Smoking and drinking are clearly bad for your health. Yet, the companies that make those products, known as “sin stocks,” have proven they can overcome any economic downturn, restrictive legislation and even mainstream criticism. So what’s that tell you about human nature? We like what’s bad for us. Take the huge tobacco tax hike that went into effect in 2009. The federal per-pack tax on cigarettes went from 39 cents to $1.01. And that’s just federal. In states like New York, additional excise taxes means that it now costs smokers around $11 for a pack of cigarettes. #-ad_banner-#That’s… Read More
Smoking and drinking are clearly bad for your health. Yet, the companies that make those products, known as “sin stocks,” have proven they can overcome any economic downturn, restrictive legislation and even mainstream criticism. So what’s that tell you about human nature? We like what’s bad for us. Take the huge tobacco tax hike that went into effect in 2009. The federal per-pack tax on cigarettes went from 39 cents to $1.01. And that’s just federal. In states like New York, additional excise taxes means that it now costs smokers around $11 for a pack of cigarettes. #-ad_banner-#That’s not even touching on the fact that you can’t smoke anywhere anymore. Most states have made it hard to smoke in public places. In many, you can’t even light up in a bar. Yet, people still smoke. That’s not to say tobacco companies aren’t hurting. In 2014, nine billion fewer cigarettes were sold in the United States than the prior year. Still, that’s only a 3.3% reduction in volume. And smokeless tobacco, including dip, actually increased in total volume. Of course, the United States is only a small portion of global smoking consumption. Today, approximately 1.3 billion people around the… Read More