Author Archive:

Tom Bowden

Tom Bowden

Tom Bowden is an analyst and outreach liaison for the Ayn Rand Center for Individual Rights. Formerly an attorney in private practice in Baltimore, Maryland, he taught at the University of Baltimore School of Law from 1988 to 1994. He is the author of The Enemies of Christopher Columbus, which was the subject of a C-Span BookTV broadcast, and a contributing author to The Abolition of Antitrust. His Op-Eds have appeared in the Wall Street Journal, Investor's Business Daily, Christian Science Monitor, and many other newspapers. Mr. Bowden is a frequent guest on radio and television.


Upholding the value of collaboration between doctors and drug companies

RxOver at TheAtlantic.com, David A. Shaywitz has a thoughtful essay called “Getting to the Right Relationship Between Doctors and Drug Companies.” Shaywitz, a medical doctor with a Ph.D. to boot, works for a biopharmaceutical company and has a healthy appreciation for the value of collaboration between doctors and drug companies.

Shaywitz opposes the growing movement to demonize, and eventually end, the consulting relationships through which doctors help pharmaceutical companies develop and market new drugs. After noting how hard it is to find commercially feasible ideas, Shaywitz writes:

To advance even a solid idea requires, ideally, close communication between industry and outside experts: university researchers, who often developed the science and understand it the best; practicing clinicians, who can describe where the medical needs are the greatest, and what properties an ideal therapeutic would have; and patients, of course, who understand better than anyone else what they need, and where existing approaches may fall short.

We should strive to cultivate, not demonize, these sorts of interactions.

This is just a taste of Shaywitz’s solid, fact-rich argument in favor of preserving such collaboration against a rising tide of attacks. Unfortunately, Shaywitz’s argument falters when he attempts a moral defense of drug companies’ profit-seeking.

Shaywitz, an adjunct scholar at the conservative American Enterprise Institute, takes an approach similar to that favored by AEI’s president, Arthur Brooks. (My colleague Don Watkins has analyzed Brooks’ weaknesses here, here, here and here.) In essence, Shaywitz asserts that drug company profits should be tolerated because they allow companies to serve other people’s needs. In support he quotes Whole Foods CEO John Mackey: “Making high profits is the means to the end of fulfilling Whole Foods’ core business mission. We want to improve the health and well-being of everyone on the planet though higher quality food and better nutrition, and we can’t fulfill this mission unless we are highly profitable.”

This kind of argument amounts to: “Please excuse our profits—we’re really out to benefit others, not ourselves.” No matter how often conservatives resort to this strategy, it will always ring false because it concedes the impropriety of profit-seeking while simultaneously attempting to excuse it. Such arguments are worse than useless in the current controversy, because the anti-collaboration movement succeeds by decrying the profit motive as a source of corruption and conflicts of interest.

In reason, however, the progenitors of progress in medicine—especially the scientists, physicians, engineers, and executives who work in and for pharmaceutical companies—have no need to apologize or justify themselves altruistically. What’s urgently needed here is a defense based on rights—the moral right of doctors and drug companies to work together to advance their own productive interests, and their legal right to do so without interference from government regulators.

Image: Creative Commons License Eric via Compfight


Are web giants “scary monopolies that somebody needs to do something about”?

Federal Trade CommissionOver at TheAtlantic.com, Justin Fox offers thoughts on how antitrust policy will impact social media companies going forward. The article is worthwhile reading, in part for what it reveals about the smug sense of entitlement policymakers exhibit when it comes to America’s most successful companies.

The Web’s New Monopolists” floats a number of trial balloons, including:

  • The desirability of regulating companies like Twitter and Facebook as “utilities”
  • Whether Internet giants such as these, not to mention Apple, Amazon, and Google, should be seen as “scary monopolies that somebody needs to do something about”
  • Whether a company like Facebook should be nationalized
  • Whether “it’s possible to spin a credible tale of antitrust lawyers enabling disruption and innovation” through enforcement measures such as those against Microsoft in the 1990s.

