Wednesday, June 22, 2011

FDA Gets Tough on Cigarette Manufacturers

link here to article

The FDA is using powers given to in by a recent law to require cigarette manufacturers to place anti-smoking graphics on cigarette packages which should deter some people from smoking. It will be interesting to see how this plays out. Cigarette manufacturers, who know that smoking causes cancer, seem to care less about the damage that their product does to its customers than they do about the loss of revenue. They will argue that the government is interfering with their "free speech". Some economists may even take their side and argue that government interference in the market is not needed because consumers act rationally when they make their cost-benefit decisions. The government does not know more than consumers and this is just another example of a movement towards the "nanny state".

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