[reducesuffering]

Like the other commenters allude to, how would you like software mandated to cost just 10% margin over COGS? Do you think selling cloud services for 10% more than the cost of server parts is going to be a business when there's thousands of software engineers in R&D needed?

[LeifCarrotson]

I would love that, as long as the cost includes that R&D and those engineers, the actual bits might be immaterial but the engineer salaries are part of the cost of the goods.

The problem is that we're being told that the cost of insulin is $270 per vial, or that Daraprim used to estimate its cost per dose at 90% of $13.50 and then Shkreli decided to raise it to $750.

[vasco]

The Shkreli case has nothing to do with the rest. He was playing the insurance companies and there isn't a single person that went without the medicine due to the cost. Almost nobody takes this medicine.

In fact, it still costs $750 today.

[malfist]

No one is suggesting it should be billed at only the cost of manufacturing. Recouping expenses incurred during R&D are perfectly reasonable.

If you poked at the data a bit, you might find it interesting to learn that drug companies spend more money on advertising than R&D

[pdntspa]

That would be amazing! More businesses need a costs-plus gun held to their head.

[renewiltord]

It's true. Harvard education costs $300k, so that engineer's lifetime earnings can be $300k plus some small margin so that he does not price gouge. Community college engineer can be paid $2k+small margin.

[pdntspa]

Businesses are not people (despite what the law tries to make you think), and people should not be bound by the same limits as businesses.

[renewiltord]

I see. So all software engineers can charge what they want until the moment they join another software engineer. The moment the two of them work together on a shared enterprise, their margin must be capped.

As an employer, hiring single-person LLCs provides such a strong advantage in this universe over hiring employees. The former can't charge you more than a small percentage. The latter can charge as much as they want. I suppose we would all be like Uber drivers.

[pdntspa]

Honestly, 10% above costs would put a lot of people far more into the black than they currently are, because you are failing to account for ongoing expenses which raises said cap by a lot. To say nothing that most folks are struggling to make rent and buy food; I think they would like such a deal.

[sethammons]

Software devs in the US are not struggling to make rent and buy food. More likely for them to have one or two airbnb side hustles than be starving. Yes, some have it rough but I'd wager the bell curve puts professional devs in the better-off-than-most boat

[refurb]

Would you be willing to work for a cost-plus salary?

Figure out what a middle-class lifestyle costs and pay you 10% more?

[amrocha]

You’re saying this ironically but yes, I would. If there was an accepted living standard and every job paid according to that that would be amazing.

[refurb]

That seems very anti-worker.

[amrocha]

Only if you’re in the minority that makes more than they should

[refurb]

Plenty of people make more than 10% more than their costs, you'd be taking away money from all of them.