Tag: bootleggers and Baptists

Bootleggers & Baptists, Sugary Soda Edition

Here’s a poor, unsuccessful letter that impressed the relevant New York Times reporters, but not their editorial overlords:

It may seem counter-intuitive that bleeding-heart anti-hunger groups and “Big Food and Big Beverage” would ally to oppose Mayor Bloomberg’s request to prevent New Yorkers from using food stamps to purchase sugary sodas [“Unlikely Allies in Food Stamp Debate,” October 16].  Yet the “bootleggers and Baptists” theory of regulation explains that this “strange bedfellows” phenomenon is actually the norm, rather than the exception.

Most laws have two types of supporters: the true believers and those who benefit financially.  Baptists don’t want you drinking on the Lord ’s Day, for example, while bootleggers profit from the above-market prices that Blue Laws enable them to charge on Sundays.  Consequently, both groups support politicians who support Blue Laws.

Baptists-and-bootleggers coalitions underlie almost all government activities. Defense spending: (neo)conservatives and defense contractors.  President Obama’s new health care law: the political left and the health care and insurance industries. Ethanol subsidies: environmentalists and agribusiness. Education: egalitarians and teachers’ unions. The list goes on.

It’s easier to illustrate the theory (and sexier) when the bootleggers are non-believers who cynically manipulate government solely for their own gain.  Yet one can be both a Baptist and a bootlegger. The Coca-Cola Company may sincerely believe that society benefits when the government subsidizes sugary sodas for poor people.  Even so, a bootlegger-cum-Baptist can still rip off taxpayers.

This morning, NPR reported on another bootleggers-and-Baptists coalition: anti-immigration zealots and the prison industry.

Pot, Protectionism, and Unions

Lobbying reporter Tim Carney notes that some California marijuana growers are worried that a proposed legalization initiative could drive down the price of the product and adversely affect their incomes. They’re holding meetings to deal with the threat.  Some growers are just talking about creating an official Humboldt seal of approval. Maybe they could even get legal restrictions on who can use the Humboldt name, like Champagne and Roquefort. But some local stores sport bumper stickers reading “Save Humboldt County — keep pot illegal.”

The story reminds Carney of this Reason.tv video featuring a spokeswoman for the purported American Marijuana Growers Association, who urge smokers to buy only American-grown bud:

And that video reminds me of this classic Saturday Night Live video, from those heady days in the ’70s when television shows could joke about marijuana, featuring the American Dope Growers Union reminding viewers that when you buy pot from Mexico or Colombia, “you’re putting an American out of work.” (The SNL sketch was based on a much-broadcast commercial by the International Ladies Garment Workers Union singing “Look for the Union Label,” to discourage Americans from buying foreign-made products.)

Union rules, protectionist laws, and sometimes even outright bans are all ways of avoiding the rigors of competition, seeking to prevent consumers from buying products and services where they’re cheapest. Sometimes there are laws banning or taxing the purchase of goods from another country. Sometimes there are appeals to compassion and patriotism, like “Buy American” or “Buy Local” campaigns. Sometimes an outright ban on the sale of a product actually products the market for established illegal sellers, as the Humboldt County marijuana growers are thinking, and as economist Bruce Yandle theorized in his work on “bootleggers and Baptists.”