[Book Sip] Calorie Labels on Menus... "Almost No Effect on Fighting Obesity"

Editor's NoteSome sentences encapsulate the entire content of a book, while others instantly resonate with readers, creating a connection with the book. We excerpt and introduce such meaningful sentences from books.

This is a book about economics written by a political scientist. The author’s experience working at the U.S. Budget Office, where he witnessed budget planning and execution without thorough review, served as the impetus. Observing how "my money" was spent carelessly without reflection, he thought the economist’s mindset prioritizing utility and profit was necessary. Since its publication in 1995, this book, praised for best explaining economic thinking and its application, has been steadily loved. It analyzes society from the perspectives of opportunity cost, marginalism, and economic incentives, exploring how social issues such as education, healthcare services, environmental problems, housing, labor, and antitrust are examined from an economic viewpoint. Furthermore, it points out the limitations of the economic approach that assumes selfishness governs behavior and reflects on society and individual happiness from broader perspectives through research in philosophy and psychology.

Social scientists sometimes hope that public opinion polls on the most important issues in local communities or areas where budgets are tight and cuts are necessary will influence budget policies. However, economists are skeptical about this. This is because the public rarely receives specific information about the expected benefits and costs when asked such questions. Therefore, respondents generally answer considering total utility, and as a result, budget cuts to departments like police and fire services that save lives receive little support. - p.68

One of the most repeated slogans by politicians running for office is “Jobs, jobs, jobs.” Of course, economists also like to chant the jobs slogan when unemployment is high. An increase in unemployment hampers economic growth, and unemployed people are more likely to use illegal drugs or suffer from depression. However, the slogan “Jobs, jobs, jobs” echoes even when the unemployment rate is lower than historical standards. Think of Trump. He believed that the U.S. was losing good manufacturing jobs to Mexico. - p.153

The phrase “Should companies be kinder to workers?” summarizes economists’ complaints and would provoke anger among many moderate left-wing political commentators. “I told you. Economists care so much about the market that even if the benefits of economic growth go only to the upper class, they don’t care at all.” To avoid such criticism, economists do not oppose government attempts to help ordinary workers through economic intervention. However, it is certain that they remain reluctant to support it. Most economists would prefer income redistribution by imposing higher taxes on high-income groups rather than direct market interventions, which often have unclear targets and cause side effects. - p.174

Traditionally, economists have opposed place-based policies, arguing that support should go to poor “people” rather than poor “areas.” This argument was persuasive in the past because low-income groups tended to move to areas with more jobs and higher wages, and poor areas also developed. However, now it seems that low-income groups and many people do not move to seek better economic opportunities. Therefore, three Harvard economists?Benjamin Austin, Larry Summers, and Edward Glaeser?wrote a report proposing further discussion on the benefits of policies supporting regions to the Brookings Institution. - p.202

Without growth, liberalism could never have triumphed. Since the 1930s, the material welfare improvement of the “one-third of the people” that President Roosevelt spoke of was made possible not by slight income redistribution from the wealthier two-thirds but by material progress enjoyed by the entire population, that is, income growth. - p.209

Mainstream economists say that some transitional unemployment always occurs because companies close or workers move to find new jobs. But they ask the following question: once a different type of unemployment is resolved in year A, if workers do the same job with the same equipment at the same factory in year B, will the economy grow more? The answer is no. For GDP per worker to grow, new ways of doing tasks, new inventions, new technologies, and new investments are necessary. - p.211

To preserve free externalities such as air, water, and land, a free enterprise system can only work if there is a competitive system that imposes the same types of regulations and obligations on everyone. Therefore, regulation is necessary, and such regulation must be an effective national regulatory program. - p.254

The government has demanded various programs to combat obesity. For example, many restaurants now have to display total calories next to menu items. Unfortunately, research shows there is little evidence that such regulations lead to healthier food choices. One study found that after New York City mandated calorie labeling on menus, 25 percent of restaurant customers said they chose lower-calorie foods after checking the information. But in reality, total calories ordered by customers did not change before and after the calorie labeling mandate. A study of calorie labeling mandates in 30 cities found that the regulations had almost no effect on obesity. For example, the weight of an adult male 175 centimeters tall decreased only slightly from about 86.18 kilograms to 85.95 kilograms. - p.291

If Economists Could Save the World | Steven Rose | Go Youngtae | The Quest | 496 pages | 28,500 KRW