In a libertarian dream world, there would likely be no corporate income tax, since the corporate income tax is but an opaque tax on customers, investors and employees. Libertarians prefer their taxes to be non-opaque (and minimal).

There would be no Food and Drug Administration. The safety and efficacy of pharmaceuticals would be regulated by the investment companies make in their brands, and by the tort system, where companies would be held liable for drugs they fraudulently promoted.

In such a world, health care and insurance markets would be free of subsidies and regulation. Because customers and providers would be less stimulated to treat medical care as a free good, they would be more likely to exert price discipline at the point of sale.

Would there be patents in such a world? We’re getting off the point here, so let’s save that question for another day.

The real point is that today’s mega-griping about the drug industry comes from politicians unhappy with drug companies for following the incentives that politicians create for them.