New at Reason: Radley Balko on the Government Subsidies Behind Cindy McCain's Family Fortune

Secret Squirrel | October 15, 2008, 3:05pm | #

"Spanish and Muslim will be added as the second and third official languages of the United States. These languages will be taught in schools from kindergarten on, with classes being conducted trilingually"

TRILINGUAL! Just like Janet Reno!! Learn about Obama's SECRET PLAN to implement BLACK SOCIALISM in America! None dare call it conspiracy!! Time is running out!!

Beery vengeance | October 15, 2008, 3:09pm | #

Okay dokey. 2 questions:

1. Did Reason ever receive any contributions from Coors Brewing Company?
2. Did Coors ever receive any government subsidies?

Naga Sadow | October 15, 2008, 3:12pm | #

I call it conspiracy.

SIV | October 15, 2008, 3:13pm | #

Thanks Radley,

Most people outside the industry(and State legislatures) have no knowledge of how this works.I haven't checked all your links but what has always fascinated me is how they decided who to grant the monopoly distributorships.That is handing out a license to print money.

Doug MacKenzie | October 15, 2008, 3:15pm | #

That's a big bottle of beer, eh?

madmikefisk | October 15, 2008, 3:24pm | #

Yeah, it's a completely ass-backwards system of bureaucracy... but it's nice work if you can get it. Couldn't fault somebody for taking the position if it fell into their lap.

What would be more interesting is to actually get McCain's opinion on alcohol regulation on record. Heck, if he's willing to, on record, go against his financial interests, it could even strengthen his credentials. Not likely, mind you, just saying that it would.

(Being from Kalamazoo, we know all about how twisted beer wholesaling is, especially in nearby Illinois, and how said laws have affected the largest brewery here from selling its product in the Land of Lincoln)

phalkor | October 15, 2008, 3:28pm | #

Good show Radley Balko!

It's this kind of ire-raising, cat-twirling, pile-driving hijinx that make me enjoy this site so very much.

I LOVE being all riled up! Imma go compile like there's no tomorrow! YEEHAW!

ed | October 15, 2008, 3:32pm | #

alcohol wholesaling, an industry that isn’t remotely free market

Is it a failure of character to be forced to work within a system that big government has wrought? Methinks Radley is complaining that McCain is an American. He's blaming the baby for the bathwater we're all drowning in.

JMR | October 15, 2008, 3:47pm | #

The REAL connection to make is the one between the Vietnamese beer activities of Budweiser and McCain's truly disgraceful & shitty treatment of POW/MIA folks (mostly VERY motivated wives, but McCain and his buddy/best-man Kerry also ignored US intel info on POWs which the MSM refuses to cover).

This stuff, while distasteful, is well documented: “The sum of the secrets McCain has sought to hide is not small. There exists a telling mass of official documents, radio intercepts, witness depositions, satellite photos of rescue symbols that pilots were trained to use, electronic messages from the ground containing the individual code numbers given to airmen, a rescue mission by a Special Forces unit that was aborted twice by Washington and even sworn testimony by two defense secretaries (James Schlesinger and Melvin Laird) that ‘men were left behind,’” Schamberg writes. Partisan Republicans know it's true, but nobody wants to hear about it, and even Democrats aren't taking advantage (perhaps in part because of the actions/votes of McCain's buddy John Kerry?). Given the extensive media attention to John Kerry's Vietnam experience, this is hard to understand. But one thing's for sure -- you can get Bud & Bud Light all over Vietnam, which is teeming with beer drinkers.

ClubMedSux | October 15, 2008, 3:52pm | #

Yes, the system is poor and disfunctional, but seriously, just what do you expect either McCain to be able to do about it?

While, as a homebrewer and beer geek, I have a very personal interest in the effects of the three-tiered system, I think from a political perspective one need not differentiate one subsidy/protectionist policy from the next. Maybe McCain can't do anything about beer distribution laws, but as a "maverick" he could step up and speak out against subsidies in general (ethanol, anyone?). It's the entire culture of government protectionism that's to blame and I would think that McCain, as a senator and presidential candidate, could do something about it. He just chooses not to.

Secret Squirrel | October 15, 2008, 3:55pm | #

"Oil and gas furnaces will be outlawed and all homeowners will be required to install atheist windmills and pagan (Sun God) solar panels."

Libertarians are BLACK SOCIALISTS in disguise!! Beware Obama's SECRET PLAN in disguse!!

ClubMedSux | October 15, 2008, 4:10pm | #

He has spoken out against ethanol subsidies...

I stand corrected (at least according to his webpage). I guess when somebody opposes free markets as much as he does, it's easy to forget the few times he actually defends them.

kinnath | October 15, 2008, 4:27pm | #

While, as a homebrewer and beer geek, . . .

Homebrewer and mead geek, glad to meet you.

