Goldman Sachs thinks the opioid crisis is so bad it’s affecting the economy

http://www.cnbc.com/2017/07/06/opioid-crisis-keeping-us-from-reaching-full-employment-goldman.html

The opioid crisis has major costs for the U.S. economy, including the labor market, David Mericle, senior U.S. economist at Goldman Sachs, said in a Wednesday note.

The report is one of the first from a major Wall Street bank focused on the growing epidemic killing more than 90 Americans every day.

“The opioid epidemic is intertwined with the story of declining prime-age participation, especially for men, and this reinforces our doubts about a rebound in the participation rate,” Mericle said.

The labor force participation rate, the number of people working or actively looking for work, has fallen since the Great Recession and has stagnated near 63 percent for the last four years, according to the U.S. Bureau of Labor Statistics. This stagnation comes despite monthly jobs reports, such as the one due Friday, showing a steady pace of job creation and a decline in unemployment.

It’s a been a puzzle for economists: Why aren’t more people actively looking for work again with the job market so strong? Part of the answer may be opioid addiction, the Goldman report suggests.

If the opioid epidemic prevents the participation rate from increasing, the Federal Reserve may not be able to fulfill the full employment part of its dual mandate for achieving a strong economy.

“The economic consequences of the opioid epidemic extend beyond the labor market,” Mericle said.

“Recent studies by Birnbaum et al., Rice et al., and Florence et al. estimate sizeable costs of health care, criminal justice, and lost worker productivity,” he wrote. “The most recent study put the total cost at $78.5bn in 2013 and the crisis has grown significantly since then, implying substantial costs to both employers and the public sector.”

In May, the Fed’s Beige Book report on economic conditions also noted that several contacts said job applicants could not pass drug tests for employment, Mericle pointed out. CNBC found that other Beige Books this year did not mention that detail.

Nearly 13 percent, or 12.5 million, of Americans using prescription pain relievers misused them in 2015, he said, citing the National Survey on Drug Use and Health.

“Opioid abuse has been the main contributor to the sharp increase in the rate of drug deaths since 2000,” Mericle said, noting drug misuse is more common among men, non-Hispanic whites and those in poverty.

To be sure, the economist believes we would be wrong to assume the rise in drug use is only happening with those out of work. He pointed to a study showing prescription pain reliever abuse is only slightly more common for the unemployed than for the employed.

However, it’s clear the recession caused by the housing crisis had an effect on the drug epidemic.

“The recession likely made it worse,” Mericle notes.

https://www.rt.com/usa/396150-opioid-manufacturer-settlement-painkillers/

For the first time, the US Justice Department has reached a settlement with a major manufacturer of opioids. Mallinckrodt Pharmaceuticals will pay $35 million in a case involving the company’s highly addictive pills ending up on the black market.

The deal establishes new standards that require the company to track its drugs as they flow through the supply chain to consumers, according to the Justice Department.

“Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street,” Attorney General Jeff Sessions said in a statement.

———–

“Why aren’t more people actively looking for work again with the job market so strong? Part of the answer may be opioid addiction, the Goldman report suggests.”

everybody is stoned?

“Nearly 13 percent, or 12.5 million, of Americans using prescription pain relievers misused them in 2015, he said, citing the National Survey on Drug Use and Health.”

401

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~ by seeker401 on July 18, 2017.

14 Responses to “Goldman Sachs thinks the opioid crisis is so bad it’s affecting the economy”

  1. This is an excellent website, every bit of worth the read. No doubt in my mind that Goldman Sachs knows exactly why this problem exists, and in MY OPINION, I would bet they’ve been profiting on it as well!

    I don’t know how the people running this country, the doctors, corporations or phony activists can sleep at night with all the blood on their hands!
    It reeks of Hegelian Dialectic, for the profits of some very EVIL people and in my OPINION, deliberate population control / Murder!

