Kelo v. City of New London asks this very question. Prof. Bainbridge has a nice wrapup of the issue which is well worth the read. This boils down to whether your stuff is really yours. The City of New London isn't trying to take people's homes for a highway, or a bridge, or a school. They're attempting to take that land to give it to private developers... for... well... nobody is quite sure.

They say that the higher taxes that will come will be an economic benefit for the city, which is just enough reason. But if that's all it takes to say that land can be handed from one person to another... then where does it stop? Who couldn't make a case to take away your home? Who couldn't make a case to take away someone's business and give it to someone else who might make it grow faster?

And now it's getting even worse. Slashdot is pointing to this article today about a proposal to claim eminent domain rights on prescription drug patents:

That's what District of Columbia Councilman David Catania hopes will happen. Catania, a Republican who recently registered as independent after breaking with President Bush over the same-sex-marriage issue, introduced a compulsory license bill February 1. It authorizes Washington, D.C.'s mayor to declare a health emergency and, under eminent domain authority, issue a compulsory license to a generic firm to produce select patented drugs.

Under eminent domain requirements, the patented drug company would be given "just compensation" for the patent. The councilman argues that if drug companies were smart, they would "start talking about price reductions now rather than leave themselves open to a long, drawn-out due process review and hearings to determine just compensation." Such review and hearings, he warns, would expose "just how pervasive the price gouging and profiteering has been."

First of all... I don't think the authority actually exists here for this particular proposal by this person to take hold... but what if someone with real power in Congress also thought this were a good idea? Sure it seems like a great solution... now. But if your patent could just be taken away from you at a moments notice... why would you ever try to get another?

Pharmaceuticals cost untold billions of dollars to develop... that's if they make it to the market. Most drugs never do. The research and development costs are astronomical. So who is going to pay for all of that? The Canadians and Europeans sure as hell don't. They're forcing the drug companies to negotiate down to more "reasonable" prices right now. The fact of the matter is that if we didn't pay the outrageous prices... there would be nobody supporting research for the next generation of life saving drugs.

So before you wish for the same prices as the Canadians, consider this.... do you want to have advanced drugs in 10 years? The decisions we make now will determine that outcome.