Market Correction

Booze and Books
20 May 2006

Editor, The Wall Street Journal
200 Liberty Street
New York, NY 10281

Dear Editor:

Harry Wiles, Executive Director of American Beverage Licenses, supports government restrictions that hamper big-box retailers' efforts to sell alcoholic beverages (Letters, May 20). He asserts that, without these restrictions, the likes of Costco and Wal-Mart will "muscle out smaller retailers at the expense of choice, convenience and service."

The same argument was made 15 years ago by small book retailers when Barnes & Noble and Borders first opened large bookstores nationwide. But who today believes that Americans have less choice, convenience, and service when buying books? Clearly, we have more - as suggested by the fact that inflation-adjusted retail book-sale revenues are today nearly 80 percent higher than in 1992 even though the inflation-adjusted price of books hasn't changed since then.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on Friday March 2, 2007 at 4:33pm

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