Economy Archives - Page 15 of 44 - Mississippi Center for Public Policy

As Mississippi marks the 54th anniversary of legal liquor sales in the state, the state run liquor warehouse is still not able to meet consumer demand.

In a recent story from WLBT, local liquor store owners are complaining that liquor shipment are still delayed at least two weeks. There was a run on liquor at the beginning of the pandemic, but that has eased off. Sean Summers, owner of Calistoga Wine and Spirits in Ridgeland, said his business is down 50 percent since December.

Yet, Alcohol Beverage Control is unable to complete basic orders. This raises numerous questions, such as, why do we need the state to control alcohol?

But what makes the recent news about shortages more ironic is that yesterday marked the 54th anniversary of the first legal liquor store in the state. On that day, Jigger and Jug opened in Greenville. That happened more than 30 years after the federal government repealed prohibition.

Mississippi has a long history of attempting to control alcohol consumption. It was the first state to pass some form of prohibition in 1908, and then was the first state to ratify the 18th amendment, creating a federal prohibition in 1918.

While prohibition inspired some great blues songs and classic literary characters it was bad public policy. For years before 1966, many establishments openly sold alcohol to customers, and the state even placed a 10 percent tax on the sale of alcohol, essentially making a mockery of its own prohibition laws.

Public policy ought to be rational and easily comprehendible by the public. Our modern laws governing the control of alcohol are anything but that, and continue a long tradition of excess government control.

We have over empowered individual counties to define their own laws, and in so doing have created a chaotic state of regulation, difficult to understand by the average residential citizen, let alone internal and external businesses hoping to sell. Though residents in dry counties or those passing through will soon be allowed to legally posses alcohol.

Furthermore, the state has retained an egregious amount of control of the distribution process. Mississippi has decided that, rather than allow private businesses to control the market, it will run a large warehouse in the central part of the state which will have a complete monopoly over the distribution of all spirits and wines.

As the Department of Revenue states on its own site, “the ABC imports, stores, and sells 2,850,000 cases of spirits and wines annually from its 211,000 square foot warehouse located in South Madison County Industrial Park.”

This warehouse consistently operates at capacity, and government leaders are considering a $35 million expansion. Perhaps our politicians ought to consider giving the free market a chance?

There is no reason that our government should be so deeply involved in controlling the distribution for a product. They hike up prices by a tremendous rate, limit access to the product, and determine which brands are allowed to sell in the state, leaving businesses in the dark and unable to control their own wares.

Private businesses are barred from distributing alcohol in Mississippi. While UberEats, DoorDash, and GrubHub have created thousands of jobs in other states through their delivery systems, our legislative leaders have shut down this opportunity for individuals to order alcohol with their delivery.

And while a variety of companies sell and ship wine, whiskey, and other alcoholic beverages around the country, our legislative leaders have determined that we shouldn’t have this freedom of access.

The excess regulation has made Mississippi last in the nation for craft beer development. For comparison, craft brewers currently produce $150 per capita in Mississippi, while they produce $650 per capita in Vermont. Imagine the difference such an industry could make in our state. This is thousands of tangible new jobs which are being discouraged from coming into existence by our government.

Existing policies have led Mississippi to have the largest shadow economy in the nation (referring to the exchange of products that are not taxed or recorded) at 9.54 percent of GDP. Moonshine is either produced or is available in every single county, which many link to the strict regulation of the alcohol industry. Our egregious taxation of alcohol products displayed here by the Department of Revenue has encouraged many companies such as Costco and Trader Joes to avoid opening locations in the state due to the lack of revenue potential on alcoholic products.

Prohibition is alive and well in Mississippi. Our government has decided we apparently can’t be trusted to make basic purchasing decisions for ourselves, so they must control what alcoholic drinks we’re allowed to have access to, how we’re allowed to receive these drinks, and from whom we’re allowed to purchase these drinks.

Be not fooled by the government “do gooders” who proclaim that they carry out policies like this for our own protection. Too many of our political leaders refuse to give freedom a chance, and instead have decided that they know better than we do when it comes to running our lives.

The fact is that while Mississippi prides itself on having a relatively low income tax, it finds dozens of other ways to tax and control its citizens.

Companies are discouraged from entering into business in the state because we have established covert taxes which discourage entrepreneurial risk taking.

Mississippi controls, regulates, and taxes alcohol worse than New York or California, so imagine what other discrete ways it is shutting down job opportunities and discouraging new business.

