Obesity is one of the most important problems in the modern world nowadays. While it is true that tackling this problem without the official authorities involved in this issue is of a great importance, raising taxes on the processed products is not necessary to solve the problem of bad eating habits. In my view, increasing the taxes on the fast food products is not only going to help fighting obesity, but also could trigger the rise in the popularity of this industry.
First of all, growing taxes will, indeed, bring hike in prices in this sector. But it does not mean that the eating habits of the majority of the hamburger lovers would significantly change. While increased taxes will affect rise in the final prices for the customers, they will also contribute to the higher rate of inflation as this specific increase will drive up the prices for food in general. Hence, the ration of the junk-food cost in the customers' basket will remain unchanged in the relative terms. For example, then increase in prices for the most popular combos in MacDonald’s has triggered a symmetric increase in the CPI in the USA in 2006.
Secondly, higher tax in any sector and a consequential rise in the general prices have very little effect on the eating habits of people. The 2001 survey of the WFO has shown incredible stickiness of the various eating habits across the world towards the cuisine people get accustomed to. In general, people continued to consume something they used to regardless the cost.
In conclusion, increasing tax junk products will have not only little effect on the growing rate of obesity, but could also trigger additional problems for the population. Nevertheless, the role of the government should not be under-estimated; the authorities should focus on finding other non-tax measures in order to find a solution to this evident problem.
Obesity is one of the most
important
problems
in the modern world nowadays. While it is true that tackling this
problem
without the official authorities involved in this issue is of a great importance, raising
taxes
on the processed products is not necessary to solve the
problem
of
bad
eating
habits
. In my view, increasing the
taxes
on the
fast
food products is not
only
going to
help
fighting obesity,
but
also
could trigger the rise in the popularity of this industry.
First of all
, growing
taxes
will,
indeed
, bring hike in
prices
in this sector.
But
it does not mean that the
eating
habits
of the majority of the hamburger lovers would
significantly
change
. While increased
taxes
will affect rise in the final
prices
for the customers, they will
also
contribute to the higher rate of inflation as this specific increase will drive up the
prices
for food
in general
.
Hence
, the ration of the junk-food cost in the customers' basket will remain unchanged in the relative terms.
For example
, then increase in
prices
for the most popular combos in MacDonald’s has triggered a symmetric increase in the CPI in the USA in 2006.
Secondly
, higher
tax
in any sector and a consequential rise in the general
prices
have
very
little
effect on the
eating
habits
of
people
. The 2001 survey of the
WFO
has shown incredible stickiness of the various
eating
habits
across the world towards the cuisine
people
get
accustomed to.
In general
,
people
continued to consume something they
used
to regardless the cost.
In conclusion
, increasing
tax
junk products will have not
only
little
effect on the growing rate of obesity,
but
could
also
trigger additional
problems
for the population.
Nevertheless
, the role of the
government
should not be under-estimated; the authorities should focus on finding other non-tax measures in order to find a solution to this evident
problem
.