Over 20 years ago, economist and FTC director Bruce Yandle wrote an influential column on the origins of social regulation. The theory of “Bootleggers and Baptists” contends that legislative regulation of “sin” (e.g., alcohol, tobacco) requires both a vocal “moral” voice (the Baptists) and a quiet though politically powerful lobby that profits from the regulation:
“Baptists” point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired regulation. Baptists flourish when their moral message forms a visible foundation for political action. “Bootleggers” are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds. They are simply in it for the money.
Here in Tennessee we have some of the most draconian laws protecting the liquor wholesalers. We also have no shortage of legislators who speak in moral absolutes. Of course, the “Baptist” is the protagonist in this story, since he purports to represent moral ideology and social welfare, rather than cynical greed.
Or does he?
Of the 32 members currently serving in the Tennessee State Senate, seven find their religious affiliation with Baptism sufficiently important to list on their short State Senate biography. While Baptist conventions continue their internal debate on the merits of total abstinence from alcohol, there is apparently no debate on whether one ought to practice, legislatively, what one preaches.
A quick perusal of campaign finance records indicates that all seven members have received political donations from the beer and spirits lobby since 2000. Particularly:
- Jerry Cooper (D-14) received $8,000 in the last two election cycles.
- Steve Southerland (R-1) received $4250 in 2006
- Lowe Finney (D-27) received $4000 in 2006
- Jamie Woodson (R-6) received $4000 in her last election
- Tommy Kilby (D-12) received $1000
- Dewayne Bunch (R-9) in 2004
- Mike Williams(I-4) in 2000
The “Baptist” in Yandle’s theory is not meant to be literal, but merely a proxy for the voice of morality. However, other self-professed voices of moderation would likely yield similar results.
Anyone want to guess how many of these names also profited from tobacco lobbyists’ efforts?
Following up on the table of wine price markups at restaurants, here are a few current examples:
- If you must have Beringer White Zin, have it at Sperry’s ($30) rather than at Jim Kelly’s ($42, 40% higher)
- Jim Kelly’s is also not the place for Pinot Grigio. The 2005 Foley at $91 is 52% higher than at Park Café, and the 2005 Santa Margherita is 66% higher than at Mafiaoza’s.
- Why the non-vintage Veueve Clicquot is so popular I don’t know, but if you must, have it at P.M. for $80 rather than Park Café for $140 (75% higher)
- To really celebrate, have the 1996 Veuve Clicquot. You could spend $400 at Midtown Cafe, or $250 at the Bound’ry (and have $150 left over for dinner).
- J. Alexander’s has a bottle of Conundrum for $40. Saffire has a half bottle for $36.
- Mollydooker Maitre d’ is $36 at Watermark, but 81% more at Radius10.
And the most remarkable difference: - Bonny Doon 2003 Le Cigare Volant is $45 at Watermark. You can have two bottles for less than the price of one ($100 !!) at Sunset Grill.
Over all, for wines that appear on many of Nashville’s lists, J. Alexander’s, Watermark, and Mafiaoza’s tend to have the lowest prices, while Sunset Grill, Jimmy Kelly’s, and Acorn often charge fifty to one hundred percent more.
We all know that a bottle of wine at a restaurant is substantially more expensive than at a retail store. I use the example of a restaurant wine list in my pricing class to motivate varied concepts, from extremeness aversion to product-line pricing to price discrimination. But just how expensive are the wines at Nashville restaurants? The following attempts to answer this question. Sleep-inducing methodological details are provided for the overly-curious at the bottom.
I selected restaurants with online wine menus. From each menu, an average of 20 bottles were randomly selected, representing reds, whites, and sparkling wines at a range of prices. Additionally, some common wines were used as controls (a majority of restaurants have Conundrum and Veuve Clicquot Yellow Label, for example). Prices are relative to national median retail prices.
In short, Café Margot is the best deal in town and Acorn has the dubious distinction of being worst, by a comfortable margin. Full list below the jump.
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The Beer Hunter, notable author, connoisseur, and advocate of fine malt, passed away August 30.
Michael Jackson’s writings on the beers of Belgium, a country he termed “The Disneyland of beer,” set me on a mission to try them all. I’m about 400 in, and there are plenty to go.
The Brewers Association has tributes from Charlie Papazian and others.
What would cost Tennessee more revenue: half of all wine purchases being smuggled in from out of the state, or people eschewing the local Borders in favor of Amazon.com?
The most common defense of the three tier system forwarded by the liquor distributor cabal is that it ensures the collection and distribution of sales and excise taxes, without which Tennessee roads may no longer be the State’s pride, and Tennessee schools might fall out of the top 49 in graduation rates.
Since interstate shipments would not be directly taxable, it is a valid point. But how valid, in dollar terms? Consider a comparison.
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