Wednesday, May 18, 2022

Ban Forever Tobacco and Alcoholic Drink Sales to U.S. Kids Born in 2003 or Later

Does permanently banning tobacco or alcoholic beverage sales to persons seem radical? One U.S. town has already passed legislation to forever ban cigarette purchases by persons born in 2000 or later, as discussed later in this article.

We know tobacco and alcoholic beverages are harmful. Indeed, the majority of current smokers want to quit to save money and/or improve their health. Furthermore, new studies indicate that even moderate alcoholic beverage consumption is harmful, and urge abstinence.

Banning tobacco and alcoholic beverage use forever for persons born after a certain date is one way to virtually eliminate their use by children and the next generation of adults.

I support the United States passing legislation to prevent persons born in 2003 or later from ever purchasing (or consuming) tobacco, e-cigarettes, or alcoholic beverages, assuming legislation can be enacted during 2022 or 2023.

A permanent ban on cigarette purchases for persons born January 1st, 2000 or later already exists in one town, Brookline, Massachusetts.

Brookline, Massachusetts Tobacco Law

The town of Brookline, Massachusetts has passed and begun enforcing a law prohibiting persons born January 1st, 2000 or later from ever purchasing tobacco according to an article by Jon Berrick posted on BMJ.com [1]. Brookline’s ordinance is also discussed in a Time.com [2] article and many others.

At least two nations are considering similar laws.

New Zealand and Denmark Proposed Tobacco Laws

The entire nations of New Zealand and Denmark are considering legislation to permanently ban young persons from using tobacco.

Health officials in New Zealand are urging that nation to enact legislation that would basically prohibit persons age 14 or younger as of a certain year from ever being able to legally purchase cigarettes according to numerous articles, such as these linked to on NPR [3], NBCNews [4], and the Associated Press [5]. Denmark is considering legislation that would ban persons born in 2010 or later from ever smoking according to articles on TheDailyMail website [6], and many others. A VapingPost.com [7] piece. noted that an EU Directive would need changed to permit such legislation to take effect.

Reasons for Banning Tobacco and Alcoholic Beverages

The harmful effects of using tobacco products and consuming alcoholic beverages are well documented.

Tobacco is a leading cause of lung cancer and many other diseases. Surveys indicate that the majority of current smokers would like to quit. Indeed, millions have quit in recent years. Sadly, a large percentage of poor persons spend much of their limited income on tobacco products. Indeed, if millions of SNAP (food stamp) recipients who smoke quit smoking, they could probably buy their own food with the money saved, lower their medical costs (and Medicaid costs) and likely live happier, healthier, longer lives, too.

Alcohol use contributes to automobile accidents, liver disease, brain damage, several types of cancer, and numerous other problems. You may have read or heard that consuming alcoholic beverages in moderation has benefits that offset negative effects. Recent studies indicate otherwise.

A World Heart Federation policy brief [8] urges persons not to drink alcoholic beverages at all. It specifically urges abstinence for persons with “chronic illnesses.” The same brief states that even for “adults with no underlying health conditions” that “there are no safe recommended levels of alcohol consumption.” An Oxford study reported about on Forbes.com [9] is quoted as including the words “No safe dose of alcohol for the brain was found.”

Final Thoughts

Banning tobacco and alcoholic beverage sales (and consumption) forever to persons born in 2003 or later can improve the health of this generation and save them money, without impacting current smokers or drinkers.

Side benefits may include lower Medicaid expenses, fewer disability claims, and increased work productivity. There will even be a significant reduction in trash from cigarette butts and packages, as well as beer containers. We’ll also have fewer fires from discarded cigarettes and fewer cuts from broken glass beverage containers. It will be great not to see litter like the three cigarette butts on a sidewalk in Phoenix Park here in Lexington, Kentucky shown in the May 18, 2022 photograph below.


Tobacco and alcoholic beverage companies will protest this disruption to their sales. But my guess is that the majority of persons will support it. What do you think?

ENDNOTES:

(1) Berrick, Jon; “U.S.: Brookline Introduces Tobacco-Free Generation Law”; BMJ; May 2022, Vol. 31, No. 3, page 399-400; webpage accessed May 17, 2022; https://tobaccocontrol.bmj.com/content/tobaccocontrol/31/3/399.full.pdf

(2) Ducharme, Jamie; “How One Massachusetts Town Could Shape the Future of Tobacco”; Time.com; December 9, 2021; webpage accessed May 17, 2022; https://time.com/6126252/brookline-tobacco-free-generation-law/

(3) Sullivan, Becky; “New Zealand’s unique cigarette ban may be model for other countries”; NPR; December 15, 2021; webpage accessed May 17, 2022; https://www.npr.org/2021/12/15/1064212737/new-zealands-cigarette-ban-model

