This guy is way smarter than us

Martin Kennedy is an economist “interested in Public Choice, the study of voting and policy formation.”

In What if it is broke? [EDIT: Link no longer active], he examines the debate from an interesting viewpoint.

The difference is paid by the protected group to the authority that grants protection – the state legislature in this case. In 2006 the liquor lobby paid about $250,000 to legislators.

Think of it this way… the Wine and Spirit Wholesalers are paying in order to keep the pie smaller because they benefit from the current regulation. Consumers, as well as other retailers, benefit when the pie is allowed to get bigger. Or you can think of it this way… currently when you sip a Pinot Noir in Tennessee, you’re making a contribution, involuntarily, to re-election campaigns.

From an economic efficiency perspective it is not a close call; efficiency would be enhanced if food retailers were permitted to sell wine.

Yeah. What he said.

Please consider reading his entire post [EDIT: Link no longer active].


2 Responses to “This guy is way smarter than us”

  1. steve Says:

    Classic rent seeking behavior. This is exactly what one would expect to see.


  2. Robert Says:

    I do not go along with your ideas about why wine should be in grocery stores. I think that the “convenience” factor is just a front for big busininess taking over a small business opportunity. I am not worried about the wholesalers because they do not stand to loose any business. It is the retailer who will loose. We do not have to be like all those other states who have let wine into grocery stores. When was the last time this even occurred? I think like 1982. So it is not that popular of an idea. Please reconsider your notions of “convenience” and let our state be a better place to live.

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