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> The union at the LCBO is huge and powerful. The jobs, even seasonal ones, pay well [...] And oddly enough I'm perfectly happy with that. Ontario's strategy w
by rbobby 9y ago
> The union at the LCBO is huge and powerful. The jobs, even seasonal ones, pay well [...]
And oddly enough I'm perfectly happy with that. Ontario's strategy with booze is responsible consumption (or whatever it's called)... essentially price it sufficiently high that we don't get too many drunks on the street.
Given how badly alcohol abuse can mess up lives (not just the abuser but their family and friends too, not to mention random folk who they cross paths with) I think this is a sensible strategy.
As part of that strategy I don't think trying to have to the cheapest labour costs is that important. It won't change the end price of booze, it will only ensure that the jobs won't be staffed by long term employees (and hence knowledgeable employees, and employees that can save for retirement, etc).
- api_or_ipa 9y ago> Ontario's strategy with booze is responsible consumption (or whatever it's called)... essentially price it sufficiently high that we don't get too many drunks on the street. Sin taxes are actually composed of two distinct effects: the effect of increasing price and therefore reducing negative externalities like you mentioned. In addition, a well structured sin tax should use it's gross profit to fund support services like rehabilitation and health services. LCBO only does 1 of those things well. LCBO marks up their product by a percentage, which impacts premium products more than lower priced products[0]. If LCBO was committed to decreasing consumption of alcohol, it would apply a flat fee to each unit of alcohol, which would maximize utility and minimize the impact to the rest of the alcohol industry. 0: http://hellolcbo.com/app/answers/detail/a_id/1251/~/lcbo-pricing-structure%3A-price-markup-example http://hellolcbo.com/app/answers/detail/a_id/1251/~/lcbo-pri...
- miohtama 9y agoIn Finland alcohol tax is based on volume (liters) so premium products don't get more expensive
- acchow 9y ago> essentially price it sufficiently high that we don't get too many drunks on the street. Other countries don't need artificially inflated prices and a government-regulated sales to accomplish this.
- verelo 9y agoAnd then again countries like Australia have this problem and some very strict laws. I think the reality is that this is way more about national identity than it is the laws. As we have seen with legalization in Canada, the laws don't mean much anyway.