For now, the premise is simple: Get the state out of the alcohol business. Alcohol sales shouldn't be another excuse to take from taxpayers. That is not the role of government. Instead, Mississippi leaders should trust in the free market.

“The government shutdown pretty much devastated my business. Today, my business is in financial jeopardy.”

Edward Ferrell and his wife Kristi own Little Yazoo Sports Bar and Grill on Highway 49 in Yazoo City. They purchased it in 2014 when the opportunity occurred.

“It’s always been a bar here,” Ferrell said. “It’s always been lucrative, so we took a chance on it. We’ve owned it for the last six years, and every year we stayed in the black until this year when they decided we needed to shut down for the COVID 19 outbreak.”

Back in March, the bar was forced to shut down by the state. As opposed to restaurants that could hang on by offering curbside or take out, they couldn’t. The bar would stay locked down for more than two months.

“They promised us all kinds of grants and loans. Nothing’s happened. I have not received a dime of that money. I’ve had to let good friends go who had worked for me for the last five years because I can’t afford to pay them. I can’t afford to pay the bills. I’m dipping into my savings that we were going to use to update the bar. We can’t do it now.”

Today, Ferrell has to use his income from his other job to pay the bills at the bar because they aren’t making the money needed to cover costs.

Because even though bars are limited to 50 percent capacity, it doesn’t mean bills have been cut in half.

“My bills are not 50 percent. I still have to pay the same amount of rent, same amount of lights, same amount of water, same amount of insurance. I try to make a dollar for myself, and there’s just no way to do that. We had a full-time kitchen. Now we can’t afford to pay a cook, so we had to shut the kitchen down. You can’t order half stock, you have to order full stock, and you’re going to lose half of it because you’re not selling it. They don’t split the packages in half because were at 50 percent.

“We’re limited to 50 percent, but it took 90 percent at full capacity just to pay the bills.”

To the Ferrell’s, and those that frequent the bar, it’s more than a place to get a drink.

“We firmly believe in giving back to our community. Every year we hold a womanless beauty pageant. We take that money raised, and we take care of the DHS foster kids. Anytime someone comes down with cancer, a friend of ours, a patron of our bar, we jump in and do benefits for them, we raise money to help them. We recently had a nurse who had to have emergency surgery, and she’s out for eight weeks. We did a plate cooking here and raised a lot of money that’s going to help pay her bills while she’s out.”

“We love them, they’re family, we’re all family.”

And so, Edward and Kristi will keep fighting. Even at 50 percent.

Now would be a great time for the Occupational Licensing Review Commission to take a deep dive into Mississippi’s regulatory burden and cut what is unnecessary, duplicative, outdated, or that stifles economic growth.

Enacted four years ago, the OLRC is made up of the governor, secretary of state, and attorney general. In their original form, they were tasked with reviewing all new regulations from boards and commissions that are run by active market participants. Meaning, a Board that is comprised of individuals who work in that field. For example, the Board of Medical Licensure is made up of medical doctors, the definition of market participants and any new regulations or changes they propose have to go through OLRC.

The premise is basic: A board should not be able to design regulations to stifle competition and benefit individual members in that field.

The Board of Health, on the other hand, has various members and the department has their hand in numerous industries. Therefore, they are not subject to OLRC, which is unfortunate because they make up about 15 percent of all regulations in the state.

So, the OLRC is limited in what they can do, but their power has now been expanded. Instead of just reviewing new regulations, they can now go back and review – and potentially remove – current regulations. That came through House Bill 1104, a bill MCPP championed this year as part of our push to decrease burdensome regulations in the state.

Secretary of State Michael Watson, one of the members of the OLRC, recently unveiled his office’s new ‘Tackle the Tape’ initiative, a first step in addressing these problems.

“I’ve heard too many stories and witnessed numerous Mississippi businesses suffer from the unfortunate consequences of overregulation,” said Watson. “If we truly want to create more opportunities and breed renown entrepreneurs, we have to get government out of the way. As promised when I ran for office, cutting the regulatory burden on Mississippi businesses was, is, and will continue to be a priority for our team. Our voluminous regulation costs us 13,000 jobs per year, which is the equivalent of a new Ingalls Shipbuilding or Nissan locating here on an annual basis. We must do better!”

Watson’s office has reached out to the various licensing boards under OLRC’s jurisdiction in an attempt to partner with the boards in reducing the state’s regulatory burden. We can hope that will have an interest in this process.

In 2018, as part of a national review of state regulations, the Mercatus Center at George Mason University found Mississippi has nearly 118,000 regulatory restrictions on the books. All told, the state code book includes 9.3 million words, and it would take about 13 weeks to read if all one did was read regulations as a full time job.

Overall, Mississippi’s regulatory load is about average for a typical state, but when compared to some of its neighbors, a clearer picture emerges. A new Mercatus Center analysis summarizes data from eight southern states stretching from Kentucky down to Florida and over to Louisiana. Of these states, Florida has the most regulatory restrictions at 171,000. However, if one adjusts for the fact that a bigger population tends to generate more regulation, Florida is, by that measure, actually the least regulated. Of the group, Mississippi has the most regulations per capita (and the lowest GDP per capita).

More populous states tend to have more industries, denser urban areas, and other factors that generally contribute to a higher number of regulations. This explains why California, Ohio, New York, and Texas are all among the five-most regulated states in America, despite having very different political environments.

The coronavirus pandemic has revealed deep shortcomings in the regulatory system. To ensure an adequate amount of health care coverage, governors around the country have been relaxing—not increasing—regulations. This includes easing restrictions on telemedicine, recognizing medical licenses from other states, and in some states, rolling back requirements that health care facilities obtain permission from regulators before adding new equipment like hospital beds.

But much more is needed.

As the pandemic continues to ravage the country, and the nation’s regulatory system is simply not up to the task. There is an opportunity to rectify the situation if our leaders will heed the call.

When it comes to education, the private sector and individual families generally do a much better job of innovating than the government. That will remain true during the coronavirus pandemic.

In a world when many government schools are moving to online learning only or implementing rigid policies concerning face masks, social distancing, and extracurricular activities, we have seen an interest in something else. For many that has been homeschooling, but that might not be for everyone.

Enter microschooling, or more simply, pods. This isn’t exactly new. Just much more relevant today than years past.

While this may take many shapes and sizes, the premise is that a small group of families pool their resources to hire a teacher for their children. With this, children are able to get a “school setting,” have a teacher hired by the parents, and parents are able to work outside of the house. And by being in a smaller setting, the thinking is you are less likely contract COVID.

All the while, you have the ability to customize your child’s education in choosing a learning style that you feel best meets their needs and interests. Much like private school, you opt-in after reviewing the various options available and what the specific schooling entails.

How do people find out about local pods and get help in starting one? There are structured microschooling organizations, but if you’d like something more informal, Facebook groups are a great starting point to find the right fit. The Pandemic Pods group now has 30,000 members asking questions and sharing ideas.

Pods can also be a great option for current teachers who either don’t want to go back to school under current conditions or are looking for something different. In this setting, teachers would have a significant amount of autonomy to teach children without the current reliance on test scores and restraints of the state and federal government mandates.

In many ways, pods are similar to co-ops, which have long served homeschool families, but come with some differences. Co-ops largely rely on parents to take turns with instruction and are generally only one or two days per week, with parents filing in the rest of their child’s education. The pod allows an outside source to handle all (or most) of the education during the day similar to a traditional school.

The best part about what we are experiencing with education today is that we are finally seeing a move toward individualism to meet a child’s needs at a large scale. So much of education is just a closed decision. You send your kids to a school when they are five. Thirteen years later they graduate with a certificate saying they learned…something. It requires as little effort as you’d like to make. Usually the hardest decision is finding a place to live within government created lines that dictate school zones or districts.

Today, we’re making hard decisions about our child’s education. A lot of this is about safety and socialization, but it’s about what’s best for them, and what will lead to the best outcomes. That is good. Because the one thing we’ve always said is there is no one-size-fits-all approach that is going to work the same for every child.

For you, that might be a pod.

“My name is Danielle Russell and my business in Craveable Creations.

“You could say I got started when I was 8 years old. My mom and dad were both Navy, so I wasn’t raised by a traditional mom. She didn’t cook much, and she hated it when she did. But my aunt loved to cook, and I loved being with her learning. After she taught me how to make pancakes, I fell in love with cooking everything. I especially love old timey recipes.

“Fast Forward to 20015, a friend of mine asked me to make mini pies for her wedding and I did – 300 mini pies of all sort for the grooms table. After that I researched what I could do from home and found out about the cottage food guidelines. To be honest I do not like having my hands tied by such restrictions.

“I sell baked goods and custom snacks. I have a very eclectic clientele. I have been blessed to be a small part in several weddings, birthday parties – the most recent was for a 99-year young gentleman in our community. I have participated in baby showers, snack foods for football parties. I even had the privilege of making cinnamon rolls for former First Lady Deborah Bryant.