What’s on display here is the idea that the more success a company earns, the more it must put up with coercive control over its business practices. Fox’s conclusion says it all:

So all praise to today’s would-be utilities and monopolies, as they try to build enterprises that own their markets and that we can’t do without. But when they actually succeed, don’t think we shouldn’t be sniffing around in their business. At a certain point, it becomes our business, too.

Unfortunately, the businessmen subjected to antitrust enforcement typically accept it as a cost of doing business. “There’s a joke in Silicon Valley,” says UC Berkeley economist Carl Shaprio. “‘You know you’ve really made it when you’ve got antitrust problems.’ That’s the sign of success.”

Notably, Fox’s article contains not a single quote or mention of anyone—businessman, academic, or policy analyst—who opposes antitrust regulation of Internet companies on principle.

Image: Creative Commons License Cliff via Compfight


New video discussing ARI’s Junior Fellows Program (May 15 application deadline)

For those passionate about Ayn Rand’s ideas and their application to today’s events, and who hope to turn that passion into a career, the Ayn Rand Institute offers this new video presentation. “3 Essential Tips for Aspiring Intellectuals” features Dr. Onkar Ghate, vice president of Intellectual Leadership and senior fellow at the Ayn Rand Institute, and Elan Journo, fellow and director of Policy Research at ARI. They discuss ARI’s new Junior Fellows Program—a unique opportunity to work full time on ARI’s staff for up to one year, and to gain real-world experience and vital skills alongside ARI’s senior intellectuals.

Note: For the 2013-2014 fellowship year, the deadline for applications is May 15.

 


Live webcast: “3 Essential Tips for Aspiring Intellectuals”

rh_jfpFor those passionate about Ayn Rand’s ideas and their application to today’s events, and who hope to turn that passion into a career, a free Livestream is coming next week. “3 Essential Tips for Aspiring Intellectuals” is the topic of a webcast featuring Dr. Onkar Ghate, vice president of Intellectual Leadership and senior fellow at the Ayn Rand Institute, and Elan Journo, fellow and director of Policy Research at ARI.

The hosts will be discussing ARI’s new Junior Fellows Program—a unique opportunity to work full time on ARI’s staff for up to one year, and to gain real-world experience and vital skills alongside ARI’s senior intellectuals.

For instructions on joining the webcast, RSVP here and instructions will come later. Also, those who submit a question that the hosts answer live during the webcast will receive a copy of Free Market Revolution in the mail.

Date: Tuesday, May 7, 2013
Time: 2:15 p.m. Pacific/5:15 p.m. Eastern

Those who don’t wish to participate can listen in live on ARI’s Facebook or Livestream pages.


The latest facts on drugs in development

magic pillsOver at Policy and Medicine, the bloggers have generated a really interesting summary of drugs currently under development by the nation’s pharmaceutical companies. P&M’s summary starts this way:

According to [a] report released by PhRMA [Pharmaceutical Research and Manufacturers of America], companies have more than 5,400 medicines in development globally, and more than 70% of therapies in the pipeline are potentially first-in-class and could offer patients new treatment options, and a notable number of potential therapies target diseases with limited treatment options such as ALS and rare diseases.

The P&M breakdown is much more readable than the reports on which it is based (although there are copious links to the underlying reports, for those who are interested in pursuing them). The breakdown is categorized by the targets of drug research: Alzheimer’s, arthritis, asthma, cancer, and so on. The amount of interesting factual detail on each is astounding.

These are facts to keep in mind when you hear policy debates surrounding drug development, debates that raise big questions like: What are the effects of FDA regulation? Should the FDA even have a role? How does government funding affect the choice to develop certain drugs? Etc., etc.