    Death By Fentanyl

    THE LUCRATIVE LIFESAVER (Naloxone aka NARCAN)
    Politicians like Hillary and Obama are promoting a wonder drug
    to save opiate addicts from deadly overdoses. It’s rising cost is
    enriching some of the same prescription drugmakers who produce
    the addictive opiates in the first place.

    http://interactive.fusion.net/death-by-fentanyl/the-lucrative-lifesaver.html

    Fentanyl is 50 times stronger than heroin. It’s so potent that an amount the size of three grains of sugar is lethal to an adult. First synthesized in the 1960s by Janssen Pharmaceuticals, fentanyl was initially used as a general anesthetic during surgery. Its only acceptable, “on-label” use is for reduction of severe pain in cancer-sufferers.

    Today, the drug has two main sources: the prescription drug industry, and Mexican drug cartels.

    In our new documentary, “Death by Fentanyl,” we investigate the rise of fentanyl in all its forms, and we examine how one of the deadliest drug epidemics in American history just got worse.

    Today, SOME STUDIES ESTIMATE that as many as 80 percent of new needle-heroin addicts used opioid prescription pain medicine first.

    In our investigation, we found multiple fentanyl companies have facing investigations and indictments for allegedly driving doctors and patients to prescribe the drug “off-label,” for reasons other than its approved use. Fentanyl companies have also gotten in trouble for paying kickbacks to doctors to get them to prescribe more of their potent drugs.

    One whistleblower at a pharmaceutical company called INSYS Therapeutics told Fusion that she was encouraged to mislead insurance companies to get their fentanyl drug, Subsys, covered.

    “It’s real simple: It’s only FDA approved for cancer patients with breakthrough cancer pain. If you don’t have cancer, and breakthrough cancer pain, no insurance company is going to pay for this medication,” whistleblower Patty Nixon told us.

    But most — 90 percent — of the patients referred to Nixon and her colleagues for Subsys sales were cancer-free, she said. “When 10 percent of the patients’ charts that came over or less were cancer patients, that’s not a lot of money. Nobody’s going to get rich off of that,” she said.

    “But you have this whole other world of everybody. That ‘my back hurts’ money, ‘my knee hurts’ money,” said Nixon. The solution, she said, was for company reps to tell insurance companies that patients had cancer when they did not.

    According to more than a dozen INSYS employees Fusion spoke with, the company has pushed doctors to prescribe their drugs off-label for patients and HAS EVEN PAID KICKBACKS TO MEDICAL PROFESSIONALS to get them to prescribe more. The company has faced investigations in six states, and settled for $1.1 million without admitting wrongdoing in a case in Oregon.

    Only 2.4 percent of all Subsys prescribed to patients from 2012 to 2015 was prescribed by cancer doctors, Fusion has learned from medical data firm Symphony Health.

    • Fentanyl is 50 times stronger than heroin. It’s so potent that an amount the size of three grains of sugar is lethal to an adult. First synthesized in the 1960s by Janssen Pharmaceuticals, fentanyl was initially used as a general anesthetic during surgery. Its only acceptable, “on-label” use is for reduction of severe pain in cancer-sufferers.

  2. In January 2015, shortly before Hillary Clinton left its board of directors to run for president, the Clinton Foundation announced a major agreement with Kaléo Pharma, producers of the highly popular Evzio naloxone injector kit.

    Kaléo agreed to offer Evzio kits at a discount to colleges and emergency responders — what former President Bill Clinton called “a more predictable and affordable pricing arrangement.”

    The subsidized costs were not disclosed; Evzio, which was approved by the FDA in 2014, CAN COST ABOUT $400 A DOSE, far more than some single-use naloxone products. (The Evzio dispenser contains two doses and typically retails for $800.) Vice HAS CALLED IT A “GOLDEN GOOSE” for Kaléo.

    A Clinton Foundation representative declined to specify the price that the organization and Kaléo negotiated for Evzio, but said that it was in ongoing talks “with multiple pharmaceutical companies” that produce naloxone.

