July 22, 2004
Everyone Needs A Little Bastiat

Even, apparently, Chief Financial Officers…

Letter to the Editor, Cleveland Plain Dealer
Wednesday, July 21, 2004

In response to Dick Feagler's July 11 column, "Even non smokers must buy tobacco":

I must take issue with his economic assessment. As a chief financial officer, I understand money, so I did some calculations of my own. Feagler talks about the taxes he pays on tobacco and regards it as "his civic duty to smoke." He continues that it "bolsters the economy" and he has "built two stadiums."

But Feagler can't look at his taxes as a benefit without viewing the deficit cost to taxpayers as a whole. Our taxes have to pay to put out the fires caused by careless smokers, trash cleanup, increased insurance premiums and health-care costs due to health problems of smokers. Ohioans spend $3.4 billion every year treating tobacco-related diseases. Medicaid costs are $600 million a year. Every Ohio household pays $400 in taxes just to cover the health costs created by Ohio smokers. Feagler's column itself refers to $9.6 billion in taxes that subsidize tobacco farmers.

I'm sorry, Mr. Feagler, you may delude yourself into thinking that you are doing me a favor by smoking, but the numbers say otherwise. The cost of tobacco addiction on our society is simply too high to be taken lightly.

Gordon Hewitt,
Cleveland

Hewitt is chief financial officer of Recovery Resources.

What is not seen, by Mr. Feagler or Mr. Hewitt, is that smokers die earlier than nonsmokers. An honest attempt to calculate the net cost or benefit to society from smoking has to take this fact into account as Harvard Law School economist W. Kip Viscusi has frequently pointed out. For an overview on the social cost of smoking, this article by McCormick, Tollison, and Wagner is a good place to start.

Posted by Joshua Hall at 02:58 PM

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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