James Butler | October 15, 2008, 4:43pm | #

Can't resist ... from Secret Squirrel's linkspam:

18. "The Star Spangled Banner" will be redone in a hip-hop version, with the words "mofo" and "bitches" sprinkled throughout.

I mean, right there you got my vote! Gotta go bone up on my "Muslim", now.

kinnath | October 15, 2008, 4:50pm | #

Another one of the few points Carter had in his favor

Wasn't aware of that, but now I need to tip one in his direction.

ClubMedSux | October 15, 2008, 4:59pm | #

Where's the Beer Baron when you need him?

I believe he's down at Barney's Bowl-a-rama, sucking like a fox.

Secret Squirrel | October 15, 2008, 5:17pm | #

16. Any criticism of liberals, women, or homosexuals (including in e-mails and telephone conversations, which will be monitored) will be deemed hate speech, with the perpetrator given community service on first offense, a three-month term in a reeducation center on second offense, and a five-year prison term on third offense. You don't want to know what happens after that. Let's just say that we ain't closing Gitmo, and we're not not going to make it any less fun for the guards, either.

Read the SECRET PLAN!!!

vinter | October 15, 2008, 5:23pm | #

Time to feed secret squirrel into the crusher/destemmer . . .

fyodor | October 15, 2008, 6:17pm | #

Another one of the few points Carter had in his favor

Wasn't aware of that, but now I need to tip one in his direction.

per Wikipedia:

"In the US, when prohibition was repealed with the 21st Amendment, home wine-making was legalised. Homebrewing of beer should have also been legalised at this time, but a clerical error omitted the words "and/or beer" from the document which was eventually passed into law.[7] Thus, the home-brewing of beer remained illegal for several decades.

In November 1978, Congress passed a bill repealing Federal restrictions on the homebrewing of small amounts of beer. Jimmy Carter, 39th President of the United States, signed the bill into law in February 1979, and many states soon followed suit. However, this bill left individual states free to pass their own laws limiting production. For example, homebrewing is still illegal in the state of Alabama."

John C. Randolph | October 15, 2008, 7:19pm | #

do you also condemn Ted Kennedy because his fortune was made by running alcohol?

No, and I don't condemn old Joe Kennedy for that, either. Prohibition was an abomination, and I will not fault anyone for smuggling booze.

That being said, Joe was a crook who colluded with FDR to push our country from capitalism to fascism, and Teddy is a goddamned drunk who killed a girl and ran away from the consequences.

-jcr

CharlesWT | October 15, 2008, 9:52pm | #

"The Hensley company gave McCain an executive position shortly after he married the heiress, helped catapult him into public office, has thrown heaps of money at his campaigns over the years, and in addition to providing him with a charmed life, has played a significant role in putting him an election away from the White House."

The Manbeerian Candidate!

Coarsetad | October 16, 2008, 1:17am | #

Oh Secret Squirrel,
You thread-jacker, you are wise belong your years. You won me over with the part about the mega-churches having to practice what they preach.

Seriously guys, read the SECRET PLAN, its a hoot!

Tonto | October 16, 2008, 8:55am | #

How stupid can you be to think Muslim is a language.
Never went to school?

Rob Midro | October 16, 2008, 10:09am | #

Eldon:

Distribution centers would exist, but they would actually compete with each other in all areas. There also would be an option of not having to go through a distributor.

TMT | October 16, 2008, 10:22am | #

You jus lost all credability, and respect. Not interested in reading your news or current events ever. That borders on racism. Its mean and hurtful to people of these backgrounds and ethnicities. The comment about Obama was ignorant.

Conservationist | October 16, 2008, 10:26am | #

Anti-competitive?

I thought we were talking about free markets here. Free markets legitimize anti-competitive actions.

Or do you mean "liberalized" markets? lol

teufelchen | October 16, 2008, 10:38am | #

Frankly, I can't wait for Spanish and "Muslim" to be added as the "second and third official languages of the United States"!!! And even better: for BLACK SOCIALISM to rule this country!

(How xenophopic and absurd can a person be? ask Secret Squirrel, who thinks there is a language called "Muslim"). Puh-leez.

jmc143 | October 16, 2008, 11:29am | #

Having had to deal with the distributor rules in several states I have seen directly how this is a monopoly or best oligopoly works. Each state has concocted rules that appear to be designed to control alcohol for end consumers but in reality significantly drives up the cost to the “Joe Six Pack”. It works surprisingly like a sin tax but rather than the government getting the money from our pocket these distributors and the families owning them pocket it. Being born into one of these families is a basically a guarantee of lifetime wealth much like being born into the nobility in the UK. Importers are also part of this process. It’s no wonder that a good number of them exist in and around West Greenwich, CT and White Plains, NY which have some of the highest average incomes in the north east. One need only look at some of the liquor adds.