(4) Chuck, Elizabeth and Stoakes, Emanuel; “ ‘long overdue’ New Zealand models generational tobacco purchasing ban on a U.S. suburb”; NBCNews; December 24, 2021, updated December 29, 2021; webpage accessed May 17, 2022; https://www.nbcnews.com/news/world/new-zealand-wants-smoking-ban-future-generations-us-town-already-one-rcna9757

(5) Perry, Nick; “New Zealand’s plan to end smoking: A lifetime ban for youth”; AP News; Dec. 9, 2021; webpage accessed May 17, 2022; https://apnews.com/article/business-health-new-zealand-smoking-wellington-7e5393f99502e89959181031d614aa85

(6) McLaughlin, Charlotte; “Denmark considers BANNING cigarettes by ensuring nobody born after 2010 will ever be able to buy them”; DailyMail; March 15, 2022; webpage accessed May 17, 2022; https://www.dailymail.co.uk/news/article-10616415/Denmark-considers-BANNING-cigarettes-ensuring-born-2010-allowed-buy-them.html

(7) Caruana, Diane; “EU Directive Comes in the Way of Danish Government’s Planned Tobacco Ban”; VapingPost.com; April 18, 2022, webpage accessed May 17, 2022; https://www.vapingpost.com/2022/04/18/eu-directive-comes-in-the-way-of-danish-governments-planned-tobacco-ban/#:~:text=If%20the%20bill%20becomes%20law,born%20in%202010%20turn%2018

(8) “The Impact of Alcohol Consumption on Cardiovascular Health: Myths and Measures”: A World Health Federation Policy Brief”; webpage accessed May 17, 2022; https://world-heart-federation.org/wp-content/uploads/WHF-Policy-Brief-Alcohol.pdf

(9) Ramirez, Elva; “Study: No Amount of Drinking Alchol Is Safe for Brain Health”; June 1, 2021; Forbes.com; webpage accessed May 17, 2022; https://www.forbes.com/sites/elvaramirez/2021/06/01/study-no-amount-of-drinking-alcohol-is-safe-for-brain-health/?sh=538a64687eaa

Tuesday, May 17, 2022

Raise U.S. Gasoline Taxes; Expand Mass Transit; Cut Gas Use

Why raise gasoline taxes? Many advocate suspending gasoline taxes while gas prices remain high in the U.S. I sympathize with the good intentions. Yet, I urge the opposite. Raise gas taxes.

The same supply and demand issues that led oil companies to increase prices and earn immense profits can be used to benefit the government and U.S. citizens.

Some Facts

Many oil companies earned huge profits in the first quarter of 2022 according to a Guardian article [1] and other sources. The Saudi Arabian company Saudi Aramco became “the world’s most valuable company” after its huge quarterly profits according to the Associated Press [2] and other news sources.

Retail gasoline prices in the United States have increased substantially because the supply is down and demand is high. Three gas stations near my Lexington, Kentucky, apartment on May 9th, 2022, advertised gas at the highest prices I've ever seen there: $4.29 per gallon for regular unleaded and $5.29 per gallon for diesel fuel, as shown in pictures of their signs.
Today, May 17th, 2022, AAA [3] reported a record high national average gasoline price of $4.523 per gallon, with diesel over $1 per gallon more.

Supply and Demand

Currently the supply of gasoline is down a bit (due to war in Ukraine, limited production by OPEC and other countries including the U.S., etc.). Demand remains high.

Until supply increases, persons need to reduce purchases. If it’s not done voluntarily, it will be done via (1) price increases, (2) rationing, or (3) stations running out of gas.

Maybe the best free market approach is to increase prices. Furthermore, instead of just oil companies raising prices to cut demand, I support raising gasoline taxes to increase federal tax revenue.

The higher taxes and thus higher retail gasoline prices, will lead to a decrease in demand. Decreased demand can lead oil companies to lower their prices.

Though for simplicity, I refer only to the gasoline tax, I support raising the tax on diesel fuel as well.

More Reasons Why Increasing the Gasoline Tax Makes Sense

Many problems with infrastructure have been mentioned in recent years. Bridges and roads need much maintenance and repair. In some areas we need new construction.

Furthermore, mass transit in the United States pales in comparison to the transit systems in several other countries. It could be partially funded by fuel tax increases.

The federal gasoline tax of 18.4 cents per gallon (and the diesel tax of 24.4 cents per gallon) have not increased since October 1, 1997 according to Table FE-1A on a Federal Highway Administration webpage [4]. Furthermore, the federal gasoline tax in the United States is much lower than that in many other countries, as shown on numerous websites. Indeed, almost all countries shown in a chart on CarScoops.com [5] have higher gasoline taxes than the U.S.

