Quitting Smoking Has Some Economic Benefits

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Quitting smoking has economic benefits for you as well as for the government. But, first we would have to know the economic costs of smoking which will make us understand the economic benefits better. Needless to say, the immediate benefit of quitting smoking is that you will have more cash in your pocket.

In the language of economics, there is whooping $130 billion of real resource costs of smoking in The United States. That is to say this $130 billion is more burdensome to the US economy than the same levied as taxes. It imposes a tax on the consumer, but provides offsetting revenues to the government.

According to a study, smoking related illnesses cost the US, $60 billion per year. It can only mean one thing- the waste of scarce medical resources. If we can eliminate smoking tomorrow, the resulting savings can partially offset our GDP deficits. If a smoker smokes more than one packet a day, he will spend an amount of $25000 while a Masters degree cost around $22000 in the US.

Smoking related externalities, like fire caused by smoking cost the US $500 million apart from human lives. So, you can well imagine the benefits of quitting smoking.

Another economic cost of smoking is the reduced productive capacity of the economy and the cost from shortened lives. Smokers tend to be younger and retire sooner. This carries a price of $80 billion to the US economy due to lost output and lost wages. Also the absentee rate among smokers is very high.

You might have never thought about these implications earlier but these are the points which need your attention. If not paid heed, they are capable of resulting into costs much higher than the present figures.