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Economic Prohibition or Sound Health Policy?

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  • Economic Prohibition or Sound Health Policy?

    LONDON (Reuters) - Increasing the minimum price of alcohol by 10 percent can lead to immediate and significant drops in drink-related deaths and may also have long-term beneficial health effects, according to a study published on Thursday.

    Canadian researchers found that deaths caused by alcohol between 2002 and 2009 in the western province of British Columbia dropped when the minimum alcohol price was increased, while alcohol-related deaths rose when more private alcohol stores were opened.

    The findings will be keenly scrutinized by alcohol policy makers, particularly in Britain where the government plans to introduce a minimum price on alcohol to try to clamp down on binge drinking and anti-social behavior. The United States does not currently set a minimum alcohol price.

    "This study adds to the scientific evidence that, despite popular opinion to the contrary, even the heaviest drinkers reduce their consumption when minimum alcohol prices increase," said Tim Stockwell of the University of Victoria's Center for Addictions Research of British Columbia, who led the study.

    John Holmes of the alcohol research group at Britain's University of Sheffield said Stockwell's study was a major contribution to evidence about minimum alcohol pricing and gave a "strong indication that the policy has reduced the consumption levels of those drinking at hazardous and harmful levels."

    Stockwell's team, whose research was published in the journal Addiction, looked at three categories of death linked to alcohol - wholly alcohol attributable, acute, and chronic - analyzing death rates across the time period against increases in government-set minimum prices of alcohol drinks.

    The study was complicated by another policy in British Columbia under which alcohol sales were partially privatized after having previous been controlled through government-owned stores. This led to a substantial rise in the availability of alcohol.

    Stockwell said the major finding was that increased minimum alcohol prices were associated with immediate, substantial and significant reductions in wholly alcohol attributable deaths, with a 10 price rise followed by a 32 percent death rate drop.

    Significant falls in chronic and total alcohol associated deaths were also detected between two and three years after minimum price increases.

    At the same time, a 10 percent increase in the number of private liquor stores was associated with a two percent rise in acute, chronic, and total alcohol associated death rates.

    Stockwell said the reason for the lower death rates were likely to be due to the fact that raising the price of cheaper drinks makes heavy drinkers drink less.

    Earlier research conducted by the same team and published in January last year found that each 10 percent increase in the minimum price of alcohol led people to drink 3.4 percent less alcohol overall.


    At what point does this type policy provide diminishing returns?
    "I am sick and tired of people who say that if you debate and you disagree with this administration somehow you're not patriotic. We should stand up and say we are Americans and we have a right to debate and disagree with any administration." - Hillary Clinton, 2003

  • #2
    Drunks don't make as good of thieves as crack addicts. At least I don't think so.
    I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
    - Justice Brett Kavanaugh

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    • #3
      Probably when the tax gets so high that it is much much cheaper to make your own or get it on the black market.

      In most of the US/Canada and parts of Europe/Asia, people would far rather pay a tax than do the hassle of being illegal/etc.

      JM
      Jon Miller-
      I AM.CANADIAN
      GENERATION 35: The first time you see this, copy it into your sig on any forum and add 1 to the generation. Social experiment.

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      • #4
        This is why I like the idea of legalize and tax for weed, and if it is successful, extending it to other drugs.

        Probably Alcohol (and maybe Tabacco, although in the US the state taxes on this are already high enough to transport it from neighboring states) should have an increased tax too.

        The way that Sweden taxes alcohol (alcohol percentage) is a good way to tax the negative externalities.

        Based on what I have seen for prices of alcohol in the US, a good tax on alcohol would be:

        $10*percentage of alcohol (per 750 ml for liquor, per 350 ml for beer, per 750 ml for wine) + sales tax

        JM
        Last edited by Jon Miller; February 8, 2013, 14:12.
        Jon Miller-
        I AM.CANADIAN
        GENERATION 35: The first time you see this, copy it into your sig on any forum and add 1 to the generation. Social experiment.

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        • #5
          Diminishing returns depend on the price elasticity of demand, and the potential secondary market [ie, black market].

          I would assume the folks doing that study worked that stuff out better than anyone here would be able to calculate off the top of their head, though who knows, we have some smart folks here with time on their hands...
          <Reverend> IRC is just multiplayer notepad.
          I like your SNOOPY POSTER! - While you Wait quote.

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          • #6
            Frankly, it is stupid and deters increases in production efficiency. Makers should set the price according to supply and demand and if the government wants to increase the cost of alcohol then they should simply slap a sin tax on it but demanding that stores not sell below a certain price is just lazy. That's just so the politicians can claim they didn't increase taxes even though they drove prices up.
            Try http://wordforge.net/index.php for discussion and debate.

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            • #7
              The tax should scale by how drunk you are. (logistics be damned )

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              • #8
                Breathalizer tax.
                When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."

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                • #9
                  Eh.. All you have to do is make sure you buy enough alcohol before you start drinking to avoid the tax.
                  I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                  - Justice Brett Kavanaugh

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                  • #10
                    I feel like it would be tremendously beneficial to put alcohol out of the price range of college students.

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                    • #11
                      Originally posted by Kidicious View Post
                      Eh.. All you have to do is make sure you buy enough alcohol before you start drinking to avoid the tax.
                      This is as intended. People who are able to plan ahead in that manner are also much more likely to plan ahead in other regards ... such as to have health insurance and a designated driver. We don't want to be taxing these fine upstanding drunks

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                      • #12
                        Originally posted by PLATO View Post
                        http://news.yahoo.com/sharp-drop-dri...4--sector.html

                        At what point does this type policy provide diminishing returns?
                        Basically the aim is to stop binge drinking, and one of the methods is to remove the 50p can of lager offers that you can find in stores. When you can buy a can of lager for less than a soft drink then problems occur. FWIW though, it would be helpful if every drink sold didn't do some sort of damage to your health.
                        You just wasted six ... no, seven ... seconds of your life reading this sentence.

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                        • #13
                          liar.
                          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                          - Justice Brett Kavanaugh

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                          • #14
                            Originally posted by regexcellent View Post
                            I feel like it would be tremendously beneficial to put alcohol out of the price range of college students.
                            Bah. If you don't want it then don't drink it. It's as simple as that.
                            Try http://wordforge.net/index.php for discussion and debate.

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                            • #15
                              Originally posted by PLATO View Post

                              At what point does this type policy provide diminishing returns?
                              When the high price of booze motivates a bunch of slapdick drunks enough to make their own bathtub 'shine.
                              To us, it is the BEAST.

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