Economics in Smokes

While I laud the effort of increasing the price of cigarettes, I often wonder "Why Bother?"

The most recent increase of cigarette prices for a pack of 20s went up "significantly" as I quote from a local daily. The HUGE jump of 70 cents (Malaysian currency, or the equivalent of USD$0.22) has been lauded by the Minister of Health as a key factor in helping to reduce the number of smokers in Malaysia....

Paradoxically within the same article, it was stated that a pack of 20 contraband smokes only cost the consumers RM 3.00 to RM 3.50 (USD$0.95 to USD$1.10). In all the futile efforts to stem out smoking, we still contradict the efforts by telling the masses via mass media that there are cheap contraband out there...

I wonder if a smoker reads the article, which likely thought would be going through their head

a) "Gee....smokes are so expensive these days. I think I'm gonna quite coz it went up by 70 cents for 20 sticks"

OR

b) "RM3.50 !!!! Gotta get me some of those babies!!!"

The notion that a 70 cent jump for 20 sticks is preposterous. Take a piece of paper and do simple maths and one can work out the the price increase PER stick of smokes had set the average consumer back by 3.5cents. Yes.....3.5 cents. There's no denomination of currency any longer that puts a value to 3.5 cents. To sacrifice 3.5 cents per stick of cigarette would mean nothing to an average smoker as a mint candy to hide the stench would have cost them 5 cents even. Oooooo i can just feel their pockets burning in pain......

A quick google search revealed that in the USA, the average cost per pack of 20s was US$6.46 (RM20.30) with most settling for 6 dollars, while the state of Montana and Massachusetts pegged it at 10 dollars and 25 dollars respectively, in accordance to their state law (RM 31.50 and RM 78.75). Whilst their counterpart in UK have an average cost of  £5 per pack of 20s. (Approx RM 25). Mind you, these are the prices paid by end consumers and the figures are quoted off 2009 census.

Now that is at least some serious effort......

Scuff scuff......3.5 cents.....hmphhhhh..... be serious.........

(I accept the fact that I will be less popular after this entry....then again, I was never quite popular too...  )