Have a Pint, Save the Economy

Fascinating piece in the New York Times Economix blog on the "beer recession."

Europeans are saving money by drinking at home rather than in pubs, which is costing jobs in the hospitality industry and depressing tax revenue, according to the study by Ernst & Young, which was paid for by the Brewers of Europe, an industry group.

The shift to home consumption has a disproportionate effect on unemployment, because 73 percent of jobs associated with the European beer industry are outside breweries. They are found instead in bars, hotels and restaurants.

The magnification means that an 8% decline in pub sales works out to a 12% decline in beer industry employment. The figures were worse in Greece, where a five-liter decline in consumption led to a 15% crash in beer industry employment. The lesson is, as always, the same: drink your beer.