The Everyday Economist

Banned: Trans Fat

December 22, 2006 · Leave a Comment

“We are from the government and we are hear to help.”

As most of you likely know, New York City has banned trans fats in food sold in restaurants. For no particular reason, I have stayed away from this debate. Today, however, I stumbled upon this post by Gary Becker that perfectly sums up my view:

To be sure, evidence cannot disprove Posner’s claim about consumer ignorance of, and inability to process, information about trans fats. However, the fact that about half of all NYC restaurants did not use trans fats even prior to passing this ordinance–although these may be the restaurants where it was easier to eliminate trans fats– that many foods sold in ordinary supermarkets and other groceries have become trans fat free in a short time period, that we do not know much about whether consumers who eat high trans fat foods in restaurants eat little of these fats at home, that young persons are the primary consumers of heavy trans fat diets, and other unknown and relevant variables should make us skeptical of the ignorance argument. Indeed, it is remarkable how fast the food industry and restaurants have responded to the greater evidence during the past few years that trans fats in sufficient quantities contribute to heart disease. The article I cited earlier appeared only about 8 months ago.

There is evidence in other areas that consumers respond quickly to health news. For example, studies have documented the rapid reduction in salt intake and growth of low salt foods in response to evidence in the 1980’s–now considered exaggerated–that high salt levels have been an important source of high blood pressure.

[...]

Does one really want to go down the road of a ban on trans fats when the net gains to consumers are dubious, and probably negative, and when reversing directions is politically difficult? As an example of the difficulty in adapting politically, new evidence indicates that requiring child car seats may increase their risk of injury in accidents, yet there is no movement to reverse these laws.

These and related calculations suggest that while city and other governments should continue to help provide the best information available about the effects of trans fats and other foods on health, market forces of supply and demand should determine the fats consumed. Otherwise, we encourage further attempts to legislate fat and calorie content of permissible foods not only in restaurants but also in foods consumed at home, and absurdities such as the new Italian ordinance that models cannot be too slim because it sets a bad weight example for young women. There are just too many opportunities for ill-considered attempts to override on limited evidence individual judgments about what they want to consume.

Categories: Economic News · Everyday Econ

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