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Mises Economics Blog

Supply and the State

May 28, 2007 7:26 PM by Justin Ptak | Other posts by Justin Ptak | Comments (7)

On Friday and Saturday nights, the line to get a bottle of wine at the liquor store in this southern Utah town can stretch out the back door. The storage area of the town's lone liquor store is often stacked so high and so wide with cases of alcohol it's tough to walk or push a dolly through. But it doesn't take long for the piles to shrink and for customers to start complaining the store is out of stock. "It's been this way probably for a good year and a half," said Lee Scarlet, who manages the store. "It gets worse and worse and worse."

There's a supply problem facing those who imbibe in this city of 126,000, where spectacular red rock scenery, sunny weather and affordable proximity to Las Vegas have contributed to a record population boom. St. George has a single state-run liquor outlet -- on the city's west side -- and its inventory is often depleted.

In Utah, liquor, wine and beer with an alcohol content over 3.2 percent by weight can only be purchased in state liquor stores. State law sets the number of liquor stores based on state, not local, populations. The law says the number of liquor stores can't exceed one per 48,000 people in the state...

Comments (7)

  • miller888sd
  • And because of these regulations designed to restrict supply, it won't be surprising to find prices on liquor steadily rise. Another reason to blame greedy, selfish capitalism!

  • Published: May 28, 2007 7:46 PM

  • Ray Harmon
  • Well, I think it's ridiculous, but as a believer in state's rights I can only say that the people waiting in those long lines might want to get the state law changed.

  • Published: May 28, 2007 8:43 PM

  • Person
  • I think for a lot of the people there, inability to get liquor easily is a feature rather than a bug :-P

  • Published: May 29, 2007 9:20 AM

  • TLWP Sam
  • "To alcohol! The cause of - and solution to - all of life's problems!"

  • Published: May 29, 2007 9:29 AM

  • Bill
  • The solution is very easy and has two parts:
    1. Black market. Make it yourself or buy it somewhere else and sell it privately.
    2. Find a substitute. As liquor goes up in price then users substitute other drugs: smokes, grass and worse for the alcohol.

  • Published: May 29, 2007 10:13 AM

  • RWW
  • As a Mormon, I must note that anti-liquor laws violate the most fundamental religious principles I hold dear.

  • Published: May 29, 2007 10:16 AM

  • TLWP Sam
  • Don't forget caffeine?

  • Published: May 29, 2007 10:48 AM

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