The economics of fat

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The media are full of stories about how Americans are putting on weight – and public health officials keep telling them to exercise more and slim down. But most Americans seem content to stay on the couch.

Being overweight or obese is very clearly tied to economics.

  • The cost of consuming calories has plummeted – thanks to productivity gains in agriculture and distribution – and the ready availability of mouth-watering prepared foods encourages people to consume more.
  • Work has become more sedentary – shifting from manual labour to desk jobs – prompting those who want to lose weight to join health clubs.
  • But the America’s 31 million health club members represent just over 10 percent of the population – and only 40 percent of those go to the gym at least twice a week.
  • Health club members are found to have relatively high incomes, while people in the low-to-middle income brackets tend to be the heaviest Americans.

    The increase in the number of American women who work may also help explain the trend toward flab. Yesteryear’s housework, while only moderately strenuous, was more physically demanding than sitting at a desk today.

    But even if people were all thinner because they picked cotton or cut wheat by hand, they would also have shorter and less satisfying lives.

    Source: Virginia Postrel (Reason magazine), Economic Scene: Americans’ Waistlines Have Become the Victims of Economic Progress, New York Times, March 22, 2001, and Tomas J.Philipson and Richard A. Posner The Long- Run Growth in Obesity as a Function of Technological Change, NBER Working Paper No. W7423, November 1999, National Bureau of Economic Research, 1050 Massachusetts Avenue, Cambridge, Mass. 02138, (617) 868-3900.

    For text http://www.nytimes.com/2001/03/22/business/22SCEN.html?searchpv=nytToday

    For NBER abstract http://www.nber.org/papers/w7423

    For more on Pharmaceutical Economics http://www.ncpa.org/pi/health/hedex7l.html

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