Really Stupid Ideas #1

[drplokta]

First in an occasional series pointing out why ideas that are under discussion are stupid.

Today, we look at setting a minimum price per unit for alcohol. This is a stupid idea because it immediately turns (formerly) cheap booze into a massively profitable line for the supermarkets, with no price competition to worry about. This means that they will spend tens of millions promoting it, and sales may even increase.

The smart thing to do instead is to increase tax, bring tax levels more into line with alcohol content, and perhaps prohibit selling alcohol at below cost price as the government is proposing (although this, while not actively stupid, is very difficult since the government has no way to find out what cost price is).

Comments

[evil-mogwai.livejournal.com]

"The whole problem with this entire discourse is that it appears that only the drinking of poor people that is a problem".

One of the papers did a survey not long ago that concluded it was moving more towards Lower Middle Class that were more of a problem on the streets and drinking to excess.

Its a perception think with some of the toffs, sorry upper class, that are involved with policy that it is more the gutter classes causing the problem.

Health costs are caused in the gutter classes too but they don't show up as much as the lower middle classes would because, I believe, that they seek out healthcare for lesser issues.

/I may be wrong with some of the above... it is purely an opinion.