Opinion
Privatize Oregon Liquor Sales
“Challenging People to Shape
a Better Future Now”
B ERNIE F OSTER
Founder/Publisher
B OBBIE D ORE F OSTER
Executive Editor
T ED B ANKS
Advertising Manager
J ERRY F OSTER
Account Executive
L ISA L OVING
News Editor
I
n 2011 Washington state priva-
tized liquor sales after a
record-setting $20 million-
campaign. Now as the grocery
industry looks to repeat that suc-
cess, we can expect a liquor
privatization initiative to hit the
Oregon ballot in 2014.
Backers hope they can expand
into the profitable liquor market
by taking spirits sales out of the
hands of the Oregon Liquor Com-
mission.
We don’t have any objection to
the idea in principle. Stores
already sell wine and beer. Why
F ROM THE
P UBLISHER
Bernie Foster
should-
n’t they sell bourbon or vodka?
We can see no good reason for
the state to have a monopoly on
selling spirits.
What voters should not support,
H ELEN S ILVIS
Multimedia Editor
B RUCE P OINSETTE
Reporter
What do you think?
D AVID K IDD
Graphic Designer
M ONICA J. F OSTER
Seattle Office Coordinator
J ULIE K EEFE
S USAN F RIED
Photographers
Post your comment on articles in The Skan-
ner News at www.theskanner.com
however, is a repeat of
the Washington fee
hikes that saw the cost
of spirits rise sharply
after the initiative
passed.
Despite promises that
increased competition
would lower prices, the
exact opposite has hap-
pened.
A visit to Stateline
Liquor at Janzten Beach
last week found that
almost every car in the parking lot
had Washington plates. Why?
Spirits now cost far more in Wash-
ington than they did when the
Liquor Commission managed the
stores.
The initiative added a 10 percent
distribution fee, and 17 percent
retail fee. That’s in addition to any
markups the grocers add inde-
pendently. Taxes stayed the same.
Lobbyists for the grocers and
wholesalers say competition will
eventually bring costs down. So
far it hasn’t happened.
Wholesalers increased their
Make sure their
proposal includes a
steady stream of
income for alcohol
education and
treatment
prices as soon as the law passed.
And because the initiative allowed
for bulk markdowns on wine and
spirits, the new law also puts
small, local wineries and distillers
at a disadvantage.
Bottom Line: Liquor costs are
likely to rise no matter what. But if
Oregon retailers want the state to
get out of the liquor business, they
should make sure their proposal
includes a steady stream of income
for alcohol education and treat-
ment.
What Do You Think?
Republicans Losing the Debate on Debt
T
The Skanner Newspaper, established
in October 1975, is a weekly publica-
tion, published each Wednesday by
IMM Publications Inc.,
415 N. Killingsworth St.,
P.O. Box 5455, Portland, OR 97228.
Telephone (503) 285-5555.
E-mail: info@theskanner.com
World Wide Web site:
http://www.theskanner.com
Fax: (503) 285-2900
The Skanner is a member of the
National Newspaper Pub lishers Associ-
ation and West Coast Black Pub lishers
Association.
All photos submitted become the
property of The Skanner. We are not re -
spon sible for lost or damaged photos
either solicited or unsolicited.
© 2013 The Skanner. ALL RIGHTS RE SERVED.
REPRODUCTION IN WHOLE OR IN PART
WITHOUT PERMISSION PROHIBITED.
To see The Skanner
News on your smart
phone go to
theskannermobile.com
or scan this QR code
with your app.
•
•
•
•
•
•
•
•
Local news
Opinions
Jobs, Bids
Sports
Entertainment
Music reviews
Bulletin board
RSS feeds
he Republican push to
reduce the federal deficit
solely through spending
cuts is based on mythology rather
than fact. That was clearly demon-
strated by a series of reports issued
recently by the non-partisan Cen-
ter on Budget and Policy Priorities
(CBPP).
In a report issued Oct. 28, CBPP
stated, “As a new budget confer-
ence committee seeks agreement
on spending and tax priorities for
the next decade, some policymak-
ers and commentators who believe
that future deficit reduction must
come solely from spending cuts
will likely repeat the claim that the
federal government is exploding
in size. The data do not support
such a claim.
