A Late-Stage Capitalism Healthcare Crisis

The Hubris of Big Pharma in the USA: A Brief Introduction

The Hubris of Big Pharma in the USA suggests the arrogance and corporate greed of the pharmaceutical sector of the U.S. economy. The United States pharmaceutical industry, colloquially known as “Big Pharma,” exhibits a degree of corporate arrogance rarely seen elsewhere in the world. Unlike, for example, in Canada and Mexico, where governmental regulations temper pharmaceutical excesses, the United States serves as a global outlier. Why we put up with The Hubris of Big Pharma is beyond all reason.

Big Pharma’s dominance stems from a unique confluence of historical, economic, and political factors tied to Late-Stage Capitalism—a phase characterized by corporate consolidation, wealth concentration, and the commodification of essential services. This essay examines the roots of Big Pharma’s hubris, its consequences, and the stark contrast with neighboring countries.

The Scale of Big Pharma’s Power

The Hubris of Big Pharma in the USA holds unparalleled influence over drug pricing, distribution, and access. For example, insulin prices highlight this unchecked power. In the U.S., a single vial of insulin often costs over $300, whereas in Canada, the same vial costs approximately $30 due to government-imposed price caps. Similarly, generic drugs in Mexico frequently sell for a fraction of their U.S. price, even when manufactured by the same companies. These disparities underscore the United States’ failure to prioritize public health over corporate profits.

Pharmaceutical companies defend their pricing strategies by claiming high research and development (R&D) costs. However, reports indicate that Big Pharma spends more on marketing and lobbying than on R&D. In 2021, Pfizer allocated over $11 billion to marketing, while its R&D expenditure totaled $10.5 billion. Lobbying further amplifies their influence; in 2022, pharmaceutical companies spent $373 million lobbying Congress—far more than any other industry. This practice ensures favorable legislation, such as the prohibition of Medicare negotiating drug prices, which locks in exorbitant costs for consumers. All this is a product of The Hubris of Big Pharma in the USA

Comparing the U.S. to Canada and Mexico

A brief look at our closest neighbors, Canada and Mexico where big pharma is regulated and the healthcare offered depends on need rather than corporate profits. In Canada, universal healthcare and the Patented Medicine Prices Review Board (PMPRB) limit excessive drug pricing. The PMPRB ensures new drugs offer therapeutic value proportionate to their cost, effectively curbing profiteering. Canada’s single-payer system also negotiates bulk drug purchases, reducing costs for the public. This contrasts sharply with the fragmented U.S. healthcare system, where private insurers and pharmacy benefit managers (PBMs) dominate, further inflating prices.

Mexico’s healthcare system incorporates public and private sectors, providing affordable medication through subsidies and generic drug promotion. Generic medicines constitute approximately 85% of the Mexican pharmaceutical market, compared to 50% in the U.S., where patent laws and market exclusivity grant Big Pharma extended monopolies. The North American Free Trade Agreement (NAFTA) exacerbated these inequalities by enforcing stringent intellectual property protections, disproportionately benefitting U.S.-based pharmaceutical companies.

Late-Stage Capitalism and U.S. Pharmaceutical Hubris

Tied directly to the hubris of Late Stage Capitalism big pharma runs unregulated in the United States. Perhaps it is time to divest ourselves of the Reagan

revolution that, from 1981 to the present, opens the door to corruption, financialization, and the exercise of corporate greed as a starting point for pricing and marketing.

Late-stage capitalism fosters conditions that enable Big Pharma’s overreach. Deregulation, a hallmark of neoliberal policies since the 1980s, dismantled critical safeguards. The Hatch-Waxman Act of 1984, initially designed to encourage generic drug competition, inadvertently created loopholes allowing “evergreening,” where companies make minor modifications to extend patent protections. These policies effectively grant monopolies, stifling competition and innovation. The curse of The Hubris of Big Pharma in the USA seems to run the show here.

