Time to Kill the Michigan Alcohol Monopoly
Michelle Minton has an article that demonstrates that George Stigler's idea of regulatory capture theory is alive and well in her article Time to Kill the Michigan Alcohol Monopoly. She writes "The wholesalers, rather than try to seek new growth opportunities in direct shipping, decided to squelch any new competition. In late 2008, Michigan lawmakers rushed through the Legislature a Michigan Beer and Wine Wholesalers Association (MBWWA)-endorsed bill (House Bill 6644) banning direct-to-consumer shipping of wine within the state. Legislators in Michigan, who collectively received almost $600,000 in campaign donations from MBWWA in 2008, introduced, voted on and enrolled the measure in a mere five legislative days. Before the shipping ban, retail liquor shops in Michigan, all of whom purchased their inventory from MBWWA members, could legally sell and ship those products directly to consumers. Rather than lose their monopoly control over the beer and wine market in Michigan, the MBWWA worked to end direct sales for everyone."
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