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Tag Archives: soda taxes

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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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In “the soda wars,” who is fighting whom? Past news articles refer to state legislative attempts to tax sugary soft drinks. Now, a NY Times article focuses on how New York City is trying to bar use of food stamps for sugary soft drinks. The Department of Agriculture, as the agency that oversee NYC’s food stamp program, will make the decision.

On one side is the city saying it is fighting obesity. Their ammunition? “…nearly 40% of public-school children in kindergarten thorugh 8th grade were overweight or obese,…and…obestity rates were substantially higher in poor neighborhoods.” With the ban, poorer familieis “…would have as much, if not more, to spend on nutritious food.” 

Disagreeing with the ban, a spokeman for the oppostion cites concern about stimatizing people on food stamps. Yes, he says, we do want to diminish sugary drink purchases but let’s use education. An industry spokewoman said, “This is just another attempt by government to tell New Yorkers what they should eat and drink.”

The Economic Lesson

Wearing economic lenses, we are seeing a classic opportunity cost battle. The (short term) benefit of enjoying soft drinks is experienced by the purchaser and soft drink manufacturers. The cost, though is borne by the tax payer twice: 1) once when the drink is purchased with public funding 2) and then again when obesity related illnesses are paid for by publically funded health care.

I expect opportunity cost battles to multiply as society pays for additional benefits. If we pay for more, do we have the right to control behavior more also?

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