Image: Creative Commons License Eric via Compfight


Spotlight on antitrust #6

Photo Credit: DanBrady via Compfight ccMore stories to remind us how antitrust law casts a cloud over American business:

  • Baseball was exempted from federal antitrust law because the sport was not considered “interstate commerce” in the 1920s when the Supreme Court first decided the issue. Today, however, the Court regards practically every economic activity, no matter how trivial, as “interstate commerce,” so baseball’s special status is a relic that could be struck down at any time.
  • Meanwhile, another planned acquisition found itself stuck in the quicksand of federal review and approval (“Mother may I merge?”). Ecolab, a big sanitation and filtration company, wanted to buy Champion Technologies for $2.2 billion. But the two companies, which safeguard health through a wide range of sanitation products, had to sit and await permission to do business from bureaucrats whose only function is to impede economic activity. Finally permission came, but at the price of several concessions extorted from the merging companies (to divest patented technology, to license proprietary chemistry, to offer for sale a chemical blending facility, to manufacture certain products for another company, and to allow that company to recruit certain Champion employees needed to support the business).
  • As if the health care industry weren’t already buckling under the weight of government intervention, the Federal Trade Commission is sharpening its knives in anticipation of opportunities to prevent hospital mergers.
  • Global competition regulators met in Australia to share their views on future priorities: “Competition agencies cannot remain behind national or regional fences—we need to pull our forces together.”
  • The newest Federal Trade Commission member is a George Mason law school professor who has criticized the agency for settling too many cases through consent decrees, instead of approaching cases as if they will be tried in court.

 

 
Photo Credit: DanBrady via Compfight cc


Your children are not community property

In light of the controversy over MSNBC host Melissa Harris-Perry’s comments questioning parents’ private right to raise their children, I want to highlight some remarks I made a few years ago on the same subject.

Harris-Perry’s comments came in the context of a promotion for her show, “Lean Forward”: “We haven’t had a very collective notion of ‘these are our children,’” Harris-Perry said, “so part of it is we have to kind of break through our private idea of ‘kids belong to their parents’ or ‘kids belong to their families’ and recognize that kids belong to whole communities.”

That is pure collectivism and requires rebuttal. A few years ago, in the context of a court decision that outlawed home schooling, I wrote an op-ed called “Your Child Is Not State Property” (print version here). Although the narrow political issue was not the subject of Harris-Perry’s comments, the fundamental principles at stake are the same, and worth repeating:

Neither the state nor “society as a whole” has any interests of its own in your child’s education. A society is only a group of individuals, and the government’s only legitimate function is to protect the individual rights of its citizens, including yours and your children’s, against physical force and fraud. The state is your agent, not a separate entity with interests that can override your rights.

. . . Parents are sovereign individuals whose right to life, liberty, and the pursuit of happiness includes the right to control their child’s upbringing. Other citizens, however numerous or politically powerful, have no moral right to substitute their views on child-raising for those of the father and mother who created that child.

Instead, a proper legal system recognizes and protects parents’ moral right to pursue the personal rewards and joys of child-raising. At every stage, you have a right to set your own standards and act on them without government permission. This parental right to control your child’s upbringing includes the right to manage his education, by choosing an appropriate school or personally educating him at home.

This is the video version of the same op-ed:


Chilly reception for drug companies in medical schools

ConcentrationA variety of physician-industry relationships—especially those involving anything of value, from a bagel to an airline ticket to a consulting fee—are being demonized as undermining patient care. Even medical students are being pressured to avoid making connections with pharmaceutical companies and medical device makers

This is the subject of an informative blog post with an apt title: “Medical Students Eating Lunches But Feeling Guilty.” The lunches are meals paid for by medical companies—and the guilt is what students are supposed to feel for taking something of value from companies that want their business someday.

Just consider: The American Medical Students Association publishes a “PharmFree Scorecard” that grades each medical school on how strict their policies are on limiting and regulating contact with industry representatives. For example, AMSA’s ideal policy on gifts and meals is: “All gifts and meals are prohibited.”

