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Economic impacts of the countries are affected by smoking bans

Published on July 10, 2008 10:00 AM

In Missouri town smoking was banned in most public places. After this legislation the business of most bars and restaurants and not only also and economic impact has decreased. Missouri is a town with a high percentage of smokers that’s why the smoking ban affected very much not only smokers but also the income of bars and restaurants from this town. And the employments losses were larger in Missouri than in other towns with the same smoking bans.

Michael R. Pakko, an economist of the Federal Reserve Bank of St. Louis, in a study showed that towns like Columbia may see health advantages from smoking bans but the economic impact became disadvantageous. "All too often policy makers are given this package of smoking bans are good for health and there is no impact on business. Certainly it's not going to cause a town to go into the tank, but it will have a negative impact on some businesses," Pakko said.

Pakko showed that after the smoking bans Jan. 9, 2007, in Columbia in most public areas, the sales tax data in seven months after the ban declined 5 percent at bars and restaurants.

Pakko in a report showed the smoking bans disadvantages. Disadvantages like job losses and lose income of the country.

Mayor Darwin Hindman characterized the ban as a big success. Hindman said, "When you have a change, whether it is a market change or regulatory change, some people adjust better than others."

"I'm firmly convinced in my own mind that there is an extreme health issue related to second-hand smoke," Hindman said. "I believe the benefits are enormous and the restaurants are going to do fine in Columbia."

Hamilton said her bar will survive, but business isn't what it used to be.

"I haven't seen some of my regulars in forever," Hamilton said. "They go out to bars in the county, where they can smoke."

Climate is also a factor, in warm-weather communities with smoking bans fared better than those in colder climates, probably because outdoor seating for smokers is a more viable option in warmer climates.

According to Imperial Tobacco the recent smoking ban in pubs and restaurants have fallen the cigarettes sales in UK too.