free market

Big Pharma: free market economics run amok

Wednesday, May 18, 2005
by Mike Adams, the Health Ranger
Editor of (See all articles...)

eTrust Pro Certified

Pin It
From a very early age, I was taught the theories of free market economics. As Americans, most of us are taught the same: that the free market is the best system in the world; that it produces more goods and services for consumers; that it raises the standard of living; that it works better than centrally-planned economies, and so on. And for decades, I believed it all. But as I've realized today, some of these economic truths are falsehoods. In the real world, free market economics doesn't pan out as promised. Here's why:

The classical theories of free market economics say that entrepreneurs will turn greed into solutions. Out of a desire to get rich, they will invent new ways to produce more goods and services. They'll devise new manufacturing and logistical solutions that reduce costs and speed delivery to consumers. And they'll keep costs low through competition.

Through supply and demand of finished goods or services, resources (money) will then flow to those entrepreneurs who do the best job of delivering those goods and services to consumers. Those entrepreneurs will grow their companies, discover new efficiencies of scale, and pass on even more savings to consumers who benefit handsomely.

So far, it sounds like college-level Economics 101, right? But here's where the theory goes wrong: in reality, resources flow to those companies who are best able to EXPLOIT consumers, not serve them.

Case in point: pharmaceutical companies. These organizations -- and all the companies that feed off them (like pharmacies) -- offer nothing of real benefit to consumers. Their drugs cause untold harm to consumers and are right now the 4th leading cause of death in the United States. And yet they are hugely profitable. Billions of dollars each year are flowing into the coffers of drug companies and the local retailers who serve them: CVS, Walgreen's, Wal-Mart pharmacies and the like.

It's big, big business. So big that the industry can afford to practically buy off the entire U.S. press with hundreds of millions of dollars in advertising funds each year.

This is the free market at work. But is anyone better off?

The customers who are taking the drugs are no healthier. In fact, many of them are dying from the drugs, and those who aren't dying are living their lives in a state of mental stupor due to the side effects of popular drugs like statins and antidepressants.

The workers in the industry aren't adding any real quality of life to anybody: imagine literally millions of doctors, pharmacists, pharmaceutical drug reps, and Big Pharma administrative staff sweating away at their jobs all day long, yet doing absolutely nothing to enhance the quality of life of the general public.

The GDP (Gross Domestic Product), of course, records all of this activity as "progress!" Yep, it's economic activity. Somebody is selling something to somebody else. That counts as wealth under the rules of classic free market economics. And yet nobody really benefits.

In fact, it's all really an economic loss. To understand why, let's take a look at Grandpa Joe. Joe is an investor in the pharmaceutical industry. He thinks he's "making money" as his stock valuations go up. But Joe is also on four different prescription drugs himself. He pays over $600 / month just for his drugs, and his health insurance is now up to $900 / month.

Joe is both a consumer and an investor in the drug racket. If drugs were actually good for genuine economic growth and quality of life improvements, then Joe's life would be improved on two fronts: personal health and personal finances. In other words, if this was all good for humanity, then Joe would be both healthy and wealthy.

But in reality, Joe is sick and broke. He's sick because the drugs merely masked his symptoms and didn't do a thing to make him healthier. He's broke because the money he spends on medicine costs more than he receives in dividends or stock gains as an investor.

In other words, Joe is conning himself! His own money is flowing out of his pockets, through a system of retailers and manufacturers, and then he's getting a tiny fraction of that back in his own pockets as an investor. It's sort of like paying somebody $100 for the benefit of receiving a dime back.

Multiply this by a few million people and you get today's "free market" system of the pharmaceutical economy. It's a giant con, and no one truly benefits. Sure, there's money shifting from the hands of some people to others, but there is no net benefit to society. The people aren't any healthier (as a nation, we're sicker than ever), families have no more money (personal bankruptcies continue to skyrocket and family credit card debt is as record levels) and the nation is no wealthier than before (the U.S. government is not merely broke, it is spectacularly broke to the tune of trillions of dollars that politicians seem to conveniently forget).

This isn't all due to Big Pharma, mind you, but with around 25% of GDP going to health-related expenditures in this country, it's a huge part of the problem.

Every time I drive around town, I see another new pharmacy retailer under construction. I think to myself, "What a waste of space." All those resources: concrete, building design, construction, electricity, water... it's all being wasted on creating a building designed to sell more toxic chemicals to hoodwinked consumers through the drive-through window.

It's all a waste of resources. How could this happen under a system of free market economics? Because, again, the free market rewards those companies best able to EXPLOIT consumers, not serve them.

