Free-Market.Net Freedom Network

Volume II,
Number 4

June-July 1998

Smoke This!
Tobacco Under Fire

edited by Robert Knautz


Contents


The Issue

The US state and federal governments have launched an all-out war against some of America's largest corporations. Microsoft is being persecuted for its success and the tobacco industry is under heavy fire from all sides. In this Policy Spotlight, we examine the anti-smoking crusade and the maze of issues it involves.

Last June, four of the biggest American tobacco companies plea-bargained their way into $368.5 billion dollars in punitive payments and a load of new regulations on sales and marketing. But the government wanted more and backed-out of the deal. The current tobacco settlement that is being debated in Congress calls for over $500 billion in damages.

Most free-marketeers think of this debate in terms of two essential issues:

  1. Personal responsibility. If people freely choose self-destructive actions, like smoking, should the government step in to protect them from themselves?
  2. Private property rights. If business owners allow smoking on their premises, should the government step in to protect their customers?

Unfortunately, the smoking debate isn't always kept on this level. Even some libertarians agree that the issue is complicated by the apparent fact that tobacco companies targeted minors in their advertising, and concealed information about how addictive and dangerous smoking can be. Did people really choose to smoke, or were they manipulated?

Much of the current debate is around how much damage the tobacco companies caused, and how much they should pay. Specifically, have the various levels of government incurred extra costs in caring for people with smoking related diseases? This argument forces defenders of tobacco to point out that the various levels of government have already collected billions in "sin taxes." Sometimes, defenders even counter with the perverse yet logical argument that smokers tend not to live as long, and therefore do not cost the government as much in senior citizen entitlements like Social Security and Medicare.

Obviously, the public policy debate over smoking has become complicated. This Policy Spotlight is here to help you sort it out, with attention focused on how pro-freedom experts and intellectuals view the issue.

In his Media Spotlight, J.D. Tuccille looks at the more mainstream media's perception of the global tobacco settlement and the tobacco industry.

If you have questions or comments, please click over to this month's Spotlight Forum.

The Solutions

Free-Market.Net Partners

Reason Magazine

Reason Senior Editor Jacob Sullum has become the leading libertarian voice on the anti-smoking crusade. Sullum recently released a book entitled "For Your Own Good: The Anti-Smoking Crusade and the Tyranny of Public Health."

At a recent event to promote the book, comedian Drew Carey and dozens of other protesters blazed-up at a Smoke-In at Barney's Beanery in West Hollywood in an act of civil disobedience against the new California law. (A film clip is available from CNN.)

As part of their promotional materials for the book, Reason compiled a large number of articles and links to sites both pro and con. Jacob Sullum's syndicated column and op-eds are also archived on their site.

Even if you don't smoke, Reason explains Why you should buy cigarettes on the Fourth of July.

Highlights of Jacob's articles in Reason include:

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Cato Institute

Cato Constitutional Fellow Robert A. Levy discusses the questionable legal tactics being used against the tobacco industry in Tobacco Medicaid Litigation: Snuffing Out the Rule of Law.

Levy testified before the US Senate on the legal issues in the global tobacco settlement. He also submitted a set of responses to supplementary questions from the committee.

Tobacco Settlement: Sweetheart deal, Health Imperative, or Legalized Extortion? was the title of a policy forum sponsored by Cato last summer.

Cato's Regulation Magazine recently featured several articles on the Tobacco industry:

Cato scholars have also written a number of excellent op-eds on the issues surrounding the tobacco settlement:

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Heartland Institute

The States vs. the Tobacco Industry: Smoke and Assorted Mirrors by law professor Michael DeBow discusses the reasons why the lawsuits against the tobacco companies would have failed and no settlement would have been necessary.

Heartland President, Joe Bast, discusses why the tobacco settlement affects everyone in Smoking Under Siege.

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Nevada Policy Research Institute

NPRI offers a number of transcripts from radio commentaries on the subject, from their state-based perspective. One looks at the potential losses for casino owners if smoking were banned at gaming tables. Another wonders how long it will take for cigars to be included in the settlement. A commentary entitled Smoke 'Em If Ya Got 'Em analyzes the rise of the nanny state more broadly.

An issue brief called Jumping on the Anti-Tobacco Bandwagon discusses the Nevada Attorney General's decision to join other states in filing lawsuits against the tobacco companies.

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