Some Hope for Insulin Users, Courtesy of the Revived U.S. Antitrust Division

Excerpt from Matt Stoller's website:

[O]n Thursday, the FTC voted to resurrect the Robinson-Patman Act, a bill prohibiting corporate bribery and price discrimination by middlemen that hasn’t been meaningfully enforced since the 1970s. I wrote several chapters in my book on the titanic fight in the 1930s to tame chain stores with this law, and the equally vicious conflict in the 1970s to stop enforcing it. The end of RPA enforcement is why chain stores like Walmart and Amazon took over our retail space, and why dominant middlemen control every area of our economy at this point. It’s worth noting that Robert Bork’s most hated statute was the Robinson-Patman Act, and he considered it a tremendous victory that he helped end the enforcement of the law.

So what happened at the FTC? All five commissioners voted on a policy statement saying that the use of rebates by dominant middlemen in the insulin market were a potential violation of different laws under the jurisdiction of the FTC, including the Robinson-Patman Act. This vote is a signal to every private antitrust lawyer, state attorney general, and judge, that the Robinson-Patman Act can once again be dusted off and used.

Insulin is a great test case for this law, because everyone knows how unfair and inefficient the insulin market truly is. It’s a medication that has been around since 1922, and yet it has been increasing in cost every year for decades. And while the three main producers engage in all sorts of schemes to push up cost, most of the high cost of insulin is actually a result the middlemen named pharmacy benefits managers - CVS Caremark, Cigna (Express Scripts), and United Healthcare (OptumRx) - who manage and control how medicine is priced and sold. PBMs demand rebates of up to 70% for the right to have an insulin company sell their product to patients. These rebates in turn massively drive up the price of insulin.

Continue ReadingSome Hope for Insulin Users, Courtesy of the Revived U.S. Antitrust Division

Heterodox Academy National Conference in Denver, Colorado

I am now back home after attending the national conference of Heterodox Academy in Denver. HxA's slogan is "Great Minds Don't Always Think Alike." Highlights included meeting many thoughtful people. This included a chance to talk with Jonathan Haidt. Presenters included Glenn Loury, Erec Smith, John McWhorter, Roslyn Clark Artis, Matt Yglesias and the HxA's new President, John Tomasi. I delivered a one-hour presentation, "When the “HxA Way” Collides with Brandolini’s Law." Here's the synopsis:

Brandolini’s Law, also known as the “bullshit asymmetry principle,” states that “the amount of energy needed to refute bullshit is an order of magnitude larger than is needed to produce it.” When applied to daily interactions, this means that the longer some conversations go on, the less meaningful they become. While we may do our best to diligently practice the “HxA Way,” others may still fling ad hominem attacks or use weak arguments, false dichotomies, and uncharitable interpretations that drag things down. In this session, Erich Vieth will explore these common frustrations and offer strategies – drawn from his experience as a trial lawyer – to help keep contentious conversations on track.

Glenn Loury, Erec Smith and John McWhorter[/caption]


Continue ReadingHeterodox Academy National Conference in Denver, Colorado

Nellie Bowles: Fire the DEI Department to Fund College Education for 1,000 Students

Nellie Bowles, writing at Common Sense:

Why do universities need so many diversity officers? University of Michigan emeritus economics professor, Mark J. Perry, broke down the latest numbers on how many professional diversity officers are on the U of M payroll, and how much these officers make: “126 diversicrats at an average salary of $93,600 with 38 making >$100K and a shocking record-high of $430,795.” The total payroll cost for “diversity equity and inclusion” programming is over $15 million a year, or in-state tuition for almost 1,000 students. One wild DEI idea: Fire every single one of them, and use that money to free 1,000 poor students from debt each year.

Continue ReadingNellie Bowles: Fire the DEI Department to Fund College Education for 1,000 Students

Taboo Story is Reported by Matt Taibbi: Women with Penises Raping Women Without Penises in Women’s Prisons

Matt Taibbi has shed light on this taboo story: "The World's Most Taboo Legal Case: While the media world wept over Amber and Johnny, a lawsuit filed by a feminist group over prison sexual abuse remained earth's most ignored scandal. Here is an excerpt:

"On November 17, 2021, the Women’s Liberation Front, or WoLF, filed a class-action lawsuit in California that drew almost no coverage. A press corps gearing up to be outraged en masse by the Amber Heard-Johnny Depp defamation case had zero interest in a lawsuit filed by far poorer female abuse victims. Janine Chandler et al vs. California Department of Corrections targeted a new California state law, the “The Transgender Respect, Agency, and Dignity Act,” a.k.a. S.B. 132. The statute allows any prisoner who self-identifies as a woman — including prisoners with penises who may have stopped taking hormones — into women’s prisons. There was nothing TV-friendly about the scenes depicted in the complaint:

"Plaintiff Krystal Gonzalez (“Krystal”) is a female offender currently incarcerated in Central California Women’s Facility. Krystal was sexually assaulted by a man transferred to her unit under S.B. 132. Krystal filed a grievance and requested single-sex housing away from men; the prison’s response to Krystal’s grievance referred to her assault by a “transgender woman with a penis.” Krystal does not believe that women have penises…"

Chandler is the headline legal action in a nationwide battle over whether or not prisoners who self-identify as women, including those with histories of rape or sexual abuse, should be allowed to transfer to women’s correctional facilities. There have been both official and unofficial policy changes on this front in a growing collection of states across the country. These often happen little to no public debate, because this issue may be the most impenetrable media taboo in America now. The group bringing the suit, WoLF, has been targeted from every conceivable angle by pressure and censorship campaigns.

[There is a] a growing schism on what was once the political left. The ACLU just proudly announced an attempt to challenge Chandler with other “LGBTQ organizations.” It’s weird enough to see the ACLU — which historically has used most careful language in defending everyone from Neo-Nazis to NAMBLA — issue a press release bluntly describing a feminist organization like WoLF as “bigoted.” It’s weirder still when the complainants are women, many with extensive histories of sexual abuse, suing on behalf of a community that is disproportionately LGB, as 42% of incarcerated women identify as lesbian or bisexual.

Continue ReadingTaboo Story is Reported by Matt Taibbi: Women with Penises Raping Women Without Penises in Women’s Prisons