over paying larger portions of their health care costs.

Neither official, however, seems willing to call for implementing Canada's system in Minnesota or in the United States as a whole. Yet both are in excellent positions to do so.

Except that's not the point.

Pawlenty would be crazy to "admire" the Canadian system beyond the verbal blandishments he currently heaps on it. The system provides inexpensive drugs - which may be its only success.

By the way, Mr. Lotterman:

As governor, Pawlenty has the right, indeed the responsibility, of proposing new measures to improve the well-being of Minnesota citizens.

No. He has the responsibility of enforcing the state's laws.

So does it violate free market principles? Or will the market naturally gravitate to the prices - as opposed to the system - that are the most attractive. The big question - will the tightly managed Canadian system be able to absorb un-managed demand?

Posted by Mitch at October 23, 2003 06:08 AM