Public policy, corporations, and the Stockholm Syndrom
The Stockholm Syndrome is a phenomenon in which prisoners, kidnap victims, hostages, etc. begin to identify with their captors. They take on the captor's worldview, rationalize their captivity, and become submissively friendly toward those who are, in reality, their enemies. It is suggested by psychiatric professionals that this occurs because within the narrow reality of the captive/captor relationship, the captor has all of the power, and the perceived futility of active resistence leads to a mental posture that moves beyond accomodation to active -- and self-defeating -- cooperation.
Those who defend the current special immunity provided to pharmaceutical corporations appear to be suffering from some form of the Stockholm Syndrome. Consider this: "Michigan is the only state in the nation that gives pharmaceutical companies a free ride when their products harm or kill,” said State Representative Mike Simpson (D-Liberty Township), who is the lead sponsor of the bill to repeal drug immunity. "Our residents shouldn’t be treated as second-class citizens simply because they live in Michigan. We must give them the power to hold drug companies accountable." The bill the Dems are seeking to repeal goes back to King John and the GOP lege of 1996. The rationale for the law was that drugs approved by the FDA meet a reasonable level of safety, and pharmaceutical companies should be protected from the "chilling effects" of frivolous lawsuits.
What has been the result of this 1996 law? And how much of a "reasonable level of safety" does FDA approval confer? Well, let's have a look, shall we? Let's have some "fun" . . .
- Rezulin - pulled off the market in 2000 after it was linked to nearly 400 deaths and thousands of cases of liver failure; claims by 187 Michigan residents against Warner-Lambert, maker of the diabetes drug Rezulin, were dismissed by a New York federal court judge because of the Michigan law. Nice.
- Vioxx - pulled off the market in 2004, may have caused heart attacks or cardiac deaths in up to 139,000 Americans, based on its manufacturer's (Merck’s) own studies. (The legal eagles have circled "may.")
- Bextra - taken off the market in 2005 due to an increased risk of heart attack and serious skin reactions among the painkiller’s users.
Now, has the 1996 law helped keep those Big Pharma companies with their high-paying jobs in Winter/Water Wonderland? Have we been rewarded for our efforts? To quote Jack Lessenberry: "Last month, without warning, Pfizer, which bought the homegrown Upjohn company four years ago, announced it was completely closing its research facility in Ann Arbor...Nor have other pharmaceutical companies flocked to the state." [bold and italics mine] Now, I don't know how you keep score, but it looks to me like Big Pharma about a million, and Michigan zero. Not only do we lose a homegrown company, fail to keep a new company, but we do not attract any new companies in this favored industry.
Well, Michigan is an expensive place to do business, many will say. If we would have just offered the poor sould at Pfizer a tax break or two, then all would have been well. Um hm. Then how do we explain this: "Mike Shore, spokesman for the Michigan Economic Development Corp., said Pfizer didn't ask for or receive any state tax breaks to grow or stay in Michigan. The company qualified for millions of dollars in potential tax breaks four years ago, Shore said, but never made the investments necessary to qualify for them." [bold and italics mine]
Consider the following:
- In 2001, the drug giant Pfizer received a 25 million dollar state tax break to build a facility near Ann Arbor. In addition, the state agreed to invest one billion dollars over 20 years to fund research that Pfizer will have free access to and can profit from. In addition, the city of Ann Arbor also gave Pfizer 47.7 million dollars in tax breaks. [I believe this second sentence pertains to the state tax breaks Mr. shore was referring to]
Given this reality, our state should not grant special conditions. It is said in libertarian circles that the state is the coldest of cold monsters. Big Pharma corporations are essentially states, not businesses (and certainly not "individuals"); the moniker fits them well. With these alien states, tax breaks need to be an enforceable and measurable quid pro quo, and the legal rights of our state's citizens/consumers should never be sacrificed to garner favor with these foreign governments.







