Wednesday, November 15, 2006

Corporate Interests outweighing Citizen’s Rights


There are so many things going on. Collusion between business and government is so pervasive that it is overwhelming deciding what to talk about first. Pharmaceutical companies pimp their designer drugs, creating demand for products that not only are not necessary but are harmful to individuals, under the auspices of First Amendment rights to Free Speech. Since when did a company become a citizen, I was taught they are legal entities created to structure ownership and management but not that they were citizens.

Jim Belshaw, at Personal Reflections, talks about sensationalist and misleading talking points used by politicians and corporations with the intent to deceive the public. Anthony Lemons, at Wake-up America, is distraught over the amnesty movement by newly elected Democratic majority even though most Americans want existing laws to be enforced and legislation regarding secure borders funded. Lexcen, at Gripes of Wrath, looks at the misleading information financed by IDB's Multilateral Investment Fund intended to create fear among its readers in order to support unlimited access by cheap slave labor into the US economy. Paraphrasing, the study says that if the US enforces laws against illegal immigrants the US economy will fail and crumble. Sounds to me like the corporate pimps at Investors Business Daily have taken a page from the fear monger’s book on international relations written by China’s communist party.

With all of these heavy topics floating around I have decided to talk about wine. Seems like something frivolous, right? Wine surely is not as important as North Korea’s extortion, China’s threats to tank the US economy or the flood of illegal immigrants ravaging the US economy turning Joe Citizen into this generation’s slave labor.

While reading one of my favorite wine blogs, Fermentation, an article caught my eye. Tom Wark wrote, “Wine Wholesalers Keep To Losing Strategy with New CEO.” Tom, as many of us, is fighting the battle of quality. He goes on to write:

The Wine & Spirit Wholesalers Association (WSWA), the arch enemies of wine consumers, small wineries and emerging wine regions across the country, has appointed a new CEO and President to replace Juanita Duggan. Craig Wolf, the interim CEO and former General Counsel, will take over this position.

Wolf has been instrumental in shaping WSWA policy that opposed direct shipping of wine to consumers at every turn and has helped shape WSWA strategy of squashing emerging wine industries in states across the country by convincing legislators to mandate that wineries use wholesalers to get their wine to restaurants and retailers, rather than simply sell it to restaurants themselves.

In other words the organization of Wine & Spirit Wholesalers is trying to maintain monopolistic centralized distribution of Wine and Spirits at the expense of the consumer. The Wholesalers have hired a big time lobbyist to make sure that government does not do what is in the best interest of the American people instead it caters to a very small special interest group. This is also an easy sell for the Government. They will say that they can limit the evils of alcohol through distributors but the real reason is the a few, very large companies, are easier to control and by giving them monopoly status the companies will make sure that the government gets all those sweet excise taxes.

Collusion between corporate America and government is always bad but in this case evidences that Free Trade and Free Market policies have nothing to do with holding down prices for the US consumer. Regulating the protection of monopolistic structures with no public benefit is the greatest of Hypocrisy from a political class that continues to favor business by encouraging illegal immigration and spending US taxpayer dollars to secure corporate America’s business interests offshore.

So Mr. Politician what is it? Is it necessary to completely crush Joe Citizen? How can you, Mr. Politician, representative of Joe Citizen, justify subsidizing offshore

Tags:

3 Comments:

Blogger Small Business USA said...

Jim Most people do not realize that since the Reagan years the US has become a land of monolopies and or oligopolies either through unfair competitive practices (WALMART and TARGET) or regulation (Wine & Spirits).

Whether it be governmental or business the US Economy is centralized, we source all over the world, sell products into the main centralized distribution chain and the retail through a limited number of very big outlets. This way both consumer prices and labor costs are completely controlled by the corporations.

Specifically on wine: The producer must sell wine to a wholesale company or importer. The Wholesaler or Importer then sell to locally regulated retail outlets.

In most States you cannot sell producer to consumer. The Wholesalers offer little added value but they do take a big piece of the pie.

It has taken almost 30 years to destroy the US economy but Reganomics are finally showing their fruits. We have become an economy of smoke and mirrors.

5:59 AM  
Anonymous Anonymous said...

Thanks, David.

Compare this to Australia. Like the US we have a problem with the increasing dominance of two major chains (Coles, Woolworths)in the bottle shop marketplace. But there is no requirement to go through a wholesaler. Any winery can sell to a licensed outlet or get a license itself to sell to the general public through cellar door or via direct sale.

Over the last fourty years the industry has grown from a small domestic industry with an export add-on to a major global player. Nearly every region of Australia now produces its own wine. This is now affecting food and life, although we do not (yet) have the regional variations that I love in your stories on Italy.

It probably does not matter to the wholesalers that their actions are having an adverse affect on the US industry. I am surprised that the wine industry itself does not appear to have a more active lobby group.

US wine penetration of the Australian marketplace is tiny. I can now see why.

4:12 PM  
Blogger Small Business USA said...

Jim You have seen the true result of corporate collusion with politicians. It in fact reduces both wealth, choice and free trade.

All major economists, authors of free trade concepts, state clearly Free Markets cannot function in an environment of corruption. This means that even if the US were free of corruption, which is not the case, all trading partners would have to be free of corruption. I do not believe this event will occur in our lifetime.

4:30 PM  

Post a Comment

<< Home