Monday, May 19, 2008

75 years after the end of Prohibition

National prohibition on alcohol manufacturing, consumption and shipments started in 1920, a product of the 18th Amendment and federal legislation.

But its roots went back decades, emerging from a stew of religious activism, optimistic reform and the thrust to regulate big business — including banks, railroads and meat companies. By 1917, more than a dozen states had already drafted tough anti-alcohol laws in response to the perceived perils of alcohol: addiction, violence and the breakup of families.

Still, the federal government relied on revenue from alcohol taxes. But the 16th Amendment, ratified in 1913, ushered in a national income tax; its ability to raise big sums surprised "even its most enthusiastic supporters," said Donald Boudreaux, chair of George Mason University's economics department.

Suddenly, the federal budget didn't have to lean on alcohol. "The political cost of pandering to the temperance groups" fell, said Boudreaux.

Congress passed the 18th Amendment in December 1917. In January 1919, Nebraska became the thirty-sixth, and decisive, state to ratify it. One year later, Prohibition went into effect, outlawing the manufacture, sale or transportation of "intoxicating liquors" in the U.S. for beverage purposes.
 
 

No comments:

Post a Comment