Virginia Liquor Store Privatization
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This paper relates that the privatization of the state-run liquor stores was a key principle in the campaign of the governor of Virginia because the short-term windfall of $500 million generated by action would go far to help Virginia with its budget deficit of $4 billion. Next, the author examines the pros and cons of this privatization by looking at the result of similar actions in other states and by considering the opposition of citizens, such as the Baptist churches. The paper concludes that the state would benefit if it moved to a revenue-neutral system, but the state also could benefit from responding to the concerns of the opponents and by looking at a hybrid situation with state distribution warehouses and state-issued vehicles.
From the Paper:"Here, in Virginia, as it is known, the Virginia Assembly of Independent Baptists, representing about 500 Baptist churches, greatly opposes the privatization effort and has helped defeat similar proposals in the past. The executive director, Jack Knapp, said that the opposition is against anything that would expand the sale and use of alcohol. In addition, it could be that some retail groups, such as Virginia Petroleum and Convenience and Grocery Association, which represents the operators of convenience and grocery-stores, also are adding their concerns about the state handing out licenses to the highest bidders in an auction. They are afraid that this would unfairly put small-shop owners against larger national retail chains. On the other hand,
moving to licensed stores could be a boost to the distilled-spirits industry, as it can better compete against brewers. This is because it is more difficult to purchase spirits than beer in the state of Virginia, which has a population of about 8 million people and provides 7,000 locations for the purchase of beer, but just 334 state liquor stores. Chicago, by comparison, which has 2.8 million people, has 972 licensed liquor-to-go stores. In the meantime, some organizations are not getting involved with this issue."
Sample of Sources Used:
- Danville Opinion (August 13, 2009). Privatizing state liquor stores a bad idea. Editorial Board. Website retrieved February 20, 2010. http://www2.godanriver.com/gdr/news/opinion/letters_to_the_editor/danville_letters/article/privatizing_state_liquor_stores_a_bad_idea/13167/
- Eshieman, R (April 13, 1997) Iowa Hails privatized retail liquor system. Pittsburgh Post-Gazette. Website retrieved February 20, 2010, http://news.google.com/newspapers?nid=1129&dat=19970413&id=b4gNAAAAIBAJ&sjid=428DAAAAIBAJ&pg=6715,6843485
- National Alcohol Beverage control Association (2009), The Effects of Privatization of Alcohol Control Systems. Website retrieved February 20, 2010, http://www.nabca.org/Resources/Publications.aspx
- National Alcohol Beverage control Association (2010). Website retrieved February 20, 2010, http://www.nabca.org/
- Pulito, J., and Davies, A. (October 29, 2009) Policy Brief. Government-Run Liquor Stores: The Social Impact of Privatization. Executive Summary. Common Wealth Foundation. Website retrieved February 20, 2010, https://www.commonwealthfoundation.org/research/detail/government-run-liquor-stores-the-social-impact-of-privatization
Cite this Analytical Essay:
Virginia Liquor Store Privatization (2012, August 31) Retrieved March 08, 2021, from https://www.academon.com/analytical-essay/virginia-liquor-store-privatization-151704/
"Virginia Liquor Store Privatization" 31 August 2012. Web. 08 March. 2021. <https://www.academon.com/analytical-essay/virginia-liquor-store-privatization-151704/>