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OLD SNAKE OIL IN NEW BOTTLES

How can the wholesalers justify their state-sanctioned monopoly? Well, they can't. They serve no economic purpose. However, they do have the resources to hire the most impressive spinmeisters in the business. And spin they do.

Their spinmeisters are banking on the Hoosier public not understanding the three-tier system. Then they cynically play on public fears relating to underage drinking, while lathering our politicians with "campaign contributions".

The wholesalers would have us all believe that government regulation is all that separates Hoosiers from a Bacchanalian meltdown. Naturally, preserving public control over this dangerous beverage entails maintaining the regulatory status quo (i.e., the legislation that authorizes them to peddle their wares without any competition). Its a simple, elegant, and (thus far) effective tactic.

Now, it might strike you as rather odd that wholesalers should be so concerned with underage drinking, since they are, by the very same law they strive to uphold, prohibited from making any direct sales of alcoholic beverages in this state. Are they truly concerned about minors ordering a Chateauneuf du Pape online with daddy's credit card? Or, possibly, could it be that they just don't want anyone else selling Chateauneuf du Pape on their turf? You decide.

Be that as it may, fear-mongering is a time-honored tradition among those who have an economic interest in obfuscation. The chosen vehicle for fear-mongering seems to be a bogus organization with a lofty-sounding goal, a clever acronym, lots of funding and a slick website. We have such an organization here in Indiana. It's called "Hoosiers for Responsible Alcohol Distribution" or HRAD for short. Check it out at http://www.hoosier-rad.org.

Naturally, the folks at HRAD conveniently fail to mention that 36 states, representing 85% of the nation's population, have abolished the three-tier system with nothing but positive economic effects. Children in states which allow direct shipping of wine are no more likely to suffer from alcohol abuse than their peers who reside in the few remaining three-tier states. But let's not let the facts get in the way of making money, shall we?

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