The effects and the economic winners of the repeal of prohibition

Question

What Was the effect on bootleggers because of the repeal of prohibition and who were the economical winners in government and business because of the repeal of prohibition. Finally would determined who the major distributors of alcohol would be after prohibition was repealed and bootleggers were put out of business?

Answer 1

First we should consider why prohibition was even introduced. Prohibition in the era of the first world war, was a continuation of campaigns against intoxication in the late 19th century, often led by labor reformers and suffragists. The turn of the century brought the onset of a progressive movement and era that sought to address massive social and economic inequality, public health problems attributable to poor urban living conditions, and political corruption, all brought on by the rise of industrialization during the late 19th century. The impact that alcohol had on the working class and home life, its relationship to prostitution, spread of disease in the military, and manufacturers influence on politicians meant that the problem was tackled from many angles. Employers felt it would make the work force more disciplined and productive. reformers thought prohibition would make city life orderly and cleaner, women's suffragists argued it would make women and children safe from domestic violence at home. Saloons also promoted prostitution, gambling, disease, and gave corrupt politicians and the mob a place to organize.

Production of beer requires grains which some argued should be used for food during war time. Prominent breweries were owned by German Americans, which while fighting Germany during WWI turned many off. When prohibition became law vis a vis the 18th amendment it alleviated some of these problems but created others. Bootleggers profited enormously because prohibition did not change the fact that people liked to drink and created under ground saloons or "speak easies" supplied by mobsters and bootleggers - political corruption continued.

So when it was repealed in 1933, bootleggers lost out financially because alcohol was once again mainstream, less need for underground saloons in cities. Who was able to produce and sell alcohol was largely affected by government legislation and imposed regulations. With its repeal, production of beer and wine was made legal so long as it had a certain alcohol content. Distilled spirits required a license which made home production and sale difficult. With sale and production legal again, tax revenue increased, Farmers profited to some degree because of the need for grains crops. Breweries and distilleries required workers to be profitable. Mass producing alcohol meant that manufacturers needed to purchase or produce grain, purchase property for facilities, and employee and pay workers which at least in theory is expensive. This meant a select few were able to profitably produce alcohol.