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 04:58 pm (UTC)Perhaps a total ban on alcohol advertising should be considered?
(no subject)
Date: 2010-06-02 05:47 pm (UTC)Interestingly in the US they see Drink Driving / DUIs like we do (slight) speeding. I've seen people spouting stuff about different alcohol tolerances, Bars being out of town, living out of town etc. They very much treat it like its the cops and "another revenue collection tactic".
Most states are as lax, or even laxer, on sentences for DUI's that we are speeding. Some people boast about 5th, 6th etc... when do you hear us boasting about our 6th speeding ticket?
And yet you get the other side of the