Answer to Question #133761 in Microeconomics for Ritika

Question

About 5 years back CM Nitish Kumar banned liquor in Bihar before the election in 2020 echived you to give him advice on the liquor policy.

Answer 1

Firstly, the government has lost a lot of revenues from tax on liquor which will support some of the government projects. Also, many people have lost their businesses (not talking about liquor store owners only). Lots of poor people doing business alongside thekas. They might switch their business but it will take time and they need money too to start something afresh, still there is no guarantee it would be successful.

People working in beer/alcohol factories, people working at Bar etc they have lost their jobs. Besides that, this Ban might increase crime activities and new dangerous ways to get drunk.