India finds out the hard way why price controls don't work

Unfortunately, they have tried this idea with pharmaceuticals, with the point of guaranteeing drug access for the poor, but it is thought that if the price controls continue, production of certain drugs that are unprofitable for the drug companies will simply cease. This of course leaves no one with the medicine they need. So they either need to nationalize the drug companies, which would of course be ridiculously inexpensive and inefficient, or they need to eliminate the price controls. They may be forced to do the latter very soon with elections looming. It appears that the problem partially stems from China closing chemical production factories during the Olympics. It is hoped that production will increase after the games are finished, but it may take the markets a while to reconcile the increases, potentially depriving many of needed drugs in the interim. Via the BBC.