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Economic Commentary Section 3: Macroeconomics - Essay Example

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Ever since the link between fatty foods and health problems like cholesterol, high blood pressure, cardiac troubles, diabetics etc have been established, the call for reduction in fat food usage is on the air, but with not much success. People are not much concerned with the…
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Economic Commentary Section 3: Macroeconomics
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Economic Commentary Section 3: Macroeconomics

Download file to see previous pages... Sugary and fatty foods are the major culprits of the current increasing health problems of the public. Because of taste preferences, people are blindly selecting such food items, not much concerned about the threats involved in the over usage of such food items. Oxford university researchers have believe that an increase in value added tax rates to 17.5% on fatty food items may reduce the demand for such foods. But governments often hesitant in increasing the tax rates on food items because of the wide influence of such policies may have on the common public. Food is a basic need every human being required for their survival and the selection of food items is basically a human right issue. So any restrictions imposed on food habits may raise mixed reactions in the society and governments don’t want that. At the same time as a health issue governments cannot stay away from protecting their citizens also. For example, tobacco products are another health hazardous material which needs to be controlled and the governments has imposed heavy tax rates and statutory warning signals (“Smoking is injurious to health”) on every tobacco product advertisements. Same way fatty and sugary food items also should be controlled by increasing the VAT and of possible putting some warning signals on the advertisements of such food items.
Every year around 3200 people are losing their lives in Britain because of the health problems associated with fatty and sugary foods. Soft drinks, health drinks and fatty food items are common things an average person includes in his food habits. So any rise in prices of such food items may adversely affect the budget of the common public which may create agitations.
“Food safety regulations and the perception of risk are different among countries. This can lead to persistent trade frictions and even reduce food trade. These differences may also lead to increased dialogue ...Download file to see next pagesRead More
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