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Source link: http://archive.mises.org/11670/the-ultimate-case-of-dumping/

The Ultimate Case of Dumping

February 14, 2010 by

In a recent post, I mentioned the U.S. government imposing additional duties on Chinese products because of dumping; that is, selling us cheap products. In what has got to be the ultimate case of dumping, pharmacies at Publix Supermarkets in Florida are still giving away certain prescription drugs. Evidently, this has been going on for some time.

Quick, call the Commerce Department. Publix is obviously trying to put locally-owned pharmacies out of business. Then Publix will start charging to fill these prescriptions. Soon the price will be so high that the poor will suffer. The Commerce Department will then have to intervene with price controls to ensure that the poor can get cheap drugs. We can stop this cycle now if anti-dumping duties are simply imposed on Publix today.

{ 10 comments }

Seattle February 14, 2010 at 3:15 pm

Not a very good bit of sarcasm; that sounds exactly like something they would actually say.

George F. Smith February 14, 2010 at 3:38 pm

Every time government acts, it builds the case for anarcho-capitalism.

Louis B. February 14, 2010 at 4:48 pm

But does the pharmacy prohibit its employees from taking other peoples’ free stuff and force them to work for garbage wages?

*Sorry if this is a double post but the original was put in moderation because of an indecent word.

Floyd Looney February 14, 2010 at 7:10 pm

lol.

Well if the Wal-Mart price is the lowest possible in the actual market, then Publix sounds as if it is violating the “dumping law” as it was written. Unless they got those meds for less than nothing.

crjc February 15, 2010 at 12:55 am

I love it when the local pharmacy orders too much of something. The manager there makes quite a few ordering errors.

Last week they were “dumping” Campbells Chunky Soups, normally $2 a can, for $.050 a can. Apparently someone added an extra zero to the order by mistake, and instead of ~100 cans they received ~1000, none of which could be returned to the distributor.

That same store regularly runs out of space in their small warehouse (according to their staff) and routinely has to blow stuff out dirt cheap to make room for incoming orders.

If prices were fixed they’d need to quadruple their warehouse space.

Eric Vanhove February 15, 2010 at 7:27 am

A supermarket chain on the East Coast, Giant Food Stores, is also giving away (with a prescription, of course) antibiotics (see here). This has also been going on for a while. This offer is not valid in New Hampshire or Maine; I wonder what the legal prohibition is there.

Bill Jones February 15, 2010 at 1:50 pm

If dumping is the selling of products below production cost then every car GM and Chrysler made for te past 5 years has been duped.

Where is the outrage?

billwald February 15, 2010 at 2:33 pm

Anyone who can’t tell the difference between international dumping and a “loss leader” in a local store . . . .

N. Joseph Potts February 15, 2010 at 9:58 pm

What I’d REALLY like to see (more-important, to me anyway, than giving it away) is the SELLING of those drugs WITHOUT PRESCRIPTION.

Now THAT would be a blow for free markets – and would bring down the full force of the law on Publix faster than you can say, “medical monopoly.”

And it would cut “health-care” costs by more – much more – too.

BioTube February 16, 2010 at 8:20 am

billwald:
A loss leader strategy no less legitimate for being done across oceans. The only problem is if it’s being forced by the state.

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