Economic effects of reducing consumption of unhealthy commodities with Damon Morris
Economic effects of reducing consumption of unhealthy commodities with Damon Morris

Addiction Audio

Dr Damon Morris explains research modelling how reduced spending on alcohol, tobacco, confectionery, and gambling affects the UK economy once reallocation of spending is considered. The conversation breaks down complex economic modelling and questions the idea that stricter health policies must damage economic performance.

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17:31•29 May 2026

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Is Cutting Back on Alcohol and Other Unhealthy Habits Bad for the Economy?

Episode Overview

Reduced spending on tobacco, confectionery, and gambling, when reallocated to other goods and services, is linked to net positive economic impacts.
Alcohol shows a small overall negative economic impact when spending falls, driven mainly by reduced on-trade (pubs, bars, restaurants) sales, while off-trade reductions look economically positive.
Input-output simulation modelling can estimate how changes in spending ripple through sectors to affect employment, gross value added, and tax receipts.
Sensitivity analyses suggest that even modest reallocation of saved money is enough to offset negative impacts, especially for tobacco, where as little as 4% reallocation can break even.
The findings challenge claims that health policies necessarily harm the economy and suggest potential "win-win" outcomes for both public health and economic performance.

“"Rather than there's a delicate balancing act between different policy outcomes, the evidence here is more that it's a win-win."”

How do people find strength in their journey to sobriety? One angle you might not expect is cold, hard economics. This episode of Addiction Audio looks at what happens to the wider economy when people spend less on alcohol, tobacco, confectionery, and gambling.

Host Dr Elle Wadsworth chats with Dr Damon Morris, a Research Fellow in the Sheffield Addictions Research Group, about his team’s work using an open-source input-output model to simulate the macroeconomic impact of cutting back on these "unhealthy commodities" in the UK.

Rather than relying on industry claims that public health policies are bad for business, the study asks a simple question: if people stop buying booze, cigarettes, sweets, or placing bets, where does that money go instead, and what does that mean for jobs and national income? Damon breaks down complex concepts like gross value added (GVA), input-output tables, and simulation modelling in clear, everyday language.

He explains how the model tracks spending shifts across sectors and translates them into changes in employment, tax receipts, and overall economic activity. He notes that for tobacco, confectionery, and gambling, reduced spending combined with reallocation leads to "net positive economic impacts", while alcohol shows a small negative effect overall, largely driven by pubs and restaurants (on-trade), with supermarket alcohol (off-trade) looking much better for the economy when cut.

One standout message is that the assumed trade-off between health and the economy may be overstated. As Damon puts it, "the evidence here is more that it's a win-win" for both population health and economic outcomes when consumption falls and money is spent elsewhere. He also points out that the study doesn’t even count productivity gains from better health, meaning the economic upside could be larger.

If you’ve ever heard that tighter alcohol or tobacco policies are "bad for the economy", this episode gives you plenty to think about. Could cutting back bring benefits far beyond personal health?

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