By Tomas Philipson
October 24, 2023
More than one year ago, President Biden signed the Inflation Reduction Act (IRA) into law.
“His top legislative achievement has many flaws. But by far its most damaging effects will be increased illness and death stemming from the law’s drug price controls. Because health is so valuable, these negative health impacts easily cancel out any economic- or climate effects of the law.
Critics warned that price controls would deter research investments — and time has already proven them right. In just the first four months after the IRA became law, more companies announced project cancellations and pauses than the IRA’s proponents claimed would occur over an entire decade. Twelve months in, it’s clear that a more apt name for the legislation is the ‘Innovation Reduction Act.'”