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Discussion on Alcopop Taxes

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Case Study of Australian Alcopop Taxes Table of Contents 1.0 Executive summary 2 Introduction 2 2.0 Analysis of the case 3 2.1 Definition of Alcopop 3 2.2 Evaluation of the case 3 3. 0 Relative economic theory 5 3.1 supply-demand theory 5 3.2 Theories of Elasticity and government intervention 5 4.0 Alternative actions and solutions 6 4.1 Causes of teenagers’ drinking 7 4.2 Solutions and actions 7 5. 0 Conclusion 8 1.0 Executive summary Alcopop refers to alcoholic beverages that are popular with young people. It is widely taken among underage drinkers. In order to cut potential danger caused by alcopop and to raise revenue, recently Australian government has promoted alcopop tax. The main purpose of the article …show more content…

Same with alcohol, it is apparent that young people will possibly choose stronger drinks that have lower prices such as vodka cruiser over those of sweet flavour but with higher price. And this is actually what’s happening today with teenagers. Instead of drinking alcopops, they turn to hard liquor such as spirits, cheap wine and beer (Gordon & Harrison, 2008 ). This is evidence that proves the failure of government intervention and how improper it is for the government to raise its price to curb teenager drinking. Moreover, higher alcoholicity in hard drinks will lead to more harmful side-effects on teenagers. They can be sudden bursts of aggressive behaviour, brain damage, family problems, serious health issues as well as removing the ability to concentrate in class. After analysis from the teenager’s point of view, another factor is social and welfare organisations. Nutritionists and doctors are particularly worried because the trend seems to be that more and more teenagers catch onto drinking and that they choose stronger spirits, which poses particularly large problem both for themselves and the society. Since higher alcoholicity makes the teenagers get drunk sooner and most of the consumers are young women, it increases the possibility that teenagers get pregnant and violated after they loose their mind (Harvey, 2008.). Statics show that 8% increase of abortion in

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