Tag Archives: economics

A subtle tobacco control self-contradiction lie, re FDA pumping cigarette stock prices

by Carl V Phillips

Tobacco controllers contradict themselves all the time. That is the inevitable result of them saying whatever seems expedient at the time, without any concern for whether the evidence supports it, or even even flatly contradicts it. When someone is sociopathic enough to do this (*cough* Trump *cough*), they will not only contradict the evidence, but (unless they have incredible discipline and intelligence, which they do not) also inevitably contradict themselves. Many of tobacco control’s self-contradictions are quite simple, with patently contradictory statements appearing in the same document, or even the same paragraph. It hardly seems worth searching out the contradictions that require analysis and observations across multiple threads. But this one is kind of interesting.

A classic tobacco control trope, which you still see a fair bit, is that tobacco companies have to recruit new generations of smokers to replace their current customers. Most of those reciting this probably actually believe it, which reflects public health people’s fundamental lack of awareness about how the world works. Anyone familiar with business (and I mean at just the level of reading the newspaper) will know that markets these days hardly look beyond the next quarter’s earnings. There is not the slightest interest in future generations, and barely any interest in two years from now. C-suite executives respond mainly to these very-short-term incentives. Even stakeholders in the company – medium- to high-level employees who are planning on working there for another couple of decades — do not care about selling products to future generations.

Similarly, an economic theory or long-term shareholder perspective says companies should not care about future generations. Even the most modest discounting of future profits makes sales to upcoming generations approximately worthless in present value terms. Shareholders would rather the companies buy back shares rather than investing in “recruiting” future smokers. If you believe in an anthropomorphic view that cigarette companies “want” to stay in business – rather than making the economically rational choice of maximizing profits as far as they go and sunsetting – then they would be better off expanding horizontally into other logistics businesses (including other tobacco products) rather than worrying about whether anyone is smoking in 2060.

But let’s assume that tobacco controllers are sufficiently innumerate about business that they actually believe that companies “need” to recruit new generations. Then it cannot possibly be that they also believe this:

FDA’s attacks on the vapor product industry drove up cigarette company stock prices because they portend less competition for cigarettes over the time horizon that actually matters to the markets, a couple of years. The market cap increase reflects the expectation that the companies will be able to sell cigarettes for a higher per-unit profit and sell more cigarettes (the former is more important in terms of profits — another simple market fact that tobacco controllers do not understand — but the latter is what matters most in terms of social impacts).

Here’s the thing: If someone believes that the companies (i.e., their shareholders) actually care about selling to future generations, as they have claimed for decades, and believes that vaping will cause future generations to smoke, as they claim in this tweet and frequently, they they would have to predict that threatening to shut down the vapor product industry would depress share prices, or at least not send them through the roof.

As I said, tobacco control lies of self-contradiction are typically so blatant that there is no reason we have to dig this deeply. I certainly do not want to give tobacco controllers too much credit, by implying that they ever actually assess their hypotheses against the evidence. Still, it does not hurt to run through the scientific implications of what they say to illustrate the layers of their dishonesty.

FDA Center for Tobacco Products (mostly) know exactly what they are doing.

 

by Carl V Phillips

Clive Bates recently posted about the e-cigarette deeming regulation which started to take effect this week. Most of the post is just the 10,000th thing you have seen, dating back to before the first draft of the regulation was released, about the unfortunate consequences[*]. But in the last line he says: Continue reading

Economic innumeracy in public health, with an emphasis on tobacco harm reduction

by Carl V Phillips

I recently had the opportunity to give a talk at what was basically the wake for the end of the quarter-century run of the wonderful Robert Wood Johnson Foundation Scholars in Health Policy Research program at the University of Michigan. I chose to put together some themes from my work as a tribute to one of the goals of that program, bringing the thinking of serious social scientists into health policy arenas where it is desperately lacking. Alas, most of my fellow alumni focus on engineering a better medical system or medical financing, with few choosing to try to deal with public health (let alone “public health”). Medical practice is obviously extremely important, but not so desperately in need of imported thinkers. Well, at least you have me.

I got some great feedback on this talk making that alone well worth my effort. (Thanks to all my colleagues. And it was great seeing you. We’ll be in touch.) But I wanted to also share what I created more broadly here. The following are my slides from the talk, with some text to explain what is not fully contained in the slides, along with a bit of extra material that was not in the talk. Continue reading

Utter innumeracy: six impossible claims about tobacco most “public health” people believe before breakfast

by Carl V Phillips

As anyone with a modest understanding of the science knows, tobacco controllers and other “public health” people make countless statements that are utterly false. The tobacco control industry depends on making claims that flatly contradict what the science shows. But there is a special class of claims that are not wrong just because they contradict particular empirical evidence; rather, everyone should know they are wrong based merely on understanding some basics of how the world works. Many such claims are constantly repeated as if they were self-evidently true even though they are actually self-evidently false. I was having trouble defining the category until I recalled the quote from Alice in Wonderland alluded to in the title. Continue reading

