Moore’s Law is optimistic and reflects the ability of humans to “chip” away at a problem, making sequential, cumulative advances. Much of technology fits this pattern. One glaring exception, tragically, is the drug development conducted by pharmaceutical companies. It is hugely expensive and has gotten more so each year. If costs continue to grow at 7.5 percent per year, real costs will more than double every 10 years. The pharmaceutical industry seems to be operating under a reverse-Moore’s Law. I call it Hooper’s Law. Here’s the short version: Drug development costs double every decade. Why? Simple: the U.S. Food and Drug Administration is steadily increasing the cost per clinical trial participant and the number of required participants per clinical trial.

This is from Charles L. Hooper, “Hooper’s Law of Drug Development,” one of the two Econlib Feature Articles for August.

In the piece, Charley explains why this has happened.