
Tennessee legislators are still debating whether or not wine should be sold in grocery stores. What would Trader Joe think of this?
I’ve lived a lot of places, and Tennessee is the first state where I’ve encountered folks debating about whether or not we should have wine in grocery stores. Why are we even discussing this? For me, debating the merits of wine in grocery stores makes about as much sense as a debate about whether or not we should have toilet paper at gas stations. If they want to stock it, who cares?
But if you take a little time to think about it, this is a fairly serious issue. Due to previous legislation that set up the current structure, a number of mom and pop stores now depend on wine sales for their livelihood. Allowing grocery stores to sell wine would create competition that could put the mom and pop liquor stores out of business, some say.
In other words, government’s effort to fix the problem that it created in the first place is going to create more problems. Still, I have my doubts about this argument. Liquor stores will still have a monopoly on liquor sales. And the competition may force liquor stores to lower their prices and do a better job of marketing themselves to customers, which will be a good thing.
Monopolies generally aren’t good for consumers, no matter how much we may sympathize with the monopolist.
More after the jump:

