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Gov’t and MSA payments

Gov’t and MSA payments

State governments & the MSA

On November 23, 1998, all but 4 states entered into the Master Settlement Agreement with the 4 big tobacco companies.

 

The tobacco companies committed to pay out around $200 billion over twenty years to the state governments… based on annual cigarette sales.

Money.

Vaping has been proven successful at getting smokers off of cigarettes and keeping them off.

If smoking rates drop because of vaping then the states get less money.

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In the first section of the MSA, this agreement was made “to avoid the further expense, delay , incovenience, burden and uncertainty of continued litigation” by the state against the tobacco industry for expenses occured to Medicaid as a result of smoking.

Unfortunately, the MSA did not make provisions for how the MSA money is to be spent.

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Since the 4 tobacco giants entered an agreement to pay the state though the MSA, other tobacco companies are to be penalized by the state for doing business. So, since vaping helps smokers get off of cigarettes (which would lower MSA payments) the states catigorized vaping as tobacco.

Vaping is no more tobacco than vitamin C is an orange.

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Some of the state governments issued bonds based on the projections for future MSA payments. Unfortunately, they underestimated the rate at which smokers would stop smoking which means the payments were lower than they banked on. Those payments were short to pay the bonds when due.

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MSA backed bonds at risk for default

The S & P securities ratings assessed the immerging vaping industry as reducing the amount of smokers. Therefore they anticipated a drop in cigarette sales and the amount of MSA payouts. This means the governments that issued the bonds would have to find money elsewhere to pay them out when due.

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What went wrong in the USA

What went wrong in the USA

What went wrong in the USA

During the investigation into the cause of EVALI, governments, health-related nonprofits, health authorities, medical professionals, anti-smoking groups and media repeatedly claimed that vaping was injuring people without specifying that the injuries were caused from illegal THC cartridges.

Over and over again, they included nicotine eliquid in their conversations, statements and announcements. A false narrative that blamed tobacco harm reduction (vaping nicotine eliquid) for the lung injuries spread throughout the public and the health community.

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For over 20 years, RealClearPolicy has been reviewing US domestic policy and analyzes “the most pivotal information on the day’s need-to-know issues”. They reviewed how the CDC handled EVALI in their article titled, Heads Should Roll at CDC after Botched Vaping Investigation.

Filter is a nonprofit, their mission is to …”advocate through journalism for rational and compassionate approaches to drug use, drug policy and human rights”. Their critique of how CDC handled EVALI is titled, Vapes and Lung Disease: The CDC’s Lesson in How Not to Handle an Illness Outbreak.

Expert warnings

Expert warnings

Expert warnings from the UK

Since the 2016 publication of Nicotine Without Smoke, UK health authorities have been promoting vaping as a smoking cessation aid for their citizens.

 

Scientists, health authorities and doctors in the UK issued statements and reports to help people see the deception about the 2019 vaping related lung injuries (EVALI).

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Repeated fear provoking narrative

The pervasive message in North America is that we have to ban vaping because their is a ‘youth vaping epidemic’.

In Great Britain, vaping is recognized as a significant harm reduction strategy and is promoted by their public health. Yet, less than 2% of 11-18 year olds vape more than once a week.

WHERE is the youth vaping epidemic in Great Britain?

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Youth experiment with adult activities, this is why 52% vaped “to give it a try”. Cigarette smoke is far more addictive than nicotine vapour and far more harmful. Since smoking tastes gross, perhaps the flavours in eliquid are preventing them from becoming smokers.

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CALL TO ACTION

Australasian Professional Society on Alcohol and other Drugs wrote a referenced paper about EVALI. It is the perfect document to enlighten health professionals about how they have been deceived about tobacco harm reduction.

Canada gov’t THC cartridges

Canada gov’t THC cartridges

Canada gov't THC cartridges

The Canadian federal government controls the sale of cannabis products and taxes the sales.

 

On October 19, 2020, during the EVALI outbreak, THC cartridges were approved for sale. The fact that EVALI was caused by illegal THC cartridges could have an adverse effect on legal THC cartridges sales revenue.

Nicotine eliquid was blamed.

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Due to the deception that nicotine vaping was the cause of EVALI, sales of the new cannabis products were not interupted but how many vapers switched back to the most lethal form of nicotine: tobacco cigarettes?

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What went wrong in Canada

What went wrong in Canada

What went wrong in Canada

During the investigation into the cause of EVALI, governments, health-related nonprofits, health authorities, medical professionals, anti-smoking groups and media repeatedly claimed that vaping was injuring people without specifying that the injuries were caused from illegal THC cartridges.

Over and over again, they included nicotine eliquid in their conversations, statements and announcements. A false narrative that blamed tobacco harm reduction (vaping nicotine eliquid) for the lung injuries spread throughout the public and the health community.

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What happened

What happened

What happened

Suddenly, there were hundreds of cases of severe lung injuries in areas around the USA. All the patients had vaped.

Yet, millions of smokers had been vaping nicotine for more than a decade without any cases of these lung injuries.

In August of 2019, the Centers for Disease Control and Prevention (CDC) announced they were investigating an outbreak of lung injuries.

Over 2800 cases were identified, causing 68 deaths in the USA; in Canada there were 19 cases and no deaths.

76% of the patients were under 35 and 66% were male.

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Vaping nicotine eliquid is a harm reduction strategy used by millions of smokers all over the world. Since the injuries only occurred in North America, it was clear the injuries were being caused by something other than standard nicotine eliquid.

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Almost 100% of the injured patients reported using illegal THC cartridges. Despite the evidence, the injury was named EVALI (E-cigarette or Vaping product use-Associated Lung Injury) implying the cause was nicotine eliquid.

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To identify the substance causing the injuries, lung samples from the patients were analyzed. The fat based substances identified as causing the injuries can not be disolved in nicotine eliquid because they would separate in the container.

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Vaping products used were analyzed

The patients submitted the products they were vaping to help identify the cause of the injuries. Nicotine eliquids contained no unexpected or harmful chemicals but 9 out of 10 illegal THC carts contained vitamin E acetate which is used as a cutting agent.

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More on what happened

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EVALI

EVALI

Vaping & Lung Injuries

EVALI (E-cigarette or Vaping Use-Associated Lung Injury)

In 2019, a sudden outbreak of severe lung injuries, some causing death, occurred in North America, mainly the USA. Vitamin E acetate was identified as the additive in illegal THC cartridges that caused the injuries.

Health-related nonprofits and authorities, as well as mainstream media, conflated two distinctively different activities: vaping THC cartridges and vaping nicotine eliquid.

The result is a misinformed public and health community.

Two travesties occurred.

First, failing to adequately warn cannabis (THC) users caused unnecessary injury.

Second, implying that eliquid was causing the lung injuries drove thousands of vapers back to the most lethal form of nicotine: tobacco cigarettes.

Pages in this section:

Explore the events of the outbreak, the investigation to identify the cause, the actions that were taken and how it was resolved.

Health-related nonprofits and authorities utilized media to spread fear about vaping. Their narrative omitted that EVALI was not caused from nicotine eliquid.

Health Canada approved the sale of THC cartridges during the outbreak and EVALI could spread a fearful light on this new product. In the USA, payments to state governments through the Tobacco Master Settlement Agreement are proportional to the cigarette sales.

The UK reviewed the science on vaping around 2014: before the narratives were formulated and distributed to sovereign nations. They stand alone in being fully informed on and benefiting their citizens with tobacco harm reduction.

Start here: