In the Washington Post on Sunday 8/15, I asked whether we have fully dealt with all the questions that need to be considered before we jump on the band wagon for privatization of the ABC liquor stores: “It’s 1934. Franklin Roosevelt is president, Prohibition has just been repealed, and Virginia (along with a number of other states) authorizes the sale of bottled liquor through a chain of state-owned and –operated retail outlets. They’re called ABC stores (for Alcoholic Beverage Control) and the emphasis is on the ‘C.’ Now, more than 75 years later Gov. Robert F. McDonnell (R) is proposing to sell off the state ABC stores to private interests. He promises to use the proceeds of the privatization to provide a one time windfall for Virginia’s cash-starved transportation system…..” Is this really a good deal for the Commonwealth? Read more.

Others have weighed in on the issue: my Charlottesville colleague David Toscano noted, “During campaign season, voters frequently hear the statement, ‘government ought to be run like a business.’ How many businesses do you know would be willing to eliminate a profit center that realizes some $118 million per year in net revenue and another $120 million in taxes for a price that is speculative and which may come with some undesired consequences? Well, that is exactly what the Commonwealth is considering doing if it embraces Gov. McDonnell’s proposal to privatize the ABC stores.”

On the other hand, Washington Post business columnist Steven Pearlstein claims that privatization “offers Virginians the rare opportunity of a free lunch.” Who can argue with a free lunch?