A gasoline tax increase could pay for much needed infrastructure repair. Furthermore, if part of the tax revenue is used to support mass transit (city and intercity bus systems, subways, intercity rail travel, air travel, etc.), it could encourage more people to use mass transit, thus reducing traffic congestion. Adding more sidewalks and bike lanes/paths would likely increase pedestrian and bicycle travel too.

It could be great if persons:

• use mass transit more,

• carpool more with trusted friends, neighbors, relatives, coworkers, etc.,

• bicycle more,

• walk more,

• and avoid unnecessary trips.

Fewer cars traveling fewer miles would lead to less pollution (as well as less wear-and-tear on highways). The increased exercise could help make us healthier.

Eventually we will run out of oil. But if we dramatically reduce our consumption of it now, it will be better for the environment. The production, transportation, and consumption of oil create a lot of pollution.

In addition, the huge production of oil from oil shale in recent years adds new environmental risks. The fracking process that is frequently used in producing oil from oil shale produces numerous small earthquakes and some damaging earthquakes, as noted by the USGS [6] and other sources.

Electric vehicles may be an alternative to gas and diesel-powered vehicles. But it will be at least a few years before electric vehicles are mass produced at affordable prices—and an electric grid supported by renewable energy sources adequate to recharge them exists.

Closing Thoughts

Tax increases are typically not popular with the public. But, we currently have a huge federal budget deficit. Furthermore, the deficit is expected to get worse due to infrastructure needs, increasing costs of Social Security and health care (Medicare, Medicaid, etc.) and other expenses.

Our transportation system needs major repairs according to many (most?) people. Therefore, it seems logical to get additional funding for fixing problems. Increasing taxes on gasoline (and diesel fuel) can help fund maintenance of highways and bridges.

A tax hike will hurt drivers, especially persons like truck drivers who travel thousands of miles annually in vehicles that get relatively poor fuel efficiency. But these drivers are already being impacted by current high prices. Better to have price hikes benefit the government and pay for needed projects for citizens than fill the coffers of oil companies.

Increasing taxes on gas and diesel fuels makes sense to me. The costs of maintaining and building highways have increased substantially since the tax was last increased in 1997. To generate revenue and to decrease demand for gasoline, the tax increase needs to be a large one. At least a 50 cents-per-gallon figure seems reasonable to me. Over the long term, I’d even support a significantly larger increase. Do you agree?

NOTE:

This article is adapted and updated from articles the author submitted to other websites in past years about raising the U.S. tax on gasoline.

ENDNOTES:

(1) Milman, Oliver; “Largest oil and gas producers made close to $100bn in first quarter of 2022”; Guardian; May 13, 2022; webpage accessed May 17, 2022; https://www.theguardian.com/business/2022/may/13/oil-gas-producers-first-quarter-2022-profits

(2)Debre, Isabel; “Saudi oil giant Aramco’s first-quarter profits soar 80%”; Associated Press; May 15, 2022; webpage accessed May 17, 2022; https://apnews.com/article/russia-ukraine-united-arab-emirates-saudi-arabian-oil-co-44809d786ae32adc178684a5ce3c6837

(3) “National Average Gas Prices”; AAA; May 17th, 2022; webpage accessed May 17, 2022; https://gasprices.aaa.com/

(4) “Federal Tax Rates on Motor Fuels and Lubricating Oil (1)” November 2021; U.S. Department of Transportation, Federal Highway Administration; page last modified November 16, 2021; webpage accessed May 17, 2022; https://www.fhwa.dot.gov/policyinformation/statistics/2020/fe101a.cfm

(5) Chilton, Chris; “Which Countries Pay the Most and Least Tax on Their Gas”; CarScoops.com; April 10, 2022; webpage accessed May 17, 2022; https://www.carscoops.com/2022/04/which-countries-pay-the-most-and-least-tax-on-their-gas/

(6) “Does the production of oil and gas from shares cause earthquakes? If so, how are the earthquakes related to these operations?”; USGS; webpage accessed May 17, 2022; https://www.usgs.gov/faqs/does-production-oil-and-gas-shales-cause-earthquakes-if-so-how-are-earthquakes-related-these#:~:text=Fracking%20intentionally%20causes%20small%20earthquakes,a%20M4%20earthquake%20in%20Texas.

Tuesday, May 10, 2022

Gasoline Prices at Record High: Tips and Perspective

Yes, the U.S. has record high gas prices. The American Automobile Association[1] reported today, May 10th, 2022, that national gasoline prices have hit a record high.

Near where I live in Lexington, Kentucky, three gasoline stations all advertised regular unleaded gasoline for $4.29 a gallon and diesel fuel for $5.29 a gallon yesterday afternoon, May 9, 2022. See the photos of their signs.


