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Drug war starts with WalMart offering Generics at $4 - the coming deflation in healthcare industry
Sam Adelton
Sep. 21, 2006

Healthcare industry in US will face the biggest deflation in the history of US. Drug war starts with WalMart offering Generics at $4 - the coming deflation in healthcare industry is on and will be all out.

The deflation in the drug insudtry and healthcare industry can drag the economy down with high unemployment and underemployment.

The economy will generate expendable cash from savings on generic drugs and outsourced services in the tune of 3.5% of the GDP. However the unemployment and underemployment will eat up as much as 7.5% of the GDP.

The biggest danger is from lower quality and possible after effects of low quality outsourcing of medical services.

There is also a big possibility of lack of Research and Development as major drug companies start cutting cost to match the deflation.


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