I know all about the wine industry Michael, that is a completely different matter and has nothing to do with protectionism. The California wine industry does not block the sale of french wines in California to protect their market and prices.
The wine industry, an arm of alcohol, has a complicated web of state laws to wade through that were put in place in the prohibition times (right when prohibition was lifted). Wine is a 3-tier distribution system, grower, distributor, retailer. Each of these tiers must pay a tax and in some cases the laws require the shipments to sit at the reseller overnight before going to the next tier. Then when wine finally arrives at the reseller, the local laws go into place regarding delivery. Some counties are dry.
The wine industry is screaming about this system because the overhead is so cumbersome, it keeps the monopolies entrenched. So in that sense, there is an element of protectionism in the system but it is a symptom not the disease. The disease is the huge tax dollars coming in to local goverment from the movement of wine. If they shut down these arcane laws, no more money and there are some counties where an amazing 30% of revenue comes from alcohol "transport" taxes (I never verified that but I was told that from someone who should know). You know how I know this? I was once the chief architect of an online wineseller! A few years ago, funnest job I ever had.
On that note, one of the reasons I wanted Arnie to win in California is because the dems keep raising the "sin taxes" which include wine to unsustainable levels. The wine industry is on its knees already, more taxes they don't need. I guess nobody in wine donated enough to Davis/Bustamante campaign. |
