Does price influence decisions about drinking alcohol or using marijuana? That is, do differing prices or availability of alcohol influence the use of marijuana and other drugs? Substitution Economists note that some products can, at least to some degree, be used to replace one another. In such cases, as the price of one goes up, …
Taxes on alcohol beverages are often called “sin taxes.” Perhaps that’s a justification for raising them. The news is full of debates about increasing so-called . But what’s sinful about alcoholic beverages? Absolutely nothing. Saint Thomas Aquinas said that no substance is sinful, “but only the misuse of it that makes it so.” Healthful Drinking …
Competition among producers of goods and services benefits consumers. It increases consumer choice, reduces prices, and improves customer service. Therefore, alcohol monopolies are anti-consumer. Monopolies Harm Consumers It was abolishing the old telephone monopoly that made possible the dramatic expansion of communication products that we take for granted today. And it was deregulation of the …
The question “How much does alcohol cost society?” is fairly easy to answer. However, it’s essential to distinguish between drinking in moderation and abusing alcohol. Failure to do so leads to radically different estimates. That’s because drinking in moderation is associated with better health, longer longevity, higher income and other positive benefits. However, alcohol abuse …
Does alcohol cost society? The answer is debatable. Alcohol may cost society or it may economically benefit society. And, of course, the costs and profits may cancel each other. However, it’s essential to distinguish between drinking in moderation and abusing alcohol. Failure to do so leads to radically different estimates. That’s because drinking in moderation …
Taxes and Prohibition of alcohol were related. But ironically, so were taxes and Repeal. Here’s what happened. I. Background There were two major sources of federal government revenue for much of U.S. history. One was customs duties on imported products. The other was taxes on alcoholic beverages. About 30 to 40% of the government’s revenue came …
The US repealed National Prohibition in 1933. Federal law then established the three-tier system. This mandates complete separation of alcohol production, wholesaling, and retailing. The three tier system means that producers cannot either wholesale or retail alcohol. Similarly, wholesalers cannot be producers or retailers. And retailers cannot wholesale or produce alcohol. This separation means that the economic …
Smith Wildman Brookhart (1869-1944) was elected to the U.S. Senate in 1926. He was known there as a ‘fervent dry.’ The problems caused by Prohibition (1920-1933) increased. So did calls for its repeal. Sen. Brookhardt desperately wanted to stop this growing movement. So he began a nation-wide tour debating prominent ‘wets.’ They included prominent opponents …
Why Not Mail Alcohol? It isn’t possible to mail alcohol. The U.S. Postal Service (USPS) cannot ship alcohol through the mail. But FedEx, UPS, and other private carriers will deliver beer, wine, and spirits. This inconveniences customers. It also harms the USPS. The restriction seems to result from anti-alcohol sentiment. It’s continued long after Prohibition was …
Are alcohol prices and binge drinking linked? Could raising the price of alcohol reduce binge drinking? Heavy episodic drinking is often called binge drinking. It is a serious health risk. Especially among young people. How can binge drinking be reduced? Proposals A variety of approaches are promoted. More law enforcement. Higher alcohol prices. More alcohol …
