Kathryn Pinewood explains that a soda tax would lead local restaurants to layoff 100 people. The tax increases the costs to the restaurants and causes them to cut back production.
Leslie’s first act as a city councilwoman is to implement a soda tax because she believes that it will make Pawnee healthier.
A student needs to interview someone for a school project and stumbles upon Ron in the office. He describes his libertarian views, but her mom isn’t happy.
Ron teaches his young basketball players that capitalism is God’s way of determining who is smart and who is poor. In the long run of a perfectly competitive market, the worst performers should be pushed out of the market.