Many people consume and enjoy packaged food and beverages. However, the consumption of these foods leads to a greater chance of obesity. To prevent this, government may impose regulations to under allocate the negative externality caused by the packaged food. For example, the government tried to limit the size of the beverages, which contain large amounts of sugar. This was not effective as the government does not have perfect information and they were unable to choose appropriately.

In this article, the writer suggests that the industry is responsible, as it knows the consequences. Conversely, most consumers know about the negative effects of these products. They still buy the packaged food since it is simple to cook and cheap to buy. Although the demand is high and suppliers are happy to sell the products at a low price at the equilibrium price, the problem arises with health issues. Many corporations fund physical activity programs to show concerns for children’s health but it is crucial to notice that the products may not be as healthy as it seems. If the corporations focus on making their products healthier, the health issue may become less controversial.

Work Cited

Mudd, Michael. “How to Force Ethics on the Food Industry.” The New York Times. The New York Times, 16 Mar. 2013. Web. 05 Sept. 2014. <http://www.nytimes.com/2013/03/17/opinion/sunday/how-to-force-ethics-on-the-food-industry.html?pagewanted=all&_r=0>.