BioSecure Insights: Economic Implications
Evaluating the Economic Impact of the BioSecure Act: A Critique of the Congressional Budget Office (CBO) Cost Estimate Analysis
The BioSecure Act (S. 3558) (the Act) represents a pivotal legislative effort with potential economic and strategic consequences for the U.S. biotechnology sector, particularly concerning market competition and access. This addendum to the “Policy Brief: Navigating the BioSecure Act: A Multidimensional Analysis,” (part of our BioSecure Insights series) offers a respectful critical analysis of certain economic principles, emphasizing the inherent uncertainties and broader economic ramifications as projected in the Cost Estimates released by the Congressional Budget Office (CBO) on April 17, 2024. The Cost Estimate was “ordered by the Senate Committee on Homeland Security and Governmental Affairs on March 6, 2024” during a committee meeting. This addendum employs several analytical approaches, including the use of a sample from a government contract dataset, to provide a focused analysis of potential market failures and externalities. Specifically, it examines potential disruptions in research and development (R&D) that are critical for advancements in government, society, and business sectors. For additional insights on the BioSecure Act, please refer to the Policy Brief: Navigating the BioSecure Act: A Multidimensional Analysis.
Key Insights:
Fiscal Forecast Challenge: Our analysis suggests potential underestimations by the CBO, predicting higher government expenditure than anticipated.
Call for Comprehensive Analysis: Beyond immediate fiscal impacts, the BioSecure Act’s broader economic and societal externalities (i.e., benefits of R&D), demand a more inclusive evaluation.
Data-Driven Insights: Historical parallels, like the ACA’s impact, underscore the need for empirical evidence in forecasting the BioSecure Act’s implications.
Holistic Policy Approach: Recommendations for scenario analysis and modeling of externalities aim to enhance policy decision-making for economic and national security balance.
Our commitment to delivering nuanced and comprehensive analysis ensures that each document in the series builds upon the previous and complements the Policy Brief mentioned above, thereby enriching the overall discourse. Download the full document with the link below and/or sign up for updates from our innovative Policy Monitoring System.
Author:
Aldo M. Martinez
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