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Alcohol taxes definitively reduces consumption, what makes you think it wouldn't? It's not one of the extremely rare Giffen goods which defy the laws of supply
by vintermann 4y ago
Alcohol taxes definitively reduces consumption, what makes you think it wouldn't?
It's not one of the extremely rare Giffen goods which defy the laws of supply and demand. Most alcoholic drinks have a substitute in drinks with less (or no) alcohol in them, competing on price. Moreover, people's consumption is affected by how much is considered "normal" to drink (one of the early, solid findings of alcohol epidemiology), so there's a positive feedback amplifying small changes to consumption habits from other things.
- yourusername 4y ago>Alcohol taxes definitively reduces consumption, what makes you think it wouldn't? In countries where the alcohol tax is high enough it reduces alcohol consumption but massively increases sales of sugar and yeast.
- vintermann 4y agoIt reduces total consumption. It might relatively increase homebrew consumption, but those are inferior substitutes in the economic sense.
- kennend3 4y agoHere (Canada) alcohol is highly taxed. Take a look at Canada's consumption numbers and see if the "sin tax" accomplished anything.
- vintermann 4y agoI'd also need a counterfactual Canada where alcohol taxes were low. We don't have that. But we have other countries and times to compare through, and there really is no question that accessibility affects consumption.