Economics of Obesity

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The true “costs” of food

The marketing intelligence of the fast food industry is something that cannot be disputed. McDonald’s were the first to introduce the inexpensive menu choices in their “Dollar Value Menu” in which consumers are provided extremely inexpensive alternatives that are “easy on the wallet and great on taste” with many options that cost only $1. Where at one point the prices of the fast food meal was going up on a constant basis the new trend is to see how many items that can be compiled on the discount menu. Many of these items were at one point were unheard of being at such a low cost. A hamburger at the price point of a dollar seemed at one point preposterous.

“Widespread introduction of the process [of irradiating foods] has thus far been impeded, however, by a reluctance among consumers to eat things that have been exposed to radiation. According to current USDA regulations, irradiated meat must be identified with a special label and with a radura (the internationally recognized symbol of radiation). The Beef Industry Food Safety Council - whose members include the meatpacking and fast food giants - has asked the USDA to change its rules and make the labeling of irradiated meat completely voluntary. The meatpacking industry is also working hard to get rid of the word 'irradiation, much preferring the phrase 'cold pasteurization.'...From a purely scientific point of view, irradiation may be safe and effective. But he [a slaughterhouse engineer] is concerned about the introduction of highly complex electromagnetic and nuclear technology into slaughterhouses with a largely illiterate, non-English-speaking workforce.” (Schlosser, 2001)

These are all ideals that fit into today’s lifestyle. We live in a society which celebrates that people get things fast and for the least amount of money. But what is actually being saved in the long run when these foods are abused and the addictions to this poor nutritionally made foods are consumed on a regular basis?

For many the diet of fast food is both a convenience and a necessity. With many working long hours and living paycheck to paycheck, it’s often these inexpensive foods that provide “sustenance” to American’s active lifestyles. But with the result of obesity one must consider the long term costs. “The truth is that the "value" and "low prices" of cheap food that we see at the cash register, are not the whole story. We are paying today in our health and our taxes and our children will be paying tomorrow with a degraded environment, dirty water, decimated communities and jobs, and denigrated health.” (Gustafson 2013)

Because of Americans obsession with consumption animals are being produced and slaughtered at an alarming rate. Animals are power fed and through acres of corn fields that are being pumped with pesticides as well as being poor stewards of the fields through soil erosion and waste runoffs which effect the environment as a whole. “Examples of costs not currently factored into our food supply include the environmental outcomes of chemically-intensive and petroleum-intensive agriculture, costs for soil erosion, real water and irrigation costs, pesticide and waste runoff that creates dead zones in our waterways (like the "New Jersey-sized dead zone in the Gulf of Mexico" that stems from nitrogen runoff from our Corn Belt) and then affects the livelihoods of fishermen and shrimp farmers in the Gulf region.” (Gustafson 2013)

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(Thompson, 2010)

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Conclusion

It is clear that there is a direct correlation between the amount of dollars that are spent on fast food and obesity. “In 1970, Americans spent about $6 billion on fast food; in 2000, they spent more than $110 billion. Americans now spend more money on fast food than on higher education, personal computers, computer software, or new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos, and recorded music—combined.” (Schlosser, 2001) This is a staggering trend that leave many with the feeling that fast food has “won the battle” and now there isn’t much hope. With greater exposure however I believe there is a chance that American’s will see the direct correlation with the food they consume and their overall health and wellness. This “convenience” has turned our nation into a much less healthy country and far productive. This has a great potential to affect our economy and its structure should we not take strides to make better choices in our food choices in the years to come.

References

Cawley, J. (2013). NBER Reporter 2013 Number 4: Research Summary. Retrieved from http://nber.org/reporter/2013number4/cawley.html

Coy, P. (2014, January). Thirteen Facts About the Economics of Obesity - Businessweek. Retrieved from http://www.bloomberg.com/bw/articles/2014-01-13/13-facts-about-the-economics-of-obesity

Gufstason, E. (2013). True Costs of So-called Cheap Food. Retrieved from http://www.huffingtonpost.com/ellen-gustafson/true-costs-of-so-called-cheap-food_b_4337423.html

Schlosser, E. (2001). Fast food nation: The dark side of the all-American meal. Boston: Houghton Mifflin.

Thompson, D. (2010). [Graph]. Retrieved