That’s the highest price I’ve ever seen here in Lexington, Kentucky. Nationwide, the price is even higher according to the AAA figures.

Below I offer some suggestions for coping with gas prices and some perspective on them. .

Coping With the Prices

Ways to cope with the prices include:

* Eliminate or reduce unnecessary trips just for pleasure.

* Order deliveries of products instead of driving to stores; many supermarkets even offer free delivery for orders over a certain dollar amount.

* Combine trips to reduce the low efficiency car warmup period and to reduce driving over the same territory unnecessarily.

* Carpool with trustworthy coworkers, relatives, friends, neighbors, etc.

* Walk and/or bicycle when feasible.

* Use buses, passenger trains, trolleys, subways, etc., when and where feasible.

Some Perspective on the Prices.

1. Adjusted for inflation U.S. gasoline prices are not at record levels.

For example, adjusted for inflation, gas prices were much higher in 2008 when the price reached over $4 a gallon nationally and here in Lexington. Adjusted for inflation, that would be a price of over $5 a gallon now, according to a piece posted on the Washington Post [2] website last December, as well as other sources.

2. It’s better to pay high prices for gas than to not be able to buy it at all.

Back in the 1970s during the Middle East oil embargo many U.S. gasoline stations sold out of gas and others rationed it. Decreases in the supply and/or increases in the demand could lead to that again.

Increasing prices is one way to decrease demand so the supply doesn’t run out. When supply is limited at least one of three things typically happens: (1) prices rise, (2) purchases are rationed, or (3) supplies sell out. That’s a basic economic reality.

3. Temporarily suspending gasoline taxes would be wrong.

Though many state and federal officials are calling for suspending the federal gas tax and/or state taxes during this time of high prices, that makes little economic sense in some ways.

First of all, it wouldn’t stop oil companies from raising prices again to offset the price decrease resulting from elimination of the tax in order to make the supply-demand levels match (see #2 above).

Second, it would reduce federal revenue, adding to the government's huge budget deficit. It might actually be better to raise the tax to discourage consumption and increase revenue to the government for highway construction/maintenance, so the government gets the money instead of wealthy oil companies. Federal gasoline taxes haven’t increased since the 1990s according to the U.S. Department of Transportation [3] and other sources, while many other prices has increased, including the cost of maintaining bridges and roads.

4. Other prices are going up to.

Some other price hikes are larger than gasoline’s. Perhaps one reason we focus on gas prices if that they are typically posted prominently in large letters at service stations.

5. Diesel prices have increased more than gasoline.

This will lead to higher shipping costs for items delivered by vehicles using diesel fuel, costs that will likely be passed on to consumers. But recognize that the diesel fuel cost is only one component in the cost of goods sold by companies. Fuel prices aren't the only reason for inflation in the costs of products at the retail level. Shortages of truck drivers, warehouse workers, factory workers, etc., as well as COVID-19 lockdowns, and extra spending from stimulus checks are all factors. And gas-powered car drivers can sympathize with the diesel truck drivers while appreciating that gas prices aren’t increasing as much.

6.. Gas prices are much higher in many other countries of the world than in the United States as noted by the website GlobalPetrolPrices [4], and other sources. This is due to various reasons, including higher taxes in many other countries.

7 In Ukraine and some other parts of the world, residents face life-and-death problems much more severe than high gas prices. Ideally, we need to look at the big picture rather than selfishly focusing on our own issues.

Final Thoughts

Please seek to reduce unnecessary driving. Also, seek to put gas prices in perspective. They’re not a huge deal in the grand scheme of things.

Focusing on the positive can help avoid anger issues, blood pressure increases, and other health problems that can be far worse than the gas price increases.

Let’s seek to enjoy our blessings. For me those blessings include not owning a car with its various expenses (purchase price, gas, maintenance, repair, insurance, parking, etc.). I walk, bicycle, and use mass transit. Maybe many or at least some of you can too?

ENDNOTES:

1. “AAA Gas Prices”; webpage accessed May 10, 2022; https://gasprices.aaa.com/

2. Borenstein, Severin; “Gas prices aren't actually all that high”; Washington Post; December 2, 2021; webpage accessed May 10, 2022 https://www.washingtonpost.com/outlook/2021/12/02/gas-prices-are-not-out-control/

3. “Federal Tax Rates on Motor Fuels and Lubricating Oil (1)”; November 2021; U.S. Department of Transportation; webpage accessed May 10, 2022; https://www.fhwa.dot.gov/policyinformation/statistics/2020/fe101a.cfm

4. “Gas Prices, 02-May-2022”; GlobalPetrolPrices.com; webpage accessed May 10, 2022; https://www.globalpetrolprices.com/gasoline_prices/