Roosevelt Review Fall 2019

Curbing Obesity Amongst Vulnerable Communities:
Subsidies and Price Caps on Healthy Foods
By Kartikeya Juneja
HEALTH CARE
Thesis
To solve the issue of food deserts and
hence, curb obesity among vulnerable
populations, the city of Los Angeles
should implement economic policies
such as price caps and subsidies on
fruits and vegetables making them more
affordable to low-income communities.
Background & Analysis
The prevalence of adult obesity in California
has increased significantly in
the past decade. According to the California
Health Interview Survey (CHIS)
27 percent of adults in California were
diagnosed as obese in 2014, which is an
increase in obesity prevalence of nearly
40 percent since 2001. Ethnic minorities
and low income households are more
vulnerable to the issue of obesity. In a
2015 study conducted by UCLA Center
For Health Policy Research, 31%
of adult Californians with incomes below
200 percent of the Federal Poverty
Level (FPL) were obese compared to
20 % with incomes at or above 400%
FPL. In 2014, a study conducted by
the California Department of Public
Health concluded that obesity rates
among African Americans and Latinos
were higher than the Healthy People
2020 target while those for non- Latino
White and Asian Californians fell
below the target. For example, obesity
rates among African American women
(49.8 percent) were more than double
the rate of White women (22.9 percent).
The high levels of obesity amongst vulnerable
communities in California can
mainly be attributed to the issue of unavailability
and unaffordability of fruits
and vegetables. For example, there is a
lack of availability of healhty foods such
as fruits and vegetables as they are unaffordable
for low-income communities.
Almost 1 in 4 low-income people in
California reported that they were usually
(10.6%), sometimes (9.3%), or never
(2.9 %) available and 20.9 % said that
they are sometimes affordable and 1.1
% said that they are never affordable.
Talking Points
• Implementing a 10% subsidy
on fruits and vegetables would
reduce production costs for
farmers and hence, supermarkets
would be able to buy fruits
and vegetables at a lower price
• In turn, implementing a price
cap on fruits and vegetables
would ensure that they are
more affordable for low-income
and vulnerable communities
• In the United Kingdom (UK), a 10%
subsidy on healthy foods reduced
obesity rates from 57% to about
13%. Although, implementing subsidies
cost about £991m ($1.3 bn) ,
the net benefit of the policy equated
to £6 billion in the long run.
Key Facts
• 27 percent of adults in California
were obese in 2014, which, is
an increase in obesity prevalence
of nearly 40 percent since 2001
• In a 2015 study conducted by
UCLA Center For Health Policy
Research, 31% of adult Californians
with incomes below 200 percent
of the Federal Poverty Level (FPL)
were obese compared to 20 % with
incomes at or above 400% FPL
• Obesity rates among African
American women (49.8 percent)
were more than double the rate
of White women (22.9 percent).
Policy Idea
The Los Angeles County Department of
Public Health should implement economic
policies in order to address the
issue of obesity by first, providing a 10%
subsidy to producers of fruits and vegetables
and second, capping new prices
for fruits and vegetables at 90% of the
8
original prices for these products. Implementing
a 10% subsidy on fruits
and vegetables would reduce production
costs for farmers and supermarkets
would be able to buy fruits and
vegetables at a lower price. In turn,
implementing a price cap on fruits
and vegetables would ensure that
they are more affordable for low-income
and vulnerable communities.
Policy Analysis
Implementing subsidies on healthy
foods have been successful in reducing
obesity rates in the United Kingdom. According
to a research by the “University
of Bath”, implementing a 10% subsidy on
healthy foods (fruits, vegetables, fish and
lean meats) was the more effective policy
in reducing obesity and benefiting the
government as compared to a 10% tax
on unhealthy food and cash incentives.
The 10% subsidy reduced obesity rates
from 57% to about 13%. The portion of
the NHS budget spent on overweight
and obese people has been calculated
to be about 16% a year i.e. around £6
billion ($7.7 bn). Hence, though implementing
subsidies cost about £991m
($1.3 bn) , the net benefit of the policy
equated to £6 billion in the long run.
Currently, the American government
provides subsidies on various types of
food such as corn, soybean, etc. which,
have instead caused a higher production
of unhealthy processed foods, and
high-calorie soft drinks and juices.
According to the Los Angeles Times,
more than half of the calories consumed
by American adults come from
government subsidized crops. Hence,
implementing subsidies on healthier
food options such as fruits and
vegetables would be more effective.
Although, a certain group of people may
argue that increasing subsidies would