Global Recession, Alcohol Consumption, and the Moments That Neo-Prohibitionists Crave

This from today's New York Times.

As I noted here and here, context and historical perspective alter the picture. But it’s worth contemplating the preachy subtext of the editorial piece in the Times: Hard times = propensity to drink to excess. People who enjoy alcohol, and the right to drink, ought to worry about that subtext.

Historically, prohibitionist sentiment flourishes during periods of economic, social, and cultural turmoil. A century ago, for example, Americans were adjusting to the upheaval that accompanied the birth of the industrial economy, and the emergence of technologies like electricity and the telephone.

Prohibitionists had little trouble persuading a troubled, frightened nation that alcohol made life worse, and that eliminating it would make life better.

We’re living through an even more tumultuous era now, as digitization and the internet force us to re-imagine media, education, and the economy, and as globalization and terrorism rattle our psyches. Neo-prohibitionists will seize the moment, and prey on Americans’ insecurities. They're already working to build a dry America one step at a time: A new local tax here, a more strict licensing regulation there; elsewhere programs designed to teach children to demonize, rather than respect, alcohol.

As the recession deepens, and turns to depression, we can expect new “scientific” studies demonstrating the dangers of turning to drink during hard times. Drys will blame alcohol for upswings in, say, crime or domestic violence, whose rates typically rise when societies are in turmoil.

As global demand for food increases, and food prices soar, drys may argue (as did their counterparts a century ago) that valuable crop land ought not be “wasted” on hops or barley; that corn should not be “wasted” on beer.

In short, in hard times, prohibitionists argue for restrictions on drink -- for a more intrusive nanny state -- on grounds that those hard times lead adults to drink. Drinkers: beware.

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Good source of information for all things alcohol: Alcohol Problems and Solutions

Brew Pubs and Beer in Utah

Not sure why the NY Times has suddenly decided to devote so much effort to covering brewpubs, but . . . . This week it looks at the brewpub/beer scene in Utah. When we were in Moab last June, we ate several times at Moab Brewery. The food was better than average for that kind of place, and the beer was terrific. (It went over well with our kids who live in London . . . .)

More Thoughts on Beer In A Bad Economy

First, an additional thought on declining beer consumption. As I noted in a previous post , the giant global beer companies are confronting declining sales in so-called "developing" and "third world" nations/regions. The ripple effect, however, will likely play out in the so-called "first world" countries/regions, like the U.S.

Why? Because companies like SABMiller and A-B InBev function on behalf of shareholders, and shareholders want healthy share price. So if demand for product drops in Croatia or Brazil, company managers will try to compensate for that decline in some other market. To do that, they'll devote more money to advertising in, say, the U.S., or use price-cutting to woo consumers.

Bottom line? Declining beer sales in China, Brazil, or Poland will spark beer wars in the U.S, Canada, or western Europe. And when the Big Brewers go after each other, small brewers get caught in the crossfire. (A matter I discussed in detail in two blog series I ran this summer, one here, and one here.

The second thought about beer-in-a-bad-economy concerns homebrewing. In the 20th century, interest in homebrewing soared during hard times, and then declined during good times. So we can expect to see traffic increase at brewing supply shops, on and offline.

But before you get too carried away with the do-it-yourself stuff, the always entertaining Patrick Emerson of the Oregon Economics blog studied the numbers. You may be surprised at the result. Read his thoughts here.