Using the FDA as a Club against Competitors

Most conservatives believe that mountains of government regulations drive up prices, discourage innovation, and crush small businesses. So why aren’t businesses united in their opposition to oppressive regulations? Because many have discovered that they can use regulations as a weapon to fend off competition. Consider the example of Elizabeth Holmes, the founder and CEO of Theranos, a Silicon Valley health care technology firm. Ms. Holmes boldly proposes that consumers should be able to get diagnostic blood tests without waiting for prescriptions from their doctors (“How to Usher in a New Era of Preventive Health Care,” Wall Street Journal, July 28, 2015). That’s an excellent idea for at least three reasons: the earlier medical conditions are detected the easier they are to treat, blood tests (like those developed by Theranos) that use a fingerstick rather than poking a vein with a needle are extremely safe, and eliminating unnecessary regulations benefits...(Read Full Article)