The Fattening of America: How the Economy Makes Us Fat

Economists look at the world in terms of incentives and disincentives. Telling people to do one thing while providing them incentives to do something else will almost always fail. Welfare programs are the classic example of this quandary. Obesity in America is a multi-billion dollar issue that impacts all facets of the economy so it is not surprising that economists have been studying it. Furthermore, since economics is the study of decision making, they are well positioned to help shed light on the root causes of the epidemic.

Everyone knows that it is bad to overeat and to consume the wrong foods. Furthermore there are no shortage of dissincentives (e.g., costs) for being obese including poor health, poor self-esteem, and even (according to studies) lower wages. With all of these dissincentives, how is it possible for obesity rates to be skyrocketing? Without even having to look into it, most economists would say that there must be other, more powerful incentives that, while hidden, are leading people to consume more of the wrong kinds of calories than they should.

It is in this setting and with economic tools that author/economist Eric Finkelstein attacks the problem in his book "Fattening of America". He first addresses how technology has simultaneously reduced the cost of food consumption while increasing the cost of physical activity. This argument is not new but it is presented quite thoroughly. Here are some of examples:

Between the late 1970s and today, men have increased their daily food intake by about 180 calories and women have increased their daily food intake by about 360 calories. These increases are more than enough to create the rise in obesity rates [occurring in this country].

Food costs in terms of money and preparation time have been steadily dropping. Since 1978, food prices have dropped 38% relative to the prices of other goods and services.

Since 1983, When compared to the general price for all foods and beverages, the prices of healthier foods have become relatively more expensive and the prices of unhealthy food, those with lots of added sugars and added fats, have become cheaper.

These low prices also translate into larger portions. Whereas the average-size Coke used to be 8 ounces, a 20-ounce bottle is now the norm. If the average American drank water instead of sugar-sweetened beverages, he would weight about 15 pounds less than he does now.

They also attack french fries, microwave ovens, high-fructose corn syrup, farm subsidies, and snacking.

But the most interesting aspect of the book is its exploration of the reduction of costs associated with being obese. They note that over the past few decades advancements in treatments for obesity-related diseases have reduced in part the consequences of being overweight. In other words, medical advancements have reduced the costs of being overweight. Since treatments are paid by insurance companies, the added costs of extra pounds are in essence spread across all subscribers. This breaks the connection between the behavior and the cost of the behavior (economists call this a "moral hazard"). In support of this the authors note that people with medical insurance are 12% more likely to be obese than those without.

The authors believe that many obese individuals have made conscious decisions to engage in lifestyles that are obesity promoting. For example, they know that they could lose weight by taking long walks but that this would take time away from other things they'd rather do (for example be at home with their kids or to work later at the office in order to get a promotion). They might know that going to the gym and being on an exercise bike is more weight-loss promoting than playing golf, but they only have time to do one of those and prefer golf because of the social aspect. There are an infinite number of these trade-offs, but putting genetics aside, the authors believe that rational decision making by informed individuals (i.e., "utility maximization") can still result in obesity-promoting lifestyles.

Even though the book is not a "how to lose weight book" the authors note (in a somewhat self-deprecating way) that they "couldn't resist the temptation to offer some advice on how to lose weight." Among the tips/suggestions:

Set long-term weight and exercise goals.
Make your goals public.
Find an exercise buddy.
Measure and document.
Eat out less.
Walk around while on the phone (especially long conf calls).

Obesity is an extremely relevant and important topic for the developed world and anything that contributes to a better understanding of it is a worthwhile read. After reading the book you will understand that the solution does not lie in public health or media campaigns since these do not come close to addressing the core issues. Furthermore, in reading about how the relative costs of obesity-leading choices have changed over the past few decades you might also gain insight on how to control your own weight.

In short, I found the book to be a quick, enjoyable and enlightening read.

Amazon link: The Fattening of America: How The Economy Makes Us Fat, If It Matters, and What To Do About It