The Family Smoking Prevention and Tobacco Control is a newly-enacted federal law that gives the FDA regulatory power over the tobacco industry, among other provisions that attempt to dissuade misleading advertisement on young and old smokers alike. The law was signed into effect on June 22, 2009.

There were two major advertising provisions contained in the law. The first was that over 50% of the front and back of every cigarette pack must be warnings with a giant ‘WARNING’ in capital letters . The second, and maybe more important, is the banning of the use of words ‘light’, ‘mild’ or ‘low’.

One of Milton Friedman’s most influential and revolutionary theories was his challenge to the traditional Keynesian consumption function, which includes simple after-tax income as a variable in the consumption. Friedman countered, however, that those who consume today take future taxes, price increases, salary increases, and other factors into account. This is summarized in his Permanent Income Hypothesis. More specifically, this counters that people consume based off of their overall estimation of future income as well as opposed to only the current after-tax income.