“Because of this business, we’re able to prepare for retirement. I am 46 years old and I have worked in a hospital laboratory as a Med Tech my entire adult life. I was so excited to see the ability to advertise cottage food products online. And the increase income of $35,000 will also be a big help!”

Danielle Russell
Craveable Creations
Newton, Mississippi

“My name is Leslie Stingley and I operate Homestead by the Brambles.

“Currently I make homemade breads, and syrups that can be added to teas, lemonades, and cocktails. I have a garden, we make pickles, and I have wild chanterelles mushrooms growing on the property.

“I started this business when I lost my job at a food manufacturing company in May. I worked 55-60 hours per week before. But because of the new business, I’m now able to be at home with my daughter.

“We are still really in its startup phase, but I know there is a market for fresh, preservative free goods. I’ve seen and experienced the beginning of the failure of the food system. I feel strongly that my purpose is to help change the food system.

“I want to change our culture to one of true sustainability, not this fake sustainability that has been preached by the major food companies the past 10 years. I strongly fear if we have a worse food shortage than we did over the coronavirus pandemic, people will not know how to eat.

“The legislature allowing cottage food businesses to earn more and advertise online will be a big help.”

Leslie Stingley
Homestead by the Brambles
Morton, Mississippi

Mississippi has a ways to go before challenging some of the South’s strongest economies, and one key reason is more regulation and red tape than its neighbors. New legislation proposed this session could have helped rein in government red tape, but the most significant bills failed to gain enough traction. Thus, Mississippi has a long way to go if it wants to unburden itself of the moniker “the most regulated state in the South.”

The biggest regulator in Mississippi, by far, is the Department of Health, with more than 20,000 restrictions. Coming in second is the Department of Human Services, with over 12,000 restrictions. Various state boards, commissions, and examiners have a combined 10,000 restrictions.

These regulations touch every industry in the state and impact each Mississippian in some form or fashion. The health care and assisted living sectors are particularly highly regulated. Some of these rules keep our senior citizens safe, but surely others, like restrictions on relocating or renovating medical facilities, just make the system inflexible, especially during an emergency.

Mississippi lawmakers recently had an opportunity to reduce regulatory burdens. Several bills were proposed that would have created regulatory reduction pilot programs at various state agencies. The idea is that a small consortium of agencies should have to measure and track how much regulation they impose, and then make sensible cuts based on those measurements. If all goes well, the pilot program can be expanded to other agencies. The state of Virginia has already implemented a pilot program like this, demonstrating that the idea is feasible, affordable, and even bipartisan.

None of the various Mississippi proposals made it into law this year. However, governors around the country have taken action by issuing red-tape reduction executive orders. Gov. Tate Reeves could start by reviewing regulations suspended in response to COVID-19, as Idaho has recently done. Or he could take a more aggressive approach, like Gov. Kevin Stitt of Oklahoma, who earlier this year ordered a 25 percent across-the-board regulatory reduction.

Whatever approach is taken, Mississippians need regulatory relief now. The pandemic continues to ravage the country, and the nation’s regulatory system is simply not up to the task. There is an opportunity to rectify the situation if our leaders will heed the call.

This column appeared in the Clarion Ledger on July 7, 2020.

Mississippi has some of the most consumer friendly laws in the country when it comes to buying and using fireworks.

You have probably noticed temporary firework stands set up near your house in the past couple weeks and that is because Mississippi has a defined selling period. Retailers can sell fireworks during the two busiest seasons; from June 15 through July 5 and from December 5 through January 2. And what retailers can sell and you can purchase is largely wide open.

But while state law provides for much freedom, many municipalities limit the use of fireworks in their city limits. Though not exhaustive, here is the rundown of whether fireworks are legal or illegal in Mississippi cities.

Fireworks are legal in the following cities:

Bay St. Louis, Horn Lake, Jackson (as of 2011), Natchez, Nettleton, Waveland.

The use of fireworks are banned in the following cities:

Aberdeen, Amory, Biloxi, Columbus, Corinth, D’Iberville, Diamondhead, Fulton, Hattiesburg, Hernando, Laurel, Long Beach, Meridian, Moss Point, Ocean Springs, Olive Branch, Oxford, Pascagoula, Pass Christian, Petal, Poplarville, Ridgeland, Southaven, Starkville, Tupelo, Vicksburg, West Point.

