Leslie is trying to prepare for the correspondents’ lunch by testing her jokes on the Parks Department. While most of her jokes revolve around a local newspaper that has picked on Leslie in the past, she decides to ask her colleagues if they have any jokes she can use Ron decides to tell the gang a joke about efficient governments, but Leslie doesn’t find it all that funny.
Local restaurants are now offering giant sodas, filled with sugar. The child-sized soda is actually the size of a small child! Leslie proposes a soda tax to cut back on citizen’s consuming the sugary beverages, but a representative of the Pawnee Restaurant Association warns Leslie against doing so. Because this will limit the number of sodas being sold, restaurants may have to layoff up to 100 workers and Leslie will be the one to blame.
Leslie’s first act as a city councilwoman is to implement a soda tax because she believes that it will make Pawnee healthier. The new larger sodas are causing obesity in town and Leslie aims to regulate the market through taxes. Depending on the size of the local elasticity, there may not be much of a change in consumption, but it could mean additional revenue for the city.
A young student needs to interview someone for a school project and stumbles upon Ron in the office. Her project is supposed to focus on the role of government in society, which gives Ron the opportunity to share his libertarian views about the government’s purpose. After describing these views, the young student’s parent comes back very unhappy.
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.