Utility: Gaining ‘pleasure’ and avoiding ‘pain from any human action (which should be the purpose of any human action).
So, Public policy should focus of increasing ‘pleasure’, and/or reducing ‘pain’ and should proceed if one gets benefit none faces harm (called Pareto Optimum).
A cigarette manufacturer (Philip Morris’) argued against the Czech Republic government’s smoking regulation policy by preparing a cost-benefit analysis :
Cost: Higher health care cost for non-smokers’ longer life;
Benefit: Higher taxes from tobacco industry; plus, monetary benefits from early death (lower geriatric hospital expenses; lower pension expenses; lower housing expenses for low-income elderly).
So, early death of smokers saved the Czech government between $23.8 million and $30.1 million on health care, pensions and housing for the elderly in 1999.
Net public finance gains in smoking death: Weighing the costs and benefits, the government saved $1,227 for every early death for smoking. (WSJ: https://www.wsj.com/articles/SB995230746855683470)
Considering our discusions so far and the fact that some stakeholders may like to argue in favor or against a proposed poicy,
1) Write TWO main challenges of public policy analysis?
2) Write TWO main things that as a policy analyst you must be aware of or act on?


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