Disclosure: These regulations are based on recent news stories. Check with local authorities for most updated ordinance.

The default appears to be illegal, while it is largely legal in unincorporated portions of the counties.

One of the most common refrains from limiting fireworks is safety concerns and injuries caused by fireworks. But a 2017 report from the U.S. Consumer Safety Commission says “there is not a statistically significant trend in estimated emergency department-treated, fireworks-related injuries from 2002 to 2017.”

Rest assured, you are more likely to get injured from children’s toys then from fireworks-related injuries.

Noise is the other big complaint concerning fireworks, particularly after a certain time. Of course, municipal noise ordinances can and already do police that issue.

So as you celebrate the day which marks our freedom from the tyranny and oppression of another country, make sure you don’t run afoul with our own government regulators that have taken it upon themselves to limit your freedoms.

A few months ago, I wrote with great hope and optimism that 2020 very well could be the “year for alcohol freedom.”

Unfortunately, even before the coronavirus pandemic forced adjustments to the legislative session, legislators were already casting their votes against many widely popular bills that would have expanded the freedom of Mississippians and strengthened entrepreneurs. Or just never considering such bills.

Sunday sale of alcohol. Grocery stores allowed to sell wine. Direct shipment of wine. Expansion of liquor licenses. Privatization of distribution. Craft brewery freedom. Regulatory reform. A range of bills were introduced this session that would have dramatically empowered both consumers and entrepreneurs. Almost every single one of these bills died.

In voting against alcohol freedom, legislators are not only consistently voting against the will of Mississippians but are also crushing potential economic growth of a potentially major industry.

In a survey conducted earlier this year, an overwhelming 75 percent of Mississippians said that they would be in favor of legislation that allows grocery stores to sell wine in addition to beer. Furthermore, 48 percent of those surveyed said they would be more likely to vote for a legislator who had supported such legislation, while only 17 percent said they would be less likely to vote for said candidate.

The survey also found that among Democrats, Republicans, and Independents, levels of support were above 70 percent. How often today are individuals across political parties able to so strongly agree on an issue? The present support should have been enough to drive change.

House Bill 981, sponsored by Rep. Brent Powell (R-Flowood) and Senate Bill 2531 sponsored by Sen. Walter Michel (R-Ridgeland) would have changed state policy and allowed for the widely supported sale of wine in grocery stores. Unfortunately, neither bill even made it out of committee, and thus was never given a chance for a floor vote in the House or Senate.

Ironically, many Mississippians shop at stores such as Costco, Whole Foods, Sam’s Club, and others throughout the state who have their own liquor store directly attached to the actual store. However, current law does not allow these stores to be connected internally, so one is forced to walk out the door and then right back in. These types of rules fail to pass even a basic test for common sense.

Mississippi had the opportunity to become the 44th state in the nation to give individuals the freedom to purchase wine and have it shipped directly to their homes through Senate Bill 2534, also authored by Michel. When this bill came to the floor, it was defeated by a vote of 32-13.

At the present moment, it seems that the only bill set to pass would allow for shipment of alcohol to a local liquor store. This allows a customer to avoid the hassle of going through the ABC warehouse process to order a specific bottle of wine or liquor, but is far from embracing the widely supported direct shipment of alcohol to one’s home.

In rejecting many good bills, legislators have chosen to not only restrict freedoms that are widely supported by Mississippians, but also to further hinder the alcohol industry in the state.

Moving forward it seems likely that pandemic has changed the state of the game for many burdensome rules and regulations. Many rules have been dismissed, including ones that blocked the sale of to-go bottles of wine or mixed drinks, as well as the delivery of alcohol curbside. While a pandemic has raged across the nation, many of the rules which we were previously told were enacted for our safety, were quickly thrown out in order to promote actual health and safety via social distancing techniques.

Thus, the question is begged as to what other rules ought to be dismissed to further protect health and safety. Ordering alcohol online via one of the many food delivery apps would surely help to lower the number of physical interactions at stores. The direct shipment of wine to one’s home would also go a long way to improve social distancing methods. As the fear of a Fall Covid-19 return looms, should we not quickly take action to promote and encourage safe actions in any way possible?

Support for change in alcohol policy is not a political issue, but a freedom issue. The question at hand is whether state officials trust their constituents to make decisions related to personal responsibility for themselves.

While this may not have been the year for alcohol freedom, continued growth in support for new policies demands a coming change to the status quo.

This column appeared in the Daily Journal on June 23, 2020.