Letter: State Store monoply is failing

ISSUE | STATE STORES

Monopoly is failing

State Rep. Maria Donatucci's defense of Pennsylvania's liquor monopoly gives an incomplete picture of a broken system and includes an unfair attack on privatization ("Business is booming," Tuesday).

She praised the Liquor Control Board for record sales, yet state law bans private businesses. An increase in sales looks less impressive when it's the result of a government-sanctioned monopoly.

The LCB ended 2015 more than $238 million in the red. It knows its finances are in trouble, which is why it suggested raising prices in 2014. The agency's personnel costs are growing and will continue to grow.

Supporters say that modernization is the solution, but past efforts, such as wine kiosks, have failed.

The underlying problem is a lack of resources, knowledge, and incentives to effectively serve consumers and entrepreneurs.

Only the private sector can offer real choice, convenience, and competitive pricing. If done right, privatization will expand the state's economy and provide added revenue for the state budget.

|Bob Dick, policy analyst, Commonwealth Foundation,

King of Prussia, bcd@commonwealthfoundation.org