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Smoking is bad for health Laughing IT IS SCENTIFICALLY PROVEN.
Smoking is a form of externality,A externality has third party effects.In this case, smoking is a negative externality as it causes health problems to people who do not actually smoke.Thus the goverment should take corrective action to reduce smoking.This is to acheive social optimally.
Smoking is a problem wherby Marginal private costs exceeds marginal social costs.Thus the goverment should increase tariffs on smoking to reach a stage wherby MSB=MSC.This would thus maximse social welfare.
The solution to smoking is to implement taxes on smoking.THis would mean that marginal private would shift to the left to reach MSB=MSC.The benefits to this is that there would be a reduction in smokers as many would be forced to cut their ciggy intake or quit altogether.The drop in ciggy intake and smokers would lead to an increase in productivity in e local workforce.THis would thus lead to an increase in aggreagate supply.THus the general price level would drop and the general public would be able to purchase gds and svs at a lower price.
Futhermore,a drop in GPL=increase in export competitiveness =improvement in BOT=improvement in BOPS=increase in national employment=increase in national income=economic growth=higher standard of living.
In the long term,the huge majority would gain from this scheme.The goverment would be able to reduce healthcare spending as a drop in smokers would leads to a more healthy body.Also, the general public would benefit there wld be less health risk and air pollution.
In retrospect,e increase in tariffs would lead to increase in smuggling cases frm jb.THus e local customs shld step up on patrols to reduce to contraband ciggy frm reaching our shores.
Also,the goverment has to ensure that there are sufficent quit smoking centres in singapore to help ppl quit smoking to make this plain a success.
Also e govt shld have spread e msg at local educational insitutions such AS NUS.This would help them inubate e right values and quit smoking .
All in all,a reduction in smoking would lead a healthier workforce and higher standard of living and economic growth for singapore.
heheheh Mr. Green
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