Tuesday, February 11, 2014

Learning economics through pictures ... Unintended consequences

The Affordable Care Act (Obamacare) imposed a tax on tanning beds.  Many gym memberships included the ability to use tanning beds.  Planet Fitness posted this sign in one of their stores, to indicate how their users now must pay a tax.

This is a good example of an unintended consequence.  Its pretty clear that battling obesity is a priority from the current White House administration (Michelle Obama has spent a lot of time on this issue).  I'm sure they didn't intend to impose extra costs on gym memberships.  That said, it is difficult to foresee the unintended  negative side-effects from government policies.

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