Of course, it’s a serious problem when a physician’s bad judgment leads him to compromise his medical integrity. But there are ways of addressing that problem without resorting to prophylactic separation of doctors from industry. The blog post I mentioned (written by Thomas Sullivan, head of a bio-medical education company), gives an indication of what’s at stake, with opinions worth considering:

The reality is, physicians—at all stages of their training—need to have interactions with industry. Not only are such relationships beneficial for continuing medical progress and innovation, advancing medical care, and improving patient outcomes, but interactions also teach medical students and residents about the nature of the pharmaceutical and medical device industry.  More importantly, such interactions—particularly in the medical device world—are critical for teaching students and young physicians how to properly use a device or perform a procedure.  And such interactions and training are typically mandated by FDA in the devices’ clearance and mandatory medical device reporting requirements.

Thus, medical schools and [academic medical centers] should encourage and in fact require medical students and residents to interact with industry—not only to experience what such interactions have to offer, but also to better prepare them for their career. Medical students need to realize that sales reps and medical affairs staff exist for a reason: because physicians don’t have enough time in a day to learn about all the new research, advances and updates in clinical care—including FDA [risk evaluation and mitigation strategies], safety updates, or black-box warnings.

The whole post is here.

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When do you start calling it persecution?

599px-The_Earth_seen_from_Apollo_17Fortune magazine has come out with its list of the World’s Most Admired Companies, virtually all of them household names. Would you like to guess how many of the top 10 most admired companies have, within the past two or three years, been subjected to antitrust enforcement?

The answer is 10 out of 10: Apple (#1), Google (#2), Amazon (#3), Coca-Cola (#4), Starbucks (#5), IBM (#6), Southwest Airlines (#7), Berkshire Hathaway (#8), Walt Disney (#9) and FedEx (#10).

Granted, not all of these encounters ended badly. In more than one case, permission for a merger or acquisition was eventually granted. But my point here is not to assess the overall damage done by antitrust law to American business. Rather, I just want to focus on the incredible reach of these statutes, how they permeate the business world.

If each day’s headlines carried an article about another Fortune 500 CEO accused of murder, it would strike us as unusual. We expect that an occasional Bernie Madoff will be caught running a criminal scheme, but we don’t expect our most admired companies to be routinely hauled before legal authorities.

One of my goals in writing about antitrust is to pierce the complacency with which our society regards these laws. We act as if the nation’s most productive and successful executives should just accept being on the wrong side of the law as part of their lot in life. But why isn’t that more troubling to us than it appears to be? When other classes or groups of people find themselves routinely in conflict with the law, social scientists fall all over themselves to study the phenomenon in search of persecution. Why are businessmen treated differently?

Meanwhile, if I had more time, I’d look into how many of Fortune’s 50 Most Admired Companies have been subjected to antitrust enforcement since from 2011 on. My guess is pretty close to 50 out of 50.

Image: Wikimedia Commons


A Thatcher-Rand connection?

Thatcher_reviews_troopsIn 1976, at the age of 71, Ayn Rand closed down her periodical “The Ayn Rand Letter” with a short essay called “A Last Survey.” Meanwhile, across the Atlantic, Margaret Thatcher was leader of the Conservative Party and three years away from becoming prime minister of the United Kingdom. The two women never met, but Rand’s article indicates a possible intellectual connection.

The Thatcher mention came in the context of Rand’s discussion of a July 19, 1975 New Republic column entitled “The Ayn Rand Factor”:

I laughed when I read that column, because the columnist’s fear was obvious. I said to my friends: “If he thinks there’s an ‘Ayn Rand factor’ around, let him think it.” Today, I am beginning to wonder whether there might not be an “Ayn Rand factor” in the world . . . .

A story on Margaret Thatcher, the new leader of the British Conservative party (The New York Times Magazine, June 1, 1975), stated that her “‘think tank’ of intellectuals” is studying and popularizing “the theories of”—and there followed a hodgepodge of so-called rightist names, ending on “Ayn Rand.” I did not pay much attention to that story—but, later, I was told privately that my ideas actually do have an influence on Mrs. Thatcher’s group.

Today, thirty-seven years later, there is most definitely an “Ayn Rand factor” at work in the world. The passing of Margaret Thatcher gives us occasion to pause and reflect on the time required for genuinely new ideas, such as those of Ayn Rand, to percolate through a culture.

Image: Wikimedia Commons