This isn’t as unbelievable as the headline would make you believe really. It says the government is buying 200 million in wine stock (almost certainly lower quality wines) and repurposing the alcohol for use in other products. It’s not like they are destroying it to keep demand for wine higher, they are buying it to try and keep the french wine industry strong.
I was imagining trucks of wine being dumped into the river, but the government buying it to subsidize the industry during a slump is a classic keynesian move. That doesn’t mean it won’t end up getting dumped when they realize they don’t have any use for it though.
The French alcohol industry exported around $17.2bn worth of wine and spirits last year. The EU provided €160mn towards the purchase of excess wine and the French government provided the remaining €40mn. The wine industry is one of France’s biggest exports and is also one of significant national pride. For them to spend an amount that’s relatively quite small to help strengthen their prized industry by buying and repurposing excess wine is really not the unbelievable act a headline would have you believe.
This isn’t as unbelievable as the headline would make you believe really. It says the government is buying 200 million in wine stock (almost certainly lower quality wines) and repurposing the alcohol for use in other products. It’s not like they are destroying it to keep demand for wine higher, they are buying it to try and keep the french wine industry strong.
I was imagining trucks of wine being dumped into the river, but the government buying it to subsidize the industry during a slump is a classic keynesian move. That doesn’t mean it won’t end up getting dumped when they realize they don’t have any use for it though.
u can keep any industry strong with free taxpayer money
The French alcohol industry exported around $17.2bn worth of wine and spirits last year. The EU provided €160mn towards the purchase of excess wine and the French government provided the remaining €40mn. The wine industry is one of France’s biggest exports and is also one of significant national pride. For them to spend an amount that’s relatively quite small to help strengthen their prized industry by buying and repurposing excess wine is really not the unbelievable act a headline would have you believe.
good for them. hope those industries pay their dues to the goverment