Entries Tagged 'Word of The Day' ↓

Word of the Day – Opportunity Costs – Pricing Drugs

Definition: Opportunity cost is the cost of choosing one option, i.e. accepting a job, planting one type of crop, or traveling to one country rather than another) when choosing a different option could’ve turned out to be more profitable.

Pricing Drugs by Using Opportunity Cost Theory

Did you know that U.S. Government Health Agencies are the chief funders of pharmaceutical Research and Development (R&D) in this country?

And! Private Equity firms and Publicly-held firms on NASDAQ buy into pharmaceutical R&D only during the final phase of research?

Our government gets nothing from these corporations for all of the free R&D research our taxes pay for on our behalfs.

Recently in the news, a small company was complaining that they had to turn over their patent rights to the CDC (Centers for Disease Control).

The company, expressing outrage, refused to share its patents. They wanted all the profits from their drug. Even though our government was funding them! (This, by the way, is what libertarian Public Choice economists call “rent-seeking”.)

This attitude is outrageous and absolutely antithetical to the way that copyrights and patents are supposed to work to promote creativity and innovative new products (or new uses of old products).

Academics once shared their knowledge freely with each other through many publications.

But now, our monoplistic Military, Industrial, and Academic Complex has taken over workers’ “intellectual property rights” in the name of defending profits that the “Complex” paid hardly any of the costs for. Continue reading →

Word of the Day – Dealers vs. Brokers

Have you ever wondered why sellers of automobiles and trucks are called “dealers,” while sellers of stocks are called “brokers”?

What’s the difference between these two kinds of sellers?  Continue reading →

Word of the Day – Unicorn Money-Sinkholes

Several years ago we got an invitation to come to an investor’s meeting in a nearby city where a miniature golf course was to be opened.

We weren’t investors, but we wanted to see what an investor’s meeting was like. I’m a long-time fan of golf and miniature golf courses.

So, we walked into a small office space that was under construction to turn it into an indoor mini-golf and mini-race car track amusement place.

Only half the holes had been built, there was plywood and tools and paint cans galore sitting around. There was also food and drink on the tables in the front.

Lots of people were milling about and we met the woman who was the carpenter building the golf holes. She regaled us with her story of meeting the owner of the place at a party after losing her job.

Then the meeting began in the second-floor loft where the owner had an office. A whole lot of men went upstairs to listen to the owner’s pitch for their money.

We hung around for awhile, played a few holes and went home happy.

How Times Have Changed!

Continue reading →