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A Consideration of Some of the Effects Government Subsidies Have on Pharmaceutical Companies This 3-page undergraduate paper considers some effects government subsidies have on pharmaceutical companies. This paper notes that there exists a basic debate about the effects government subsidies have on pharmaceutical companies. Namely, some claim that government subsidies have a positive impact on pharmaceutical companies, both financially and socially. Government subsidies, it is argued, helps companies to develop drugs which help many patients each year. Further, subsidies have a positive financial effect by allowing a deserving set of companies to have access to money they might not otherwise have in order to help others. On the other hand, some experts claim that government subsidies for pharmaceutical companies have a largely detrimental effect both politically and socially, as government subsidies grant pharmaceutical companies excessive power. This results in escalated spending on pharmaceutical companies, but also results in higher drug costs, which means that many have unequal access to the medicines they need.
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