The Problems Of Prohibition In The 1920's

The Problems of Prohibition

The Roaring Twenties was an era of pushing the boundaries of American Society. A revolutionary movement of the time period is exemplified in the effects that the prohibition of alcohol had on society. The 18th Amendment and the Volstead Act were ratified in hopes of a brighter future for America. It was expected that neighborhoods would be safer due to less alcohol- related crimes. Many people believed that the funds previously spent on alcohol would be redirected into other parts of the economy. Although the expected outcomes of prohibition were good, ultimately its negative effects outweighed the positive (Lerner).

Many groups benefited from prohibition, including women, doctors, and even the entertainment industry.

The actual effect of prohibition on the crime rate was drastically different than what society had anticipated. As demand for alcohol rose sharply, Americans became creative with ways to evade the law and quench their thirst. Gangsters opened speakeasies across the country. They were similar to modern-day bars, except that they were hidden and those who entered had to have a special code to prove that they were not law enforcement. Moonshiners became skilled at concealing their liquor stills in the woods or their bathtubs. Jails and courtrooms became overcrowded with criminals who were caught making, selling, or transporting alcoholic beverages. The man responsible for a large portion of the illegal liquor business was Al Capone (Getchell). The famous gangster profited greatly from his illegal endeavors, having approximately 100 million dollars by 1927. Capone and gangsters such as he significantly aided in the establishment of organized crime in America. As they became more skilled in their work, mobsters began running prostitution rings, selling narcotics, gambling, and loan- sharking. The actions of Italian bootleggers and other gangsters in New York city gave way to the American Mafia crime group. Instead of the crime rate decreasing due to prohibition, the unlawful distribution of alcohol gave gangsters the opportunity that they needed to establish

The federal government felt the severe backlash of the 18th Amendment. 11 billion in tax dollars alone were lost, not to mention the 300 million dollars that were spent on the enforcement of prohibition (Hanson “Negative Effects of Prohibition”). Prior to prohibition, states relied on excise liquor taxes to fund their budgets. For example, 75% of the revenue in New York came from taxes on alcohol. When the liquor industry shut down, thousands of families across the United States lost a significant source of income. States resorted to relying on income tax to fund their budget which was not very effective considering the amount of job loss in the country. (Lerner) Prohibition did not help the federal, state, or family financial