The 21st Amendment gave new dawn to U.S. citizens as it ended the prohibition of alcohol in the country. It gave all the states the legal leeway to sell and distribute alcoholic beverages to their people. Despite liquor being legal in the country, Pennsylvania is among several states that seem to be still living under the repealed 18th Amendment.
Pennsylvania state exercises direct control over the sale and distribution of liquor products. The liquor industry is solely run by the Pennsylvania Liquor Control Board (PLCB), which currently has only 600 stores in the state. The monopolistic nature of the PLCB has denied many Pennsylvanians the pleasure of enjoying alcoholic beverages.
There has been increased lobbying by the state legislature to privatize Pennsylvania's liquor industry, but the push is impaired by partisan polarization. The COVID-19 pandemic revealed the urgent need for the state to get out of the alcohol-selling business.
Governor Wolf's administration had overseen the state-wide closure of liquor stores at the pandemic's peak. The closure of liquor stores inconvenienced Pennsylvanians and placed them at the mercy of bootleggers. The antiquated PLCB is not prepared to run the industry using modern business and economic models suitable for the 21st century.
The opponents to privatization of the liquor industry argue that privatizing the sector could make the state lose revenue. However, this is not the case. Ironically, the PLCB is causing revenue loss. The 2019-2020 fiscal year reported a $110.9 million loss in sales. Fears of a decline in revenue collection on the privatization of the liquor system have no basis. If anything, privatization could see an increased proliferation of liquor stores, increasing licensure fees and consumption of alcoholic beverages in the state as alcohol becomes more accessible. It may also raise consumption taxes.
The PLCB is also known for the state's price hikes for alcoholic products. Fortunately, a study shows that alcohol is $2.03 cheaper in most states that have privatized their liquor systems. This will mean more savings by the consumers. More so, privatization will lead to an increased variety of beer, wines, and spirits in private stores, unlike the state-owned stores that are characterized by empty shelves and few brands for selection by consumers.
There are also unfounded fears of job losses propagated by opponents of privatization. Available data shows that the PLCB currently employs 4,400 people in the 600 state liquor stores. But it is evident that with the privatization of the system, more stores will open in every corner of the state. And this logically means more job opportunities will be created in the private sector. Although the state stores will close, employees laid off will be free to seek employment at private liquor stores.
In conclusion, I believe it is time for the state of Pennsylvania to pave the way for the privatization of the liquor industry. Privatization will bring more advantages to Pennsylvania compared with the current state system through more jobs, lower prices, increased state revenue, and improved business modeling.