The Economics of Obesity

Statistics from last year show that the number of obese adults in the developing world has quadrupled since 1980 to a one billion. Over one third of American adults are deemed obese, as are more than a quarter of British adults, resulting in Britains NHS spending over £5bn a year on health problems associated with being overweight or obese.

Obesity is evidently a growing epidemic, but why? It is almost undoubtable that economic-related factors play a significant role in this.

One of the most notable shifts in the lifestyle of our society has been that the wealthy and the poor have almost switched positions with regards to levels of obesity. A study undertaken by the American Journal of Preventative Medicine compared the dietary and health lifestyles of poorer and wealthy individuals, and determined that those earning under $20k are 50% less likely to exercise sufficiently than those earning over $75k, and instead they are 50% more likely to purchase over the counter diet pills which are pretty much quack medications.

It seems the major reason for this is the lack of time many poorer people are likely to have. With almost 7 million Americans working multiple jobs, and 41 million Americans receiving insufficient hours of sleep according to the Centre for Disease Control, time is becoming a premium for many poorer Americans whose economic straits lead them to take up multiple jobs or jobs with hours that reduce their ability to lead a healthy lifestyle. These people are likely to have less time to go out and exercise (hence their purchasing of get slim quick pills), are more likely to be drawn towards processed fast food as opposed to home cooking and thus are more likely to live a lifestyle that will make them overweight. Wealthier middle and upper class people, on the whole, have access to more free time, which allows them to spend more time cooking their meals from scratch and going out to exercise. In the UK, this is reflected in how average household income of a gym member is 35% higher than the national average.

But you could mention the 8.2% of people who are unemployed in the States, and other developed countries. They should have plenty of free time, no, to go out and run and cook meals? Well, most likely, yes. But this brings us to the other issue in this obesity crisis.

Food prices are becoming more diverse than ever. A study by Dr Pablo Monsivais of the University of Cambridge found that, in 2012, healthy foods were three times more expensive per calorie than less healthy foods. For a more specific example, take a frozen pizza, a typically unhealthy food- in 2002 1000 calories worth of frozen pizza cost £2.10, falling to £1.58 10 years later. On the other hand, 1000 calories worth of tinned tomatoes more than doubled in the same time period. This is emphasised by the massive increase in reliance upon food banks, which are currently unable to provide for a sufficient number of people to change the status quo.

You can see it every day in the shops- look at how much more expensive the top brand meals, which are usually made with less additives and purer ingredients, are than their cheaper, diluted, lower quality alternatives. Look at the difference in price between organic and basic stuff.

Not only are the poorer in society lacking time to create healthy, nutritious meals, but they evidently lack the finances. Ready meals, frozen foods, fast foods (a McDonalds burger for $1, really?) and so on having devastating impacts on the health of not just the poorer in society but its sheer popularity means it is affecting society as a whole.

So it is undoubtable that economic conditions play a significant role in ones health, particularly with regards to the issue of obesity.

Recent trends present a shift from past centuries. Throughout history, a large belly was seen to be a sign of wealth, and indeed it was- it meant you could not just fill your appetite but also afford to indulge in food. The poor in society barely got enough to survive, let alone become overweight. But as society has progressed and peoples economic standards have risen, this has changed. Significantly more people (though poignantly still not all) in developed countries can afford to feed themselves, but there remains much to improve with regards to quality of life. We are able to feed most people in the developed world- perhaps a move we will soon have to look to is to ensure what people are eating is beneficial for them.

RECOMMENDED READS

Researchers Point to Economic Reasons for Obesity http://www.consumeraffairs.com/news/researchers-point-to-economic-reasons-for-obesity-020415.html

Impatience, Incentives and Obesity http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12124/abstract

Rich People Exercise, Poor People Take Diet Pills http://www.theatlantic.com/health/archive/2014/08/rich-people-exercise-poor-people-take-diet-pills/378852/

Trying to Lose Weight: The Association of Income and Age to Weight-Loss Strategies in the USA http://www.ncbi.nlm.nih.gov/pubmed/24842735

Price Gap Between More and Less Healthy Food Grows http://www.cam.ac.uk/research/news/price-gap-between-more-and-less-healthy-foods-grows

Sources for evidence and data can be found within the hyperlinks in the text.

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Economic Sanctions on Iran Have They Worked

A massive moment in international relations today saw an agreement settled between Iran and the P5+1, that accepts (though limits) Irans right to nuclear energy, while lifting the economic sanctions placed upon the Middle Eastern power for the past decade.