“To be sure, total federal spend-
ing as a share of gross domestic
product (GDP) rose considerably
in 2008 and 2009 and remained
high in 2010 and 2011, in part
because GDP was unusually low
due to the Great Recession and its
aftermath. But spending dropped
significantly in 2012 as a share of
GDP and, as the latest Congres-
sional Budget Office (CBO) data
indicates, this downward trend is
expected to continue over the next
five years.”
The report, titled “Size and
Reach of Federal Government Are
Not Exploding,” notes that those
backing deep cuts in social pro-
grams neglect the real reasons for
increased federal spending.
“While total federal spending
will rise modestly as a percent of
GDP during the latter part of the
decade under a continuation of
current policies, that is mostly
because of a marked increase in
interest payments,” the report stat-
ed. “In particular, as the economy
recovers, interest rates will also
rise, simultaneously increasing the
interest we must pay on any given
amount of debt.”
The study also found, “Under a
continuation of current policies,
total federal spending – including
interest – will drop from 24.1 per-
Page 4 The Portland Skanner November 6, 2013
As I noted in this space last
week, more than 90 percent of so-
T HE C URRY called entitlement benefits go to
the elderly, disabled or working
R EPORT
households. Furthermore, as the
Center on Budget and Policy Pri-
George E.
orities
observed,
increased
Curry
spending on safety net programs
because of the recession is both
appropriate and temporary.
“Congressional Budget Office
(CBO) projections show that fed-
cent of GDP in 2011 and 22.8 per-
eral spending on low-income
cent in 2012 to 21.5 percent in
programs other than health care
2013, before starting to rise in the
has started to decline and will fall
middle of the coming decade,
substantially as a percent of gross
climbing back up to 22.7 percent
domestic product (GDP) as the
by 2023. At least three-fourths of
economy recovers. By the end of
the increase between mid-decade
the decade, it will fall below its
At least three-fourths of the increase
between mid-decade and 2023 will
come from higher interest payments
on the national debt
and 2023, however, will come
from higher interest payments on
the debt. Interest payments are not
a federal program, and increases in
interest costs do not themselves
average level as a percent of GDP
over the prior 40 years, from 1973
to 2012. Since these programs are
not rising as a percent of GDP,
they do not contribute to our long-
term fiscal problems,” CBPP said
It’s important to know why costs will
rise rather than using it as an excuse
to cut social programs
represent an expansion of the gov-
ernment’s activities or reach. It
should also be noted that interest
costs rise when taxes are cut,
because the tax cuts add to deficits
and debt just as spending increas-
es do.”
in a report titled, “Low-Income
Programs Are Not Driving the
Nation’s Long-Term Fiscal Prob-
lem.”
I am not suggesting there are not
some serious financial questions
facing the nation. The rising cost
of Medicaid is among those con-
cerns. But it’s important to know
why costs will rise rather than
using it as an excuse to cut social
programs.
“To be sure, Medicaid is project-
ed to rise significantly in cost,
relative to GDP, for several rea-
sons,” said the report on
low-income programs. “To begin
with, costs throughout the U.S.
health care system – in both the
public and private sectors – have
been growing faster than GDP for
several decades. Medicaid isn’t
the cause of this systemwide cost
growth; over the past decade, in
fact, per-beneficiary costs have
risen more slowly in Medicaid
than under private insurance, a
trend expected to continue over
the next ten years.”
It also noted, “A second reason
that Medicaid costs will rise faster
than GDP is the aging of the pop-
ulation. Older people have much
higher average health care costs
than younger people. Elderly and
disabled beneficiaries account for
24 percent of Medicaid beneficiar-
ies but 64 percent of program
costs. As the population ages, the
number and share of Medicaid
beneficiaries who are elderly will
increase, raising program costs.
“Another reason that Medicaid
costs will continue to rise signifi-
cantly is the continued erosion of
employer-based health coverage.
Over time, the share of low-
income people able to get
coverage through their (or their
families’) employers has fallen, so
more of them have turned to Med-
icaid for coverage.”
Yes, the federal government
needs to pay close attention to
future spending and revenue. But
not because spending is out of
control or the safety net is bank-
rupting the country.
George E. Curry, former editor-
in-chief of Emerge magazine, is
editor-in-chief of the National
Newspaper Publishers Associa-
tion News Service.