Why The Housing Mortgage Business Needs A Different Regulatory Stance In micro-economics, there is a category of businesses called the ‘sin’ businesses. Strictly speaking, this term is a misnomer because it not ‘sinful’ in a moral sense, but refers to addictive industries that have “sticky’, price-inelastic products where demand does not change with even large increments in pricing. Addictive products, when they are either leisure or lifestyle products are taxed heavily without any governmental ‘guilt’. Cigarettes, liquor, (and in India, even soft drinks and expensive restaurants) all share a common characteristic……they are all perceived to promote unhealthy and sometimes conspicuous consumption. The general public thinks of these businesses as vaguely ‘immoral’ and tends to condone a high-tax regime for such products. Even the consumers of such products don’t complain.
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