Adaere's Journal: Canadian Taxpayers will soon pay for Americans' drugs?

According to this story, the US Senate has passed a measure that could result in Americans getting prescription drugs from Canada, where the taxpayers there subsidize the lower costs. I wonder how they'll feel about paying taxes so millions and millions of American citizens can get cheaper medicine.

Subsidy or Price Control?

[johndiii]

The FAQ at the second link implies that the low prices are due to price controls, not subsidies. Is this the case? If so, then greater volume would translate to better service for all customers in Canada, regardless of country of origin.

On the other hand, if subsidies are involved, I would understand if Canadian taxpayers were upset. It doesn't look like it will happen, anyway, because the HHS secretary has to approve it.

Re:Subsidy or Price Control?

[Adaere]

Right, it does say price controls are the cause of the low prices. Another thing: the Canadian drugs are usually generic versions, since the patent protection is several years less than in the U.S.

It's my understanding that most drug development occurs in the U.S. (subsidized by the high prices Americans pay), while the people in other countries reap the benefits (similar to the way the Japanese auto industry worked).

But if the drug companies can't gouge us here to pay for their R&D, advertising, a