Steven Shergill’s blog on Denmark’s implementation of the fat tax really opened my eyes to a creative, innovative way the government can control the behaviors of its citizens while at the same time generating much needed revenue.
Some declare that the fat tax won’t affect the purchase of fatty foods, but economics begs to differ.
While the hypothesis that individuals who crave cake will buy said item at a slightly increased costs is some what true, the opportunity cost of eating cake has now increase and therefore people will substitute away from these goods into a cheaper alternative.
Personally, I agree with Steven’s recommendation of Americans adopting this tax. About 33.8% of Americans adults and 17% of children are obese. With the financial debt that America’s incurred, it could help the nation’s rate of debt recovery by implementing “fat taxes.”
The American government also has the option to help end obesity by subsidizing healthier food options. While this would inhibit any kind of debt recovery, it gives the government a way to tackle a legitimate social issue that is plaguing America.
This tax could make a healthier and richer America.