
This is particularly underappreciated in the research done on these drugs, because a double-blind study isn't actually double-blind if many of the participants can easily tell whether they're in the placebo group due to very noticeable side effects.
It's been mentioned in other comments, but I really recommend the work of Irving Kirsch on this; he's a brilliant scientist and his book The Emperor's New Drugs is a real eye-opener.
The book goes beyond statistics and draws attention to "clinical significance" that is crucial to keep in mind when evaluating drugs. Statistical significance helps to inform whether a metric has changed; clinical significance tells whether it actually mattered from a patient's perspective.
In Irvin Kirsch's book The Emperor's New Drugs he goes over this at length.
http://www.cdc.gov/nchs/data/hus/hus11.pdf - Health, United States, 2011
http://wps.pearsoneducation.nl/wps/media/objects/13902/14236... - To Err Is Human
- http://jama.jamanetwork.com/article.aspx?articleid=192842 - JAMA: Institute of Medicine Medical Error Figures Are Not Exaggerated (Context for To Err Is Human)
- http://jama.jamanetwork.com/article.aspx?articleid=192908#RE... - JAMA: Is US Health Really the Best in the World? (More context for To Err Is Human)
http://www.innovationlabs.com/summit/summit3/readings/Schust... - How good is the quality of health care in the United States?
http://www.commonwealthfund.org/~/media/Files/Publications/F... - Why Not The Best (Commonwealth Fund)
http://www.nap.edu/openbook.php?isbn=0309091179 - Health Literacy: A Prescription To End Confusion (IOM)
http://books.nap.edu/openbook.php?record_id=6121 - IOM Workshop: Antiomicrobrial Resistance - Issues and Options
Books:
Anatomy of an Epidemic (Mental health)
The Emperor's New Drugs (Mental health)
Crazy Like Us (Mental health)
The Truth About Drug Companies (Pharma)
Overdosed America (Pharma)
Health Behavior Change and Treatment Adherence: Evidence-based Guidelines for Improving Healthcare (Medical adherence)
This list doesn't do a great job of covering certain niche problems like current issues in drug discovery or electronic records, but I think it provides enough context to understand whatever issues aren't covered directly. One of the quirks about medicine is that a lot of the data we have on even the most important issues (e.g. antibiotic resistance) is either 10+ years old or else woefully incomplete, which is extremely unfortunate but on the plus side it makes it actually fairly easy to learn about what would otherwise be way too complicated for anyone not in the industry to understand.
Also, that skepdic link is severely flawed. There isn't one placebo effect, but rather a series of placebo effects. There isn't any reason to think that using a sugar pill to treat pain would have roughly the same efficacy as using gardening to treat heart disease, which is what the skepdic article basically claims.
Because maybe he assumes you aren't too stupid to do a simple Google search. Both Emperor's New Drugs and Anatomy of an Epidemic are extraordinarily well written, it's well worth reading both, and there are all sorts of other good books on mental illness as well.
This is exactly why HN has become like idiocracy, where anyone who takes the time to become well educated about something before speaking is basically called a faggot for reading books.