Should the Government intervene in the Market System?

New-York-soda-ban-exampleIn 2012, a proposal to ban +16 ounces soda drinks (a beverage linked to obesity) created a global debate. According to the article, the Court has finally rejected the proposal, and I think that this has been a fair decision. In my opinion, Government intervention is very important in those types of issues, but the banning of soda drinks would have been an extreme action.

The role of the Government is indeed to work towards a better society by investing into schemes such as reducing the level of obesity in America. In those cases, the Government should have a say in the pricing and distribution of soda drinks. It is true that unhealthy lifestyles are becoming increasingly common, which results to more government spending on health care.

Therefore, a more effective suggestion to the Government would be to reconsider the price of sodas (by setting a higher price floor or increasing taxes imposed on sodas) that will discourage consumption.

To conclude, I believe that it is partly the job of the Government to impose fair regulations that will benefit the economy, the firms, and each and every individual, but the impact on all stakeholders should be considered.Color-NYC-soda-ban

big-gulp-cartoon

What if your soda drink became illegal?

 

 

 

 

 

 

Image sources:
http://htekidsnews.com/soda-ban-in-nyc/
http://www.ahshistory.com/2013/11/13/it-should-be-illegal-to-sell-fountain-soda-cups-in-excess-of-16-ounces-in-stores-and-restaurants/
http://www.fitnessmash.com/2012/06/will-the-soda-ban-work/

 

Leave a Reply

Your email address will not be published. Required fields are marked *