ECN 340 Lecture Notes - Lecture 12: Jet Fuel, Pecan, Real Income
3 Dec 2017
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Document Summary
Over the last half century there has been a world-wide weight-gain problem, including canada. Excess weight has been associated with at least 35 diseases, particularly diabetes and heart disease. The overweight problem has led for a demand for larger cars, thus more gasoline and jet fuel (due to heavier passengers) We will see that the main issue is that the full price of fast-food is lower than the price at which one could make the same food at home. Ma(cid:374)y lay the (cid:271)la(cid:373)e for o(cid:271)esity o(cid:374) people"s loss of (cid:272)o(cid:374)trol or (cid:271)usi(cid:374)esses" greed to (cid:373)ake profits. But these explanations do not stand up to scrutiny. While obesity and weight problems particularly acute in the us it also a major problem in canada. Since the 1950s-people income has risen faster than prices. Real income (inflation adjusted) is higher than it was 60 years ago. Food prices have risen, but not as much as other prices, thus a relative bargain.
