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Arthur Laffer

How Trump Can Curb Runaway Drug Prices

The president could use his deal-making skills to negotiate voluntary pricing restraints for the industry.
The market can decide.

The market can decide.

Photographer: Tim Boyle/Getty Images

The affordability of prescription drugs is a growing public concern, as annual drug spending continues to rise year after year. Recent pricing scandals, including the 6,000 percent increase in the pediatric muscular dystrophy drug Deflazacort, along with Martin Shkreli’s 5,000 percent increase in the toxoplasmosis treatment Daraprim, only fuel the public outcry.

On numerous occasions, President Donald Trump has vowed to take action to constrain drug prices. Although the specifics of Trump’s plans to lower prices are reportedly being hammered out as I write, the wrong action could have disastrous effects.