Populism has always had political appeal—and as recent elections show, it can win. But as Market Institute President Charles Sauer argues in RealClearHealth, some forms of populism trade long-term prosperity for short-term applause.
“Populism makes sense as a political strategy – as we can see from Momdani’s win in NY, but there are smart versions and dumb versions of populism,” Sauer writes. “While many of the most popular ideas make sense from an avowed Socialist, we are seeing these solutions now on both sides of this political aisle.”
The Rise of TrumpRx
Sauer points to President Trump’s new proposal—TrumpRx, a government-run prescription drug portal—as a prime example of misguided populism.
“Now he is creating a separate business to compete with the free market—TrumpRx—while also forcing price controls in this market,” Sauer explains.
While the intent to lower drug prices is understandable, the result is predictable: less innovation and more central planning.
“Government involvement in the market undermines the role of intellectual property, and therefore the future of investment in pharmaceutical research,” Sauer writes.
Free-Market Alternatives Exist
The good news? The private sector is already proving that innovation, not regulation, drives affordability.
“Mark Cuban is already proving that retail prescriptions are possible, and that the prices of medications can be much, much lower than those offered by an insurance plan or a big box pharmacy,” Sauer notes. “Neither of these solutions involve the boot of the government.”
The Right Way to Fix the Market
The real problems—high regulatory burdens, distorted incentives, and monopolistic intermediaries—are government-made. They won’t be solved by doubling down on state power.
“We need solutions for our problems,” Sauer concludes, “but they almost always entail less government rather than more government.”
Read the full piece in RealClearHealth by clicking here.
