Don’t tax raw foods

It seems crazy that in a time of increasing obesity and poor nutrition that we still tax basic raw food. So people keep consuming highly processed junk which they claim is cheaper than good old fruit and vegetables.

A food researcher from Massey University has asked for GST to be removed from fruit and vegetables.  This is a step in the right direction at least. It will not cause a sudden shift in diet…let’s face it it’s hard to come off a high sugar and salt diet but at least it will start to compete on price terms.

How the government can continue to justify this tax is beyond me. But given that the whole tax system is dysfunctional that is hardly a surprise.

Managing our well being with a little help

Obesity, alcohol and smoking are 3 serious health issues that many countries are struggling with. A rather interesting and challenging proposal has been put forward by Julian Le Grand, a former Blair advisor, which has been dubbed as “libertarian paternalism”.

It’s kind of kooky but has some merits once you wade through the initial reactions. The idea of getting a permit to smoke is not likely to win much support but what it does is create an extra layer in the choice process. If we assume that people are not rational actors (opposite to received economic theory) then asking them to consider the choice before they make it may have some merit.

This is a similar approach that I have often thought might work with drugs, namely that you have to apply for a permit to gain access to the required drug from a doctor. Implicitly this means rocking up and saying yes i’m an addict and a need a prescription. You then get your drug for example heroin, which would be pure and therefore less harmful, from the medical authorities.

We know what a healthy and balanced lifestyle looks like but for many that is a pipe dream. Could this proposal help or is it just another bad idea with good intentions?