You can say that the distributor is only doing its job but here are some interesting tidbits that the end consumer may or may not know. Many states require these "distributors" to publish their pricing in a monthly state catalog for the bars, restaurants and retail establishments to buy from. In other words, there is no competition at all. There is no negotiation on price, and pricing is the same regardless of who you buy from. Moreover, some states make the rules more ridiculous such as in CT. where there is no volume discount meaning if you buy 1 case of beer or 1000 cases the price are the same. Which may seem good to protect the small business but it also kills any discounting. In both CT. and RI you can only have 1 liquor license. Although in CT some supermarkets can sell beer and wine they can’t in RI. No “franchised” business can buy a retail liquor license, meaning no chain supermarket or store such as Walmart can sell unless they had the license unless they were grandfathered. In Massachusetts, someone can own 3 retailing licenses but when a group attempted to allow supermarkets to sell wine, distributors along with the retailers helped shoot it down. Why? The public reason given was that it would hurt the small mom and pop liquor stores. A less public reason is that the distributors would then be the small fish compared to the national supermarket chains and it would be harder to dictate to them and the markups on wine could go down. At least in MA they allow volume discounting so you can buy same bottle of wine for 1-3 dollars less than in CT or RI.

What does this have to do with the election? I don’t know other than the fact that the families who make their money off the importing and distributing of alcohol don’t know what it is like for the rest of us. Bad times are probably better for them as people may drink more but I don’t think they can relate to us.

A queen once said “Let them eat cake” but nowadays it would be “Let them drink wine”.

mike | October 16, 2008, 12:19pm | #

Ok folks man up time. all these racial posters need to stop hiding on the internet like a bunch of cowards flappin their lips. go find yourself a group of blacks and express your views. be a man and look them in the eye and talk about "black socialism, muslims, whatever. this country was founded on the principles of freedom of religion, pursuit of happiness. how un-American it is to disparage someone for what they believe. what a bunch of spineless cowards. what happen to real men who spoke their piece in your face. i guess technology is a substitute for having character and "balls" to back up what you lips impart. Losers!!!!

Bobby the K | October 16, 2008, 12:27pm | #

*

No one cared about Bush & Cheney's secret plans, so why would anyone care about Obama's?

Ken | October 16, 2008, 12:46pm | #

This is just more media support for Obama. Distributors in this case are part of oversight in what is a somewhat controlled substance...alcohol....which is taxed just like gasoline.

BTW...where does Obama's $4 million income come from? has anyone asked? Senators don't get paid that much. Any scrutiny? Hmmmm?

According to your article, then, every middle distributor in in every industry should be eliminated so we can go factory direct, right? Well....what about the jobs created in the middle? Distributors are a vital part of the business chain to keep the money flowing through the whole system...which is our economy.

Rob Midro | October 16, 2008, 1:45pm | #

Ken:

Nowhere in that article did it say distributors should be eliminated. It about laws granting them monopoly status and the undeserved earnings as a result of outlawing competition.

Sean Kelly | October 16, 2008, 2:31pm | #

Muslim is not a language.

Colonel_Angus | October 16, 2008, 3:35pm | #

Free market is not the same thing as protectionist command market.

bob mologna | October 17, 2008, 12:54am | #

I've given plenty of money to McCain via the Hensley distributorship. It's a racket. As a bar owner I can only purchase from the licensed distributors. My local grocery stores usually sell booze for less than the so called "wholesale" rate, but if I were caught buying from them I'd lose my liquor license. Or if I were having a big weekend and one of my local bar owner friends were to lend me a few dozen cases out of their walk-in, this could also be a career ending event. And to top it all off those stupid bastards send agents out to my bar to try and trick the bartenders into making bullshit technical violations of the liquor laws so they can fine me. Do you reckon I call all the other bars in town (small town) to warn them when I see these cocksuckers? Hell yes I do.

McCain is a carpetbagging piece of shit who only has an R next to his name because that's what the boys in the men's grill at the Phoenix country club told him he needed to have in AZ. R or D makes little difference to me these days but AZ give rise to at least one decent R,l Goldwater. Would that they were all like him.

Mike | October 21, 2008, 10:31am | #

I'm surprised the NBWA isn't using their best argument: the additional profit Annheuser-Busch earned from this system helped fund the great Cardinal teams of the mid-60s.

Johnny Debacle | October 21, 2008, 4:04pm | #

Re: Lame Article

Read the article. It takes issue with the Govt mandating a three tier system; it takes no issues with regional distributors conceptually.

Take Manhattan for example. Inside that city you can purchase all sorts of goods and food. Somehow, without the Govt requiring a three tier system for each and every one of those goods and foods, somehow, each day Manhattanites are able to go to bars, stores and restaurants stocked with goods and food. That is the point. That and the fact that consumers end up paying extra for alcohol relative to these other goods because some middlemen who may not serve any purpose are required by the Govt to exist for alcohol.