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Newspaper Article

    FREEDOMWORKS Foundation Releases Analysis of new legislation aimed at thwarting Wine shipments

    BY Drinks Media Wire
    08/02/2010
    by Drinks Media Wire on 7/26/10.

    The CARE Act, H.R. 5034, shores up monopoly profits at the expense of consumers who would face higher prices and fewer choices in the marketplace.

    FreedomWorks Foundation has published a new study examining the detrimental effects of the Comprehensive Alcohol Regulatory Effectiveness (CARE) Act, H.R. 5034. Introduced by Rep. William Delahunt (D-Mass.), the legislation is a clear example of economic protectionism designed to shore up the monopoly profits of beer, wine, and spirits wholesalers, much to detriment of vintners, craft brewers, small distillers, and consumers, who will face higher prices and fewer choices.

    “It seems that cronyism is still alive and well in Washington, D.C.,” said Wayne T. Brough, chief economist and vice president for research at FreedomWorks Foundation. “This legislation is a classic example of rent-seeking, or special interests using the power of government to thwart competition and shore up monopoly profits. Unfortunately, consumers will bear the burden of this legislation, which is nothing more than economic self-interest on the part of the wholesalers.” More specifically, the legislation is an attempt to overturn the legal victories that have opened the door to direct shipments of wine in 37 states and the District of Columbia.

    A copy of the new study, “No Wine Shall Be Served Before Its Time—At Least Not Without Wholesalers Taking a Cut,” is available at:

    http://www.freedomworks.org/files/Microsoft_Word_-_CARE_Act_IA_Final_For...