Failure Of American Prohibition In The 1920's

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Throughout history people have banned and gotten rid of certain substances. These substances have either caused bodily harm or the increase of crime within an area. In the United States around 1920 these types of banns were implemented. The ban of alcohol and this implementation led to organized crime and the fall of the U.S. economy during the time. Overall prohibition was a huge failure in many different aspects. When the 18th amendment was implemented into American society in January of 1920 organized crime went through a major boom. This was mostly because in this time people who drank any sort of alcohol were considered criminals. During the early 1920’s jobs were scarce and people needed money to support their families.A lot of American …show more content…

Initially people expected prohibition to benefit the nation economically in a great way. Companies expected the sales of clothing and household goods to skyrocket due to people no longer spending money on alcohol. Real Estate developers and landlords also expected rents to rose as saloons close and the quality of neighborhoods improved. Chewing gum and soda related companies expected huge growth with the ban of alcohol. The theater also expected to expand economically through prohibition as crowds of Americans looks for new ways to entertain themselves. Instead when the 18th amendment was implemented the absolute opposite occurred. There was a decline in entertainment and amusement industries across the board. Restaurants also began to fail as they could no longer make profit through legal liquor sales. Over time other predictions failed and others just passed over with no benefit from prohibition. Overall the initial effects of prohibition were very negative. Also with prohibition came a large wave of unemployment throughout alcohol related businesses. The closing of saloons breweries and distilleries led to the elimination of thousands of jobs following these job losses more followed. Thousands of jobs for barrel makers,truckers, waiters, and other related trades were also lost. The initial job losses of the people in the direct alcohol production business led to a domino effect of jobs across the nation being loss. Although the united economic consequences of Prohibition didn't stop with unemployment. One of the most profound effects of the 18th amendment were on government tax revenues. Before the implementation of the 18th amendment many states relied heavily on excise taxes on liquor sales to fund the state's budget. In states such as New York around 75% of the state's revenue comes from liquor taxes. With the 18th amendment and prohibition in effect, all of the revenue

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