Tuesday 6 September 2011

Classic case of Market Failure


According to the British Heart Foundation more than 10 per cent of six-year-olds in the United Kingdom are obese and a fifth of four-year-olds are overweight. To help reduce this problem Professor Malek, head of social sciences at the University of St Andrews, has suggested a 10 p tax on burgers that have more than a certain fat content. The aim is to reduce consumption of this type of food and encourage producers to use leaner meat.

A classic case of market failure leading to overconsumption and requiring government intervention. But is tax the best solution do you think?

http://www.telegraph.co.uk/health/1369524/Put-10p-tax-on-burgers-to-reduce-levels-of-obesity.html