Food Inc. Essay

The film Food Inc. reveals the truth about the way food is produced today. The film provides countless cases of negative externalities. If a good has a negative externality, then the cost to society is greater than the cost consumer is paying for it. In other words, the marginal social cost exceeds the marginal private cost. Since consumers make a decision based on where their marginal cost equals their marginal benefit, and since they don’t take into account the cost of the negative externality, negative externalities result in market inefficiencies unless proper action is taken. Negative externalities from eating unhealthy foods are not easily quantified, as a countless number of interwoven factors come into play. While eating unhealthy food has many negative effects on the body, consuming junk food has a large impact on society and the environment. Not knowing how food is produced these days, can open the gap for diseases to be eaten by mouth. Countless negative externalities occurred throughout the film. For example, in 2001, a large number of meats were contaminated by e coli. As the contaminated meat was manufactured to fast food joints and grocery stores, e coli poisoning began to take many lives. A 2-year-old boy by the name of Kevin ate a hamburger from a fast food restaurant. Hours later, the boy caught e coli 0157:H7 and died a few days later of kidney failure and dehydration. His mother pursued Kevin’s Law, which close down plants that produce contaminated meat. Fast Food Negative Externality Graph Fast Food Negative Externality Graph = potential welfare loss = potential welfare loss The chart above represents the negative externality fast food has on society as a whole. MSC stands for marginal social cost; MPC is the marginal private cost. The black triangle represents the potential welfare loss or the â€Å"external cost† of the good. When the marginal social cost exceeds the marginal private cost, this signifies a negative effect on society. When the costs to produce the good are higher than the benefits the good brings, it is not beneficial and harms the market and lives as well. As the quantity increases, the benefit of fast food to society decreases (Q* →Q1 ). Supply and demand of fast food Supply and demand of fast food As many families struggle to get to work and don’t have the time to make a healthy dinner, fast food is often the resort taken. Demand for fast food has increased immensely as time goes on because it is a quick way to eat and be satisfied for the time being. The negative effects that arise, such as diabetes and the chance of being food poisoned are often disregarded. The chart above symbolizes the supply and demand of fast food today. As demand increases, supply decreases. D1 →D2 shows the rise in demand for fast food. S1 → S2 represents the drop in supply due to the increase in demand. As supply decreases, the price for fast food increases (P1→P2). Alternative measures can be taken to decrease the risk of obesity and chances of eating contaminated foods, including, resorting to healthier foods. The rise in demand of healthy foods, cause the price to jump. By being more aware of the foods one is consuming, you are likely to add years to your life, rather than take them away.