Meanwhile, financialization—another symptom of Late-Stage Capitalism—drives Big Pharma to prioritize shareholder value over patient welfare. Companies like Johnson & Johnson and Merck frequently engage in stock buybacks, diverting profits from R&D to inflate share prices. Between 2010 and 2019, the 14 largest pharmaceutical companies spent $335 billion on buybacks and dividends, surpassing their R&D investment of $292.6 billion.

The Hubris of Big Pharma in the USA is born of Objectivism in American Politics, A Randian theory focused on self-interest and greed. The Hubris of Big Pharma in the USA takes full advantage of that theory in an environment where government regulation is nonexistent, top executives exercise the concept of greed as a birthright, and they abandon the rest of us for private jets, yachts, and penthouse apartments in tall buildings. 7 Examples of Profits Over Patients: A Blunder

Consequences of Pharmaceutical Hubris

The fallout from Big Pharma’s arrogance manifests in dire health outcomes and financial strain for U.S. citizens. A 2022 study by Gallup and West Health revealed that 18 million Americans could not afford at least one prescribed medication. Additionally, medical debt remains the leading cause of bankruptcy in the U.S., a phenomenon virtually absent in Canada and Mexico.

The opioid epidemic epitomizes the social costs of Big Pharma’s hubris. Purdue Pharma aggressively marketed OxyContin in the 1990s, downplaying its addictive potential. Despite mounting evidence of harm, regulatory agencies allowed continued sales, resulting in over 500,000 opioid-related deaths between 1999 and 2019. In contrast, Canada and Mexico implemented stricter opioid regulations, mitigating similar crises.

Addressing the Causes of  The Hubris of Big Pharma in the US

The United States must adopt systemic reforms to rein in Big Pharma. First, policymakers must repeal laws that prevent Medicare from negotiating drug prices. Second, patent reform should eliminate practices like evergreening. Third, the federal government should establish a regulatory body akin to Canada’s PMPRB to evaluate drug pricing and therapeutic value.

Furthermore, cultural shifts are necessary. Americans must rid themselves of the narrative that equates high prices with innovation. Transparency in pricing and corporate practices can empower consumers to demand change. Finally, lessons from Canada and Mexico demonstrate the efficacy of integrating public oversight with private enterprise. Frankly, a comparison of the United States’ cost of medicine with any other industrialized nation sees the United States at the bottom of the heap.

The Hubris of Big Pharma in the USA: A Tentative Conclusion

The hubris of Big Pharma in the USA exemplifies the excesses of Late-Stage Capitalism. By prioritizing profits over public health, pharmaceutical companies have entrenched inequality and compromised the well-being of millions of hard-working Americans. How is it that those who represent us in Congress are allowed to feed into The Hubris of Big Pharma in the USA while leaving the health of their constituents struggling to pay for much-needed and often life-saving medicine?

A comparison with Canada and Mexico, our closest neighbors, reveals viable alternatives rooted in regulation and public accountability. Addressing these disparities requires bold political action, cultural shifts, and a commitment to prioritizing health over wealth. Only then can the United States dismantle Big Pharma’s stranglehold and restore balance to its healthcare system. 10 of Neo-Liberalisms Betrayals of Its Lofty Promises

Suggested Reading

“The Price We Pay” by Marty Makary – Examines the hidden costs of healthcare in America and offers solutions for reform.

“An American Sickness” by Elisabeth Rosenthal – Explores how profit motives corrupt U.S. healthcare.

“Sickening” by John Abramson – Reveals how Big Pharma manipulates science and exploits consumers.

“Pharma” by Gerald Posner – Chronicles the history and impact of the U.S. pharmaceutical industry.

“Global Health Watch” by People’s Health Movement – Provides an international perspective on healthcare inequities.

“Deadly Spin” by Wendell Potter – Critiques the role of corporate PR in perpetuating healthcare injustices.

DISCLAIMER: The images on this page, and across the whole blog are created using AI imaging and are intended to illustrate the argument in the post. They are NOT representing real people or events directly, rather the images enhance the argument and nothing more. We do not intend any offense, nor do we wish to single out individuals in any way by the images themselves.