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Unleash Prosperity Hotline
Issue #1327
08/13/2025
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1) Drug Prices Are Cheaper in the U.S. Than Other Rich Countries
Ha. We knew this headline would grab your attention.
Every news story and every declaration by the political class shouts out exactly the opposite: Americans pay MORE for drugs. But that’s highly misleading. It IS true that Americans pay more for new drugs under patent. That, of course, is because American pharmaceutical companies spend billions of dollars inventing the major breakthrough drugs and the rest of the world free-rides on those R&D costs.
But most drugs consumed in the U.S. are generics. Those prices are cheap. And generics last forever, whereas a patent lasts 10 to 20 years before generics take over.
A new blockbuster study by UP senior fellow Tomas Philipson has two amazing findings:
First: “The U.S. has the highest generic market share (93 percent).”
Second: “The U.S. has some of the LOWEST generic prices among developed countries.” Medicare and Medicaid pay almost 20% less for prescription drugs than in Europe, Canada, and the U.K. It is true Americans pay more for the patented drugs, but many residents of countries with socialized medicine don’t have access to these drugs at virtually any price because of socialist price controls and government-run health care.
** GENERIC DRUGS ARE MORE AVAILABLE AND CHEAPER IN AMERICA
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2) Antitrust Laws May Kill the Discount Airline Industry
We’ve warned of this over and over. Our antiquated antitrust laws are raising costs to consumers and stifling innovation. The dumbest restraint on a merger by the Biden admin. was blocking the proposed marriage between two discount airlines: JetBlue and Spirit. Last year, Justice won in court and hailed the deal’s termination as “a victory for U.S. travelers who deserve lower prices and better choices.”
Last November, Spirit Airlines declared Chapter 11 bankruptcy and it’s just now issued a warning in its new SEC filing that it may not last 12 months as a going concern.
The Biden antitrust lawyers talked of their desire to promote competition, in reality their hobbling of smaller competitors to the Big Four airlines only made those behemoths bigger. At a minimum, Spirit will now get much smaller. It may go out of business entirely. Consumers and workers will pay in the form of higher fares and fewer jobs. The shareholders got shafted too.
Great, everyone loses except the antitrust lawyers.
We have here a perfect lesson for new FTC chairman Andrew Ferguson and Trump Justice Antitrust Chief Gail Slater, as they contemplate reviving disastrous Progressive Era antitrust theories.
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3) Our Schools Are Churning Out Mamdani Voters
Wall Street Journal columnist Gerald Baker zeros in on one of the key factors behind the victory of socialist Zohran Mamdani in New York City’s Democratic mayoral primary: the indoctrination of today’s youth in public and especially elite private schools - such as the ones Mamdani attended.
In the past we could rely on the relentless economic logic of capitalism to fix things. Especially for these overeducated naïfs, the pursuit of a job, a career and the steady accumulation of income, wealth and a stake in the country would dim the lure of socialism. How many kids who had Che Guevara T-shirts and busts of Karl Marx are now thriving in law and financial firms?
But what if that is no longer the future that awaits these capitalists in chrysalis? All that expensive education, and no prospects at the end of it!
Polling indicates a lot of these people are voting for Mamdani in November.
It seems likely to cement the great political inversion of the past 50 years—in which the educated elites have moved left and the people without a college degree have embraced the Republican Party."
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4) Putting Children Last in DC
Washington DC is notorious for being home to some of America's worst schools. But at least many of them will be glitzy.
The DC public school system is now spending $400 million per year on school building "modernization."
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Here are some of the projects:
* $90 million for an expansion at MacArthur HS
* $22 million to upgrade Deal Middle School
* $60 million at Garfield ES
* $54 million at Whitlock ES
* $66 million at Dorothy I. Height ES
* $15 million for a new early education wing at Miner Elementary
Are these schools going to have hot tubs and luxury suites?
We’ve come a long way from the one-room schoolhouses that actually taught kids math, reading, and history.
What explains these outrageously expensive construction costs? Our suspicion is super-generous union-only contracts. The DC government admits that one factor that inflates these construction costs is they must conform with expensive and idiotic "net-zero" fossil fuel standards.
We’re sure these green policies will help Johnny learn to read.
Ironically, one way the non-elite private schools in DC that serve low income students often keep costs low is by taking over buildings and schools that have been abandoned by the DC government and are in complete disrepair. Yet these schools typically do a better job teaching the kids.
Imagine if progressives in DC and in Congress would even allocate a fraction of this $400 million a year to scholarship programs that could serve better thousands of low-income and mostly black children.
Shame.
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5) Good Question…
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