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Tag Archives: regulatory policy

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To fight obesity, do you support government funded weight loss education? Soda taxes? Mandatory menu calorie counts? Banned bake sales?

A recent Intelligence Squared debate provided several answers. The evening focused on the proposition,  ”Obesity is the Government’s Business.”  Opposed were libertarian journalist John Stossel and The Obesity Myth author, Paul Campos. On the pro side were former U.S. surgeon general, Dr. David Satcher and a Pew Foundation scholar on nutrition and metabolism, Dr. Pamela Peeke.

Even before the introductions were complete, Stossel compared prohibition to proactive obesity policy saying, “They mean well but they do more harm than good.” During the evening, he and Campos emphasized 5 points:

  1. When it tries to regulate private behavior, government is overextending its power.
  2. A more effective incentive, privatized health care would force people to bear the cost of unhealthy behavior.
  3. There is no clear dividing line between healthy and unhealthy food.
  4. We might be demonstrating prejudice about body size.
  5. Science has not definitively proved the correlation between between obesity and higher mortality rates.

 

On the pro side, after starting with a story about policy makers, Dr. Satcher shared a plethora of statistics that included burgeoning obesity rates, diminished exercise and diabetes, hypertension in children and adults. The basics of the pro position included 6 ideas:

  1. “Obesity is an epidemic.”
  2. Obesity creates increased risk for cancer, heart disease and diabetes.
  3.  Obesity adds substantially to our national health costs.
  4. It is government’s responsibility to fund the fight against obesity.
  5. It is government’s responsibility to diminish the availability of unhealthy foods.
  6. When we diminish the consumption of unhealthy foods with taxes and less advertising, long-term health care costs drop.

 

You can watch the debate here.

An Economic Lesson

Economically defining cost as sacrifice, whenever government helps one group, others and/or the same people experience a cost. More spent for controlling obesity means we sacrifice more spending in other areas. Or, it means we sacrifice lower taxes. Or, we sacrifice individual freedom. But, we enjoy the potential benefits of controlling obesity when the initiatives are successful.

An Economic Question: Referring to the points cited by the pro and con sides of  ”Obesity is the Government’s Business,” defend the side you support.

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Most of the corn flakes that we eat in the U.S. are illegal in Denmark because they have vitamin supplements. Consequently, the NY Times tells us that large food companies like Kellogg’s and small stores stocking Marmite, have to undergo an expensive and time consuming approval process if they want to sell a food with added vitamins and minerals.

Why do the Danes disapprove of supplements? Because they believe their diets are sufficiently healthy.

As economists, Danish vitamin regulation takes us to the role of government. Should government be able to tell Kellogg’s that they cannot sell corn flakes with Vitamin D?

Or, in the U.S., knowing that we have an obesity epidemic, should government tax unhealthy food? Especially because unhealthy calories are cheaper than the good ones, maybe a McDouble should be taxed. One academic study indicates that a tax on less healthy food discourages people from buying it. By contrast, making healthy food cheaper did not have the same beneficial impact.

The Economic Lesson

Concerned that government could not possibly know what is best for each of us, economic philosopher Adam Smith (1723-1790) suggested that a “just” society required less government involvement. By contrast, contemporary Nobel laureate Paul Krugman believes that more government leads to a better world.

An Economic Question: Citing cost and benefit, explain why you approve or disapprove of Denmark’s ban on vitamin supplements.

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Commenting on yesterday

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The September 26th Daily Notes link is an article in the National Journal Magazine by Jonathan Rauch that describes what it would be like to book a flight if traveling resembled health care. Yes, just like health care, lack of computerized records, discriminatory pricing, and service are problems this imaginary flier experiences. But where are the incentives that would diminish these problems? They are not apparent in any proposed legislation.

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