According to the World Health Organization, global alcohol consumption has been stable since 1990, however, consumption patterns in rich countries have changed. In the article Alcohol pricing: Mulled whines, the author provided some examples of young Europeans indulging in outdoor drinking to get drunk. In much of the rich world, binge drinking has become a common drinking habit, so much so that people drink larger quantities in a single session. Of course, this shift in drinking patterns from moderate intake with food only to binge drinking has increased the demand for alcoholic beverages in wealthy countries. Furthermore, developed countries have the highest GDP per capita in the world. People can and are willing to spend more on alcoholic beverages. That may be good news for the alcohol industry, but it doesn't look so good for governments. The change in consumption habits has led not only to an increase in demand, but also to some undesirable social consequences. The article provides detailed figures on the negative outcomes resulting from alcohol abuse. Drinkers have long-term health problems and are likely to die, while society as a whole has to pay for increasing road accidents, violence, breaches of public order and even murders. The economic loss and decline in social well-being caused by alcohol-related problems are so severe that policymakers wish to address these problems by curbing alcohol consumption. The industry has taken some steps to encourage responsible drinking, such as stepping up educational campaigns and licensing venues. . Despite this, health activists have argued that alcoholic beverages are simply too cheap in many countries, i.e. in area C. However, the producer surplus is reduced to the taxed area F. This comparison between minimum pricing and taxation shows that when consumers have the same surplus, taxed producers are worse off than when a minimum pricing system is in place. In general, both price floors and taxation will cause a loss of consumer and producer surplus. surplus. Both buyers and sellers of alcohol will suffer from the economic loss caused by government intervention. Even responsible drinkers are punished in both cases, while the effects of reducing unwanted social problems caused by alcohol problems still remain questionable. Reference: Alcohol pricing: Mulled whines (2013, December 21). The economist. Retrieved from http://www.economist.com/printedition/2013-12-21.