Smoking Costs the US Economy $891 Billion in 2020

Sep.30.2022
Smoking Costs the US Economy $891 Billion in 2020
Smoking not only poses health risks but also caused US economy a loss of $891 billion in 2020.

Smoking not only carries a high cost in terms of health risks, but also caused the United States economy to suffer losses of $891 billion in 2020.


According to the author of a new study from the American Cancer Society, it amounts to nearly 10 times the revenue of the cigarette industry, which is approximately 92 billion dollars.


Dr. Nigar Nargis, Senior Scientific Director of the American Tobacco Control Research Center, stated that the economic losses caused by smoking far exceed any economic benefits brought by the tobacco industry, including the combined salaries and wages of industry employees, taxes, and industry profits.


At a press conference held by the Cancer Society, Nargis stated that as a society, we can mitigate these economic losses by implementing coordinated and evidence-based tobacco control measures. These measures primarily encourage smoking cessation and prevent individuals from starting to smoke.


In this study, researchers conducted an economic model to measure the economic losses caused by smoking in each state.


A recent study revealed that each state in the US loses an average of $1,100 per person per year in income due to smoking. Kentucky has the highest per capita loss at $1,674, followed by West Virginia at $1,605 and Arkansas at $1,603. The states with the lowest losses were Utah at $331, Idaho at $680, and Arizona at $701.


The damage this industry has caused to individuals' lives and our nation's economy is appalling," said Lisa Lacasse, president of the American Cancer Society's Cancer Action Network.


In a press release, she stated, "It is particularly concerning to see that states with the highest economic losses have the weakest tobacco control policies, but this is not surprising. We know what can reduce tobacco use and alleviate this burden, and now is the time for us to implement it.


Lakas stated that policies proven to decrease tobacco use include significantly increasing tobacco taxes, providing adequate funding for tobacco prevention and cessation programs, and implementing comprehensive smoke-free laws.


The study's authors stated that the goal of the US Department of Health and Human Services is to reduce the smoking rate from 14% in 2018 to 5% in 2030, which would significantly decrease economic losses.


Narcissus said that the Healthy People 2030 goal provides an important target that helps reduce smoking and the corresponding negative impact of tobacco use on the economy.


The Lancet Public Health Journal has published research findings.


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