On the eve of the Calgary Stampede everyone suddenly has an opinion about the price of beer. “Job-killing” price increases! Stifling red tape suffocating the hospitality industry! Oh my! One would think capitalism its very self is at risk.

You’ll forgive me if I fail to climb onto the barricades. It is a perfectly reasonable policy decision that unfortunately got caught up in Stampede-esque stupidity.

Let me backtrack a bit. This all started very a couple of weeks ago when the AGLC quietly announced an increase in the minimum price for alcohol (so quietly they tucked it into the announcement of stupid early opening of pubs for the World Cup). The minimum price of beer was moved to 25 cents per ounce from 16/oz, a 56% increase. Now, keep in mind the last increase was back in 2008, so the jump isn’t so crazy. Practically this means the lowest a bar can charge for a 20oz pint of beer is $5, up from $3.20.

This news landed serenely at first. A few bar owners lamented their college student-oriented happy hours were going to get a bit more expensive, there was a single CBC News story and that was about it. Then the right wing outrage machine discovered over this past weekend that Calgary City Council set some new noise rules for Stampede Tent Parties, slightly reducing how late the music can blaze in downtown neighbourhoods. Sparked by a tweet by Premier Smith, the Conservative social media mob started dumping on the City for being a fun-killer. Mayor Jeromy Farkas punched back by observing that the government had recently increased the price of beer. A bit of an unfair shot, but understandable given the unjustified drive-by he had to deal with.

Well, his shot seemed to hit the mark. Two days later, Service Alberta and Red Tape Reduction Minister Dale Nally announced the increase had been reversed. Interestingly he blamed AGLC for going rogue on the policy, which is complete and utter nonsense, since even though it is officially arms length, the AGLC does not do anything without telling the Minister responsible. So, in short, Nally knew and approved.

Anyway, we are back to the 2008 policy.

And my question is, why?

The 2008 policy to set a minimum price is anchored in a social responsibility approach. At the time bars were selling shots and high balls for $1 during certain times. As you can appreciate, selling booze for a buck contributed to a lot of excessive drinking by young people looking for a good time. Most people at the time felt the policy was a reasonable response to a legitimate problem.

Then the policy calmly slipped into standard practice. Bars and restaurants adjusted and everything was good. After 18 years and 48% cumulative increase in the cost of living, it seems the AGLC decided it was time to increase the minimum price to keep it meaningful.

Which initially landed pretty well. Again, a reasonable decision to keep a reasonable policy effective. Then Stampede-gate happened, and reasonable people got lost in the fight. I feel it is evidence of how stupid Alberta politics has become.

So, let me switch to my take on the policy. While government should mostly let the market decide how much to charge for alcohol, I believe there is a legitimate justification for ensuring that bars don’t charge too little. One dollar shots or highballs is, simply, not responsible. It clearly is a money loser for the bar and naturally leads to people drinking more quickly than they might otherwise to take advantage of the deal.

I have a nuanced position on minimum pricing overall (as evidenced by this older post I wrote), but I know that I don’t support $1 shots.

And, more realistically, when was the last time you paid $3.20 or even $5.00 for a pint of beer? I know that answer. Not in years. Maybe decades. It is not a real price for a real beer at a real bar. Ultra cheap beer doesn’t come for free. The price is likely possible because of inducements or a decision to lose money on the beer. And, of course, the beer will not be good beer.

So what is the problem with increasing the minimum price to, largely, match inflation? I am pretty sure until someone challenged Cowboys Dance Hall’s right to party all night, there wasn’t one. And now the policy is victim to the ongoing re-activeness of our current provincial government.

So, my take is re-instate the minimum price increase and let the industry figure it out. No one in the industry gets hurt and maybe we reduce binge consumption just a little bit. And as for Stampede noise, let the people in the neighbourhood decide what they want.