    When asked about Evzio’s high cost, Kaléo spokesperson Mark Herzog told Fusion that “three out of four insured Americans” are covered for Evzio and that the median out of pocket cost for a box of two auto-injectors is $20. He also cited the donations the company has made to more than 200 organizations, including police and fire departments.

    http://interactive.fusion.net/death-by-fentanyl/the-lucrative-lifesaver.html

  3. LONG ISLAND

    Schools, on Guard Against Deadly Opioids, Stock Naloxone
    Updated July 4, 2017

    http://www.newsday.com/long-island/education/schools-on-guard-against-deadly-opioids-stock-naloxone-1.13780488

  4. Companies Aiming for the Billion-Dollar Opioid Addiction Market
    The global opioid market is expected to reach $42.16 billion by 2021

    https://www.gurufocus.com/news/493086/companies-aiming-for-the-billiondollar-opioid-addiction-market

  5. Pharma Company Linked to Ohio Senator Benefits from Opioid Addiction and Treatment

    Mar 21, 2017
    snip
    Senator Rob Portman in a phone interview with News 5. To combat this epidemic, emergency crews have their own drug of choice, Naloxone. It’s what crews used to bring Alison Allen back to life after a near-fatal overdose. “My son found me, started CPR, called paramedics. I was dead for 5 minutes, they brought me around with Narcan,” said Allen.

    A drug so effective, Senator Portman ensured every first responder in the U.S. Carried it, expanding access through the Comprehensive Addiction and Recovery Act (CARA) he co-authored. “Because they are saving lives every day,” said Portman.

    An antidote to a deadly epidemic experts say was fueled by pharmaceutical companies, the same companies, that have donated heavily to Ohio lawmakers, including Senator Portman.

    “I never vote or act based on contributions received and in this business you get contributions from lots of different groups,” said Portman. According to the Associated Press, Portman was a top recipient collecting over $200,000 in six years. One of those companies Pfizer Inc. Also contributed to his most recent campaign. “I don’t even know what drugs Pfizer makes I assume they make a lot of drugs including drugs that are very helpful for disease in Ohio.”

    That is true because besides the opioid painkillers Pfizer is most notable for, it has also recently begun producing Naloxone by acquiring the leading seller of the reversal drug.
    http://www.news5cleveland.com/news/local-news/oh-cuyahoga/pharma-company-linked-to-ohio-senator-benefits-from-opioid-addiction-and-treatment

  6. Big Pharma NarCAN’T Stop Exploiting The Opioid Crisis

    http://vergecampus.com/2016/08/big-pharma-narcan-stop-exploiting-opioid-crisis/

  7. Big Pharma Spent Nearly $1 Billion Lobbying Government to Push Opiates — and It Worked

    http://theantimedia.org/big-pharma-billion-lobbying-government/

  8. 05.09.16
    How One City Is Working To Get An Overdose Antidote In Every Home

    To combat its heroin and prescription drug epidemic, the city of Baltimore is trying to make sure everyone has access to naloxone, a drug that instantly stops overdoses.

    https://www.fastcompany.com/3059609/how-one-city-is-working-to-get-an-overdose-antidote-in-every-home

  9. Largest Health Care Fraud Enforcement Action in United States History

    On July 13, 2013, Attorney General Jeff Sessions and the Department of Health and Human Services announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants (including doctors, nurses, and other licensed medical professional) for alleged health care fraud schemes.

    Of the 412 defendants, over 120 of those were charged for their roles in prescribing and distributing opioids and other controlled substances.

    http://www.newbridgefoundation.org/category/government/

  10. Intriguedbyr,

    Very interesting, all your comments to this article. Also, thanks for giving a summary of the articles you linked. I am not always able to read the articles and it helps to get a summary so I can follow along and be informed still.

    • You’re quite welcome adirondack.

      I can honestly say we are living in some of the most evil times in history that man’s greed has no boundaries and lives are disposable for the profit of some. So many young people dying in our state alone from this lacing of fentanyl into street drugs. 😦

  11. Trump: Opioid ‘national shame’ a public health emergency

    http://www.bbc.com/news/world-us-canada-41756705

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