Republicans, Australia and the Free Trade Agreement

[AstroBlue]

http://www.abc.net.au/news/newsitems/s1028122.htm

The deal: Free Trade between Australia and the USA, as long as we (aussies) scrap the Pharamacuetical Benefits Scheme, a system in which our government subsidises the cost of essential medications so they are cheaper for everyone.

Me no likey. Yo momma, Dubbya!

[Captain Vegetable]

Do you know how subsidies work in relation to the global market? They're a really, really bad thing.

[AstroBlue]

Do you know how subsidies work in relation to the global market? They're a really, really bad thing.

Yes, they prop up industries which would not survive naturally. But it's not that type of subsidy, it's essentially just the goverment footing the medicine bill. The reason the US cares is because with heavily discounted prices there's essentially no price competition, so the profitability of medicines squander a little.


Essential, Merck and co can't bleed the sick dry.

*rubs fingers together*

Hear that?

It's the smallest violin in the world.

[Captain Vegetable]

Oh. I still don't like it, though. These types if subsidies force people to rely on the government too much, and that's never a good thing. Prescription drugs can be taken care of through other means.

[Matt]

The US is never guilty of subsidizing, as we know.

[arjue]

hahaha. Thats what gets me about america. Free trade my fucking ass.

Prescription drugs can be taken care of through other means.

What, stealing?

Not everyone can afford $80 asthma medication. This subsidy may be economically detrimental, but its other benefits (such as people not dying) far out way what little damage its doing.

[Captain Vegetable]

Not everyone can afford $80 asthma medication. This subsidy may be economically detrimental, but its other benefits (such as people not dying) far out way what little damage its doing.

The benefits are so underwhelming compared to the rediculous losses that I can't believe you just made that statement.

Subsidies kill developing countries ability to export goods competitavely, and they keep farmers (as subsidies are usually applied to foodstuffs) in the poor house.

A perfect example is sugar. The EU subsidises their sugar production, so reguardless of how much the sugar actually sells for on the global market, the EU farmers are being paid by the government the remaining balance on their goods. Dumping happens as a result. The EU farmers can sell their sugar for rediculously low prices on the global market, totally undercutting the rest of the world, because "Hey, man. My govt.'s picking up the balance." In comes South America, who do not subsidise, and as such their farmers are responcinle for their own prices and profits. The EU sugar knocks them out of the block right off the bat, since they aren't subsidised they can't compete with the low, low sugar prices of the EU's farmers. Not only do the SA farmers lose out, but so does the SA governments, as they're losing all of that revenue from exports.

I know this doesn't really apply to the issue at hand, but it's a leader. Never, NEVER EVER are subsidies a good thing. Especially when you consider that the subsidised individuals need depend on the government for their livelyhood. If they'd like to surrender themselves and their crops/health over to the mercies of the government, I have great pitty for them. Sibsidies are a short term quick-fix, but a long term devestator.

[Matt]

The US is awful as far as doling out farm subsidies goes. It's having a really bad effect on Mexico and Canada's not happy about it. The negative attitude towards this silly demand is a "practice what you preach" sort of thing.

Having the government paying for citizens' medical costs isn't going to kill international trade. This is a normal thing in many parts of the world.

[Damian79]

hahaha. Thats what gets me about america. Free trade my fucking ass.




What, stealing?

Not everyone can afford $80 asthma medication. This subsidy may be economically detrimental, but its other benefits (such as people not dying) far out way what little damage its doing.

Or people like me who will have to pay $300 a month for prescribed antidepressants. That is like half my freaking income per month after rent.

[AstroBlue]

The benefits are so underwhelming compared to the rediculous losses that I can't believe you just made that statement.

He said THIS subsidy not subsidies in general. I agree that "proper" subsidies are detremental.

Benefit: All Australian's can afford drugs which they need to remain happy, healthy, functioning people.
Loss: Drug Companies only make a good profit, instead of a EXCELLENT profit.

How can cheap drugs not be a good thing? Some people through no fault of their own cannot afford drugs such as insulin, asthma, cholestrol and hypertension medication, antipsychotic agents, etc. Without this form of goverment discount, they would just not be able to function. These forms of subsidies are a benefit to the economy, since you then have a healthier workforce which can function.

Fitter, healthier, more productive.