If there’s one axiom, we all know about Washington, D.C., is that it’s full of well-intentioned policies and unintended (read: harmful) consequences. A recent reminder of unintended policy consequences is the so-called Inflation Reduction Act.
The IRA was passed in August 2022, and according to its champions in Congress and the White House, it was intended to reduce the federal government budget deficit, make investments in renewable energy, lower drug prices, and fight inflation.
Two years later, we’ve unfortunately re-learned that noble intentions don’t necessarily produce good policy. The IRA has failed to achieve its objectives in many ways. One significant problem involves the introduction of drug price controls, which take effect in 2026. Due to the IRA, the federal government now has wide-ranging authority to set the price of drugs through what’s known…
