Obama & the Happy Meal

McDonald’s is changing the Happy Meal. Instead of including french fries or apples, kids will get a small portion of both, without the caramel dipping sauce. McDonald’s says it’s responding to consumer preferences and wants to make its meals healthier. If true, this is how capitalism is supposed to work. Of course, I don’t really buy McDonald’s explanation.

In April, regulators developed voluntary standards for marketing food to kids aged 2 to 17, including limitations on sodium, sugar, fat, and calories. But there’s a problem here. Regulators cannot develop voluntary standards. To be voluntary—by definition—such standards should be developed by the companies, not Washington.  McDonald’s execs understand the implication here. If they don’t “voluntarily” comply, they might be forced to do so. In essence, regulators are telling McDonald’s and other food markers how to run their businesses.

I’m for healthy kids as much as anyone else and I don’t mind Michelle Obama encouraging our youngsters to eat smart and exercise. But it’s not her role to raise my kids or dictate how private firms manage their affairs. Individuals and private companies should be able to live their lives and allocate their resources any way they see fit as long as they don’t infringe on the rights of others to do the same.

Interestingly, liberals claim to agree with this statement but argue that childhood obesity raises healthcare costs for society. Regulation, therefore, is a rational approach aimed at balancing individual rights and societal costs. However, their argument for more government control is built on a socialist premise. Society’s healthcare costs only exist to the extent that some individuals are not responsible for their own expenses in the first place.

This type of liberal argument is not uncommon; intrusion on individual liberty is deemed necessary to keep a lid on society’s obligations. While it contains a kernel of truth, it also ignores the larger picture. Unfortunately, many Americans accept such arguments without questioning their basis.

As for Happy Meals, McDonald’s should sell what consumers are willing to buy. We should also realize that government intrusion into business activity is never free. Any product decisions based on government mandates or “voluntary standards” that are not supported at the cash register will hurt company profits. Ultimately, this means lower returns in our 401(k)s, fewer jobs, and higher prices for Big Macs to cover the loss.

2 thoughts on “Obama & the Happy Meal

  1. you’re paranoid parnell. we definitely need to regulate fast food, it’s raising all of our costs and we all die younger. why do you always reject smart policy in the name of liberty? should we really have the freedom to kill ourselves? you are extreme here

  2. You are not forced to eat fast food! I enjoyed a good happy meal when I was a kid and sure did like taking my kids there and stealing their fries while they were playing in the McD’s playground. Seriously, if I wanted an apple I’d go to the grocery store and get one. I go to McD’s because I want a break from the apple and veggies.

    Look at the government policies on food and farming and how they have created some of the diet problems we have today. My kids go to public school and the lunches served are pretty bad, no better than McDs. I just read an article about government diet guidelines which posits that emphasizing low fat high carb diets has contributed to the diabetes problem. Why do we have such high use of high fructose corn syrup, thought by many to be harmful? Because the government has palced high tariffs on imported sugar in order to protect domestic sugar producers.

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