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Philip Morris - Right or Wrong?
Pro Philip Morris
From A Fool News Writer

Written by

Dale Wettlaufer
The Motley Fool
TMF Ralegh

Is Philip Morris the merchant of death or is it a standard-bearer for American libertarian values? Can we somehow resist the allure of the Marlboro Man, who is trying to enslave us, or are we just amoeba that react helplessly to images and suggestions strewn nerfariously throughout our culture? There was a time when you were just plainly a dummy for smoking since everyone knew it was bad. Now, it's the fault of anyone but the smoker for indulging in a dirty habit.

Investing in Philip Morris cannot be seen as an immoral act because Philip Morris is not an immoral company unless you believe that we are amoeba reacting to external stimuli beyond our control. For more than a half century, smoking has been known to be bad for one's health. Philip Morris isn't perpetrating a horrible crime over a population that doesn't know what it's ingesting, which is a charge levied by plaintiff after plaintiff in lawsuits against the industry. Philip Morris is simply delivering what is demanded in a open economy. Maybe the states' attorneys general should sue their citizens for being stupid, but then again, it's hard to legislate against stupidity.

Hopefully, the states won't put an excise tax on fattening foods that increase our chances of suffering heart disease or obesity. From a moral perspective, certain elements of society might be outraged that companies would sell artery-clotting foods, but in this case, the outrage is not as great as that surrounding cigarette companies because of the perceived differences in what these companies are selling.

As with excise taxes on alcohol, cigarette smokers pay a bunch of money in taxes when they purchase cigarettes. They also pay more for their healthcare premiums. If smokers are not paying enough to match the costs they impose on society, then raise the taxes, but don't try to legislate morality. As with the failed "War on Drugs," going after the dealer isn't going to stop the problem. The problem lies in the demand for the products. Killing advertising isn't going to kill demand and witholding your purchase of Philip Morris stock isn't going to change their cash flow situation, either.

Dale Wettlaufer
The Motley Fool
News Writer

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