This legislation falls short of a responsible means to reform our state liquor system and to maximize revenues to benefit our citizen,” Governor Wolf said. “It makes bad business sense for the Commonwealth and consumers to sell off an asset, especially before maximizing its value. During consideration of this legislation, it became abundantly clear that this plan would result in higher prices for consumers. In the most recent case of another state that pursued the outright privatization of liquor sales, consumers saw higher prices and less selection.Turns out he's right about the last case, which was Washington state. Prices did go up after privatizing the market -- because the government slapped a huge tax increase on the stuff at the same time.
If You Put Your Thumb on the Scales Hard Enough, It All Makes Sense
The governor of Pennsylvania demonstrates a Euro-like understanding of the workings of the market. There hard liquor sales are run through state alcoholic beverage control centers, which set prices and determine how much you are allowed to buy. The legislature moved to privatize hard alcohol sales, but no. The governor vetoed the bill with this statement:
By Grim on Monday, July 06, 2015