Home > Uncategorized > Union Opposes Penn. Plan To Privatize Alcohol Sales

Union Opposes Penn. Plan To Privatize Alcohol Sales

Of course they do.

They cite the fact that 5,000 jobs will be “lost”. I don’t dispute that 5,000 state jobs will be lost. The union is also saying that the licenses would mostly go to business’s that wouldn’t need to hire additional employees. Either big stores or smaller stores, currently having a full compliment of staff.  I have no doubt that either of these things are at least partially true. I’m still in favor of this though.

Why you say?

Well it’s simple. If indeed the number of outlets will double, sales will likely increase also, raising more tax revenue than sales currently do for the state. I’m not really for giving any level of government more money to waste however. The big reason I’m for this is because it looks like 5,000 people are doing jobs that don’t need to be done. I know it’s shocking the government would run something like that.

It’s also not correct to say that these store wouldn’t hire more people. More sales and products will require more employees. More locations selling alcohol will require more people to deliver it all and it’s quite likely that the price of alcohol would decrease somewhat, giving people that spend money on alcohol more money to spend on other things. That too should create a few jobs.

It should be obvious what this is really about: the loss of 5,000 dues paying union members. The real victim here is the union itself, not the soon to be former state employees. They are all going to be given priority for other state jobs, presumably jobs that actually need doing (unlike what they are doing now. I know it’s a lot to expect that the jobs the state has available are needed, but I’ll give them the benefit of the doubt.)

The union, as is usual with these types of organizations, doesn’t seem to understand that jobs exist to produce things of value, not to keep people busy. As Milton Friedman once remarked, upon seeing a canal being dug with shovels and being told that they were not using machinery because it was a ‘jobs program’, “if its jobs you want why not give them spoons instead of shovels?” (words to that effect.) Whats being done here is the shovels are being taken away and they are bringing in heavy machinery.

Way to go Pennsylvania, it’s a step in the right direction. Maine did away with it’s state owned liquor stores and distribution network year ago, it’s been nothing but a giant success, sales are up, revenues are up, more jobs are supporting the industry than before and consumer prices are down. Privatization does work. Huh, who would have thought?

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