Toward beneficial and practical standards for e-cigarettes

by Carl V Phillips

At the GTNF2015 conference I was on a panel discussing e-cigarette standards. The standards being discussed include manufacturing practices (e.g., clean rooms, hardware materials), specific technologies (e.g., whether a heating coil is capable of overheating, safe batteries), and ingredients (e.g., the perennial debates about whether some flavoring agents pose too much of a hazard). I decided to take the approach of addressing what the proper role for standards is, from a political economy perspective. What follows is the talk I gave (not word-for-word, and with a few additions to make it a document better suited for reading, taking advantage of the lack of time limit here). I follow that with some additional thoughts I voiced during the course of the Q&A and discussion. Continue reading

Public health (heart) lung cancer

by Carl V Phillips

Tobacco control and “public health” have the same attitude toward lung cancer as homophobes do toward AIDS. In both cases, they are motivated by “moral” objections to particular behaviors and are desperately frustrated that people fail to just stop doing what they personally consider sinful/disgusting/unappealing (those are fairly interchangeable concepts for this sort of person). Thus many of them are happy that there is a disease that disproportionately punishes the sinners. Of course gay bashers (as well as also those who object to all sexual promiscuity and the relatively smaller group who hate injection drug users) do not pretend to care about the physical health of the targets of their opprobrium, so they are merely vile; “public health” people are also hypocrites.

About ten years ago, I coined the term “anti-tobacco extremists” to refer to those who take the most extreme view of tobacco use. This was an attempt to push back against anti-THR activists being inaccurately referred to as public health, given that they actively seek to harm the public’s health. I have since given up on that, and recognize that “public health” is an unsalvageable rubric, which should just be relegated to being a pejorative. But the extremist concept remains useful. The test for anti-tobacco extremism is the answer to the following question: If you could magically change the world so that either (a) there was no use of tobacco products or (b) people could continue to enjoy using tobacco but there was a cheap magic pill that they could take to eliminate any excess disease risk it caused, which would you choose? Anyone who would choose (a) over (b) takes anti-tobacco to its logical extreme, making clear that they object to the behavior, not its effects. Continue reading

Tobacco abstinence is not a safe alternative to harm reduction

by Carl V Phillips and Elaine Keller

In honor of the birthday of one of us (EK), we are using the great title that the other of us wishes he had thought to use for his 2009 paper. In acknowledgement of her birthday, Elaine posted this yesterday on the Facebook CASAA members group:

Today is my birthday. My birthday wish is that e-cigarettes had been invented in 1983 instead of 2003. I was reluctant to share with the world that I was diagnosed with lung cancer last summer. I was afraid that some tobacco control liars might use that information to falsely accuse e-cigarettes of causing cancer. But an important fact is that for ex-smokers, the excess risk for lung cancer doesn’t go away the day you quit. In fact, it hangs around for a good TWENTY YEARS after you quit smoking.

So if I had been able to quit smoking in 1989 instead of 2009, perhaps I would not have needed to have the lower left lobe of my lung removed in July, and to go through chemotherapy. I’m happy to share with you all that my follow-up CT scan on December 4, showed no evidence of cancer. So I am officially in remission. To those who want smokers to wait around for 10 or 20 years for scientific proof that e-cigarettes are 100% safe, I say this, smokers don’t have that luxury.

Dr. Carl Phillips, CASAA’s Chief Scientific Officer, brilliantly analyzed the difference between being able to quit smoking immediately via switching to a reduced risk alternative source of nicotine (Tobacco Harm Reduction – THR) and postponing quitting until ready to “quit completely” (e.g., not needing to earn a paycheck after reaching the age of retirement) in “Debunking the claim that abstinence is usually healthier for smokers than switching to a low-risk alternative, and other observations about anti-tobacco-harm-reduction arguments.”http://www.harmreductionjournal.com/content/6/1/29

Most lung cancers are not diagnosed until Stage 4, when survival rates are grim. I thank God, and credit e-cigarettes, for the fact that mine was caught at Stage 1.

Continue reading

Tobacco use as demonic possession and other recent economic illiteracy

by Carl V Phillips

The most fundamental lie of the tobacco control industry (TCI) is what I have dubbed the “demonic possession” theory of tobacco use. It is the myth that no one likes to use tobacco products.

It is obvious why they need this. If they admitted that people derived benefits from consuming tobacco, then they would have to balance the (supposed) benefits of their actions against the loss of benefits caused by the actions. More important, and the reason this myth is fundamental, is that if they admitted the truth they would have to admit to themselves that most of what they do inflicts harm — serious harm — on the hundreds of millions of people who they pretend they are trying to help. While many in the TCI are truly evil, and would not be bothered by this, many are not, and so need to preserve this fiction to be able to sleep at night. (And, no, “evil” is not hyperbole. It is clear that many people in tobacco control derive pleasure from inflicting pain on people who they consider to be The Other, exactly the same evil impulse that causes racism, homophobia, etc.) Continue reading