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July 6, 2015

Pennsylvania Governor Rejects Privatizing Liquor Industry

Either Pennsylvania Gov. Tom Wolf impaired his veto decision process with a little too much to drink, or he really doesn’t understand why we celebrate Independence Day. Under a bill passed by the state legislature, the Pennsylvania Liquor Control Board (PLCB), which regulates the liquor industry with Leviathan-like price, product and quantity controls, would be dismantled. In other words, no more government calling the shots (no pun intended). Instead, the free market would pick winners and losers — which is exactly how it should be. Not so, according to Wolf, who last week vetoed the bill that would have prohibited overburdensome government meddling. The first-term governor asserted, “During consideration of this legislation, it became abundantly clear that this plan would result in higher prices for consumers.” He added, “In the most recent case of another state that pursued the outright privatization of liquor sales, consumers saw higher prices and less selection.” Regarding the first claim, what could possibly keep prices in check better than free-market competition? As for the second claim, Hot Air’s Jazz Shaw notes, “That most recent case the governor mentions is Washington. And they did see prices go up when they privatized, but Wolf fails to mention that it’s because they passed a huge new alcohol tax at the same time. Funny how that works, eh?” Whatever the reason behind Wolf’s veto — and some think ulterior motives are at play — Pennsylvanians have good reason to question why they elected a governor who can’t put Economics 101 into practical use.

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