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Liquor Sale Restrictions Stifling the Marketplace

Houston Chronicle

Regarding "Wal-Mart, Kroger lobbying to sell spirits" (Page D1, March 4), the last several elections have shown that Texans support a limited government, free-market approach to the economy, and vote for candidates who claim those values.

Unfortunately, the truth is that Texas is not as free-market as we like to think. There remain many anti-competitive laws in Texas that have the effect of using government to protect certain businesses or certain business models. And if we want to live up to our aspiration to lead the nation in pro-growth, free-market policies, we still have work to do in clearing out these outdated, defenseless and often counterproductive policies.

One example is the way Texas law favors private, family-owned liquor retailers from the competition of publicly owned companies. For the state of Texas to assert that, for some inconceivable reason, private ownership of liquor stores is favored and public ownership is forbidden makes absolutely no sense. Even worse, it harms consumers by limiting competition in the marketplace.

And it's just plain lousy policy. For government to favor one business model over another or one ownership model over another is offensive to competition and to the free-market. Government should not play favorites or pick winners and losers in the marketplace.

There is still time in this legislative session to move bills out of committee that would do away with some of these outdated, anticompetitive Texas regulations.

Tom Giovanetti, director, Institute for Policy Innovation, Irving