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5 Responses to “Most states have goofy alcohol laws”

1. Fred Says:
   January 22nd, 2018 at 7:54 pm

   Actually, the store owners are just a side beneficiary of the racket. It’s a tax scheme by the federal revenuers, always has been. Just like FFLs the liquor store owners are unpaid agents of the state reporting and collecting on taxes.

2. Paul Koning Says:
   January 22nd, 2018 at 8:31 pm

   More generally, all licensing schemes are a racket for those who have the license.

3. Bruce Says:
   January 23rd, 2018 at 12:08 am

   In Montana, only the state can sell Liquior. Not even remotely hiding it.

4. JK Brown Says:
   January 23rd, 2018 at 1:57 am

   It is a protection racket these days. The distributors especially are very big political contributors.

   Apparently, the wacky system was designed to reduce consumption since Prohibition failed and created a lot of other problems. The culprit John D. Rockefeller. First he was instrumental in getting Prohibition passed, then seeing the problems it created he worked to get it overturned, but with a convoluted scheme to avoid promotion of consumption:

   From an recent Econtalk podcast on licensing and other bottleneckers:

   And so, here’s this man who was instrumental in the creation of Prohibition and eventually kind of threw in the towel and realized: This isn’t accomplishing what we wanted, and is creating these other problems. And so, he gave up his support for Prohibition and led an effort to repeal. So, with the repeal of Prohibition, he and some colleagues of his–they did this study toward liquor control that looked at how we might regulate the industry. And so, his two colleagues recommended two different approaches. One approach was that states would control the sale of alcohol: that, if you wanted to buy alcohol you had to go to a state-owned or state-sanctioned firm–retail firm. A second approach was called the three tier system. And the idea was that they were going to create this separation within the alcohol industry. So, the alcohol industry that’s Producers; then they have Retailers who are selling the alcohol; and then the third tier is the Distributer. So, this three-tier system is created, with this Producer, Distributor, Retailer. And the idea was that they would, by law, say that the Distributor had to be between the Producer and the Retailer; and that no one could have a financial interest in multiple of those three tiers. You couldn’t be both a producer and a distributor. You couldn’t be both a producer and a retailer. And the thought here, was, that they would be solving a problem that existed before Prohibition. Before Prohibition, you could be both a producer and a retailer. Or a producer and a distributor. And then, the belief was, that because of that, that the producer and the retailer, who could be one, they were out there pushing alcohol too much. That they were instrumental in the over-consumption of alcohol. And so, by creating these distinctions, these legal distinctions, where one could not be the other–you could be a producer but not a retailer, a distributor but not a retailer–that it would reduce overconsumption of alcohol. That was the logic.

   Anybody think it reduces overconsumption?

5. Shootin' Buddy Says:
   January 23rd, 2018 at 10:50 am

   Indiana’s strange days alcohol laws are the result of brilliant lobbying by the liquor stores. They protected their rice bowl for decades with “no Sunday carry out sales” (you can now but have to go to the maker to do so) and the cold beer monopoly.

   They are trading Sunday sales (it just passed the Republican supermajority Senate 39-10) to maintain their monopoly on cold beer. A good trade for the liquor stores even if they give up their state-mandated day off.

   Indiana’s alcohol laws are the reason for the big market in multiple fridges in Hoosier homes. I have a showroom floor, “scratch and dent” model that I bought just for beer. I grew up in a home with the same arrangement. The percentage of basement and garage fridges in Indiana must be way higher than the national average.

Remember, I do this to entertain me, not you.

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