When the socialist Front Populaire came into power in France in 1936, Leon Blum asked distinguished economist Alfred Sauvy to be part of his cabinet. The latter expressed doubts about the future prime minister's grasp of economics, and received this irascible reply: "If I knew anything about economics, would I be a socialist?"

Many decades later, the consequences of socialists' lack of knowledge of economics are all too real. A case in point: the European pharmaceutical industry. It is a shell of its former self. Far fewer life-saving drugs get developed than would otherwise be the case.

The biggest culprits? Price controls and drug reimportation. If the price of something is below the cost of producing it, manufacturers cannot make a profit. Without profits, they go out of business.

When the socialist Front Populaire came into power in France in 1936, Leon Blum asked distinguished economist Alfred Sauvy to be part of his cabinet. The latter expressed doubts about the future prime minister's grasp of economics, and received this irascible reply: "If I knew anything about economics, would I be a socialist?"

Many decades later, the consequences of socialists' lack of knowledge of economics are all too real. A case in point: the European pharmaceutical industry. It is a shell of its former self. Far fewer life-saving drugs get developed than would otherwise be the case.

The biggest culprits? Price controls and drug reimportation. If the price of something is below the cost of producing it, manufacturers cannot make a profit. Without profits, they go out of business.