“California has a state law that prohibits for-profit companies from using volunteer labor.” That spelled doom for little Westover Winery in Castro Valley, which cleared around $11,000 in profits a year for its owning couple and used unpaid volunteers, many of them amateurs who wanted to learn the wine business. The state hit the business with $115,000 in fines and wiped it out, to the unhappiness of some of the displaced volunteers. [Scott Shackford, Reason; Rebecca Parr, Daily Review/San Jose Mercury News] More: A Debra Saunders column. And I mention this episode, along with the one linked below about a California law combating off-books contractors, in a new Cato post about how licensed and compliant businesses often support making government more powerful and invasive so as to go after the other kind.
George Leef reviews a new book by John Compton, political scientist at Chapman University, on how evangelical anti-vice campaigns against gambling, liquor and other social ills helped undermine the Constitution’s curbs on centralized power, paving the way for later Progressive gains.
The tension between moral reformers who insisted on a virtually unlimited view of the “police powers” of government (i.e., to regulate in ways intended to protect the health and morals of the citizenry) and the Constitution’s framers, who feared the results of allowing factions to use government power for their ends, was crucial in shaping constitutional law during the 19th and early 20th centuries.
The book shows that by the time the New Deal’s aggressive expansions of federal power came before the Supreme Court, its earlier decisions in favor of approving legislation against liquor and lotteries had so undermined the defenses of property rights, contract, and federalism that it was nearly inevitable that the Court would cave in.
For example, when the Court decided the 1934 case of Blaisdell v. Savings and Loan, gutting the former understanding of the impairment of contracts clause, Chief Justice Charles Evans Hughes cited an earlier decision on interstate shipment of lottery tickets which had acquiesced in a new extension of the police power, on the grounds that a previously sacrosanct constitutional barrier could be “qualified” when a state needed to “safeguard the interests of its people.” [Forbes]
Montana, North Carolina, Oklahoma, Pennsylvania, Tennessee, and Utah ban package sales on Independence Day. [Reid Wilson, Washington Post] Whether or not you live in one of those states, have a happy Fourth of July.
Works for me: “Started by Kathleen Belfont, Blotto Gelato is a small ice cream business that includes alcohol in all of its products. Belfont reached out to Sen. Ernie Lopez, R-Lewes, when she realized she could not get a liquor license.” [WBOC via Laura Collier]
“The age-21 rule sets the U.S. apart from all advanced Western nations and lumps it with small or repressive countries like Sri Lanka, Pakistan, Indonesia, Qatar, Oman and the United Arab Emirates. Congress was stampeded into this puritanical law by Mothers Against Drunk Driving.” — Camille Paglia in Time on why the national minimum drinking age law “must be repealed. It is absurd and unjust.” Related: “A drinking age of 21 infantilizes adults who are otherwise able to serve in the military, marry without permission, enter into business contracts, buy tobacco, vote and run for public office. It forces college administrators to be babysitters rather than educators. And it doesn’t achieve its stated goals.” ["ABC debacle should stir debate on Virginia’s drinking age," Rick Sincere, Richmond Times-Dispatch] Earlier here, here, here, etc. Plus: Relevant political thoughts from Glenn Reynolds last year.
Related, if distantly: study in Britain finds liberalization of bar closing hours associated with decline in traffic accidents [Jeffrey Miron, Cato]
I spoke on Thursday to the Bastiat Society chapter in Charlotte with some observations rooted in public choice theory about the “three-tier” system of state liquor regulation familiar since Prohibition. A few further links for those interested in the subject:
- Tom Wark: “Why do wine and beer wholesalers deliver up more campaign contributions than all wineries, distillers, brewers and retailers combined?” (Because of the rents!) The North Carolina microbrewery angle;
- Matt Yglesias at Slate: “How Looser Regulation Gave D.C. Great Specialty Bars“
- AEI held a panel discussion last spring with Brandon Arnold, Jacob Grier (both formerly with the Cato Institute), and Stephen George, moderated by Tim Carney. Video snippets: Jacob on the history of the 3-tier system (2:00); Brandon on homebrewing (0:44). Here’s Jacob discussing the Oregon system at his cocktails-and-policy blog Liquidity Preference, and here’s Brandon on direct-to-consumer Internet sales.
- On “at rest” laws, and the attempted extension to New York: my posts at Cato and Overlawyered, Wark, and recently from CEI’s Michelle Minton on renewed action in New York.
- Oldie-but-goodie David Spiegel, Regulation mag, 1985 (PDF).
Caitlin Flanagan’s piece in The Atlantic is getting quite a build-up, but Glenn Reynolds concludes that “overall … [it] doesn’t deliver insight commensurate with its length.”
It’s illegal to have an open bar at a ticketed event in Massachusetts, and if you overlook that rule the Boston cops might just show up and get you to “voluntarily” turn some of the event’s proceeds over to them. [Clark at Popehat]
Around half the states, including Vermont, ban “happy hour” promotions at drinking establishments. At Watchdog.org, Jon Street quotes me suggesting it’s past time for the Green Mountain State to drop its ban:
Walter Olson, a senior fellow for constitutional studies at The Cato Institute, a libertarian-leaning, Washington, D.C.-based think tank, told Vermont Watchdog, “Why should Vermont insert itself between deals that please restaurants and customers alike?”
“When young people are starting out in the job world, they like moving to the sorts of places where there’s happy hour… It’s good for main streets that don’t want to go dead when the work day ends, good for restaurants trying to reach new customers, and good for tourism. The toll of drunk driving across America has plunged tremendously, both in states that have bans and in those that don’t, and it’s hard to see any difference there,” Olson said.
The happy hour controversy flared up earlier this year in Massachusetts [coverage: MSN, ABC, Consumerist, and Boston Globe (pro-happy-hour column by Farah Stockman)]. Texas alcoholic beverage regulators have a table of state laws here (PDF)