Smoking Ban Studies by PhD Economists Finding Business Loss

 Letter sent to City of Indianapolis & Marion County City-County Council December 6th:


Honorable Indianapolis & Marion County Councillors,

Please find attached to this e-mail a number of studies, all conducted by PhD economists, which find that smoking bans harm businesses such as bars and casinos. Based in part on these studies, St. Louis City and St. Louis County opted to exempt casinos and some bars from their separately enacted smoking bans. And just last week, again based in part on these studies, neighboring St. Charles County refused to enact a smoking ban unless it contained an exemption for "over 21" establishments such as bars and casinos.

Honorable Councillors, many studies have been conducted by health professionals and published in public health journals arguing that smoking bans do not hurt bars or casinos, yet as economist Jonathan Tomlin pointed out in Forbes Magazine, these amateur studies are "riddled with statistical shortcomings and... flaws."

http://www.forbes.com/2009/06/04/economic-impact-bars-restaurants-opinions-contributors-smoking-ban.html

In light of the best professional economic research concerning smoking bans, I hope Indianapolis bars, and bars all across America, will continue to enjoy freedom of choice concerning their smoking policies.

Sincerely,

Bill Hannegan

Home phone: 314.367.3779 

Cell phone: 314.315.3779

Links to Attached Studies:

The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment

Adams, Scott and Cotti, Chad D. (2007) "The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment," The B.E. Journal of Economic Analysis & Policy: Vol. 7: Iss. 1 (Contributions), Article 12. 
DOI: 10.2202/1935-1682.1628

http://www.bepress.com/bejeap/vol7/iss1/art12/

The Impact of Smoking Bans on the Hospitality Industry: New Evidence from Stock Market Returns

Jonathan T. Tomlin (2009) “The Impact of Smoking Bans on the Hospitality Industry: New Evidence

from Stock Market Returns,”

The B.E. Journal of Economic Analysis & Policy: Vol. 9: Iss.

1 (Contributions), Article 13.

http://ideas.repec.org/a/bpj/bejeap/v9y2009i1n13.html

The Economic Impact of a Smoking Ban in Columbia, Missouri: An Analysis of Sales Tax Data for the First Year

Michael R. Pakko, Federal Reserve Bank of St. Louis

Regional Economic Development, 2008, 4(1), pp. 30-40.

http://65.89.18.138/publications/red/2008/01/Pakko.pdf

The Economic Impact of the New York State Smoking Ban on New York’s Bars

Ridgewood Economic Associates, Ltd., 2004

http://heartland.org/sites/all/modules/custom/heartland_migration/files/pdfs/19885.pdf

An Analysis of the Economic Effect of the Lexington-Fayette County, Kentucky Smoking Ban of 2004

Richard Thalheimer, Thalheimer Research Associates, Inc., 2005

http://kuneman.smokersclub.com/PDF/KYLexingtonThalheimerreport6_8_05.pdf

A Report on the Impacts of the City of Dallas Smoking Ban on Alcoholic Beverage Sales March 2003 to March 2004

Terry L. Clower, Ph.D. & Bernard L. Weinstein, professors of applied economics at the University of North Texas in Denton, 2004

http://www.scribd.com/doc/75958890/Dallas-Ban-Report-Full

The Revenue Performance of Casinos after a Smoking Ban: The Case of Illinois

Thomas A. Garrett, Michael R. Pakko, 2010,  Federal Reserve Bank of St. Louis

http://research.stlouisfed.org/wp/2009/2009-027.pdf

Impact of Smoking Bans on Restaurants

National Restaurant Association, 2004

http://www.minnesotansagainstsmokingbans.com/smoking_issuekit_200409.pdf

No Smoking at the Slot Machines: The Effect of a Smoke-Free Law on Delaware Gaming Revenues

