“Canada would have stopped the practice because US importation would have led to drug shortages in Canada.”
There are “x” amount of drugs produces for a market....say North America. If US seniors purchase their drugs from Canada....then for every pill bought down over the border there is one less pill sold in the US and remains sitting on the shelf here. You assertion is simply ridiculous and not based on “free market” at all.
Your reply seems to imply there is a free lunch: just impose price controls without any consequences. Canada imposes price controls as do many other countries. The drug companies would not have produced enough drugs at the price imposed levels for both the Canadian market and the US market. In the long term, price controls (imposed ceiling prices) always lead to shortages. To deny this assertion, you must believe that the law of supply and demand does not hold.
If you believe in price controls, why not just impose the price controls here? Importing drugs from Canada is just an indirect method to impose price controls. There were many statements by Canadian officials indicating that they would try to stop exporting drugs to the US if importation was permitted. If the Canadians had stopped or limited exportation, the rats and rinos would have demanded price controls. The rats demanded price controls in the prescription drug bill. One of their biggest complaints was that Medicare could not negotiate drug prices. Conservatives rejected this demand because it would have led to price controls.
It is interesting that the profit margin for the drug industry is about 20%. Most other major businesses have profits of from 2 to 7%. It must feel really good to get so rich off of sick people, good Christians, I’m sure.