There is much debate over whether the sanctions placed on Iran were effective. The American government has been a champion of economic restrictions, believing that causing economic troubles could pressurise the Iranian government into giving in over its nuclear energy program- and, from a rather cynical point of view, perhaps in the long term even stir up public resentment of the government to the point of its toppling. It wouldnt be surprising- for the US of course was a major force behind the 1953 coup of Irans first ever elected authority.

But back to the point, there are numerous critics of the sanctions. A primary argument on this side has been that the sanctions have simply been a form of collective punishment, that has stirred resentment among Iranians not for their own government as intended, but rather the Western governments imposing these sanctions that are having crippling effects on their lives.

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SANCTION EXPANSION- The 5 most significant bans enforced by sanctions put on Iran
- The sale of weaponry and nuclear technology to Iran (enforced by the United Nations)
- The purchasing of arms from Iran (UN)
- The import of Iranian oil and gas (European Union)
- Any dealing with Iranian banks and financial institutions (EU)
- The freezing of assets* of individuals and organisations believed to be supporting the nuclear 
program, and where applicable a ban on their entering the EU. (EU)

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Iranian business did suffer as a result of the sanctions- Irans oil exports fell by almost two-thirds in the two years following the first sanctions put on them in 2011, costing the country from 4 to 8 billion dollars according to Irans oil minister. Oil revenue provided for almost half of Irans government expenditure, meaning that such a hard hit on the Iranian oil industry, combined with Iranian exile from many of the worlds financial institutions, translated into a weak currency, leading to inflation reaching as high as 40%. This high inflation has been the primary source of many of the economic hardships faced by the Iranian people in the past decade.

A Gallup poll from 2012 reflects particularly well the suffering faced by Iranian society since the first round of sanctions in 2006, and how this has translated into staunch opposition of Western powers. The poll, which followed EU sanctions banning oil imports from Iran, found that 48% of Iranians had experienced a lack of money to purchase food supplies for their families in the past year, a strong contrast to just 15% in 2005. There is no doubt that this has contributed to the US government having an approval rating of just 7% among Iranians.

In a climate in which many are already disillusioned and frustrated with Western (primarily American) foreign policy in the Middle East, many Iranians see these sanctions as an extension of their interference in the region, an attempt to punish Iran for often vocally opposing the West.

So it seems evident that sanctions have done little in their objective to stir up significant Iranian resentment against their own government; in fact it appears they have worked against western interests.

But what about pressure on the Iranian government? Has the sanctions program played a leading role in finally drawing Iran and the West to an agreement on the negotiations table?

One could conclude that sanctions were effective in pressurising the Iranian government by going straight to the end result. Iran agreed to limiting its nuclear activity, in exchange for removal of economic sanctions- so the sanctions worked, right?

But it could also be argued that there were numerous other motivations for Iran to come and agree at the negotiating table. Arguably even more important than the removal of sanctions, the deal can potentially put to rest a lot of the diplomatic tensions between Iran and the West. Previous negotiations have centred largely around total deactivation of Irans nuclear facilities, a compromise too far for the Iranian government seeking to diversify its domestic energy production away from oil and gas.

This agreement allows Iran to continue pursuing its nuclear energy production targets. Though production is likely to be far more restricted and monitored under this agreement, the sacrifice is arguably worth the opportunity to redevelop both political and economic relations with the West. This is the issue that has generated the major threat of war in the region, particularly with Netanyahus zeal for military conflict. "The agreement... removes Irans nuclear programme from the danger list," says BBC Middle East Editor Jeremy Bowen. "Two years ago, as Israel threatened to bomb Iran, it looked likely to lead to a major Middle East war. That in itself is a major diplomatic achievement."

Hassan Rouhanis foreign policy is proving to be one
of wider diplomatic relations with the West
than his predecessors.

The Iranian government has received international recognition of its right to develop nuclear energy, something that undoubtedly played a significant role in motivating the Hassan Rouhani, as a President seeking to rebuild some of Irans relations with the rest of the world.

So, it could be said indeed that the economic sanctions played a role in bringing around this agreement on Irans nuclear program, but it would be perhaps too simplistic to conclude from this that the sanctions were successful on the whole. No doubt, those in Iran who suffered because of them are unlikely to forget soon, and furthermore the political implications of the agreement strongly suggest the sanctions may not have played the greatest role in bringing Iran to the table.

*The freezing of assets is when an individual or organisations assets (whether its a property, a business investment or bank accounts) are regulated to prevent the owner from selling or withdrawing them. For example, Irans Central Bank is believed to have up to $10bn in European central banks that is frozen- currently they cannot withdraw it.

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