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	<title>Comments on: Russians and their love affair with vodka</title>
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	<link>http://welkerswikinomics.com/blog/2009/11/06/russians-and-their-love-affair-with-vodka/</link>
	<description>for students and teachers of AP and IB Economics</description>
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		<title>By: Andrew McCarthy</title>
		<link>http://welkerswikinomics.com/blog/2009/11/06/russians-and-their-love-affair-with-vodka/comment-page-1/#comment-9059</link>
		<dc:creator>Andrew McCarthy</dc:creator>
		<pubDate>Thu, 19 Nov 2009 11:51:19 +0000</pubDate>
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		<description>Nice comments, Luisa.

The additional impact of rising taxes as far is possible the the effect on inequality. People on high incomes will perhaps still purchase alcohol despite the prohibitively high tax, for poor people the tax and alcohol will take a larger portion of the persons income, thus it becomes regressive towards low income earners. If these low income people switch to black market, home brew spirits the problem may worsen.</description>
		<content:encoded><![CDATA[<p>Nice comments, Luisa.</p>
<p>The additional impact of rising taxes as far is possible the the effect on inequality. People on high incomes will perhaps still purchase alcohol despite the prohibitively high tax, for poor people the tax and alcohol will take a larger portion of the persons income, thus it becomes regressive towards low income earners. If these low income people switch to black market, home brew spirits the problem may worsen.</p>
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		<title>By: Luisa von Wangenheim</title>
		<link>http://welkerswikinomics.com/blog/2009/11/06/russians-and-their-love-affair-with-vodka/comment-page-1/#comment-8939</link>
		<dc:creator>Luisa von Wangenheim</dc:creator>
		<pubDate>Sun, 08 Nov 2009 17:19:47 +0000</pubDate>
		<guid isPermaLink="false">http://welkerswikinomics.com/blog/?p=1250#comment-8939</guid>
		<description>Explain what the aim of introducing taxes on vodka and beer is. Evaluate if the taxes will achieve the aims of increasing government revenue and reducing the social harms related to alcohol consumption in Russia.

The aim of introducing taxes on vodka and beer is so the government revenue will increase so the government can use this money to treat alcoholism. First of all, in my opinion the government has to introduce a tax on both products otherwise the government revenue will not increase since the consumer will buy the substitute of the product. They will not archieve anything when they only tax vodka because the consumer will then consume beer. THe demand for the products will most porbably not decrease drastically since alcohol is a inelastic product; quantity demanded does not respond strongly to a price change. 

Additionally I think the government should try to rise the taxes for both beer and vodka as high as they can, so people in the lower class where unemployement is very high, do not have the chance to start or countinue drinking. The only thing those people have left is alcohol so the government should solve this problem as well. The money they save from the people who stop drinking, they can use for either the treatment of alcoholism or other treatments.</description>
		<content:encoded><![CDATA[<p>Explain what the aim of introducing taxes on vodka and beer is. Evaluate if the taxes will achieve the aims of increasing government revenue and reducing the social harms related to alcohol consumption in Russia.</p>
<p>The aim of introducing taxes on vodka and beer is so the government revenue will increase so the government can use this money to treat alcoholism. First of all, in my opinion the government has to introduce a tax on both products otherwise the government revenue will not increase since the consumer will buy the substitute of the product. They will not archieve anything when they only tax vodka because the consumer will then consume beer. THe demand for the products will most porbably not decrease drastically since alcohol is a inelastic product; quantity demanded does not respond strongly to a price change. </p>
<p>Additionally I think the government should try to rise the taxes for both beer and vodka as high as they can, so people in the lower class where unemployement is very high, do not have the chance to start or countinue drinking. The only thing those people have left is alcohol so the government should solve this problem as well. The money they save from the people who stop drinking, they can use for either the treatment of alcoholism or other treatments.</p>
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		<title>By: Evan</title>
		<link>http://welkerswikinomics.com/blog/2009/11/06/russians-and-their-love-affair-with-vodka/comment-page-1/#comment-8933</link>
		<dc:creator>Evan</dc:creator>
		<pubDate>Sat, 07 Nov 2009 03:12:27 +0000</pubDate>
		<guid isPermaLink="false">http://welkerswikinomics.com/blog/?p=1250#comment-8933</guid>
		<description>According the ChartsBin chart &quot;Current Worldwide Alcohol Consumption among Adults&quot;. Not only Russia have love affair with alcohol. All developed countries have their love.</description>
		<content:encoded><![CDATA[<p>According the ChartsBin chart &#8220;Current Worldwide Alcohol Consumption among Adults&#8221;. Not only Russia have love affair with alcohol. All developed countries have their love.</p>
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