The decline of a German industry

Prices controls destroyed the German drug industry:

As the U.S. government debates proposals to limit the cost of prescription drugs, some experts cite the German experience as a cautionary example of how price controls can backfire, causing an exodus of jobs and a decline in the introduction of new medications.

"What people tend to forget is what a big deal the German pharmaceutical industry used to be. More than anyone else, they invented the pharmaceutical industry," said Jack Calfee, an economist with the American Enterprise Institute, a conservative think tank based in Washington. "Twenty-five years ago, our auto industry and our pharmaceutical industry were both trying to keep up with the Germans. Now, we are still trying to keep up with them on autos, but we are way ahead on pharmaceuticals."

Philadephia Inquirer