Canadian Drugs

Prescription drugs are cheaper if we buy them from Canada, so said John Kerry in the 2004 campaign. Indeed, if an individual were to buy their drugs from Canada, that individual would pay less than if they bought the same drugs in the United States (without a comprehensive coverage plan). But John Kerry wasn't talking about one person buying drugs from Canada, he was talking about implementing a system for all Americans. So lets think this through:

'Canadian drugs' (which are actually American drugs sold to Canada) cost less because the government's healthcare program spends a great deal of money subsidizing the cost for its citizens. The citizens pay more in taxes (naturally) for this discount, because it is citizens who fill governmental coffers. So Canadians are paying less when initially receiving the drugs and so Americans believe them to be lower cost (and for individuals, they are).

But think individuals versus systems. The following figures are courtesy of the CIA World Fact Book and are based on estimates from July 2005. Canada has a population of roughly 33 million. Of those 33 million, 10 million are below the age of fifteen or above sixty-four, leaving about 23 million of working age. The labor force is smaller still, at 17.37 million. Those 17.37 million people compose the bulk of economic activity in Canada and hence provide the bulk of the taxes to the government (Canada's GDP in 2004 was $1.023 trillion). Those taxes are used to support programs like... Prescription Drugs!

The United States has an estimated population of 296 million. 60.7 million citizens are under fifteen, 36.7 million over sixty-four, leaving 198.6 million within the working age. The labor force is 147.4 million. The United States had a 2004 GDP of $11.75 trillion.

Those espousing importation of 'Canadian Drugs' are proposing 17.37 million working Canadians support 36.7 million older Americans. Moreover, this presumes Americans under sixty-five will not need a single drug. Further, this proposition assumes Canada can afford to pay for Americans, despite acknowledging the drugs are too expensive for Americans to pay themselves (even with a GDP 11&1/2 times greater than Canada's).

Canada is not the answer for prescription drugs. The numbers don't lie. Individuals may be able to benefit, but it's systematically impossible. Think a little harder next time, Mr. Kerry. You're using fuzzy math.