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Fearing 'Monsters' Like Total Wine, Liquor Merchants Want Connecticut To Keep Prices High
Feb 25, 2016
(Forbes) - Last summer, when Pennsylvania’s governor vetoed a bill that would have privatized liquor and wine sales in that state, he argued that inviting private businesses to compete for drinkers’ dollars would raise prices. This week, as Connecticut legislators considered a bill that would eliminate minimum legal prices for liquor and wine, opponents argued that consumers would end up paying more as a result.
Alcohol sure makes people say funny things. In Connecticut’s case, the liquor merchants who benefit from a 35-year-old protectionist scheme that discourages price competition want legislators to believe that system is good for consumers. And even though Connecticut is the only state in the country that sets minimum prices for liquor and wine, supporters of that policy act as if the alternative—allowing the market to set prices—is unthinkable.
“The whole purpose here, the whole result would be to give business to the box store who is trying to take over everybody’s business in Connecticut,” Carroll Hughes, chief lobbyist for the Connecticut Package Store Association, told the Associated Press. The trade group warns that abolishing minimum prices will drive half of the state’s 1,150 liquor stores out of business, eliminating 2,100 jobs. “If we had a 2,100-employee company going belly up in Connecticut,” Hughes said, “we’d be falling all over ourselves trying to help them survive.”
Unlike Pennsylvania Gov. Tom Wolf, who parrots the self-interested talking points of privatization opponents, Connecticut Gov. Dannel Malloy is standing up for drinkers. “Why would government force residents to pay artificially high prices?” he asked in an interview with the Hartford Courant. “It’s illogical and backwards. We need to be competitive with surrounding states, who have lower prices—and we need to let the market work instead of allowing backwards laws to remain on the books.”
In 2012 Malloy, a Democrat, persuaded the state legislature, which is controlled by his party, to make Connecticut one of the 38 states that allow Sunday liquor sales. Last year he won approval of a law that allows stores to stay open an extra hour (until 10 p.m. on weekdays and 6 p.m. on Sundays). He sees scrapping minimum prices, which he says force consumers to pay $4 to $12 more per bottle than merchants in other states charge, as the next logical step.
Comments:
Steve
Feb 26, 2016
Now this just shows how and why elite politicians are really out to help the citizenry. Keep prices high so a few don't have to compete. Next these politicians will make a law to raise the prices of car so the buggy and buggy whip industry can survive.