Former President Jimmy Carter may have a somewhat mixed record, with
a Nobel Peace Prize on the one hand and a lost 1980 reelection bid on the
other, but blogger E.D. Kain wants to add
one very significant accomplishment to the Carter legacy: The booming
U.S. craft beer industry. In 1979, Carter de-regulated the beer market,
which had been tightly controlled since the end of prohibition. Kain
passes along this graph from science blogger Rob Carlson:

Kain
writes, "When prohibition was lifted, government tightly regulated the
market, and small scale producers were essentially shut out of the beer
market altogether. Regulations imposed at the time greatly benefited the
large beer makers. In 1979, Carter deregulated the beer industry,
opening back up to craft brewers. ... You can see how the large brewers
continued to consolidate and grow and absorb more and more market share
right up to the point where Carter deregulated the industry."
Carlson
concludes that craft brewers demonstrated an ability to challenge even
the largest and most entrenched beer-making giants. "This is an
interesting and crucial point, because as far as I can tell
nothing else substantive changed about the market.
Deregulation reopened the market to craft brewers and the industry
blossomed through organic growth and the preferences of consumers. (
Conclusion:
Emerging small scale, distributed production can compete against an installed large scale infrastructure base.)"
Kain
is careful to note that there are times when more regulation is a good
idea--offshore oil drilling practices, for example. The difference, he
says, is that oil industry deregulation was done probably at the behest
of industrial lobbyists, whereas beer deregulation was in the service of
mom-and-pop brewers.
Want to add to this story? Let us know in comments
or send an email to the author at
mfisher at theatlantic dot com.
You can share ideas for stories on the Open Wire.
User Comments
Please type your comment and click Post. If you’re not already logged in you will be prompted to log in or register