Economic expert Werner Vontobel classifies it as follows: Why is the Avenir Suisse think tank increasing prices?

However, there is another mechanism at play. Because producers are able to get more from consumers, certain prices rise regardless of actual costs. This applies to the most important expenditure item for most households. “Rents are high because people earn high incomes in this country.” This is how business-friendly think tank Avenir Suisse summarizes the results of its latest research on the housing market, “Rents and Myths”.

In fact, the relationship between living space prices and real (construction) costs is gradually decreasing. For example, a 92 square meter, 3.5-room apartment in Zurich’s Adliswil suburb is sold for 1.555 million. Although construction costs are about the same in Jura, you won’t pay even a third for it. Rents are high because there are many rich people in Zurich. Because Switzerland attracts the attention of many wealthy taxpayers with its tax policy. Avenir Suisse plays a driving role in this regard. Here, for example, he makes concrete suggestions for how Switzerland could reduce its OECD-mandated 15 percent minimum profit tax to below zero and bring more corporate headquarters to Switzerland.

The same is true in health.

The same mechanism (high purchasing power makes prices more expensive) works not only in real estate but also in healthcare. Avenir Suisse provides support here too. In a study titled “Switzerland should be attractive to the pharmaceutical industry”, he argues that new, expensive drugs should be approved faster and paid for by health insurance companies. At What Price? “Another recommendation from Avenir Suisse would be to ensure that the pricing of medicines is determined by objectively measured added value,” the study states.

This means that it is “value added”, not costs, that determines the price. Specifically: If the study paid for by the manufacturer shows that the new drug shortens the hospital stay by seven days (400 francs), then the added value will be 2,800 francs. If life is extended by two years, the added value is two years, which in the US is worth about $100,000 each. The producer demands half of this added value. For frequently prescribed medications, it is also taken into account that health insurance may still cover the costs.

Price negotiations have not yet been concluded

This is currently being tested. Pharmaceutical company Nordisk and its co-funder Obesity Alliance are pushing for health insurance companies to pay for the Wegovy liposuction injection, which has been approved by Swissmedic. It currently costs around 300 euros a month in Germany and must be taken for the rest of your life to avoid the yo-yo effect. According to Allianz Obesity, there are more than 400,000 overweight people in Switzerland, promising a market worth around 1.5 billion francs for Nordisk and an additional cost increase for health insurance companies.

Price negotiations on the issue have not been concluded yet. Nordisk and all other providers of such drugs can rely on the “expertise” of Avenir Suisse. Accordingly, “the price of a drug that saves long-term treatments should, on the one hand, reflect the value of these savings and, on the other hand, be based on the financial ‘value’ of years of life well saved.” health.” Apparently the experts at Avenir Suisse don’t even consider the fact that in a market economy the price should actually be based on the costs and not the (financial) benefits of a wealthy upper class.

Avenir Suisse represents the interests of the business world. Their arguments take into account the facts laid out before multinational corporations. The pharmaceutical industry may threaten to move business elsewhere if Switzerland is no longer attractive to them. That’s why we also need think tanks that ask fundamental questions: Couldn’t we regulate the drug or housing markets to take into account the costs (which are tied to wages) and not the benefits (which are tied to those who can afford to buy them)? What determines the price (of normal income earners)? And last but not least, the question arises whether we can combat the diseases brought by civilization by means other than increasingly expensive drugs that have no side effects whatsoever.