Michael R. Pakko, 2005, Federal Reserve Bank of St. Louis

http://research.stlouisfed.org/wp/2005/2005-054.pdf

The Economic Losers from Smoking Bans

Michael L. Marlow, Regulation, 2010

http://www.cato.org/pubs/regulation/regv33n2/regv33n2-4.pdf

Smoking Ban Debate Fails Again In St. Charles

Smoking Ban Debate Fails Again In St. Charles

Occupy St. Louis

Occupy St. Louis is right to protest that big corporations have sold out America. Indeed they have. We all know big corporations have sent so many American jobs overseas. Plus Big Box corporations and chains like Walmart and Home Depot have destroyed Main Street mom and pop stores. Real American freedom comes from small, independently owned businesses that Wall Street has no use for. Occupy St. Louis needs to stand up for the widespread distribution of the means of sales and production that is traditional Main Street America, the real source of American freedom

http://www.stltoday.com/news/local/metro/occupy-group-holds-meeting-at-galleria/article_4c19f04e-ec00-5060-a8a6-79fde0dcc66c.html#ixzz1ez1RG8jh

O'Fallon VFW Post 5077 down 30 percent due to smoking ban!

The O'Fallon smoking ban is taking its toll. I called VFW Post 5077 in O'Fallon about Monday night's smoking ban vote. They report being down 30 percent due to the O'Fallon smoking ban! They also said they would not have minded the ban if the Post had voted on it, rather than the general populace.

St. Charles County Nov. 28th Smoking Ban Flyer

FinalSt.CharlesCountyFlyerWithContactInfo _4_

Why the Pepper Spray?

My friends and I have been arrested at protests where we refused to walk. The police never had any trouble carting us off. Why the pepper spray?

Open Letter to St. Charles County Council

Dear St. Charles County Council Members:

Councilman Cronin announced on Veterans Day that he will propose that a smoking ban including bars and VFW halls be placed on the ballot. County Councilmen, St. Charles County bar owners and veterans groups have the right to allow the use of a legal product by adults on their private property if common sense ventilation and exhaust systems are in place. St. Charles County business owners are depending on you to protect their property rights by considering all the evidence and deciding under what conditions these business owners can continue to allow indoor smoking. Public health laws are almost never turned over to voters for a good reason. Most voters do not have the time, interest or information to make such an economic and public health judgement. Turning over the fate of St. Charles County bars and VFW halls to a free for all popularity contest driven by who can spend the most advertising dollars would be an irresponsible thing to do.

Furthermore, Councilman Cronin also seeks to offer voters a chance to specially exempt Ameristar Casino from the smoking ban. I must warn the Council that the Special Laws Clause of the Missouri Constitution forbids any special exemption of individual business from public health laws. It is wrong to ask St. Charles County voters to consider a constitutionally suspect measure that will likely lead to a legal challenge. Such a successful challenge was brought when Louisville Metro Council similarly exempted Churchill Downs from a smoking ban. Councilman Cronin's Ameristar exemption would likely suffer the same fate. http://www.courier-journal.com/article/20071221/NEWS01/71221014/Judge-throws-out-Louisville-s-smoking-ban

Councilman Cronin also stated on Friday that St. Charles County bars and VFW halls have no basis to worry about the economic impact of his smoking ban. But recent Missouri smoking ban experience argues otherwise.

For instance, bar owners in Springfield Missouri report revenue losses of up to 75 percent due to the smoking ban! VFW bingo is specially mentioned in this article as being hurt:

http://articles.kspr.com/2011-10-29/smoking-ordinance_30337606

A recent survey by Tobacco Free St. Louis reported losses of up to 75 percent among non-exempt St. Louis County businesses blaming the St. Louis County smoking ban.

The Clayton smoking ban has caused Clayton restaurant revenues (by law Clayton has only restaurants, no bars) to remain flat despite the reopening of Highway 40.

A study by a St. Louis Federal Reserve Bank economist found that the Columbia smoking ban cut overall restaurant revenues 3.5 percent, the revenues of restaurants that serve alcohol 6.5 percent and the revenues of bars 11 percent.

http://research.stlouisfed.org/publications/red/2008/01/RED_1_2008.pdf

Given the clear economic danger a smoking ban presents, I suggest that the St. Charles County Council continue to allow adult free choice in St. Charles County private businesses and clubs, particularly veterans groups, and instead simply forbid smoking in venues when minors are present. Ameristar Casino, St. Charles County bar owners and veterans groups would have no objection to such a common sense restriction.

Sincerely,

Bill Hannegan

Home phone: 314.367.3779
Cell phone: 314.315.3779