And this realization has shattered my former belief in free market economics. What I've realized is that when there is sufficient market domination by any industry to the point where government regulators and the popular press is bought off, the traditional checks and balances of the free market are thrown out the window.

Now, I'm not dismissing the entire system of free market thinking. I still strongly believe that centrally-planned national economies are a disaster (just look at Cuba or Russia). Entrepreneurs are very, very important for productivity and growth in any national economy, and greed is in fact a powerful motivator for many. But I am realizing that in the U.S., Big Business has taken far too much control. It's almost as if Big Business is the new dictator, and it's the Big Business centrally-planned economy instead of the Big Government centrally-planned economy.

The free market, it seems, needs some intervention from time to time in order to keep it honest. And I'm talking about real intervention, not some panzie-slapping FDA acting like it's regulating drug companies (which it clearly isn't). Government has a legitimate role in keeping Big Business honest, and while I am no proponent of Big Government, there are times when it must stand up to industry and make decisions on behalf of the people.

We don't see that happening much today. Our present government is basically just an extension of private industry. In fact, many new legislative initiatives have been designed precisely to protect the profits of private industry (the Cheeseburger Bill designed to make fast food companies immune to lawsuits, the mandatory mental health screening initiative designed to hook more children on prescription drugs, the new bankruptcy laws that make it more difficult for consumers to file for bankruptcy, etc.)

It's not enough to say that Big Business and Big Government are in bed together... they are, in fact, nearly indistinguishable.

And so the classical theories of free market economics we've all been taught are ideal in theory. In the world of academic books and mathematical models, all consumers benefit from the greed of private industry. But in the real world, people die broke and sick. The power of the free market doesn't stand up to the reality of collusion between private industry and government. And in the end, it's all just another giant scam to extract time, money and effort from working class people everywhere.

In other words, business as usual.

Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.

Articles Related to This Article:

Why the Free Market Doesn't Work: Consumption vs. Conservation

The case for mandatory GMO labeling - even if you believe in limited government and the free market

If given a fair choice, most consumers would choose alternative medicine over conventional health care

Matrix programming 101: destroy logic

Ron Paul's farewell message to America: Embrace liberty or face self-destruction

NaturalNews, Health Ranger officially endorse GMO labeling ballot measure; Vote YES on 37 'Right to Know' in California

Related video from NaturalNews.TV

Your NaturalNews.TV video could be here.
Upload your own videos at NaturalNews.TV (FREE)

About the author: Mike Adams is an award-winning journalist and holistic nutritionist with a passion for teaching people how to improve their health He has authored and published thousands of articles, interviews, consumers guides, and books on topics like health and the environment, and he is well known as the creator of popular downloadable preparedness programs on financial collapse, emergency food storage, wilderness survival and home defense skills. Adams is an honest, independent journalist and accepts no money or commissions on the third-party products he writes about or the companies he promotes. In mid 2010, Adams produced, a natural health video sharing website offering user-generated videos on nutrition, green living, fitness and more. He also founded an environmentally-friendly online retailer called that uses retail profits to help support consumer advocacy programs. He's also a noted pioneer in the email marketing software industry, having been the first to launch an HTML email newsletter technology that has grown to become a standard in the industry. Adams is currently the executive director of the Consumer Wellness Center, a 501(c)3 non-profit, and regularly pursues cycling, nature photography, Capoeira and Pilates. He's also author of numerous health books published by Truth Publishing and is the creator of several consumer-oriented grassroots campaigns, including the Spam. Don't Buy It! campaign, and the free downloadable Honest Food Guide. He also created the free reference sites and Adams believes in free speech, free access to nutritional supplements and the ending of corporate control over medicines, genes and seeds. Known as the 'Health Ranger,' Adams' personal health statistics and mission statements are located at

Have comments on this article? Post them here:

 people have commented on this article.

Related Articles:

Why the Free Market Doesn't Work: Consumption vs. Conservation

The case for mandatory GMO labeling - even if you believe in limited government and the free market

If given a fair choice, most consumers would choose alternative medicine over conventional health care

Matrix programming 101: destroy logic

Ron Paul's farewell message to America: Embrace liberty or face self-destruction

NaturalNews, Health Ranger officially endorse GMO labeling ballot measure; Vote YES on 37 'Right to Know' in California

Take Action: Support

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...

Now Available at

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Dear Donald Trump: Blockade the lying mainstream media and recognize the independent media as America's real free press
Kellogg's found to have financial ties to the money man for cop-killing left-wing HATE groups: George Soros

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...


Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...


Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at

Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play