Pacific Research Institute Responds to Governor's State of the State Address
Press Release
1.6.2006
 For Immediate Release:
January 6, 2006 Contact: Susan Martin, Press Office
415-955-6120 or smartin@pacificresearch.org
Policy experts oppose international drug piracy, increase in minimum wage Free Market Health Care? John R. Graham, PRI's Director of Health Care Studies, applauds the Governor's appeal to rely on free markets to reduce health care costs. “The Governor is right: free markets are absolutely the way to reduce health costs,” said Graham. “However, when he urges the federal government to legalize the piracy of prescription drugs into the United States, he stabs at the heart of free trade.” The Governor notes correctly that Americans buy automobiles and food from overseas. But we also buy prescription drugs from overseas: European and Japanese drug makers export to the U.S., and they are as strongly opposed to the international piracy of prescription drugs as U.S. drug makers are. “Given his success in the movies, I'm surprised the Governor doesn't understand this,” said Graham, “If I picked up a black market video of The Terminator on the sidewalk in Bangkok, without paying a royalty to the movie's producer, I'm sure the star wouldn't agree that that was free trade.” Graham urges the Governor and legislature to co-operate on legislation modeled on the failed Proposition 78 from last November's election. “A good discount prescription drug program ensures that drug makers have the incentive to supply medicines to low income people free of the threat of government harassment, which means abandoning destructive notions like the so-called Medi-Cal hammer”, concluded Graham. Minimum Wage Increase Anthony P. Archie, PRI’s Policy Fellow in Business and Economic Studies, examines Governor Schwarzennegger’s proposal to increase the state’s minimum wage by $1. The increases will be staggered over a two-year period, with a 50-cent increase to come into effect in September 2006 and the other 50-cent increase to begin in July 2007. “This is unfortunate news for working Californians because the minimum wage negatively distorts labor markets,” said Anthony P. Archie. “Setting the minimum wage at a level above where employers and employees would have mutually agreed on labor services forces employers to cut back on the number of hires, resulting in higher unemployment.” Archie added that the minimum wage hinders low-skilled employees, especially teenagers, from developing skill sets that employers value because employers are less willing to pay more to train these workers. “Despite the ills effects of minimum wage laws, politicians from both parties continue to pander to those who believe these laws help the poor, when in fact, it sets them back.” ### | Contact: | To schedule an interview with John R. Graham or Anthony P. Archie, please contact PRI’s press office at 415/955-6120 or email smartin@pacificresearch.org.
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About PRI
For 27 years, the Pacific Research Institute (PRI) has championed freedom, opportunity, and individual responsibility through free-market policy solutions. PRI is a non-profit, non-partisan organization. For more information please visit our web site at http://www.pacificresearch.org//
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