On Addiction Understanding Economics

The law of unintended consequences has a way of sneaking up on government programs.

Britain is considering a ban on “happy hour” discounts at bars and restaurants to curb drinking, a spokesman said Saturday, as health advocates warned that a rise in liver-related deaths among young people may signal a future epidemic…The proposal was one of several aimed at stemming a trend in binge drinking in recent years, particularly among teenagers and young adults. The government also plans to spend 10 million pounds ($15 million) on a new public awareness campaign, and wants to improve enforcement of laws against underage drinking.

One might note, binge drinking amongst youngster could be encouraged by government’s prohibition on alcohol. These people lack the legal means to drink whenever they want. As a result, the short periods where they can drink without being arrested or fined, like house-parties, the opportunity cost of not binge drinking goes up.

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