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The Economics and Politics of Obesity

That was the title of a talk I gave last week at the University of Alabama-Birmingham in the seminar series run by the Nutrition Obesity Research Center.  I talked about emerging trends associated with obesity (some of which defy popular narratives), the government's role in "combating" obesity, reasons why I find justifications for government action in this area less compelling than many public health professionals, evidence from empirical research on effectiveness of policies designed to "fix" the obesity problem, and finally I concluded with my thoughts on what caused the rise in obesity and what "we" should do about it.  

If you'd like to watch my talk (which runs about 50 minutes), click here.  

Can Behavioral Economics Combat Obesity?

Obesity is a serious health problem. This article demonstrates that using behavioral economics to guide regulations is both misguided and can be counterproductive to obese and nonobese citizens alike.

That's the conclusion of an article in Regulation by Michael Marlow and Sherzod Abdukadirov.  I have a whole chapter in the Food Police on precisely this topic.

What Constitutes a Despotic Government?

What is the worst kind of despotism that can arise from a demographic government?  George Will has some interesting thoughts on these questions in a thought-provoking speech he gave last month (here are Peggy Noonan's thoughts on the speech).  In the talk, Will quotes Tocqueville, and in the process sums up a lot of what I think is wrong with the thinking of the food police (it also reminds me a bit of Jonah Goldberg's Liberal  Fascism).  

Here is Tocqueville in Democracy in America (published in French in 1835):

It would seem that if despotism were to be established among the democratic nations of our days, it might assume a different character; it would be more extensive and more mild; it would degrade men without tormenting them.

It won't be like the old tyrannies:

I think, then, that the species of oppression by which democratic nations are menaced is unlike anything that ever before existed in the world; our contemporaries will find no prototype of it in their memories. I seek in vain for an expression that will accurately convey the whole of the idea I have formed of it; the old words despotism and tyranny are inappropriate: the thing itself is new, and since I cannot name, I must attempt to define it.

Here is the new despotism:

Above this race of men stands an immense and tutelary power, which takes upon itself alone to secure their gratifications and to watch over their fate. That power is absolute, minute, regular, provident, and mild. It would be like the authority of a parent if, like that authority, its object was to prepare men for manhood; but it seeks, on the contrary, to keep them in perpetual childhood: it is well content that the people should rejoice, provided they think of nothing but rejoicing. For their happiness such a government willingly labors, but it chooses to be the sole agent and the only arbiter of that happiness; it provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principal concerns, directs their industry, regulates the descent of property, and subdivides their inheritances: what remains, but to spare them all the care of thinking and all the trouble of living?
Thus it every day renders the exercise of the free agency of man less useful and less frequent; it circumscribes the will within a narrower range and gradually robs a man of all the uses of himself. The principle of equality has prepared men for these things;it has predisposed men to endure them and often to look on them as benefits.
After having thus successively taken each member of the community in its powerful grasp and fashioned him at will, the supreme power then extends its arm over the whole community. It covers the surface of society with a network of small complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided; men are seldom forced by it to act, but they are constantly restrained from acting. Such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to nothing better than a flock of timid and industrious animals, of which the government is the shepherd.

The next time you hear that the government should nudge us toward making better decisions, remember Tocqueville's warning of a government that doesn't shatter your will but rather one in which your will is "softened, bent, and guided."  What are we to make of a government that perceives its citizens as needing a shepherd?  It must be one that thinks of its citizens as sheep.  

Who Will be the Paternalist for the Paternalists?

With lawmakers seemingly still struggling to come up with solutions to the fiscal cliff dilemma (now only a day away from the cliff), I am reminded of this paper I ran across a while back by Niclas Berggren in the Review of Austrian Economics.  Here is the abstract:

This study analyzes leading research in behavioral economics to see whether it contains advocacy of paternalism and whether it addresses the potential cognitive limitations and biases of the policymakers who are going to implement paternalist policies. The findings reveal that 20.7% of the studied articles in behavioral economics propose paternalist policy action and that 95.5% of these do not contain any analysis of the cognitive ability of policymakers. This suggests that behavioral political economy, in which the analytical tools of behavioral economics are applied to political decision-makers as well, would offer a useful extension of the research program. Such an extension could be related to the concept of robust political economy, according to which the case for paternalism should be subjected to “worst-case” assumptions, such as policymakers being less than fully rational.

That is precisely the problem with much of the behavioral economics research which advocates for policy action.  This research typically finds people are not perfectly rational and then the researchers make a logical deduction that a paternalistic policy can make "irrational" people better off.  But the vast majority of these studies never actually test how the people (for whom paternalism is supposedly needed) will respond to the choices or nudges made on their behalf or how political influences might affect the best-laid nudging plans.

I will note that for over a year now, I've been working on a couple papers with Bailey Norwood and Stephan Marette, which summarize the results of some experiments we ran in the US and France looking at how people respond to paternalistic food choices made for them.  I'll write more about these studies when the papers are accepted for publication.  For now, I'll reveal one finding, which isn't terribly surprising: people value the freedom to make their own choices.