Supermarkets and booze
There's an enormous amount of nonsense being spoken about the idea that the government should legislate to keep the price of alcohol high.
Tim Worstall writes some common sense, pointing out:
This is a markedly pro-capitalist and anti-consumer measure.Why?
Alcohol is used as a loss-leader. Stop people from competing on the price of alcohol and supermarket profits will go up: and consumer benefits go down.Quite. But it's even worse an idea than that. It would, almost certainly, provide yet another example of that most pervasive of public policy laws, the law of unintended consequences (quite apart from acting as a booster to supermarket profits).
Take the experience with fags. What has increased duty done? It has sent smuggling through the roof. All that will happen with alcohol is that illicit purchases will increase. Genius idea.
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Rob Slack
February 22nd, 2008 12:50pmWhy not have separate booze sections in supermarkets? It would save me a fortune; I wouldn't ending wasting money on food didn't need when I went to buy booze.
Mark Solomon
February 22nd, 2008 4:25pmBut the price of alcohol IS ALREADY absurdly high in the UK as a result of government action - taxation - as anyone who has ever travelled, if only on a booze cruise to France, can testify. Even UK produced booze costs less here in Spain than the UK. So those talking about yet more government legislation on something are, like with the 'war' on drugs, unimaginatively continuing to back a policy that has already demonstrably failed. What is needed is new thinking, not new laws.
Mark koyama
February 22nd, 2008 6:41pmAs I write here, http://oxonomics.typepad.com/oxonomics/2008/02/tesco-wants-to.html
it seems that Tesco have discovered a great way to get the government to enforce a cartel.
Michael
February 24th, 2008 9:25pmTesco rule. They bail out the Labour Party, then suddenly Mr Leahy is a Brown disciple in the Govt. of all talents. Now Tesco make policy. Then Tesco take the profits off shore so they don't pay tax. Fantastic. Welcome to Tescopia