Chines ordered to smoke more, to boost economy

[OwlHoot]

Article here

The edict, issued by officials in Hubei province in central China, threatens to fine officials who "fail to meet their targets" or are caught smoking rival brands manufactured in neighbouring provinces.

Even local schools have been issued with a smoking quota for teachers, while one village was ordered to purchase 400 cartons of cigarettes a year for its officials, according to the local government's website. ..

I was thinking the other day. The reason deflation is such a danger, and causes a downward spiral if unchecked, is that when prices start dropping most people postpone purchases in anticipation of prices dropping further. (That must be the main reason the inflation target is set at 2% rather than 0%.)

So if the Government was serious about reducing smoking, wouldn't it make more sense to keep dropping the tax on tobacco, so the price kept falling?

[AtW]

So if the Government was serious about reducing smoking, wouldn't it make more sense to keep dropping the tax on tobacco, so the price kept falling?

Eh? Reduction in demand (smoking in this case) is achieved by increasing price which is why taxation is used. Of course Govt knows that demand for products like fuel, smokes, sugar is unelastic so the demand does not really go down, while revenues from taxation go up in a very predictable fashion - that's why all chancellors love this sort of taxes.

[HairyArsedBloke]

Given the demographic time bomb of all the baby bombers retiring over the next few years claiming their pensions, you would think that they would encourage smoking and drinking to kill people off early.

It would make a lot of economic sense to give unemployed over 50’s free booze and fags. They will never work again and would be cheaper than having them living at the states expense for anything up to another half-century.

[AtW]

It would make a lot of economic sense to give unemployed

Start WW3 by starting liberation of Chinese lands in Siberia

[minestrone]

People who die of smoking related illnesses rarely just keel over and save the state a pension, it is more often a miserable slow death which costs the country a fortune.

Anyway I don't know any professional person that smokes anymore other than a few when they are pissed, but we all have our own pensions.

[HairyArsedBloke]

People who die of smoking related illnesses rarely just keel over and save the state a pension, it is more often a miserable slow death which costs the country a fortune.

Anyway I don't know any professional person that smokes anymore other than a few when they are pissed, but we all have our own pensions.

When I was in hospital recently I discovered that half, or more, of the medical staff were smokers.

[wc2]

People who die of smoking related illnesses rarely just keel over and save the state a pension, it is more often a miserable slow death which costs the country a fortune.

Any smoker that purchased their cigarettes from the UK that falls ill from smoking related issues has paid for his/her treatment over and over again in duty.

[OwlHoot]

Eh? Reduction in demand (smoking in this case) is achieved by increasing price which is why taxation is used. Of course Govt knows that demand for products like fuel, smokes, sugar is unelastic so the demand does not really go down, while revenues from taxation go up in a very predictable fashion - that's why all chancellors love this sort of taxes.

My comment was supposed to be tongue in cheek. But thanks for explaining the joke, in case anyone else missed the smiley or was also baffled.