Really Stupid Ideas #1
Jun. 2nd, 2010 11:32 amFirst 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).
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).
(no subject)
Date: 2010-06-02 01:23 pm (UTC)That's a pretty low content threshold. Having just checked a mouthwash (alcohol content clearly signalled) and toothpaste (not mentioned), I think you'd find the effect on toothpaste per se would be negligible. I've also not noticed any special toothpastes on sale at Muslim grocers.
(no subject)
Date: 2010-06-02 01:26 pm (UTC)(no subject)
Date: 2010-06-02 01:37 pm (UTC)(There are alcohol-free ones, but Listerine lists alcohol as a major ingredient. After that mysterious aqua stuff.)
A dose of mouthwash is also considerably larger than a dose of toothpaste, which also means that the mouthwash manufacturers would have a much bigger problem than the toothpaste ones.
(Well, assuming they're not the same people.)
I wonder if those girls had actually had used a mouthwash after brushing their teeth. That would much more plausible to me, but without a citation, it's difficult to know.
(no subject)
Date: 2010-06-02 01:44 pm (UTC)That had certainly occurred to me.
(no subject)
Date: 2010-06-02 01:51 pm (UTC)(I think we may assume that any alcohol tax won't be targetting sorbitol.)