Article Link: https://www.aljazeera.com/economy/2021/1/6/brazils-bolsonaro-accuses-syringe-makers-of-covid-price-gouging
Though Brazil is a bit behind neighbors Argentina and Chile when it comes to COVID-19 vaccinations, they are planning to have the process underway by the end of this month.
Unfortunately, there have been some setbacks, as Brazil’s president Jair Bolsonaro has accused syringe companies of increasing their prices after the government failed to participate in an initial auction. Basically, as soon as the Brazilian government expressed interest in buying syringes, syringe companies dramatically raised the prices, and Bolsonaro has suspended buying them until the prices return to normal.
This conflict has delayed the process of getting the vaccine out to Brazil’s citizens and will probably cost many lives in the long run. Brazil currently has the worst death toll outside of the United States, and unless the government can come to an agreement with the companies that provide medical supplies, it will continue to rise.
This delay has highlighted an issue that has been around since the beginning of modern medicine- to what extent should the government be able to exercise control over companies in a time of national emergency? It’s one thing for the government to not be able to lower high prices on EpiPens and other medications, but should companies be able to hike up prices when millions of lives are potentially on the line? Though it’s likely that Brazil will follow through with its plans to start vaccinations by the end of this month, it’s definitely something to think about.
This butting of heads between the government and large companies can be one example of the collective goods problem. Though it is in the interest of the common good to distribute the vaccine as soon as possible, it is in the interest of companies to make as much money as possible, even if it means a large-scale loss of life.