“Dan, it’s called the law of supply and demand . . . .  Let me explain.”

We all know that Dan the Dictator is a CPA and an attorney, as well as the smartest guy in any room not occupied by Barack Obama.  Now we also know know definitively that the County Diminutive is no economist. 

Dan the Dictator has continually claimed that the Drink Tax has had no negative economic impact in Allegheny County.  While a ridiculous claim on its face, it is made more ridiculous by figures released by the Commonwealth of Pennsylvania Liquor Control Board. 

The LCB has released its wholesale purchase figures to licensees from 2008.  The figures show that licensee purchases of beer and wine in Allegheny County were down in 2008 were down 4.2% from 2007 — thats $1,973,596 less than the previous year.  In the meantime, licensees in the five counties surrounding Allegheny purchses 4.2% more wine and liquor than the previous year.  Statewide, licensee purchases were up by .5%.  

Put another way, the increase in sales in the five surrounding counties accounted for 59% of the overall state increase. 

Wholesale wine and liquor are the raw materials in a restaurant and tavern’s final product, the retail drink.  If wholesale sales are down, so are retails sales.  The long and the short:  patrons are manifestly choosing to frequent restaurants and taverns in neighboring counties to Allegheny rather than in Allegheny County itself. 

Milton Friedman, we beseech you.  Come to Pittsburgh and give a lesson or two in Econ 101 to our County Diminutive.