The Buckeye Institute has filed an amicus brief in the cases of Bristol Myers Squibb v. Becerra and Janssen Pharmaceuticals v. Becerra, urging the U.S. Court of Appeals for the Third Circuit to declare that the Biden administration's price controls under the Inflation Reduction Act are unconstitutional and ineffective in curbing inflation.
Jay R. Carson, senior litigator at The Buckeye Institute, stated, “We know that price controls are a disincentive to innovation, discourage competition, and reduce customer’s choices. So, not only do the Biden administration’s price controls violate the U.S. Constitution, they also fail Economics 101.”
The brief cites economic research indicating that government-imposed price controls result in fewer opportunities to develop new drugs or enhance existing ones, leading to missed cures and therapies, unnecessary human suffering, and even premature death. The Buckeye Institute also argues that historical evidence shows price controls do not effectively reduce inflation.
Carson added, “While some of the criticism directed at the pharmaceutical industry may be deserved, it does not change the fact that using government-imposed price controls to lower drug costs will fail and result in other harmful effects. As Milton Friedman wrote, there is no such thing as a free lunch.”